Tax
New rules for solvent liquidations
Following a rather ambiguous reference regarding proposed changes to entrepreneurs relief outlined in Autumn Statement 2015, the recently published policy paper and draft clauses for inclusion in Finance Act 2016 shed more light on the Chancellor’s intention to target “contrived schemes”. It seems the core change is not to...
Read MoreEntrepreneurs Relief: Closing Loopholes
Rules surrounding entrepreneurs relief have narrowed considerably with 2015’s Budget. This valuable capital gains tax relief entitles company directors who own at least 5% of a company to benefit from a 10% tax rate on eligible disposals (up to a lifetime limit of £10 million) – as opposed to...
Read MoreDeath of the annual tax return: a nail in the coffin for accountants?
In his 2015 Budget, George Osborne confirmed plans to scrap the requirement to submit annual self-assessment tax returns in favour of a digital tax account system – the intention being to enable individuals and small businesses to submit accounts throughout the year via computer, tablet or smartphone. Assuming a...
Read MoreUsing your pension pot as a tax free way to pass on wealth
Having introduced auto-enrolment in an attempt to improve pension saving in the UK, it seemed fitting that the government reform pensions per se to make them a more appealing option. The Budget delivered in March 2015 certainly did not disappoint in this respect. Commencing April 2016, savers will have...
Read MoreInheritance Tax changes breed discontent
Policies that fail to benefit society equally invariably attract criticism to some degree. This is certainly the case with regards to Inheritance Tax (IHT) on which the spotlight has shone brightly since the Chancellor’s second budget this year. Without meaning to dismiss the current IHT nil rate band...
Read MoreLandlords tax relief reduced
At present, landlords are entitled to claim tax relief at their top level of tax on monthly interest repayments in relation to any loan taken out to buy, improve or maintain residential buy-to-let properties (for example mortgage interest, interest on loans to buy furnishings and fees incurred when taking...
Read MoreAre you concerned about the forthcoming changes to dividends?
The proposed new taxation system for dividends, announced by George Osborne in the Second Budget 2015, is evidently one of ‘give and take’ – while individuals will be given an annual £5,000 dividend tax allowance from 6 April 2016, the long-established dividend tax credit is to be taken away....
Read MoreSocial Investment Tax Relief: a tax incentive to make the world a better place
Considerable recognition has been given to two investing tax schemes in recent years, namely the Enterprise Investment Scheme (EIS) and Seed Enterprise Investment Scheme (SEIS). Whilst these marked the government’s intention to encourage investment in start-up companies and early stage ventures, a further scheme was introduced in 2014 to...
Read MoreSchool Fees Tax Planning – an effective tool
School fees represent a significant cost (with latest figures averaging them upwards of £15,000 per year) to parents who opt to educate their children at fee-paying schools. With a number of independent schools in Cambridge alone, this is a real issue for many parents in our region. Regardless of...
Read MoreHow to turn your pension fund into cash for your business
Offering a tax incentive when raising corporate finance can be a decision-making ‘tipping point’ for investors if it cuts the cost of investment. Since the Chancellor’s statement in the Budget allowing anyone over the age of 55 to access their pension fund in its entirety, subject to a tax...
Read More
