How to Utilise Capital Gains Tax Deferral Relief
While capital gains tax deferral relief has been in place for some years, the ongoing reduction in the capital gains tax allowance will make this option more valuable as we advance.
Why might you choose an LLP over a limited company?
There are numerous ways in which you can set up a business, partnership, limited company or sole trader. Amongst these options are hybrids, including limited liability partnerships (LLPs), which incorporate elements of different setups. As ever, when it comes to taxation, nothing is straightforward. Consequently, it is essential to appreciate the pros and cons of LLPs and limited companies when setting up a business.
Accountancy bodies critical of HMRC service levels
There is growing frustration and concern amongst the accountancy community about the level of service provided by HMRC. This came to a head on 1st March 2023 when an open letter signed by ten accountancy bodies was sent to the Chancellor of the Exchequer, Jeremy Hunt. After years of unrest, more recent changes to HMRC working practices and staffing levels are compromising the activities of accountancy practices up and down the UK.
Covid bounce back loans, bad debts and fraudulent activity
Stuck between a rock and a hard place at the height of the Covid pandemic, facing the potential collapse of the UK economy, HMRC announced fast-track funding. While many warned at the time that the application process was open to fraudulent activity, the government distributed approaching £100 billion in grants and loans. The bounce-back loan scheme is attracting the most interest amid concerns of bad debts and fraudulent activity on a criminal scale.
Changes to the Annual Tax on Enveloped Dwellings
In a sleight of hand similar to fiscal drag on income tax bands, the Treasury will instantly increase 2023/24 revenue from the Annual Tax on Enveloped Dwellings (ATED). This tax is charged to Non-Natural Persons (NNPs) holding a UK dwelling - not individuals. While the changes have slipped under the radar, with little coverage, it is yet another enhanced tax burden for those impacted by the regulations.
Trust Registration Service and property ownership
When the Trust Registration Service (TRS) was created back in 2017, there was criticism that it needed to go further. The original regulations were introduced as a consequence of the EU Anti-Money Laundering Directive. Even after Brexit, the UK authorities have agreed to maintain the TRS, which can be used with EU partners to identify potential issues.
Annual Tax on Enveloped Dwellings – ATED
All companies (whether UK or not) holding UK residential property valued at over £500,000 are subject to the Annual Tax on Enveloped Dwellings (ATED). This could mean more properties are likely to breech the £500,000 limit and fall into the ATED regime for the first time.
Is inflation a form of tax?
We are all taught that controlled inflation is critical to long-term economic growth, while out-of-control inflation can decimate spending power. But, as inflation impacts businesses and households, government spending and personal income, this prompts the question, is inflation a form of tax?
How to structure the purchase of expensive assets with private usage in a business
The most common type of benefit in kind is a company car which, under a limited company structure, can attract significant tax liabilities. We will now look at the benefit in kind tax calculation under a limited company and consider ways to mitigate this.
Paying tax on the sale of a property must be simple?
As an outsider looking in, surely the taxation of property gains is relatively straightforward? Understandably, maybe there are different rates for companies and individuals, but how much more complicated can it be?