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How to roll-over capital gains

10 Aug, 2017

Business Asset Rollover Relief allows for the deferral of Capital Gains Tax (CGT) on gains when you sell or dispose of certain assets and use all or part of the proceeds to buy new assets. The relief means that the tax on the gain of the old asset is postponed. The amount of the gain is effectively rolled over into the cost of the new asset and any CGT liability is deferred until the new asset is sold.

The end of disincorporation relief?

02 Aug, 2017

Disincorporation involves the transfer of a business from a private limited company to a sole trader or partnership. Disincorporation relief was introduced from 1 April 2013 and is effectively a form of roll-over or deferral relief. The relief is due to end on 31 March 2018.

VAT – what you cannot reclaim

02 Aug, 2017

Most VAT registered businesses are entitled to reclaim the VAT they incur on goods and services used by the business. This is known as input VAT.

Some of the common areas where VAT cannot be reclaimed include the following:

Landlords, what expenses can you claim?

02 Aug, 2017

It is important that landlords are aware of the expenses that can be deducted from their rental income. As a rule, these expenses must be wholly and exclusively for the purposes of renting out the property in question.

Company purchase of own shares

02 Aug, 2017

As a general principle, when a company makes a purchase of its own shares, any payment in excess of the amount of capital originally subscribed for the shares is treated as a distribution (taxed as income not a capital gain). However, there are special provisions that enable an unquoted trading company or an unquoted holding company of a trading group to undertake a purchase of its own shares without making a distribution.

Tax write downs for business cars

02 Aug, 2017

Capital allowances allow businesses to secure tax relief for certain capital expenditure. Qualifying expenditure on cars must usually be allocated to one of two general pools of expenditure. Which pool is appropriate depends on the car’s CO2 emissions.

Expenditure on cars with CO2 emissions over 130g/km will be dealt with in the special rate pool and will attract a WDA of 8% p.a.

Expenditure on cars with CO2 emissions from 76g/km of up to and including 130g/km driven will be dealt with in the main pool and will attract a WDA of 18% p.a.

Let property disclosure campaign

02 Aug, 2017

HMRC’s Let Property Campaign provides landlords who have undeclared income from residential property lettings in the UK or abroad with an opportunity to regularise their affairs by disclosing any outstanding liabilities whether due to misunderstanding the tax rules or because of deliberate tax evasion.

Supreme Court declares employment tribunal fees unlawful

01 Aug, 2017

In R (on the application of Unison) v Lord Chancellor 2017, the Supreme Court has ruled that employment tribunal and Employment Appeal Tribunal (EAT) fees are unlawful and it has quashed the Employment Tribunals and the Employment Appeal Tribunal Fees Order 2013 with immediate effect. The Supreme Court held that the fees regime was unlawful under both UK and EU law as it prevents access to justice and imposes unjustified limitations on the ability to enforce EU rights; fees had been set at too high a level.

Tax Diary August/September 2017

28 Jul, 2017

1 August 2017 - Due date for Corporation Tax due for the year ended 31 October 2016.

19 August 2017 - PAYE and NIC deductions due for month ended 5 August 2017. (If you pay your tax electronically the due date is 22 August 2017)

19 August 2017 - Filing deadline for the CIS300 monthly return for the month ended 5 August 2017.

19 August 2017 - CIS tax deducted for the month ended 5 August 2017 is payable by today.

European Union (Withdrawal) Bill published

27 Jul, 2017

The government has published the European Union (Withdrawal) Bill 2017-19 and it has had its first reading in the House of Commons. The second reading is scheduled for 9 September 2017, following which it will enter Committee Stage for further debate. Explanatory Notes to the Bill have also been published.

The Bill performs four main functions. It:

The new State Pension

26 Jul, 2017

The new State Pension is payable to those that reach the State Pension age on or after 6 April 2016. The full new State Pension is currently £159.55 per week and is payable to eligible women born on or after 6 April 1953 and eligible men born on or after 6 April 1951. Retirees that reached the State Pension age before 6 April 2016 will continue to receive the State Pension (not the New State Pension) under the old rules.

Tax free savings income

26 Jul, 2017

The Personal Savings Allowance (PSA) was launched on 6 April 2016. The allowance means that the first £1,000 interest on savings income for basic rate taxpayers is tax-free. For higher-rate taxpayers the PSA is £500. Anyone earning over £150,000 does not benefit from the new PSA.

In addition, any taxpayers whose total taxable income is less than £17,500 won’t pay tax on any savings income. This is made up of 3 elements, the personal allowance for 2017-18 of £11,500, the £5,000 savings starting rate and the £1,000 PSA.