Tax Insider Newsletter Bundle 

Making a withdrawal: Pension payments 

Attractive tax reliefs are available on contributions to a personal pension plan and to the plan itself, but the focus here is on the basic income tax implications when the saver wishes to draw money from that pension.  

Richard Curtis looks at income tax implications of withdrawals from a personal pension plan.  

It is quite common for building projects to attract more than one rate of VAT on different elements of the development. 

Andrew Needham looks at how businesses can simplify accounting using composite VAT rates when making supplies of different VAT rates, particularly in the construction industry. 

The ‘basics’ of share loss relief? You must be kidding! 

Share loss relief (SLR) applies to ‘qualifying shares’; shares to which income tax relief under the enterprise investment scheme (EIS) is ‘attributable’ are automatically qualifying shares.   

Mark McLaughlin looks at the importance of making a will, and some inheritance tax and other implications of intestacy. 

CIS: More compliance needed! 

Under the construction industry scheme (CIS), contractors and deemed contractors must withhold deductions from payments made to subcontractors who do not hold gross payment status (GPS), at either: 20% (the standard rate) or 30% (if the recipient is not registered for CIS or cannot be verified). 

Kevin Read outlines the changes to the CIS rules in Finance Act 2024 and also looks at a recent tribunal case. 

Helping employees through the cost of living crisis 

Given this challenging economic environment, many employers are looking to see how they can help employees financially. Pay increases may not be an option, bearing in mind the additional tax and National Insurance contributions (NICs) implications for employers and employees.  

Jennifer Adams considers various ways employers can help employees through the cost of living crisis.  

Capital allowances: What’s new? 

Accounts depreciation is not allowed within tax calculations; it’s too subjective, so instead of that capital allowances generally apply for tax purposes. These allowances have been in place for ‘wear and tear’ to plant and machinery since 1878, with a factory and mills allowance allowing for economic depreciation within a trading business.    

Chris Thorpe looks at where we are with capital allowances. 

Helping hands: Are you liable for the NMW? 

Businesses are generally obliged to pay at least the national minimum wage (NMW) to their workers. Most UK workers over compulsory school age who ordinarily work in the UK are entitled to be paid the NMW.

Mark McLaughlin looks at the national minimum wage for householders, families, and family businesses.  

Q&As with Arthur Weller

HMRC enquiries: A sting in the tail 

Enquiries by HM Revenue and Customs (HMRC) involving businesses often extend to the business owners themselves. Tax return adjustments can occur, even for honest business owners.  

Mark McLaughlin looks at ‘close’ company overdrawn directors’ loan accounts and tax liabilities under the ‘loans to participators’ rules, following HMRC enquiries.  

HMRC has car trouble! 

We have a special regime for the taxation of motor vehicles, the principles of which were set out many years ago. But there is still scope for disagreement with HMRC, and it often does not go HMRC’s way.  

Lee Sharpe highlights several problem areas for HMRC with the taxation of motor vehicles, where the taxpayer may stand to benefit.  

 Valuable tax pointers about succession planning 

Vincent was at home recovering from a very nasty bout of pneumonia. He had been hospitalised for over three weeks and had to spend his 64th birthday in a hospital bed. However, it was the first time that he had time to really think about his life and the future of ‘his’ property construction consultancy business, which he ran through his 100% owned company, Starry Night Consultants Ltd (SNCL). He was pleased to learn that the company’s senior management team had really stepped up to the plate during his illness. And they had managed without him for over two months now.  

Peter Rayney shares some valuable pointers about succession planning based on a recent client experience. 

Is operating through a personal company still worthwhile? 

Historically, from a tax perspective it has been preferable to operate a business as a personal company and extract profit in the form of a small salary plus dividends than to run an unincorporated business.  

Sarah Bradford looks at the impact of recent tax and National Insurance contributions changes. 

Q&As with Arthur Weller

Transferring property: ‘Dos’ and ‘don’ts’ 

This article sets out to cover some useful tax pointers to consider in contemplation of property transfers. 
 
Lee Sharpe considers some key tax aspects of property transfers. 

Demolishing a property: What are the tax implications? 

Every building has a life span - usually between 80 and 100 years. Older buildings require a considerable amount of maintenance, and there comes a point when repairs are not always cost-effective. 

Jennifer Adams considers the tax implications of demolishing a residential property and rebuilding from scratch rather than just renovating.  

Residential property gains: Tax and reporting 

For capital gains tax (CGT) purposes, all gains are not equal. Higher rates of tax apply where the gain relates to residential property. There are also stricter reporting and payment deadlines. 

Sarah Bradford examines the impact of the reduction in the higher rate of capital gains tax on residential property gains and the rules for reporting the gain and paying the tax. 

POAT and property: Don’t get caught! 

'Pre-owned assets tax’ (POAT) is an income tax charge (FA 2004, Sch 15), which was originally introduced to block certain inheritance tax (IHT) anti-avoidance arrangements. However, it can have unintended and unfortunate consequences in some cases. 

Mark McLaughlin looks at pre-owned assets tax and the ‘occupation’ of land and buildings.

Q&As with Arthur Weller