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Many individuals set up trusts for family members as part of their lifetime inheritance tax (IHT) planning. The intention is that assets gifted into trust fall outside their estate and the individual (the ‘settlor’) escapes IHT completely if they survive at least seven years following the gift.  

Mark McLaughlin highlights a potential beartrap when setting up a trust for family members as part of their lifetime inheritance tax planning.

Charitable giving is seen as a ‘good thing’ and is supported by the UK tax system with various tax reliefs designed to encourage donations. As well as financially incentivising the donors, these reliefs also benefit the charities by increasing the value of donations. 

This article looks at the various tax reliefs available to individuals.

Richard Curtis outlines various tax reliefs on charitable giving by individuals.

Andrew Needham looks at the provision of gifts to customers and business contacts and when recovery of input tax on their purchase is permitted.

Andrew Needham looks at what counts as a commercial vehicle and the VAT recovery position.

It is standard inheritance tax (IHT) planning to write death benefits payable from money purchase (defined contribution) pension schemes into trust for one or more nominated beneficiaries (usually family members). Under current rules, this puts them outside the IHT net if the policyholder dies.

Kevin Read warns that we may be heading for very high tax charges on undrawn pension funds.

People are sometimes surprised that they can trigger capital gains tax (CGT) if they gift an asset or sell it at undervalue. Unfortunately, that is what the tax law requires.

Tristan Noyes points out that gifting assets can trigger capital gains tax for the donor and explores ways to gift the tax along with the asset.  

Spending £150 per head (inclusive of VAT) on an annual staff function is quite common these days. However, by combining this exemption with the ‘trivial benefits’ exemption, it is possible to exceed the £150 per head limit without triggering any tax implications. 

Jennifer Adams considers the potential for Christmas or other annual functions plus staff gifts to be tax-free.

With the growth of a business will come the need for more people to service the growing number of clients and customers. 

When it comes to employees, a plethora of employment laws needs to be considered (especially once the Employment Rights Bill becomes law later in 2025), but the tax consequences also need to be considered.

Chris Thorpe outlines some tax issues for consideration by employers when taking on staff.

The employment-related securities legislation deals with arrangements involving shares and securities provided by reason of employment where the full value of the employment reward provided to the employee is not included in the salary package and is charged to tax.  

Jennifer Adams considers the tax implications of shares in a family company being awarded or gifted to family members of employees. 

A sole trader looking to expand their business might be weighing up the ‘pros’ and ‘cons’ of a partnership or a limited company. They are very different, with not only very different tax consequences, but functions as well. 

Chris Thorpe looks at partnerships and companies and considers which business model might be best.  

Under the loan relationships rules for companies, debits on loan arrangements are not deductible for corporation tax purposes in some circumstances.

Kevin Read highlights a recent case concerning the loan relationship rules for companies. 

When HM Revenue and Customs (HMRC) opens a tax return enquiry, the natural reaction of most taxpayers is to speculate about the reason why their tax return has been selected. In fact, HMRC does not need an excuse to open a tax return enquiry; a small proportion of tax returns are simply selected at random. . 

Mark McLaughlin looks at whether a taxpayer can find out if an HMRC enquiry has been opened as the result of an accusation made by a third party. 

When considering the tricky matter of remuneration planning, there are two things to consider; the amount of remuneration, and what form it takes. 

Chris Thorpe looks at what to watch out for with regard to paying employees and directors.

Despite the reduction in National Insurance contributions (NICs) in Spring Budget 2024, more employees are paying tax at higher rates on their earnings due to the freezing of tax thresholds. Some may find that any pay rise or bonus attracts additional tax and NICs such that the net pay increase is minimal.  

Jennifer Adams looks at some alternatives to rewarding an employee with a pay rise or a bonus. 

Mark McLaughlin looks at company purchases of own shares and warns not to become too focused on the more difficult rules for capital treatment. 

A company purchase of its own shares from a shareholder is a popular ‘exit’ strategy when an individual shareholder is retiring, or a dissenting shareholder is departing.