Try Tax Insider today and receive:
- FREE 3 Issues - The current issue and the previous two issues (Click here to see the tax strategies you'll receive).
- Delivered to your doorstep
Here are just some of the strategies our tax experts are sharing with you this month:
- Company Tax Relief For Shares – A ‘Hidden’ Gem!
Share transactions invariably have tax consequences. For example, when an individual subscribes for shares in their employer company for less than market value, it is generally necessary to consider the income tax (and possibly National Insurance contribution) implications of the share acquisition. Mark McLaughlin highlights a useful tax relief for companies that is sometimes overlooked.
- New Year - New Rewards?
Sarah Laing looks at changes to investment limits and potential yields for some of the most popular tax-efficient savings vehicles.
- Beware Fine Print! VAT And Contract Law
Many contracts do not mention VAT and some just have a short clause saying prices are exclusive of VAT. But how do these types of clauses protect the vendor if there is a query over the VAT liability of the supply, or HMRC rule that the wrong liability has been applied to the transaction at a later date? Andrew Needham looks at the importance of clarifying the contractual arrangements so that the VAT position is correctly identified.
- Tax-Efficient ‘Personal Service’ Company Closures
There are a lot of personal service companies out there, and at some stage many of them simply come to the end of their working life. In the first of a two-part article, Peter Rayney explores how to close down a ‘personal service’ company tax-efficiently.
- Can A Business Pay For Your Child's Or Parent's Long-Term Care?
Care costs depend on the type of care required, and whether medical or frail care is also needed, which makes it more expensive. Tony Granger examines the options available for a business to pay for the long-term care of a parent, child, or relative.
- A Foot On The Ladder: Tax-Incentives For First-Time Buyers
There are three main tax incentives for those looking to get a foot on the housing ladder. Lindsey Wicks takes a look at these tax incentives available for first-time buyers.
- Stamp Duty Land Tax: First Time Buyer Relief
Stamp duty land tax (SDLT) is a tax which is levied on the purchase of land (which includes buildings on the land) in England, Wales, and Northern Ireland. Malcolm Finney explores the new 'First Time Buyer Relief'.
- HMRC Is Being Un-‘Reasonable’?
Taxpayers are under threat of penalties if they fail to comply with their various tax obligations. Mark McLaughlin points out that HMRC’s approach to ‘reasonable excuse’ may need to be challenged.
- ‘Period of Ownership’ Not Quite What HMRC Would Like It To Be
Central to the core of ascertaining any charge to capital gains made on disposals of property, is to understand what exactly is meant by ‘period of ownership’. It might be thought that this can hardly be rocket science but, nevertheless, this issue came before the First-tier Tribunal early in 2017. Malcolm Finney examines the recent private residence case of Higgins v RCC .
- Marriage Allowance – Have You Claimed Yours?
Recent reports indicate that around two million couples have failed to claim their share of the government’s £1.3 billion 'Marriage Allowance' cash pot. Sarah Laing looks at the income tax Marriage Allowance – backdated claims may currently be worth up to £662 – but many couples are missing out.
- Reclaiming VAT After You Have De-Registered For VAT
The right to deduct input tax stops at the date a business deregisters for VAT. However, VAT can be reclaimed where services supplied after the date of deregistration relate to the business activity carried on while the business was registered. Andrew Needham looks at how you can reclaim input tax, even after you have deregistered for VAT.
- Capital Reduction Techniques For Owner-Managed Companies – Part 3
Peter Rayney concludes his three-part article with a worked case study of capital reduction demerger.
- IHT Planning With Business Property Relief
Once people hear about the 100% business property relief (BPR) from inheritance tax (IHT), which applies to shares in trading companies quoted on the alternative investment market (AIM), they often assume that such shares can easily be used for lifetime gifts. Malcolm Gunn highlights some pitfalls and planning points in connection with business property relief for inheritance tax purposes.
- More Tax On Dividend Income
The government made the announcement at the Spring Budget 2017 that the dividend allowance would be slashed with effect from 6 April 2018, less than a year after the reform of the income tax treatment of dividends came into force. Lindsay Wicks examines the impact of the reduction in the dividend allowance from £5,000 to £2,000 from 6 April 2018.
- Do As We Say – Not As We Do!
The UK tax system can seem harsh, hostile, and unforgiving if taxpayers make mistakes when dealing with their tax affairs, such as where tax return errors result in penalties. Mark McLaughlin points out that administrative errors by HMRC will not necessarily provide taxpayers with the escape route they might seek...
- A Winding Road? From Sole Trader To Partnership
A partnership can be a simple and extremely flexible way for two or more people to own and run a business together. However, bear in mind that in general partners do not have any protection if the partnership fails. Sarah Laing looks at some of the practical issues to look out for when moving from a sole trader business to a partnership...
- A Welcome Change: VAT Recovery On Corporate Acquisitions
When businesses undertake a major corporate acquisition, the normal procedure is to set up a holding company (HoldCo) to undertake the acquisition and hold the shares following the acquisition. HoldCo will incur all the professional fees and will manage the trading company, but recovering the VAT on the costs can be a problem if you do not structure the recharges correctly. Andrew Needham looks at VAT recovery on corporate acquisitions following a change in HMRC’s guidance...
- Capital Reduction Techniques For Owner-Managed Companies (Part 2)
Owner-managed companies frequently reduce their share capital to remove a profit and loss account ‘deficit’ (i.e. accumulated losses), to enable dividends to be paid. In the second of a three-part article, Peter Rayney examines the practical uses of capital reductions...
- Company Own Share Purchase And ERS: You Must Be Kidding!
A gain arising on a company purchase of own shares (PoS) is taxed either as a dividend or a capital gain. So, what have the employment-related securities rules got to do with it? Ken Moody looks at the interaction between a company purchase of own shares and the employment-related securities rules, which may have unexpected and unwelcome results...
- Tax Breaks: Use Them, Don’t Lose Them!
Lindsey Wicks looks at various annual limits that taxpayers might want to use before the end of the tax year...
- Running A Business After The Only Director And Shareholder Has Died
A great proportion of the three million registered UK companies are sole director owner-managed businesses, formerly sole traders. Tony Granger highlights some important implications when a company’s only director and shareholder has died...
- Tax Insider: Tax Tips
- Tax Insider: Your Tax Questions Answered!