Category: Tax

Changes to capital gains tax (CGT) and entrepreneurs’ relief claims have been introduced in the Finance Bill 2016. CGT rates for 2016/17 have been reduced from 18% to 10% for basic rate taxpayers, while for higher rate taxpayers the rate on gains over the unused part of their basic rate tax band will be charged … Continued

In July 2015, a new inheritance tax allowance was introduced which applies to family homes. The Residence Nil Rate Band means that in future you may be able to pass on £1 million to your children or grandchildren tax free. This allowance will be phased in from 2017/18 and will be in addition to the … Continued

In July 2015 a further reduction was announced in the lifetime allowance. This is the total amount you can hold in pensions savings without incurring an additional tax charge. The allowance was reduced from £1.25 million to £1 million on 6 April 2016, although it will increase with inflation (CPI) from 6 April 2018 onwards. … Continued

The new pension freedoms provide increased flexibility and more scope to structure your income to suit your actual needs and tax position. Considering your various pensions, investments and annual tax allowances together allows your retirement income to be as tax efficient as possible. Some useful ideas are detailed below: Personal Allowance Everyone has a personal … Continued

ISAs and pensions are the most popular options for people saving for their futures. However, if you are an experienced investor with a significant portfolio of assets, there are other tax-advantaged products which may be appropriate. Known as ‘tax-led investments’, these include Venture Capital Trusts (VCTs) and the Enterprise Investment Scheme (EIS). Tax-led investments offer … Continued

You may be aware that applications for the latest round of pension protections are not expected to be available until sometime in July after the Finance Act 2016 receives Royal Assent. This leaves issues for those who are looking to protect their pension benefits but also wish to take those benefits before they can apply … Continued

More than 150,000 people have bought a home using the Help to Buy Scheme since its launch in 2013. The mortgage guarantee scheme, which allows lenders to buy a guarantee on mortgage loans, has proved popular with first-time buyers. The Treasury reports that 79% of mortgage completions through the mortgage guarantee scheme were people buying … Continued

What is the annual tax on enveloped dwellings? The annual tax on enveloped dwellings (ATED) was introduced as part of a package of measures aimed at making it less attractive to hold high-value UK residential property indirectly, e.g. through a company, in order to avoid or minimise taxes such as stamp duty land tax (SDLT) … Continued

The Telegraph highlights a little-known tax loophole which could mean buy-to-let investors and buyers of second homes are exempt from the higher rates of stamp duty that come into force. For existing property owners to be exempt, they must be buying a main residence rather than a second home or investment property and have previously … Continued

Entrepreneurs’ tax relief has been extended to include long-term investors in unlisted companies. Entrepreneurs’ relief applies to business owners seeking to sell on their business, who are eligible for a preferential tax rate of 10 percent on business gains for up to £10 million. As part of the new ruling, entrepreneurs will be able to … Continued