Category: Tax

From 1 April 2014 to 31 March 2015 the main rate of corporation tax is 21% where a company’s profits exceed £1,500,000 (divided by companies under common control). The 20% small profits rate continues to apply to companies with profits up to £300,000 (also divided as above).  As previously announced a single corporation tax rate … Continued

It had already been announced that the CGT annual exempt amount would increase to £11,000 for 2014/15 and £11,100 for 2015/16. With a top CGT rate of 28% this allowance potentially saves just over £3,000 a year, or £6,000 for a married couple. There has been no change in the inheritance tax nil rate band … Continued

The 20% basic rate band is £31,865 for 2014/15 and will be £31,785 for 2015/16. This means that you pay 40% tax if your taxable income exceeds £41,865 for 2014/15 and £42,285 for 2015/16. The 45% top rate continues to apply to taxable income over £150,000 for 2014/15. If you have any queries please contact … Continued

This budget aims to support savers, who have seen little reward while interest rates have been so low. All savers should benefit from a number of measures to be introduced at various stages over the next twelve months and the dates mentioned below are key to ensure you make best use of the opportunities on … Continued

The current £5,000 limit for cheap or interest free loans to directors and employees increases to £10,000 from 6 April 2014. This means that such loans will not need to be reported on form P11d and there will be no income tax or national insurance liability on loans up to the new limit. However, as … Continued

Those running a business should take advantage of the temporary increase in the Annual Investment Allowance (AIA) to £250,000.  5th April 2014 is not relevant for this tax break as the limit continues until 31 December 2014, although there are complex transitional rules. AIA provides a 100% tax write off for plant and equipment used … Continued

The new £2,000 “employment allowance” that provides relief from paying employers NIC on the first £2,000 of contributions starts 6 April 2014. For many employers the benefit of the £2,000 relief will be obtained in month 1 by reducing employers NIC payable, for others it could take several months before credit for the £2,000 is … Continued

Have you made use of your annual inheritance Tax exemptions? The general annual exemption is £3,000 per donor (plus last year’s £3,000 exemption if you did not use it). Also consider making regular gifts out of your income to minimise the growth of your estate that will be liable to IHT.

If you are looking for investment opportunities, have you considered the Enterprise Investment Scheme (EIS), which offers income tax relief of 30 per cent as well as capital gains tax relief?  An even more generous tax break is available for investment in A qualifying Seed EIS company where  income tax relief at  50 per cent … Continued