Category: Tax

HMRC’s consultation on amending the periodic and exit charges on relevant property trusts, which ended last week, has attached some criticism. The key proposal is to split the inheritance tax nil-rate (NRB) between all trusts set up by the settlor, instead of the current system under which each separate trust is entitled to a full … Continued

HMRC is to launch a campaign targeting landlords who are failing to pay the tax due on rents they receive on their properties. The campaign will target all landlords, but will be focussing compliance activity into specific landlord ‘types’, for example, those who own more than one property, specialist landlords who rent to students, people … Continued

The Finance Act 2013 has provided HMRC with a new weapon to combat tax evasion. As of 1st September, HMRC have been legally entitled to have access to merchant acquirer data. They will be able to see information on businesses credit and debit card payments to attempt to reduce fraud. The Revenue suggests that its … Continued

A consultation document has been published on an HMRC attempt to stop what they believe are artificial profit and loss allocation schemes involving members of LLPs (and indeed other partnerships) where some of the members are chargeable to income tax but others are not. What they do not like is allocating to a limited company … Continued

If you run a business involving the creation of animation programmes, high-end TV programmes, or video games, you can look forward to extra tax relief on the production costs. This results in corporation tax relief on no less than 200% of the actual costs on UK expenditure up to a maximum of 80% of the … Continued

If you have an overdrawn loan account with your company, there is a tax charge on the company unless the loan is cleared within 9 months of the end of the period to which accounts are prepared. Nasty anti-avoidance measures have been introduced to stop companies avoiding the tax charge. In particular when the loan … Continued

HMRC are looking to increase this activity, which involves the collection of tax debts by way of reducing your Code Number used when calculating PAYE deductions on earnings. There would be no change to the current £3,000 maximum that can be coded out for individuals earning less than £30,000, and the current coding out limit … Continued

If you buy a new car for your business that has CO2 emissions of no more than 95g/km, you can claim a full deduction against your business profits. There are approximately 30 cars that fall into this category, but the list is growing. If you run your business as a limited company, the private use … Continued

This new option for some small businesses needs careful consideration, particularly if you are self-employed and have annual turnover of less than £79,000. You can choose to: use the cash basis with or without also using fixed rate deductions use accruals accounting with or without also using fixed rate deductions The fixed rate deductions cover … Continued

Individuals and families in the UK paid £3.14 billion in inheritance tax (IHT) in 2012/13, official figures from the Office for National Statistics have shown. It comes as a result of the freeze in the IHT threshold – held at £325,000 since April 2009 – and a recovery in property prices, which has pushed more … Continued