Making use of your inheritance tax allowances
It is often said that inheritance tax (IHT) is a voluntary tax, and one that can be avoided if you give away sufficient assets at least seven years before you die so the value of your estate is sheltered by your available nil rate bands. This is not always practical –...
Reform of the High-Income Child Benefit Charge
The High-Income Child Benefit Charge (HICBC) is a tax charge that operates to claw back child benefit where the claimant and/or their partner have adjusted net income in excess of the clawback threshold. For 2023/24 and previous years, this was set at £50,000. The...
Avoid the temptation to make speculative SDLT claims
Not all property is equal when it comes to stamp duty land tax (SDLT). Higher rates apply to residential properties than to non-residential properties, with a 3% supplement applying to second and subsequent residential properties costing more than £40,000. Where a...
Making use of the property allowance
It is possible to enjoy tax-free income from property, even if you have already used up your personal allowance. This is because the property allowance allows you to receive annual gross property income of up to £1,000 without needing to tell HMRC about it. You can...
Reclaiming section 455 tax paid
In personal and family companies, directors often borrow money from the company as this is a cheaper and easier option than taking out a commercial loan. However, there can be tax consequences for both the director and the company. If the loan balance exceeds £10,000...
When does period of ownership for PRR start?
Private residence relief (PRR) removes the capital gains tax charge that would otherwise arise on a gain on the disposal of an only or main residence. The relief shelters the gain to the extent that it has been lived in as a main residence. Qualifying periods of...
Implementing Making Tax Digital For Income Tax
As a sole trader, keeping track of your tax obligations can be a daunting task. But fear not, because the UK government's flagship programme, Making Tax Digital (MTD), is here to simplify the process for you. In this blog post, we'll dive into everything you need to...
Financing an investment property
A would-be property investor will need to be able to fund the purchase of their investment property. They may choose to do this personally or via a company. If they do not have the funds available, they will need to borrow them. The tax relief that may be available...
Incidental overnight expenses – A little known tax break
Expenses incurred by an employee on behalf of a company can only be reimbursed under the 'wholly, exclusively and necessarily' rules for work undertaken 'in the performance of the duties of or employment'. It is not enough for the expense to be relevant to the job, or...
Splitting a company – Tax efficiently
Most private companies start as sole owner-managers; roll on a few years and some will have grown such that family members may also work for the business, responsible for different departments or types of businesses, or grown such that there is more than one business...