26/04/2016, by Low Incomes Tax Reform Group, Tax article - Income Tax
If you are a Scottish resident, from 6 April 2016 you pay the Scottish rate of income tax and your tax code should start with the letter “S”.
Introduction
If you live in Scotland, from 6 April 2016, your Pay As You Earn (PAYE) tax code(s) should start with the letter “S”. This is because Scottish residents now pay the Scottish rate of income tax. Your payslips should show your tax code. When you receive your payslips for pay periods after 5 April 2016, check that the tax ... Continue Reading
25/04/2016, by Tax Insider, Tax tip - Property Tax
‘Hold-over’ relief is a way of deferring payment of capital gains tax (CGT) on certain assets, including land and buildings used in a business, until the new owner of the asset sells. The donee, in effect, takes over the original cost of the asset and may eventually have to pay CGT on both the gain incurred from the date of gift plus the gain ‘held over’. HMRC have produced Help Sheet 295 ‘Relief of gifts and similar transactions’ that details the procedure. A ... Continue Reading
22/04/2016, by Tax Insider, Tax tip - Business Tax
If relief for a trading loss is claimed against other income for the current or previous tax year, the claim can be extended by election to capital gains tax if there is insufficient income in the year to fully utilise the loss. This can be useful in some circumstances.
This relief allows an unused loss to be set against the chargeable gains for the year, reducing the capital gains tax payable for the year. However, the loss is set against gains before utilising the annual exemption and consequently ... Continue Reading
19/04/2016, by Lee Sharpe, Tax article - General
TW Ed sets out to bust 10 myths about tax avoidance. And invites some of the finger-pointers to engage in a bit of double-jointedness.
Introduction
I broadly welcome pretty much any discussion on tax avoidance in the general press. It means I have a chance of understanding what the issues are, and sounding clever. Having said that, some of the guff that has been written about tax avoidance, and the slurs on innocent taxpayers, are disturbing.
Simply put, innuendo sells papers, and generates interest. ... Continue Reading
18/04/2016, by Tax Insider, Tax tip - Property Tax
Business Property Relief (BPR) provides full relief from inheritance tax (IHT) and is available for the transfer of certain types of business and business assets subject to a minimum ownership period. The transfer can be made during a person’s lifetime or on their death. For BPR to apply the business must be carried on with the view of making a profit and be run on sound business principles.For income tax and capital gains tax purposes the operation of a furnished holiday let (FHL) is treated ... Continue Reading
15/04/2016, by Tax Insider, Tax tip - Business Tax
Cars do not qualify for the annual investment allowance. However, it is possible to obtain full relief for expenditure on a car in the year of purchase if you buy a low emission car that qualifies for a first year allowance (FYA) of 100%.If the expenditure is incurred between 1 April 2015 and 31 March 2018, the FYA is available for cars with CO2 emissions of up to 75g/km. Expenditure on cars with CO2 emissions in excess of 75g/km do not qualify for a FYA, only the writing down allowance.Example:Gabby ... Continue Reading
13/04/2016, by Low Incomes Tax Reform Group, Tax article - PAYE and Payroll Taxes, National Insurance, NICs
It is now possible for individuals who accompany their spouse or civil partner on an overseas posting to claim National Insurance credits that will count towards state benefits.
Background
Many individuals who accompany their spouse or civil partner on an overseas posting do not pay National Insurance (social security) contributions and this can affect their future entitlement to certain state benefits, most notably the state retirement pension. It is now possible to claim National Insurance credits ... Continue Reading
13/04/2016, by Tax Insider, Tax tip - General Tax
Many people subscribe for shares in unlisted companies. These can include companies that your friends own.
A number of these companies will fail and therefore the original investment is lost.Allowable losses on these shares can be set against income rather than used as a capital loss, which is especially useful if you have no other gains during the year or are unlikely to make capital gains in the future.Example:Louise subscribed for 1,000 shares in ABC Ltd, a company set up by her brother, and ... Continue Reading
11/04/2016, by Tax Insider, Tax tip - Property Tax
There may be times when the owner is prevented from living in his or her main residence for reasons that are not the owner’s by choice. It would be unfair for him or her not to be eligible for Principal Private Residence (PPR) relief for that period of absence. ‘Deemed’ occupation is only possible where the taxpayer is absent from the property and has no other residence eligible for PPR.There is no minimum period of occupation for PPR relief but usually the house has to be physically ... Continue Reading
06/04/2016, by Tax Insider, Tax tip - General Tax
The Seed Enterprise Investment Scheme (SEIS) is designed to help small, early-stage companies to raise equity finance by offering tax reliefs to investors who purchase new shares in a company within the scheme and who have no more than a 30% stake in those companies. Relief is available in respect of realised gains which are reinvested in SEIS shares. Relief from capital gains tax is available for half of the amount re-invested (subject to a £100,000 investment limit).Example:Toby realises ... Continue Reading
