Bedtime reading for things to know about before and after the tax year end.
With the number of houses selling for more than £325,000 more than doubling since 2009, more and more people are falling into paying inheritance tax on their own home. Read more here
The dust has settled on the autumn statement, and it is now clear on the good, the bad and the ugly effecting SME’s, employers and self-employed.
National Insurance employment allowance increased to £3,000 from April 2016
Extension of the doubling of small business relief rates to April 2017 (good news – make sure you have this if you operate from an office)
3% additional stamp duty land tax will be charged on second homes or investment properties purchased from April 2016, which in added to the reduced relief for interest previously announced from April 2017 is a double hit for active investors
3% differential on Benefit in Kind for diesel cars retained from April 2016 for 5 more years
Capital gains tax due to be paid within 30 days of completion of any disposal of residential property from April 2019. This ties in with the introduction of digital tax accounts for most taxpayers.
If you have any queries or concerns arising from the autumn statement, contact our team at Morrell Middleton on 01904 691141.
The Chancellor’s 2015 Budget contained some Radical changes to Dividend and Rental Income – none of it good news!
Most business owners assume that their accountant will ensure that the tax bill each year is minimised – that’s what you pay our fees for isn’t it?
Unfortunately, with commercial property, many accountants do not make all the tax claims available as they don’t have the expertise to obtain the necessary information to make the claim in house. This means you could be missing out on accelerating how quickly you get tax relief for your investment, leaving the claim for your purchase cost until you sell the property which is likely to be years if not decades away. Under the current tax rates this also means that you could be obtaining tax relief today at up to 45%, compared to only 10% upon sale.
Now the dust has settled we have produced a 4 page guide to the relatively quiet 2014 Chancellors Autumn Statement for you to download here!
Changes to the rights of people whose spouses or civil partners die without making a will have come into force.
For married couples with no children, the surviving partner will now inherit their spouse’s entire estate, rather than £450,000 then half of the rest.
This question at first may seem rather crude or tasteless, but new research from Gocompare.com Money has found that millions of UK adults are relying on the Bank of Mum and Dad for financial help, until their own retirement, with nearly one in 10 (8%) of people surveyed saying they face financial trouble without future inheritance money.
HM Revenue & Customers (HMRC) have launched a new campaign targeting property landlords. The “Let Property Campaign” will encourage tax payers with undeclared income or gains to come forward voluntarily on the promise of preferential terms including having 3 months to calculate and pay the outstanding tax.
Tax crackdowns have arrived thick and fast in the past three years. Officials have targeted everyone from doctors to Avon ladies to claw back £35bn lost in unpaid tax each year – and more inquiries are in the pipeline.
Accountants claim that HM Revenue & Customs focuses on “soft targets” through special task forces that investigate specific job sectors.
According to the adulterous website, IllicitEncounters.com, accountants are the most exciting workers to go on dates with. Not because number crunching is a big turn on, but because their ‘boring’ jobs makes them more interesting in the bedroom, apparently.
Furnished holiday letting (FHL) is treated as a trading activity for income tax, corporation tax and CGT purposes, but may not be for IHT purposes.
In Paul Gibson v HMRC  TC03021 a taxpayer was denied capital gains tax (CGT) private residence relief when he totally rebuilt and then sold his house. The First Tier Tax Tribunal (FTT) found that he had acquired it wholly or partly for the purpose of realising a gain on disposal.