There are a number of planning measures taxpayers can undertake in relation to capital gains tax, some of which are summarised below. Utilising the annual exemption The annual exemption, which is £10,600 for 2011-12, cannot be carried forward if unused and so should be used to crystallise gains on investments. It should be borne in […]
Entrepreneurs Relief
This relief allows gains made on the disposal of qualifying assets to be taxed at 10% instead of the standard rates of 18% or 28%, subject to a lifetime limit of £10 million. The relief is most commonly available to sole traders and partners selling the whole or part of their businesses and company directors […]
Striking Off a Company
The House of Commons recently passed the Enactment of Extra-Statutory Concessions Order 2012, thereby giving legislative effect to six extra-statutory concessions including Extra Statutory Concession C16 which deals with the tax treatment of distributions to shareholders when a company is struck off without a formal winding up. Under ESC C16, HM Revenue & Customs has […]
The Bribery Act 2010: What should you be aware of?
The Bribery Act 2010 (“the Act”) received Royal Assent on 8 April 2010 and came into force on 1 July 2011. The Act is concerned with bribery and not, for example, fraud, theft, Money Laundering or Companies Act offences. The Act contains 2 general offences dealing with the offering, promising or giving of a bribe […]
UK and Overseas Inheritance Tax: Will My Assets be Liable?
The nil rate IHT threshold is currently £325,000, and will remain at this figure until 2015. If you leave behind anything worth more than this, the tax will be charged at 40% on anything extra. However, if you are married or in a civil partnership, you and your spouse can combine your thresholds for a […]
UK resident or non-resident? What’s the difference?
From 6 April 2012, individuals needing to know if they are UK resident for tax purposes might be able to take a Statutory Residence Test, recently proposed by the Government. The proposed test is divided into three categories – One, Two and Three. Part one is used to determine if you are resident anywhere outside […]
Tax Relief on Donations to Charity
UK taxpayers can receive tax relief on donations they make to UK registered charities through Gift Aid. Charities are able to claim from HM Revenue & Customs, the basic rate of 20% tax on any donation you make to them. For example, if you want to donate £1,000 to charity, you only need to donate […]
Domicile Rules
The government has proposed reforming the rules concerning the taxation of UK resident non-domiciled individuals from April 2012. Since April 2008 a non-UK domiciled individual who has been resident in the UK for 7 of the last 9 years and who claims the benefit of the remittance basis of taxation has had to pay the […]
National Insurance Contributions
The rates for national insurance contributions went up by 1% from 6 April 2011. For employees salaries are now charged at 12% and 2% instead of 11% and 1% and self employed profits are charged at 9% and 2% instead of 8% and 1%. The rate for employer contributions on salaries and benefits increased from […]
Changes to Companies House Fees – 6 April 2011
The Registrar of Companies and the Department of Trade & Industry have undertaken a review of Companies House processes and services. As a result of the high volume of customers using electronic services the cost savings made by Companies House can be passed on to customers in the form of reduced fees. In parallel, the […]