Did you know that with effect from 6 April 2016 the higher and basic rates of capital gains tax will be reduced? The higher rate of capital gains tax will be reduced from 28% to more »
Landlords of furnished residential properties have for many years been able to claim a ‘wear and tear’ allowance, intended to cover the cost of replacing furniture & furnishings over time.
From April 2016 the rules are changing, more »
Amidst lots of statistics…more than in previous years it seemed, there were a number of tax changes for owner managed business. There was no one theme just a jumble of different items and as always some of the headline changes were not quite what they appeared to be!
These are the key points that we noted: more »
As reported in the news over the weekend the Chancellor appears to have dropped plans to end or alter tax relief on pension contributions.
In our previous posts we highlighted the need to review the timing of your pension contributions more »
The chancellor will deliver his 2016 Budget speech on 16 March. He is expected to announce the outcome of a further review of pensions tax relief. Whilst there has been no confirmation of what, if anything, will change rumours are circulating that he may be aiming for a single rate of tax relief for more »
From 6 April 2016, employers can choose to tax benefits in kind through the payroll.
Most benefit in kind are included, the only exclusions are vouchers, living accomodation and interest free / low interest loans.
This does away with the need for companies to prepare forms P11d each year, more »
You are probably aware that pool cars are not treated as company cars for tax purposes, so nobody is subject to a benefit in kind charge for using them. This makes them quite an attractive asset.
However take care, HMRC are more »
As mentioned last week, major changes to the taxation of dividends apply from 6 April 2016.
In advance of the changes the Government are looking at bolstering various tax avoidance provisions designed to prevent income being paid out to shareholders in capital form, such that entrepreneurs relief at 10% will apply. This is expected to become more prevalent when the income tax rate on income dividends increases.
The consultation document issued in December highlights several areas of concern. more »
As most of you will be aware, major changes to the taxation of dividends apply from 6 April 2016.
The current tax credit system is being withdrawn and all tax rates are increasing by 7.5%. Currently a basic rate taxpayer pays no income tax on dividends, from 6 April they will pay 7.5%. However the first £5,000 of dividends received will be tax exempt. more »
The next big change for buy to let investors is the restriction in income tax relief for interest paid on buy to let mortgages.
With effect from 6 April 2017, income tax relief for interest payments & finance costs will be restricted to the basic rate of income tax.
The restriction will be phased in over four years, the cost restricted to basic rate each year is as follows: 2017/18 – 25%, 2018/19 – 50%, 2019/20 – 75% and 2020/21 – 100%. more »