Corporation Tax Relief back for Acquired Goodwill

A further late change to the finance bill will reintroduce relief for acquired goodwill on the acquisition of businesses with eligible property from 1st April 2019. This relief was withdrawn back in July 2015 and the restoration of relief for goodwill is very welcome although the new form of relief will be more restricted. The […]

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Buy new equipment before 6th April?

Your business year end, not 5th April, is relevant for capital allowances purposes. If however you are running a business and making up accounts to 31st March or 5th April, you should consider buying plant and machinery to take advantage of the Annual Investment Allowance (AIA). Note that the AIA was increased from £200,000 to […]

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Passing on the family home

New inheritance tax rules for passing on the family home started on 6th April 2017. This additional relief should be taken into consideration when drafting your Will and we can work with your solicitor to make sure your Will is tax efficient. From 6th April 2017 an additional nil rate band of up to £175,000 […]

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Pension Planning

For most taxpayers the maximum contribution is £40,000 each tax year, although this depends on their earnings. This limit covers contributions by both the individual and their employer. Note that the unused allowance for a particular tax year may be carried forward for three years and can be added to the relief for the current […]

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VAT Registration limit continues to be frozen

The VAT registration limit normally increases in line with inflation each year. However, It was announced last year that the limit would be frozen at £85,000 until 1st April 2020. It has now been announced that the limit will now remain at the same level until 2022.  The deregistration limit will remain at £83,000.

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No change in tax rates

The basic rate of income tax and higher rate remain at 20% and 40% respectively, and the 45% additional rate continues to apply to income over £150,000. There had been rumours that the dividend rate might be increased, but dividends continue to be taxed at 7.5%, 32.5% and then 38.1% depending upon whether the dividends […]

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Personal Allowance and higher rate limit increased early

The Government’s manifesto pledge back in 2015 was that the personal allowance would rise to £12,500 in 2020 and the higher rate tax threshold to £50,000. However, the Chancellor has decided to bring forward these increases one year early from 2019/20, taking an estimated 1 million taxpayers out of higher rate tax. Note that up […]

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Gifts to employees and Charities

GIFTS OUT OF INCOME ARE NOT TAKEN INTO ACCOUNT FOR IHT A more generous inheritance tax exemption applies where the donor can prove that he or she is not transferring capital but is making gifts out of their income. There are detailed conditions for this exemption to apply requiring records to be kept of income […]

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The IHT annual exemption – Use it or lose it!

Although not particularly generous at £3,000 per donor per annum if this annual IHT exemption is not used by 5 April it is lost, although it is possible to carry the allowance forward one year if unused. This means that if the annual allowance for 2017/18 was not used an individual may make gifts of […]

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Tax update: Budget 2017

There was nothing to get particularly excited about in November’s budget except for the abolition of stamp duty on homes up to £300,000, for first time buyers. A few other items of note; The VAT registration threshold of £85,000 is frozen – this could have ramifications for businesses trading just below this threshold. The National […]

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