Background The Enterprise Investment Scheme (“EIS”) and Venture Capital Trust (“VCT”) are share schemes approved by HM Revenue & Customs (HMRC) with beneficial tax advantages for individuals investing in small and medium-sized companies. There are a number of conditions that must be met in order for an investment to qualify for tax relief. One of these conditions is that the shares in...
Muras Matters: Company Cars Changes to Advisory Fuel Rates
This Bulletin is aimed at company car drivers (and their employers) who are not provided with fuel for private mileage HM Revenue and Customs (HMRC) have updated their advisory fuel rates for company cars with effect from 1 September 2024. The rates are intended to give guidance to employers about what is an acceptable fuel allowance to reimburse employees for use of...
Effects of the US presidential election
The American presidential election may have significant effects on the United Kingdom, impacting various aspects of the relationship between the two countries. Here are some key areas where the UK might feel the influence: 1. Trade Relations Post-Brexit Trade Deals: The UK's ability to negotiate a favourable trade deal with the US is closely tied to who is in the White House....
Further drop in interest rates
Interest rates are a powerful lever in our economy. Increase rates and economic activity tends to slow down, and vice versa if interest rates fall. The recent hikes in rates, to control inflation, were reversed recently when the Bank of England (BoE) reduced rates to 5% (from 5.25%). The following notes are a summary of recent BoE commentary on this topic. The...
Rachel Reeves announcements since the election
Since Rachel Reeves was appointed Chancellor of the Exchequer in May 2024, she has made several significant announcements aimed at addressing the UK's economic challenges as well as the much publicised tax changes already described in previous posts on our blog. Her primary focus has been on fiscal responsibility, economic stability, and reforming key areas of public policy. Economic Policy and Public...
Private pension contributions
Tax relief on private pension scheme contributions is a significant incentive in the UK, encouraging individuals to save for retirement. Here’s how it works according to GOV.UK: Basic Rate Tax Relief (20%): If you are a basic rate taxpayer, your pension contributions receive tax relief at 20%. For example, if you contribute £80 into your pension, the government adds £20, making...
DWP reforms
Liz Kendall recently set out how Britain’s system of employment support must be fundamentally reformed to tackle the “most urgent challenge” of spiralling economic inactivity. In a Department for Work & Pensions press release issued 23 July 2024 it was announced: Work and Pensions Secretary Liz Kendall will use landmark first speech to set out the Government’s plans to reverse dire labour...
Opportunity knocks for holiday lets owners
From April 2025, the present tax breaks enjoyed by owners of Furnished Holiday Lets (FHLs) will cease and FHL income and gains will be taxed in the same way as other property businesses. Currently, FHL owners benefit from tax advantages, as compared to non FHL owners, in four key areas: exemption from finance cost restriction rules (which restrict loan interest to the...
What is the position now re private school fees
The following notes are copied from draft legislation published by HMRC, to be included in the Finance Bill 2024-25. As of 1 January 2025, all education services and vocational training supplied by a private school, or a “connected person”, for a charge will be subject to VAT at the standard rate of 20%. Boarding services closely related to such a supply...
Muras Matters: Changes To VAT Registration Details Must Be Made Online
Background From 5 August 2024, any changes a business wants to make to its VAT registration details must be done online only. Previously form VAT484 could be used to update any details, including change of address. The change is part of HM Revenue & Customs (HMRC) measures to address fraudulent attempts to gain access to businesses’ VAT repayments. Detail With effect from 5 August...