Tax Efficient Profit Extraction Happy New Tax Year! The new tax year has seen the introduction of a number of different tax rates and allowances – specifically changes to dividend tax and interest. As a result calculating the most tax efficient means of extracting profit from owner managed limited companies has become more complex than ever. Using a combination of reliefs however,...
Capital gains tax changes April 2016
One of the surprising announcements in the recent budget was the easing of capital gains tax (CGT) rates. From April 2016, the new rates published by HMRC are: Changes to rates. Legislation will be introduced in Finance Bill 2016 to reduce the rate of CGT charged on most gains accruing to basic rate taxpayers from 18% to 10%. For higher rate taxpayers, or...
Stamp Duty increases buy-to-let
From 1 April 2016, individuals who purchase additional residential properties, second homes or buy-to-let properties will pay an additional 3 percentage points above the existing SDLT rates. The higher rates are: £0 - £125k: 3% £125k - £250K: 5% £250k - £925k: 8% £925k - £1.5m: 13% Over £1.5m: 15% This will add a considerable on-cost for landlords and families that venture into multiple property acquisitions....
Capital Gains Tax changes
CGT rates have been significantly reduced from April 2016. The rates at which capital gains are taxed depend on where they would fall to be taxed for Income Tax purposes if they were added to income. This would determine whether the gains would fall to be taxed at basic or higher rates, or part and part. If at basic rates, gains will...
Overdrawn loan accounts
Up to 5 April 2016, directors who overdrew their loan accounts in a company ran the risk of an additional 25% Corporation Tax charge if the debt remained outstanding nine months after their company’s trading period end. The tax can be claimed back, but not until there is a repayment of the debt. From a cash flow point of view this...
Lifetime Individual Savings Account
In a further bid to encourage savings for a first property purchase, or retirement, a new ISA is being launched from April 2017 – the Lifetime ISA. It will be available from April 2017 for adults under the age of 40. They will be able to contribute up to £4,000 per year, and receive a 25% bonus from the government. Funds from...
Tax Diary April/May 2016
1 April 2016 - Due date for Corporation Tax due for the year ended 30 June 2015. 19 April 2016 - PAYE and NIC deductions due for month ended 5 April 2016. (If you pay your tax electronically the due date is 22 April 2016.) 19 April 2016 - Filing deadline for the CIS300 monthly return for the month ended 5 April...
Business tax breaks from April 2016
The government have published a list of changes in the impact of taxation, rates and NIC that will apply from April 2016. The list is reproduced below: Businesses will benefit from: lower business rates bills as the doubled Small Business Relief Scheme is extended for another year. This £730 million boost will see over 400,000 businesses save an average of £890, with...
Taxation Award Finalists 2016!
Taxation Award Finalists 2016! We are very pleased to announce that Muras Baker Jones Limited have been selected as Finalists for the second year in a row by the LexisNexis owned Taxation Magazine for the 2016 “Single Office Tax Practice of the Year” Award. This award category recognises innovation and best practice in the field of taxation, with emphasis on an extra...
Gift aid donation rules clarified
Recent reports in the national media have suggested that HMRC has sought to restrict Gift Aid on donations which are accompanied by a message of support from a donor’s family. According to a recent announcement by HMRC this is absolutely not the case. HMRC’s position as set out in their recent website posting is reproduced below: “HMRC’s position has always been...