Inheritance Tax Free Gifts Background In last weeks Muras Matters we set out how a Will can be varied in order to mitigate Inheritance Tax (IHT) charges on an estate, however there are various exemptions and some simple planning opportunities which can be used before an individual passes away. PET’s Making large cash gifts to reduce the value of an estate is known as...
Reclaiming pre-registration VAT input tax
If you have been trading for some time before you register your business for VAT don’t forget to consider your option to reclaim VAT on goods and services purchased prior to your registration date. For example, if you are required to register for VAT from 1 January 2014, you only need to pay VAT on taxable supplies you make from that...
Clamp-down on use of hybrid mismatches
The government has announced a clamp-down on the decade-long use of ‘hybrid mismatches’, a technique commonly used by multinational companies to significantly reduce their tax bills. It is the latest in a series of steps the government has taken to tackle aggressive tax planning and is expected to bring tens of millions of pounds per year of additional revenue into the...
Muras Matters: Post Death ‘Will Variations’
Post Death ‘Will Variations’ Background In last weeks Muras Matters we set out the importance of making a Will however when an individual dies it is still possible for the assets in their estate to be distributed in a different way to that set out in their Will if certain conditions are met. Any variation must be made by deed and agreed by...
Construction industry tax penalties
If any of your Construction Industry (CIS) returns are filed one day late, HMRC will charge an initial fixed penalty of £100. Additionally, if they have still not received that return: two months after the date it was due, they will charge a second fixed penalty of £200 six months after the date it was due, they will charge a further penalty of...
Understanding the new State Pension
This month sees the launch of a new service that provides a personalised written estimate of what you can expect to receive under the new State Pension system. This will be based on your work history and National Insurance (NI) contributions to date. Initially, the estimate will be available to the approximately 2.5 million people who reach State Pension age in...
Muras Matters: Changes to the Rules of Intestacy
Changes to the Rules of Intestacy Background When a person dies without leaving a valid Will, the rules of intestacy govern how their assets are distributed. A person who dies without leaving a Will is said to have died intestate. Commentators suggest that more than 60% of the adults in the UK do not have a Will, meaning that recent changes to the...
Farming tax strategy – the herd basis
Farm animals are usually dealt with for tax purposes as trading stock: the costs of animals are deducted from monies received when the animals are sold and any resultant profit taxed as income. However, farmers can elect to treat qualifying “herds” of animals in a more tax efficient way, they can apply the Herd Basis (HB). HMRC advise: “Some farm animals are kept...
US Treasury blocks tax inversions
A move by the US Treasury to close loopholes that encourage US companies to merge with foreign firms and relocate their tax residences offshore could stifle takeovers announced this year worth hundreds of billions of dollars. In particular, it will probably throw into doubt the agreed £32bn takeover of UK listed Shire by AbbVie of the US and it is...
Muras Matters: National Minimum Wage Increase
National Minimum Wage Increase Echoing the changes recommended by the Low Pay Commission, the rates of National Minimum Wage (NMW) announced in March 2014 come into effect for pay periods starting on or after 1 October 2014. The changes are: the main adult rate (for workers 21 and over) will increase by 19p to £6.50 an hour the rate for 18 to 20...