Taxing aspects of electric cars for your business

This article does not cover the risks of owning an electric car, depreciation rates etc. Instead it discusses the tax implications if you buy an electric car for business purposes. As electric cars have zero carbon emissions for tax purposes it should be possible to claim what is called a “first year allowance” when the car is purchased from new. Effectively,...

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Negligible value claims

Occasionally, the tax system in the UK throws up an issue that does not make sense. For example, how can you create a tax loss for capital gains tax (CGT) purposes without disposing of the asset? After all, CGT applies when an asset subject to CGT is sold or otherwise disposed. If you sell an asset for more than you acquire...

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Muras Matters: Help to Buy ISA Closing

Background The Help to Buy ISA was introduced in December 2015 and was aimed at helping first-time buyers save towards the purchase of a home. The government contributes £50 for every £200 put into the ISA up to a maximum of £15,000 (including the government’s share). As such it offers a relatively easy and tax-free form of helping first-time buyers build a deposit. The option to...

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The uncertainty continues

The Brexit issue continues to drag its heels and it now looks as if we will have a general election until matters are resolved. Another crucial matter that will be delayed is the presentation of a Budget that will determine any changes to the tax code next year. However, while the politicians attempt to resolve these issues, what can we do? This is...

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Heads up for contractors

Contractors completing energy improvements on the homes of low-income families will need to be registered with a new government quality scheme – the Energy Company Obligation (ECO) - to give residents confidence that they will get a good service. Work undertaken through ECO offers free energy-saving measures, including insulation and new boilers for low-income and vulnerable households. The Energy Minister Kwasi Kwarteng...

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Muras Matters: Cycle to Work Schemes

Background The Government introduced the cycle to work scheme almost 20 years ago as an incentive to promote the health benefits of cycling to work, as well as its potential to reduce pollution from motor vehicles. The scheme provides an annual tax exemption for employees, which allows employers to loan bicycles and cyclists’ safety equipment to employees as a tax-free benefit. Many schemes are operated via...

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Beefing-up UK exports

UK farmers looking for opportunities to export beef products to China will be encouraged by the recent relaxation of export criteria. A recent UK government press release titled “China opens doors to British Beef” explains what is being offered. A summary of the press release is reproduced below: The British beef industry is set to benefit from an estimated £230 million boost...

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Win while you save

In a further attempt to incentivise savings our government has created a new saving vehicle called a PrizeSaver account. Here’s what the Treasury press release on the launch says: Treasury launches pilot of new PrizeSaver account on International Credit Union Day. Savers who put away as little as £1 with participating credit unions have chance to win up to £5,000 a month. Account...

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Muras Matters: The Electric Company Car

Background Over recent years the increasing tax cost associated with having a company car has made the option less attractive for many individuals and employers. However, with the government keen to encourage the use of low CO2 emission or zero emission vehicles this may again be an option for some employers willing to look at fully electric vehicles. The government has recently announced that from 6...

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Cars and taxing issues

We have listed below a number of issues that you will need to consider if directors or employees use a car for business purposes. Essentially, if the car is owned by the business any private use of the vehicle will trigger a tax charge for the driver (car user) and a possible NIC bill for the employer. Use of a car may...

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