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Tax Relief Restrictions and Incorporation for Landlords

 

From 6 April 2017, landlords are no longer be able to deduct all of their finance costs from their property income. As an alternative, they will receive a basic rate reduction from their income tax liability for their finance costs.

Finance costs include:

  • Interest and other finance costs on loans taken for a property business which involves the letting… Full article

Invest In Kids To Save Inheritance Tax

Investment in shares in an unquoted trading company including AIM shares are exempt from Inheritance Tax, after a two year holding period. This is attractive but taxpayers should also be looking at other investments closer to home that can save them substantial Inheritance Tax.

 

 

There are Inheritance Tax planning opportunities associated with investing in one of your children’s companies.

EXAMPLE… Full article

3 Ways To Reduce Stamp Duty Land Tax

There are several ways to reduce Stamp Duty. Here are some of the examples:

 

 

1. Commercial Property

Purchase of commercial property results in lower Stamp Duty compared to residential properties of the same value.

2. Mixed-use Property

A mixed-use property, wherein it has both residential and commercial aspects, attracts lower rates of Stamp Duty. The 3% additional residential property rates do… Full article

Avoid The Additional 3% SDLT On Property Purchase

 

The additional 3% Stamp Duty Land Tax surcharge has been implemented since 1 April 2016. Therefore, if you own more than one residential property then you have to pay 3% more stamp duty than would be applicable based on normal rates.

There are various scenarios that require careful planning to avoid paying the additional 3% SDLT. Here are some examples:
 … Full article

Wages Whilst On Jury Service

During jury service there is no statutory entitlement for an employee to be paid by his employer, unless there is a clause in their contract regarding such a situation.

 

 

Employees are however entitled to claim allowances from the court to cover travel and subsistence costs whilst they are on jury service. They can also claim a financial loss allowance regarding any loss of… Full article

Tax Efficient Children’s University Fees

The cost of going to university and living away from home can come up to £20,000 per year. Because students usually don’t have enough time to get a decent job to cover their expenses, the bills often fall to Mum and Dad.

Mum and Dad are often higher rate taxpayers. Therefore, it will cost them £33,333 in gross earnings to fund… Full article

Footballer Alexis Sanchez Sentenced For Tax Fraud

Alexis Sanchez was accused of evading €1m (£890,000) in 2012 and 2013 whilst playing for Barcelona. He used a company in Malta in order to avoid being taxed on image rights. However, he has now accepted a 16-month prison sentence for committing the fraud.

Fernando Felicevich, Sanchez’s agent, have since stated that the alleged crimes committed have been used for… Full article

Dodgy Excuses And Expense Claims

Every year, following the 31 January Self-Assessment deadline, HMRC exposes a number of interesting excuses for not completing tax returns online.

The most interesting ones are the following:

 Late Filing Excuses

  1. I couldn’t file my return on time as my wife has been seeing aliens and won’t let me enter the house.
  2. I’ve been far too busy during the country with… Full article

January Tax Return Traps

The deadline for filing a paper tax return has already passed. However, you still have a few weeks to submit your online tax return. This needs to be filed by midnight on 31 January 2018.

 

You need to file a self-assessment tax return if you:

  • are self-employed
  • earn more than £100,000 a year
  • have a pension income above the… Full article

Auto – Enrolment Traps To Look Out For

Auto enrolment has been gradually phased in by The Pensions Regulator. However, from 1 October 2017, first time employers will need to comply with the legislation immediately.

It’s essential that these employers understand their legal obligation and discharge them. If they failed to do so, fines will be imposed at a rate of up to £10,000 per day.

If you… Full article