In April 2020, changes were introduced that limit the tax relief landlords can claim on finance costs for residential properties. These changes, which restrict mortgage interest relief to the basic rate of Income Tax, have far-reaching implications for landlords to this day. Understanding the details of this relief, its calculation, and the legislative provisions is… Read more »
When selling a business, the consideration received may be deferred and contingent on specific events. This means the exact amount payable may be known (ascertainable) or unknown (unascertainable). Understanding the tax implications of these different types of considerations is crucial for effective financial planning and tax management. (Read Time: Approx. 5 minutes) Topics Discussed: Deferred… Read more »
A significant tax relief opportunity awaits commercial property owners, promising to lower future tax liabilities or even generate tax refunds for the past two years. Surprisingly, over £1 billion worth of capital allowance claims remain unclaimed. Identifying these qualifying assets within a commercial property often requires a specialist team of tax experts and surveyors to… Read more »
The UK tax system is notoriously complicated but understanding specific loopholes can save you a significant amount of money. Here are some strategies to consider before potential changes by the government might close these tax-saving avenues. (Read Time: Approx. 6 minutes) Topics Discussed: Maximising Tax-Free Allowances By leveraging various tax-free allowances, a higher-rate taxpayer can… Read more »
Family members, particularly your spouse or children, can provide tax advantages if done correctly. However, it is essential to understand and comply with HMRC guidelines to avoid any potential challenges. (Read Time: Approx. 5 minutes) Topics Discussed: Guidelines and Compliance for Employing Family Members You can employ your spouse, civil partner, or other family members… Read more »
Crafting a tax-efficient will is paramount to ensuring that your wealth benefits your loved ones rather than being diminished by taxes. Dying without an effective will, or intestate, allows the law to decide who inherits your assets, often resulting in unnecessary inheritance tax (IHT) burdens and administrative complications. (Read Time: Approx. 5 minutes) Topics Discussed:… Read more »
When dealing with HMRC, there’s a spectrum of opinion on how much information to disclose. While some taxpayers feel compelled to divulge extensive details, others remain tight-lipped. However, finding a balance is essential. (Read Time: Approx. 4 minutes) Topics Discussed: HMRC Requirements Filling in Self-Assessment Tax Return When HMRC sends you a Self-Assessment tax return… Read more »
Extracting profits from a company in a tax-efficient manner is a complex but important task for company owners. Factors such as business type, activities, size, and family shareholders, alongside available profits, play a significant role in determining the best approach. (Read Time: Approx. 4 minutes) Topics Discussed: Basics of Profit Extraction For individual companies with… Read more »
Creating new share classes in a family company can be a strategic way to split income among family members, but it comes with its own set of tax considerations. This week, we look at the key tax consequences, anti-avoidance provisions, and statutory requirements involved in such a process. (Read Time: Approx. 3 minutes) Topics Discussed:… Read more »
HMRC has delivered an unexpected yet advantageous update for shareholders. With the official rate of interest (ORI) for employee loans remaining remarkably low, there’s a unique window for savvy financial planning. Discover how leveraging company funds can significantly reduce your personal mortgage costs. (Read Time: Approx. 3 minutes) Topics Discussed: Take Advantage of Low Interest… Read more »
