Posts Tagged: accountancy

Reduce the cost of borrowing from your company

A director can borrow £10,000 from their company interest free. However, there are strict anti-avoidance rules which mean that the company has to pay.     As the director shareholder of a company the net value of assets belongs to you, however, in law the company is a separate person. This means when you take… Read more »

Tax relief on personally owned equipment

If you have a personally owned asset which you sometimes use for business, are you entitled to a tax deduction?     HMRC has a “wholly, exclusively, and necessarily” rule, which means you can’t get tax relief for expenses if there is any non-business use. However, this rule doesn’t apply in the same way to… Read more »

Long-term tax planning for children and shares

Your children might be too young to take over the family company, but can you reduce tax by giving your children shares now?     Parents try to mitigate their tax bills by diverting income to their children that are under 18. These schemes fail because of HMRC’s anti-avoidance rules called settlements legislation. These make… Read more »

Accelerated Capital Gains Tax

There will be major changes to the tax rule for gains made from the sale of residential properties which will take effect from April 2020.   At present capital gains made by individuals are reported through self assessment, i.e if you sell a property between 6 April 2019 and 5th April 2020 you must declare… Read more »

Transferring Assets to your Spouse – Is it tax avoidance?

Tax rules have changed considerably over the years. In 1936 the House of Lords famously ruled that “Every man is entitled, if he can, to order his affairs so that the tax is less than it otherwise would be”. But in 2013 the General Anti-abuse rule was introduced. This has given HMRC the power to… Read more »

Can you spare three months for HMRC?

How much of a tax investigation could you take? With the ensuing costs, intrusion, time and stress involved, there is no underestimating the impact this can have; which makes this week’s news very unwelcome. It’s just come to light through a Freedom of Information request, that HMRC is taking 20% longer with tax investigations. According to tax… Read more »