HMRC has significantly ramped up its use of risk-based profiling, relying heavily on a powerful tool known as Connect. This sophisticated software analyses vast amounts of data, enabling HMRC to build detailed profiles of taxpayers, aiming to identify returns or behaviours that deviate from the expected norm. But what does this mean for you? (Read… Read more »
Transferring your home to your children might seem like a smart move to avoid inheritance tax or simplify estate planning. However, this decision often leads to significant tax implications and other financial pitfalls that can outweigh the perceived benefits. (Read Time: Approx. 4 minutes) Topics Discussed: The Evolving Rental Market The Retreat of Private Landlords… Read more »
Transferring your home to your children might seem like a smart move to avoid inheritance tax or simplify estate planning. However, this decision often leads to significant tax implications and other financial pitfalls that can outweigh the perceived benefits. (Read Time: Approx. 4 minutes) Topics Discussed: The Inheritance Tax Trap A common motive for transferring… Read more »
Updates to the High-Income Child Benefit Charge (HICBC) for the tax year 2024/25 introduce significant adjustments that will impact many families. The key change involves raising the threshold at which the charge begins, from £50,000 to £60,000. This article explores the implications of these changes, the differences in impact on single- and dual-income families, and… Read more »
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 »
