TAX
Invest with HMRC?!
Following the reduction in base rate in August from 0.5% to 0.25%, HMRC have amended the interest rate due on late paid tax. HMRC have reduced all interest charge rates from...
Stamp duty and mortgages
Generally on a transfer with no consideration there can be no stamp duty charge. But there is an exception if a mortgage is wholly or partly transferred. If one party assumes...
Rent a room relief and bed and breakfast income
Rent a room relief (£4,250 to 15/16; £7,500 from 16/17) can be claimed against bed and breakfast income, even though this type of letting activity amounts to a trade. So if...
Farmers’ losses
There is a restriction which prevents relief for farming losses being claimed against other income if a loss results for tax purposes for more than five years in a row. What...
Suspended penalties
Penalties are levied by HMRC where carelessness is involved but they can be suspended if conditions can be applied. If an officer will not suspend a penalty without a reason...
Charitable trusts and the single rate band
While charitable trusts are usually exempt from income tax, if the settlor of the funds into charitable trusts has also made discretionary family settlements, the £1,000...
Deemed domicile and residency
Individuals will be deemed UK domiciled from 6 April 2017 if: They have been resident in the UK for at least 15 of the last 20 years They were born in the UK with a UK...
Investors’ relief (CGT break)
Introduced in the Finance Bill 2016, this allows external investors to subscribe for shares in an unquoted company and provided the company is qualifying and the shares held...
Correcting mistakes in returns
If information comes to light after a return is submitted the onus is on the taxpayer to make the correction to mitigate any possible penalties particularly when that return...
A level playing field for all the home nations?
This is no longer the case in the world of tax and the way that the surcharge on stamp duty land tax (SDLT - England, Wales or Northern Ireland) or the land and buildings...
Farmers (and market gardeners) averaging – changes for 2016/17 onwards
For a long time HMRC have recognised that farming profits can be affected by a lot of factors, including the weather and therefore to smooth out the rate of tax payable they...
Borrowing money tax free from your limited company
Remember that if you borrow up to £10,000 there is no benefit in kind. However the company has to pay 32.5% of the value of the loan to HMRC if the loan is still outstanding...