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
When Is Stamp Duty Payable on a Mortgage Transfer? Stamp Duty Land Tax (SDLT) is generally not payable when property is transferred with no consideration. However, an...
Rent a room relief and bed and breakfast income
Understanding Rent a Room Relief for B&B Income Rent a Room Relief allows homeowners to earn up to £7,500 tax-free (previously £4,250 before 2016/17) by letting out...
Farmers’ losses and tax relief
Restrictions on Claiming Tax Relief for Farming Losses Many farmers rely on tax relief for farming losses to offset profits from other income. However, a restriction applies...
Suspended penalties HMRC
When HMRC identifies carelessness in tax filings, they may issue a penalty. However, in some cases, suspended penalties HMRC applies allow taxpayers to avoid an immediate...
Charitable trusts and the single rate band
Charitable trusts are typically exempt from income tax, making them a useful structure for managing donations and assets intended for charitable causes. However, complications...
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: A Valuable CGT Break for External Investors
Introduced in the Finance Bill 2016, investors’ relief provides a capital gains tax (CGT) break for external investors subscribing for shares in unquoted companies. This...
Correcting Mistakes in Tax Returns
Mistakes happen, but when it comes to tax returns, errors must be corrected as soon as possible. If incorrect information comes to light after submission, the taxpayer is...
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...
Farmers’ averaging rules – changes for 2016/17 onwards
Farming profits can fluctuate significantly due to factors like weather, market conditions, and supply chain issues. To ease tax burdens, HMRC allows farmers to average their...
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...