Filed under: capital gains tax (cgt)
In our Budget review last month we mentioned one interesting announcement of a new tax relief, which had not been expanded upon in HMRC’s release notes. This is the opportunity for employee shareholders to dispose of shares without incurring capital gains tax (CGT). Further details have now been published and present an interesting new proposal for owner managed companies to consider.
These new proposals effectively require an employee to relinquish some of their employment rights and adopt a new ‘employee shareholder’ employment status. They are then able to acquire shares in their employing company through the adoption of this status. These shares will in turn attract new tax reliefs which will ensure that shares acquired up to a value of £2,000 will not attract tax and national insurance contributions when they are acquired, and sale proceeds received of up to £50,000 from eventually selling the shares will not be charged to capital gains tax. (more…)
April 4, 2013
Now as the tax year draws to a close, it is a good time to ensure that you have considered all the options when it comes to reducing your tax bill with tax planning. In this article we look at what you could be thinking about now to legitimately reduce your liabilities. (more…)
February 26, 2013
Over the years, our tax planning advice when buying property has varied according to a client’s tax position and funding availability at the time. We are always being asked the question “should property be bought personally or through a company?” The answer to this question is not clear-cut; in recent years the tax relief available on the disposal of commercial property favoured the purchase of this type of property personally, but the reliefs are ever changing, and the answer has become more subjective.
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January 22, 2013
Share ownership has always been a powerful motivator for companies looking to recruit and retain talented and loyal staff. It’s something Nick Clegg referred to last year when he talked of the ideal John Lewis Partnership model for companies to aspire to. The Deputy Prime Minister believes companies that offer shares to their workers tend to be more dynamic, have higher levels of morale and staff who are more motivated to work hard.
At a time when salary increases may not be a viable offering for many companies, share options are set to become an even more attractive proposition, provided new proposals earmarked for inclusion in the 2013 Finance Bill are adopted. In the past, what the Government has announced in the Autumn Statement has tended to be introduced, so we expect this tax planning opportunity to become available to clients later in 2013. (more…)
January 7, 2013
When a company is wound up informally there are important tax issues to be aware of, both for the company and for its shareholders; any losses must be accounted for and the relevant tax legislation must be borne in mind when disposing of the company’s remaining assets.
If you are in a position whereby you might wish to wind up a company, you may also wish to utilise any tax planning opportunities in order to minimise your personal tax liabilities. These are likely to involve tax planning in advance and may cover multiple accounting periods and span more than one tax year. (more…)
September 24, 2012
There have been a number of significant property tax changes recently, which are relevant to property owners and investors. One very high profile change has been the increase in taxes payable by the 200,000 British owners of property in France. This was introduced by the country’s new President Francoise Hollande and has been publically criticised as a blatant attack on ‘les rosbifs’. However in reality the financial impact might not be as great as all the media headlines would have you believe, as we explain. (more…)
July 26, 2012
The morality of what is described by David Cameron as ‘aggressive tax avoidance’ is big news right now after the debacle with Jimmy Carr and his participation in the K2 scheme. Celebrities and the very wealthy are clearly being targeted as HMRC continues to seek ways to improve its incoming revenue levels.
Over recent years, the high end property market in London has seen non-UK domiciled individuals making expensive purchases through offshore companies. This has had a number of advantages – confidentiality, avoidance of inheritance tax and capital gains tax (CGT), and reduced stamp duty land tax (SDLT) by the purchase of shares in a company owning property rather than the property itself, to name a few. (more…)
June 26, 2012
It wouldn’t be right if we didn’t cover a tax issue with an Olympic flavour just as the games are about to start in London. HMRC has given us a perfect opportunity after they issued guidance to those lucky taxpayers who happen to be in possession of an Olympic torch and may decide to sell it – by reminding us that they will make a capital gain from any such sale. (more…)
June 25, 2012
