Filed under: Personal Taxation
Increase to Annual Investment Allowance (AIA)
Top of the announcements for SMEs was the 10-fold increase to AIA. As of January 2013, the amount business owners will be able to write off as tax deductible capital expenditure in the year of purchase will increase from £25,000 to £250,000. This is a massive boost and far more significant than the previous government’s attempt at encouraging investment amongst business owners. In April 2010, the relief was £100,000, which was also generous, but not large enough to enable a lot of companies to write off all their capital purchases in the first year. This new limit however will achieve that in a single hit and we expect a lot of businesses will take advantage and upgrade their infrastructure. (more…)
January 18, 2013
Having worked all your life to build up assets for which you have already paid income tax, capital gains tax or VAT, it can seem unfair that, when you wish to secure financial peace of mind and pass wealth on to your family, you face a further tax on your accumulated wealth upon death. Nevertheless, this “double” taxation does exist and inheritance tax (IHT) at 40% applies to all estates over £325,000 in value. (more…)
July 26, 2011
If you are not a plumber (or even if you are!) you might be forgiven for not being aware of the current tax amnesty being offered by HMRC. Plumbers, gas fitters, heating engineers and other associated trade members are all being given the chance to notify HMRC of any tax underpayment by 31st May 2011. Provided certain conditions are met, any penalties payable will be at a greatly reduced rate.
Continue May 27, 2011
Now it has been confirmed the 50% tax rate will be lifted in the not too distant future, how might it be possible to avoid paying it al together? Taxtalk explores some relevant tax planning opportunities.
Continue April 10, 2011
Holistic tax planning might sound airy fairy but it makes a big difference to the amount of tax you pay. Company directors take note!
Continue April 4, 2011
There was nothing unduly generous for individuals in this Budget in spite of the increase to the personal allowance.
Continue March 23, 2011
We predict business and personal tax announcements in the coming Budget 2011. Overall whatever we get, business owners really need a ‘roadmap’ to understand how the tax system will develop over the coming years. Then they can start making planning decisions for their business. In particular having a long range view will help with longer term workforce planning, deciding whether to hire new staff, where to locate offices and important investment decisions.
Continue March 18, 2011
If you’re a Sunday Times reader, you could not fail to notice the article in January about footballers and their tax affairs. This highlighted how many footballers have been avoiding the 50% tax rate by using image rights companies into which the majority of their earnings are paid and then using their director’s loan account to withdraw income. Apparently, it is possible to pay a rate of just 2% by following this strategy. We wish it were that straightforward!
Continue February 8, 2011
With Christmas almost upon us, you may be looking for some alternative gift ideas. Here at RJP, the Surrey based tax specialists, we’ve put together a Christmas wish list which see you through well into January and tax return time!
Continue December 9, 2010
The weekend papers were full of news about the planned increases to capital gains tax (CGT) announced by the new government. Some commentators have argued that this change has been on the cards for some time, although during the Election campaigning it was only the Lib Dems that formally announced their intentions. Subsequently incorporated into the coalition’s policies, we can expect CGT rates for top earners to more than double for non business assets and the exemption threshold to be cut from £10,100 to between £1,000 and £2,000.
These changes will be painful, especially since for the past 2 years, the flat rate of 18% has been extremely generous. But given the poor state of the Treasury’s coffers, the disparity between income and capital tax rates cannot be sustainable.
Continue May 27, 2010