TIME TO REVIEW YOUR WILL?
Top of the new year to do list for many individuals is to make or update their will. Many think this is something to leave until later in life, but it is important to get things in place once property is acquired or when children come along. In the absence of a will there are […]
PENSION CONTRIBUTION IS TAX EFFICIENT FOR BOTH EMPLOYEE AND EMPLOYER
Pension contributions to approved pension funds on behalf of employees and directors continue to be a tax-free benefit provided the annual input limit is not breached. The contributions are also deductible for the employer provided incurred wholly and exclusively for the purposes of the trade and paid before the end of the accounting period of […]
ANOTHER REASON TO SELL PROPERTY BEFORE 6 APRIL 2020
If the draft legislation issued for consultation last year is enacted in the next Finance Act there will be important changes to private residence relief for disposals after 5 April 2020. Firstly, the exemption for the final period of ownership will be reduced from 18 months to 9 months. This applies where a former main […]
NO CAPITAL ALLOWANCES FOR EQUIPMENT IN A “DWELLING HOUSE”
Estate Planning, Money Matters
As a general rule, there are no capital allowances available for expenditure on plant and machinery in a dwelling house. In a recent Tax Tribunal case it was decided that only equipment installed in the “common parts” of a dwelling house qualifies for tax relief. This would typically comprise a common entrance lobby, corridors, stairs […]
INHERITANCE TAX TO BE SIMPLIFIED
The Office of Tax Simplification (OTS) have undertaken a detailed review of Inheritance Tax (IHT), which is perceived by many as a complicated tax. The government normally takes account of OTS recommendations and their report is likely to lead to future changes to the rules. We will keep you posted as the changes may necessitate […]
CGT LETTING RELIEF RESTRICTION
Currently letting relief provides up to a £40,000 deduction in computing the capital gain on the disposal of a property that was at some time the taxpayer’s main residence. The relief is the lessor of £40,000, the gain attributable to the let period, and the amount of private residence relief. For a couple this could […]
CGT PRIVATE RESIDENCE RELIEF CHANGES
Blog, Estate Planning, Money Matters, Tax
Draft legislation to be included in the next Finance Bill will make important changes to the calculation of CGT private residence relief. As announced in the Autumn 2018 Budget, there will be a reduction in the final period exemption to just 9 months and stricter conditions for letting relief to apply. Currently where a property […]
NO TAX FREE CGT UPLIFT ON DEATH
Blog, Estate Planning, Money Matters
Although the OTS were tasked with simplifying inheritance tax, they also considered the interaction with CGT as many asset transfers potentially have both CGT and IHT implications. Currently there is no CGT on assets transferred on death and the recipient inherits the asset at its market value. It has been suggested that the capital gains […]
POSSIBLE CHANGES TO CGT PRIVATE RESIDENCE RELIEF
The government is currently consulting on important changes to private residence relief that are likely to be introduced from 6 April 2020. The two possible changes, announced in the Autumn 2018 Budget are: Firstly to limit to just 9 months the period prior to disposal that counts as a period of deemed occupation The second is […]
CGT TO BE PAID EARLIER ON PROPERTY DISPOSALS IN 2020
HMRC are consulting on the mechanism for collecting CGT on residential property disposals from April 2020, when the tax will be due within 30 days of completion. This will be instead of the normal payment date of 31 January following the end of the tax year and is yet another attack on buy to let […]
