News - Signature Tax

What is the trading allowance?

27th July 202127th July 2021 Admin

What is the trading allowance? In April 2017 HMRC introduced a ‘trading allowance’ for people with side hobbies or other sources of casual or miscellaneous income. The allowance exempts up to £1,000 of gross income per tax year for hobby activities such as cake sales, dog walking, photography, arts and crafts or earnings from semi-professional activities like sporting appearances or… Read More

Stamp Duty Land Tax: available for residential purchases

23rd July 202123rd July 2021 Admin

A special exemption in relation to Stamp Duty Land Tax is available for specific residential purchases by any lawyers on behalf of a buyer. This applies to company’s or partnerships who carry out the business of buying and selling properties Special exemption when buying property from a deceased estate, no SDLT is due if ALL of the following conditions are… Read More

Gift with Reservation of Benefit

23rd July 202123rd July 2021 Admin

We are often asked by clients “How can I reduce my death estate by utilising the value of my family home?” You may have heard about the rules of “Gifts with Reservation of Benefit” (GWROB), but do you know how it works? How does it affect your estate position? Gift with Reservation of Benefit Usually, if a donor gives an… Read More

Restructuring Your Business

29th June 202129th June 2021 Admin

Many growing businesses start out operating from one sole entity: a single limited company with one or more family members or business partners as shareholders. The owners may have incorporated separate entities to manage different trading businesses or have setup investment companies to hold property or other investments. In the above scenarios, the shareholders may find that if they restructure… Read More

Family investment companies

28th June 202130th June 2021 Admin

For many people, a trust is the most tax favourable vehicle that enable them to pass assets out of their estate for Inheritance tax (“IHT”) purposes, but with unfavourable changes to the trust tax rules, this has made trusts less attractive nowadays. The alternative is family investment companies (“FICs”). FICs are private limited companies whose shareholders are family members. A FIC structure… Read More

Making a voluntary disclosure

28th June 202129th June 2021 Admin

HMRC have offered disclosure opportunities for many years to those with undeclared income to come forward and reach a settlement. For HMRC, such opportunities are attractive and shift the onus to the taxpayer to review the finer details. From a taxpayer’s point of view, disclosure opportunities are preferable to wait until HMRC opens an enquiry or investigation and offer the… Read More

Cryptic Currency

24th May 202124th May 2021 Admin

If you are one of the (reportedly) millions of people in the UK investing in various types of crypto like Bitcoin, Ethereum, Litecoin, Dogecoin then you may be wondering what is your UK tax position? Currency or not? Back in 2012, HMRC changed the UK taxation reporting rules on traditional foreign currency like dollars & euros. No longer was exchanging… Read More

Capital Allowances Super Deduction

24th May 202124th May 2021 Admin

For expenditure incurred from 1st April 2021 until the end of March 2023, companies can claim 130% capital allowances on qualifying plant and machinery investments. Under the super-deduction, for every pound a company invests, their taxes are cut by up to 25p. The new Capital Allowances offer as a result of measures announced at this Budget. Businesses will now benefit… Read More

IR35 – Catch of The Day?

24th May 202124th May 2021 Admin

Football has been in HMRC’s firing line in recent years, in response to a prompt from politicians over the years. This started with the chase against foreign legions over allegations that their use of image right companies, meant they may not have been paying as much tax as they should. More recently, HMRC has decided to go in aggressively against… Read More

Stamp Duty Land Tax – surcharge for non-UK buyers

24th May 202127th May 2021 Admin

Stamp Duty Land Tax – surcharge for non-UK buyers From April 2021, a new surcharge (2%) for stamp duty land tax (SDLT) will be applied to those individuals who are not UK residents to purchase of residential property in England and Northern Ireland. What type of purchases does the surcharge apply to? The surcharge will apply to a purchase of… Read More