CORPORATION TAX RELIEF BACK FOR ACQUIRED GOODWILL

A further late change to the Finance Bill will re-introduce relief for acquired goodwill on the acquisition of businesses with eligible intellectual property from 1 April 2019. This relief was withdrawn back in July 2015 and the restoration of relief for goodwill and customer-related assets is very welcome although the new form of relief will...

WELCOME CGT ENTREPRENEURS’ RELIEF CHANGE FOR SHAREHOLDERS

In the December 2018 newsletter we alerted you to important changes to CGT entrepreneurs’ relief included in the latest Finance Bill that could have the effect of denying the relief to certain employee shareholders. As the result of lobbying by the professional bodies, the government have made a late change in the Finance Bill to...

NO DEAL BREXIT – WHAT ABOUT VAT?

NO DEAL BREXIT, CUSTOMS AND VAT The Government and HMRC have updated its collection of high-level guides called “partnership packs”. These will help import/export prepare for changes to customs procedures if there’s a “no deal” scenario. If we exit without a deal, UK businesses will have to apply customs, excise and VAT procedures to goods traded...

ADVISORY FUEL RATE FOR COMPANY CARS

These are the suggested reimbursement rates for employees’ private mileage using their company car from 1 December 2018. Where there has been a change the previous rate is shown in brackets.     Note that for hybrid cars you must use the petrol or diesel rate. You can continue to use the previous rates for...

PENSION PLANNING

For most taxpayers the maximum pension contribution is £40,000 each tax year, although this depends on their earnings. This limit covers contributions by both the individual and their employer. The unused allowance for a particular tax year may be carried forward for three years. It can also be added to the relief for the current year, but...

INHERITANCE TAX RULES FOR PASSING ON THE FAMILY HOME

Inheritance Tax Rules This additional relief should be taken into consideration when drafting your Will. Rawcliffe & Co can work with your solicitor to make sure your Will is tax efficient. An additional nil rate band of up to £175,000 is available on death where your residence is left to direct descendants. This is in...

CAPITAL ALLOWANCES 2019

INCREASED CAPITAL ALLOWANCES Increased Capital Allowance started on the 1st of January 2019. The Chancellor announced a temporary increase in the Annual Investment Allowance (AIA) in the Autumn Budget. This is for expenditure on plant and machinery to £1 million. However, transitional rules mean that the full amount will not necessarily apply to your business...

GIFTS TO CHARITY

Where possible higher rate taxpayers should “ Gift Aid ” any payments to charity to provide additional benefit to the charity and for the individual to obtain additional tax relief on the payment. For example where an individual makes a £20 cash donation to charity the charity is able to reclaim a further £5 from...

GIFTS OF UP TO £50 TO EMPLOYEES

From April 2016 new rules were introduced to allow employers to provide their directors and employees with certain “trivial” benefits in kind tax free. The new rules were brought in as a simplification measure so that certain benefits in kind do not now need to be reported to HMRC as well as being tax free...

CHRISTMAS IS THE TIME FOR GIVING: IHT EXEMPTIONS & CGT CONSEQUENCES

Those thinking about making gifts at Christmas should take advantage of the various inheritance tax, IHT exemptions and reliefs available to them. Note that certain gifts can also have capital gains tax (CGT) implications.   THE ANNUAL IHT EXEMPTION – USE IT OR LOSE IT! Although not particularly generous at £3,000 per donor per annum if...