The rules about the way rental properties are to be taxed has had an overhaul and it may turn a credible investment into a taxation nightmare. The Government has clearly stated that its policy is to increase the availability of…
As of 6 April 2016, employers can provide an employee or a member of his/her household with a benefit in kind, with no tax consequences, provided all of the certain conditions are met, deeming the benefit ‘trivial’. Conditions A…
The new 3% additional rate of SDLT applies from 1 April 2016 and was expected to apply to second homes and buy to let investments by individuals. It was however, announced in Finance Act 2016, that the extra charge will…
Q: What is the Personal Savings Allowance and how can you claim it? A: From 6 April 2016 a basic rate taxpayer will be able to earn up to £1,000 in savings income tax free. Higher rate taxpayers will be…
There are many ways in which you can start your Inheritance Tax (IHT) planning now by making gifts that don't have any IHT implications. Gifts of any assets including cash, to any person, trust or company, will not be fully out of…
The ‘£1 million’ nil rate band is worth up to £140,000: Does your will adequately utilise this? The main residence nil rate band is potentially highly advantageous. However, many wills are drafted in a manner that will prevent the new…
Following consideration of the taxation of non-UK domiciled individuals, the Government has proposed various amendments to the current position. The intention is to provide a balance between ensuring that the UK is an attractive jurisdiction for non-UK based individuals to…
Restriction of finance costs Where an individual rents out residential property, in computing rental profits, the amount incurred on finance costs that can be deducted will be limited from 6 April 2017. ‘Finance costs’ essentially refers to mortgage interest and…
Taxation of dividends From 6 April 2016, the taxation of dividends is as follows: - there is no ‘notional tax credit’, i.e. the confusing method of grossing up the received dividend by 100/90, then providing a notional tax credit of…
Tax lock Legislation has been introduced to set a ceiling upon the main rates of income tax and NI for the duration of the current Government. Whilst this allows some degree of certainty, this goes against the Parliamentary principle that…