The Enterprise Investment Scheme (EIS) offer significant tax reliefs to individual investors buying new shares in the company. Availability of relief under the EIS took centre stage in a tax tribunal case brought by Inferno Films Ltd. Spoiler alert: Inferno won.
Gift Aid: 5 mistakes to avoid
Recent figures reveal the average Gift Aid donor gives £360, although donors in Northern Ireland top the list with an average £750 gift. There’s no doubt that Gift Aid is good for charities but a 2020 High Court tax case highlights the importance of following the rules.
Timing your capital spending to maximise tax relief
Maximising the tax benefit from capital expenditure is often a balancing act of different considerations. Timing, in particular, can be key to getting the best outcome. Here are two deadlines to bear in mind if you have imminent plans for capital spending.
Is the new super deduction really the biggest tax cut ever?
‘Bold and unprecedented’. That was the Chancellor’s description of the new 130% super deduction for plant and machinery announced in the Budget. But, when you look at the detail, how does it really stack up against the usual rules on capital allowances?
The super-deduction: time to invest in plant and machinery?
In his Budget speech, Chancellor Rishi Sunak announced a new ‘super-deduction’ for companies that invest in qualifying new plant and machinery between 1 April 2021 and 31 March 2023. But what does that mean in practice? Put simply, for every pound a company invests, their taxes will be cut by up to 25p.
Principal Private Residence relief – Home is where the dog is
Financial gains made on the disposals of residential property will usually trigger liability for a capital gains tax (CGT). The exception to this rule is when you dispose of your main home, thanks to principal private residence relief (PRR).
Tax, tables and automobiles – Claiming for working from home expenses
The COVID-19 lockdown saw a surge in the numbers of employees working from home. Many staff have yet to return to their place of work and may not for some time. We provide the answers to frequently asked questions about tax and working from home expenses.
R&D tax credits – a tax-free income boost
Are you missing out on a tax-free payment from the government? R&D tax credits allow you to offset the cost of R&D activity against your tax bill and also receive a cash lump sum on top. If your business is eligible, you could receive a payment from HMRC within 28 days of making a claim.
Annual Investment Allowance temporary increase to £1 million
A temporary increase in the Annual Investment Allowance (AIA) to £1 million announced in the Autumn Budget 2018 is now in effect. The new allowance – five times the previous cap – will benefit businesses investing from £200,000 up to £1 million in new plant and machinery.
Furnished Holiday Lettings – A smart move for buy-to-let investors?
Recent changes to the rules on allowable costs have led to tougher times for buy-to-let landlords. But in business there are always opportunities… one option for buy-to-let investors could be to diversify into furnished holiday lettings (FHLs).
Enhanced Capital Allowances – save energy, save tax
Businesses which invest in energy-saving plant or machinery may be able to save tax by taking advantage of an HMRC tax break.
New tax year, new plans for saving tax
If you have already submitted your tax return for the tax year ended 5 April 2018, there’s no better time to think about saving tax in the current year. Here are three pieces of helpful tax-saving advice…
Buying property Off-plan: Principal Private Residence tax relief
An interesting tax case this year resulted in a victory for the taxpayer and heralded some good news for individuals who have bought or are going to buy a property off-plan.
Tax-Free Childcare rolls out
At the beginning of 2017, we were getting quite excited about the forthcoming rollout of the new Tax-Free Childcare scheme. For the first time, self-employed parents would be eligible for tax relief on their childcare costs. The scheme is now available to all eligible working parents. If you haven’t applied yet, we explain the benefits of the scheme and how it works.
Dividend Allowance reduction – time to make a plan
We expect to see changes to tax reliefs when a new government comes into power. We don’t expect to see a government severely cut a single tax relief just two years after introducing it. Yet that is just what we have seen happen to the Dividend Allowance.
