28.06.2010
Tax Advice
This post will be of interest to anyone likely to pay capital gains tax (CGT) as a result of a sale of an asset in the 2010/11 tax year. The June Budget introduced an overnight change to the CGT regime and HMRC have produced a fairly readable Budget Note 20 and a copy of the Example 1 from that release is reproduced at the foot of this article. The example uses a taxpayer whose income is taxed at the basic rate but in adding capital gains the inclusive income will be in the higher rate band. read more
22.06.2010
Tax Advice
We have been complimented on the updates posted on Twitter live during the Budget and hope to continue this by summarising the main points of interest to small business owners and individuals in the street.
The Chancellor George Osborne started by painting the picture of the poor state of the economy and among various political comments stated that due a cautious approach fiscal goals would be met one year earlier than expected in 2014. The inflation target will remain at 2% which has already been exceeded, this will peak at 2.7% later in the year and then reduce. In terms of the approach to the deficit a lower spending rather than higher tax route is being taken, read more
25.03.2010
Tax Advice
The key budget announcements follow, we can of course expect another post election budget when more significant changes may be made such as the much vaunted increase in VAT:
For business
- The Annual Investment Allowance (AIA) will be increased to £100k pa for expenditure incurred on or after 1 April 2010 (companies) and 6 April 2010 (unincorporated businesses).
- No changes have been made to the main and small companies’ rates of corporation tax which for 2010 remain at 28% and 21% respectively.
- A 100% first year allowance will be available for new zero-emission goods vehicles for a five year period from 1 April 2010 (companies) and 6 April 2010 (unincorporated businesses)..
- Business rates cut for one year from October meaning a tax reduction for more than 1/2 million small businesses in England and 345,000 will pay no business rates at all.
For individuals
- The lifetime allowance for entrepreneurs’ relief has been increased to £2m and may be claimed for disposals made on or after 6 April 2010. Capital gains tax rate remains at 18%. read more
21.03.2010
Tax Advice
Under self assessment anyone who has a tax liability must inform the Revenue and pay the additional tax. For the majority of employed taxpayers this does not apply as tax is collected by their employer every month and any adjustments are made in their tax code. The opposite rule however does not apply as the Revenue is not obliged to tell you if you have overpaid, so if you are in doubt it makes sense to check which you can do on the Revenue website or ask your accountant to do. Some people such as directors of companies and the self employed must complete a tax return. read more
