Category: Tax

  • SME Tax Investigations

    For most companies the prospect of a tax inspection, however minor, will always create alarm. Yet recent reports suggest that one in ten small businesses are now facing investigation by HMRC; which equates to half a million SMEs across the UK. This is a surprising, and somewhat worrying, statistic.

    The argument for targeting small businesses in this way has come about following a total of £34 billion in unpaid tax faced by the Revenue in 2015-16. Following a report to the Treasury Select Committee, HMRC stated that small businesses contributed 46 percent of this tax ‘gap’, which has somewhat prompted ...

  • VCT and EIS Reforms

    By Terry Smith

    The Finance Bill which gained Royal Assent on 15th March contained changes to the reliefs available on Venture Capital Trusts (VCT) and Enterprise Investment Schemes (EIS). The focus of the changes has largely been targeted on the softer end of the risk spectrum, but there are also benefits to be had with personal investment limits raised and increased relief for certain sectors.

    The Chancellor believes that so called ‘asset backed’ or ‘downside protection schemes’ are not sufficiently high risk to justify the tax breaks investors receive. These investments offered as much of a guarantee as such schemes ...

  • LOSS OF PERSONAL ALLOWANCES - INCOME THAT EXCEEDS £100,000 ANNUALLY

    The UK media don’t really understand tax, unsurprisingly. Thus, whenever the personal allowance is mentioned, its restriction for incomes exceeding £100,000 is often poorly explained. Haggards Crowther will try to correct this.

    For the employed, income taxes are collected via your annual tax coding. Data is poorly maintained by HMRC due to technical, and resource, issues. Incorrect income tax codes are often issued. Salaries can easily rise from £90,000 per annum to over £100,000 either via a pay rise in mid-year, or via a one-off incentive or year-end bonus. If you believe your aggregate income now ...

  • Haggards Crowther unravel some of the mystery surrounding Inheritance Tax (IHT)

    Let us take a quick look at inheritance tax, through some family lifestyle transactions:

    1. Everyone is tempted to ignore inheritance tax (IHT) because it centres on one’s death. The first issue for all parents (especially if the children are now adults) is to write a Will. Just grasp this nettle and do it, soon, as this might save a lot of family ructions; you can always amend it a year or two later. Make sure you clearly deal with emotional issues such as executors, valuable chattels and family jewellery!

    2. The best IHT tactic is to spend annually ...

  • UK Property Taxation Summer 2017 – Still a sound investment?

    Stamp duty surcharges have undoubtedly made some of those investing into the SE England property market think twice. The 3% SDLT surcharge, which applies to second properties, was introduced in 2015. This new tax must be added to the new restrictions on loan interest write-offs, and wear and tear expenses, both of which have begun to affect UK higher-rate taxpayers now.

    Whilst these amendments undoubtedly affect future landlords’ profits, the property price rises of the last decade have enticed many to enter the London and SE England region’s market. Those with high borrowings have not been shaken out by ...