The British Chambers of Commerce (BCC) has this month downgraded its growth expectations for the UK economy in response to “continued Brexit uncertainty”. Read more
Barclays bank have announced plans for a major lending fund worth £14 billion pounds, which will help small and medium enterprises (SMEs) to flourish once the UK has left the European Union (EU). Read more
Research carried out by Barclaycard found that more than one-fifth of finance officers consider their accounting software is outdated, while 16 per cent revealed that companies are not making the most of early payment discounts, losing an estimated £6.7 billion each year. Read more
The Bank of England’s (BoE) Monetary Policy Committee (MPC) has unanimously voted to maintain the UK interest rate at 0.75 per cent amid uncertainty about the potential nature and timing of the UK’s withdrawal from the European Union. Read more
HM Revenue & Customs (HMRC) has warned that registration for Making Tax Digital (MTD) for VAT will take up to seven days to complete and will not be a real-time service. Read more
According to a new report by Make UK and Santander manufacturing, the UK electronics sector experienced fast rapid growth in 2018. Read more
Three-quarters of businesses are unaware of the corporate criminal offences relating to activity which is seen to facilitate tax evasion. Read more
The Government has this month published details of the UK’s temporary tariff regime should the UK leave the EU without a deal later this year. Read more
Currently, in the UK, late payments are a serious issue, especially for small medium-sized enterprises (SMEs) who have to chase invoices from large suppliers, thus causing a disruption in the channel with resellers. Read more
HMRC is urging parents to apply for the Tax-Free Childcare scheme, which provides government contribution on savings used to cover childcare costs. Read more
Individuals and trustees who dispose of assets that are chargeable assets for Capital Gains Tax (‘CGT’) purposes need to be aware of the complex tax rules that can apply.
Chargeable assets can include (but not limited to): land and buildings; business assets; stocks and shares; crypto currencies; and certain personal possessions.
Disposals for this purpose include disposals by way of sale or gift, and so specialist advice should be sought before any disposals of chargeable assets are made so as to manage any unwelcome tax bills.
Individual taxpayers are entitled to a CGT-free allowances each year – being £11,700 in respect of the 2018/19 tax year, and £12,000 in respect of the 2019/20 tax year (reducing to £5,850 and £6,000 respectively for trustees).
The rate of CGT is 20% or 10% insofar that the taxpayer’s basic rate band for income tax is available. These CGT rates increase to 28% and 18% respectively in respect of chargeable gains arising on the disposal of residential property.
Certain reliefs can however apply in relation to disposals of chargeable assets in order to reduce CGT bills, including (but not limited to):
- Entrepreneurs’ relief (‘ER’) in relation to qualifying disposals of business assets. Chargeable gains that qualify for ER are taxed at an attractive 10% rate of CGT (up to a £10 million lifetime allowance of qualifying gains). Whilst trustees do not qualify for ER per se, they can utilise the ER lifetime allowance of qualifying beneficiaries in certain instances;
- Main residence relief which can exempt all or part of a chargeable gain arising on the disposal of a residential property which has been used as the taxpayer’s only and / or main residence during their period of ownership;
- Gift relief which can apply in respect of certain gifts and can defer the CGT charge on the chargeable gain until the transferee’s subsequent disposal of the asset; and
- Rollover relief which can apply to ‘rollover’ chargeable gains on the acquisition of certain business assets within a set time frame.
If you have any questions or would like any further information then please get in touch with Smailes Goldie to find out how we can help.
The number of VAT-registered businesses exporting goods across the UK has increased to 110,800, new figures have revealed. Read more
The Government has announced details of the first public consultation on its plans to make HM Revenue & Customs (HMRC) a secondary preferential creditor for certain tax debts which are paid by employees and customers after the insolvency of a business. Read more
Marking International Women’s Day 2019, a study has explored labour market data from the Office of National Statistics to reveal where new opportunities are opening up for women and where potential new career paths may exist. Read more
Marking International Women’s Day 2019, a study explores labour market data from the Office of National Statistics to reveal where new opportunities are opening up for women and where potential new career paths may exist. Read more