Latest Blogs

14/06/2024

Five common capital gains tax errors

HMRC have revealed that every year lots of simple errors are made in tax returns in relation to capital gains tax which result in the taxpayer suffering additional tax, interest and penalties. Here are some common mistakes, and how to avoid them.

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14/06/2024

IHT transferable nil rate bands

The nil rate band is the amount that a person may leave free of inheritance tax. Each person has their own nil rate band, which for 2024/25 is set at £325,000. A person’s estate may also benefit from a further nil rate band – the residence nil rate band (RNRB) – where they leave a residence to a direct descendant or descendants.

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14/06/2024

Which home is the main residence?

Private residence relief is a valuable capital gains tax relief which means that a person does not have to pay capital gains tax on any gain arising on a property while it was their only or main residence. Where a property has at some point been the taxpayer’s only or main home, the last nine months of ownership are also exempt from capital gains tax (increased to 36 months where the taxpayer leaves their home to go into care). Certain other periods of absence may also qualify for the relief.

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02/05/2024

New VAT Threshold

New VAT thresholds – When must you register and when can you deregister? The VAT registration threshold rose from £85,000 to £90,000 from 1 April 2024. The deregistration threshold increased from £83,000 to £88,000 from the same date. The changes in the thresholds change the trigger points for compulsory registration and optional deregistration.

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02/05/2024

Extracting profits in 2024/25

If you run your business as a personal or family company, you will need to extract your profits in order to use them personally outside your company, for example, to meet your living expenses. There are various ways of doing this, some more tax efficient than others. Although there is no ‘one size fits all’ and your optimal profit extraction strategy will depend on your personal circumstances, a popular approach is to pay a small salary and to extract further profits as dividends.

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02/05/2024

Taxation of company cars in 2024/25

A taxable benefit arises where an employee has the private use of a company car. Unless the car is an electric car, a further benefit arises if the employer meets the cost of fuel for private travel.

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02/05/2024

Should I sell before the end of the FHL regime?

Furnished holiday lettings (FHLs) enjoy tax advantages not available to landlords letting residential property on long-term lets. The advantages are particularly beneficial when it comes to capital gains tax as landlords disposing of an FHL are able to benefit from a range of reliefs, including business asset rollover relief, business asset disposal relief and gift-holdover relief. However, the special tax regime for FHLs is to come to an end on 5 April 2025. From 6 April 2025 onwards, FHLs will be taxed in the same way as other lets, with gains chargeable at the relevant residential rate. Consequently, if you are thinking of selling or giving away your FHL, or if the property is pregnant with gain, you may wish to consider making the disposal prior to 6 April 2025 to take advantage of the existing capital gains tax reliefs.

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