Latest Blogs

06/03/2025

What counts as agricultural property for APR?

Farmers have been hitting the headlines of late following the October 2024 Budget announcement that the rate of agricultural property relief and business property relief will be cut from April 2026 so that the 100% rate will only apply to the first £1 million of combined business and agricultural property from that date. 

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06/03/2025

Should we pay a dividend before the end of the tax year?

If you are the owner of a personal or family company, it is prudent to review your dividend strategy before the 2024/25 tax year comes to an end as assessing whether paying a dividend before 6 April 2025 would be beneficial.

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06/03/2025

Capital gains tax annual exempt amount

Individuals have a separate tax-free allowance for capital gains tax purposes – the capital gains tax annual exempt amount. Although it has been reduced considerably in recent years and is only £3,000 for 2024/25, making use of the allowance can still generate tax savings of up to £720.

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06/03/2025

Use your 2024/25 personal allowance

Most individuals are entitled to receive a personal allowance. This is the amount that they are able to earn before they pay tax. For 2024/25, the personal allowance is set at £12,570. The allowance is for the tax year only – if you do not use it in the tax year, you lose the benefit of it; you cannot carry any unused amount forward to the next tax year.

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25/02/2025

Salary sacrifice to beat employer's NIC rise

Using salary sacrifice to beat the rise in employer’s NIC One of the more unpopular Budget announcements was the rise in employer’s National Insurance from 13.8% to 15% from 6 April 2025. The Class 1A rate and Class 1B rate are similarly increased, meaning that it will hit employers on the provision of both cash pay and taxable benefits. It will also make it more expensive for employers to settle an employee’s tax liability through a PAYE Settlement Agreement; Class 1B contributions apply on both the items included in the agreement in place of the Class 1 or 1A liability that would otherwise arise, and also on the tax due under the agreement.

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25/02/2025

Action you can take if you are struggling to pay your tax

Tax due under Self Assessment for 2023/24 should have been paid in full by midnight on 31 January 2025, along with the first payment on account for 2024/25. Financially, January is a difficult time for many people and they may be unable to find the funds to pay all the tax that they owe. Where this is the case, ignoring the problem will not make it go away; rather, it will make it worse as interest and penalties will be charged, increasing the amount that will have to be paid to HMRC to clear the bill.

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05/02/2025

FHL – relief for finance and investment costs

FHL – relief for finance and investment costs from April 2025 Landlords letting furnished holiday accommodation have hitherto enjoyed a range of tax benefits, including the ability to deduct interest and finance costs in full when calculating their taxable profits. However, the favourable regime for furnished holiday lettings comes to an end on 5 April 2025. From that date, landlords letting furnished holiday accommodation will be subject to the same tax rules as apply to other residential lets. While corporate landlords will still be able to deduct interest and finance costs when calculating their taxable profits, unincorporated landlords letting furnished holiday accommodation will be subject to the more restrictive interest relief rules for residential lets.

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05/02/2025

Reporting residential property gains

Owners of investment properties and second homes may decide to sell up for a variety of reasons. They may wish to take advantage of a more buoyant market as buyers rush to beat the reduction in the residential SDLT threshold from 1 April 2025. The end of the favourable tax regime for furnished holiday lets may see landlords sell up, while those sitting on a large capital gain may decide to realise that gain while the higher rate of capital gains tax on residential gains remains at 24%. Whatever the reason for the sale, where a capital gains tax liability arises on the disposal of a residential property, there is a limited window in which to report the gain to HMRC and to pay the capital gains tax due on that gain.

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