Joint Agreement Not Entities (‘JANE’)

Written by Arnold Hill on February 19, 2018

Introduction There are a number of ways businesses can trade together, the most common of which are Partnerships and Joint Ventures. Another structure, often overlooked but can be attractive is a Joint Agreement Not Entity. Joint Agreement Not Entity A joint arrangement does not have to be a separate entity, unlike a joint venture which…

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Tax Planning 2018

Written by Arnold Hill on February 13, 2018

As the current tax year draws to a close on 5 April 2018, we would like to take the opportunity to summarise a few tax planning points that could be considered now.  We appreciate that not all of them may be relevant to you but if there is anything below you wish to discuss with…

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Deregistering from VAT – A Useful Guide

Written by Arnold Hill on December 1, 2017

A business will deregister from VAT under one of two methods:- Compulsory Deregistration This is when the business has ceased to trade and has no intention of making future taxable supplies. The deregistration date is the final date of trading but this can be extended so the business can include probable purchase invoices for input…

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Reasonable Excuse for the Late Payment of Tax

Written by Arnold Hill on November 24, 2017

Mark Pearson (“MP”) v The Commissioner for HMRC is a fascinating case in reasonable excuse for the late payment of tax.  Essentially MP sold his company to another company, Monitise plc, in exchange for shares in Monitise plc.  Under the terms of the share purchase agreement, MP had to sell sufficient number of shares in…

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Rent-a-Room Relief and Possible Changes

Written by Arnold Hill on August 17, 2017

Landlords who rent out rooms in their homes should be aware of possible changes in tax legislation. In the Spring Budget of 2016, the Chancellor announced a new annual tax allowance of £1,000 for property income to apply from 2017/18. Its objective was to help ‘micro entrepreneurs’ in the ‘digital age’ and aimed especially at…

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Making Tax Digital (MTD)

Written by Arnold Hill on August 14, 2017

What is MTD? The core principles behind the concept of a digital tax system by 2020 were set out in December 2015 in HMRC’s MTD road map. HMRC referred to the four foundations of MTD: Tax Simplified The idea that if HMRC already hold tax information, such as P60s and annual interest statements, why should…

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Sole Trader vs Limited Company

Written by Arnold Hill on August 7, 2017

When starting up in business, it is often the first decision to make as to whether you trade as a sole trader or incorporate a limited company. Making the decision as to which structure your business operates will generate thoughts around potential tax savings, perception to the outside world or considering future plans you may…

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Is Helping Your Debtors Unexpectedly Burdensome?

Written by Arnold Hill on August 4, 2017

At a time when credit and cashflows may be tightening, it can be felt appropriate to offer clients ‘time-to-pay’ or ‘instalment’ arrangements to discharge historic debts. Generally, the FCA may be the last item on a client’s mind as they conclude those discussions with their customer, but you’d perhaps be surprised how broad the Consumer…

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Country-by-Country Reporting

Written by Arnold Hill on August 3, 2017

Country-by-country reporting is a relatively new statutory requirement introduced for multinational enterprises with a combined revenue of greater than €750 million. Country-by-country reporting is part of the OECD’s Base Erosion and Profit Shifting (BEPS) Action Plan 13. The basic requirements include providing an annual country-by-country report and return to include a breakdown of the key…

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Loans to Director Shareholders

Written by Arnold Hill on August 2, 2017

What are the implications of taking a loan from your company? This area has been the topic of discussion by clients and their advisors for many years. Shareholders who regularly withdraw sums without applying PAYE or voting a dividend are generally treated as receiving a loan from their company. The basic tax rules regarding this…

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IR35 Legislation – Off-Payroll Working through an Intermediary

Written by Arnold Hill on July 31, 2017

IR35 is the short name used for the ‘intermediaries legislation’, which is a set of tax rules that apply to individuals that work for a client through an intermediary. The IR35 legislation specifically challenges those people who supply their services to clients via their own company, often known as a ‘personal service company’ who in…

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UK Salaried Members Rules

Written by Arnold Hill on July 28, 2017

One of the many benefits of being a member in a Limited Liability Partnership (“LLP”) is the prospect of not being subjected to at source income tax deductions (PAYE) on your salary and bonus payments, which is the case for employees in a limited company. In comparison, a member in an LLP must meet their…

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Accounting and Tax Recognition of Website Costs Under FRS 102

Written by Arnold Hill on July 27, 2017

Pre-FRS 102 accounting requirements Companies incurring expenditure on website development costs have historically accounted for them depending on the perceived long term net benefit to the business. For accounting purposes, entities that have been within the scope of FRS 10 (the financial reporting standard for goodwill and intangible assets) have been required to capitalise website…

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Recharges or Disbursements Charged onto Customers

Written by Arnold Hill on July 26, 2017

There is a distinct difference and more importantly an implication for VAT purposes between recharges and disbursements charged on to customers;  Disbursements Disbursements are where payments are made to a supplier on behalf of a customer and subsequently these costs are passed on to the customer when invoicing them. Disbursements should not include VAT when…

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Joint Property

Written by Arnold Hill on July 25, 2017

Where land and buildings, known as real property, is owned by two or more people, it can be owned either as “joint tenants” or as “tenants in common”. The type of ownership affects what owners can do with the property if they wish to dispose of it or if they die.  Joint tenants have equal…

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Lifetime ISA

Written by Arnold Hill on July 24, 2017

The Lifetime ISA is a tax-free savings account that can help you with buying your first home or building a financial safety net for life after 60. Each year (up to the age of 50), you can deposit up to £4,000 into your Lifetime ISA and the government will add 25% of the amount you’ve…

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Tax On Gifts Of Assets

Written by Arnold Hill on July 21, 2017

Many individuals make gifts and there is a common misconception that there will be no tax arising. However, this may not be the case since a gift to another individual is treated as a disposal at market value for tax purposes and, if the value is not already known, a donor will need to obtain…

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Distributions in a Winding up of a Company

Written by Arnold Hill on July 20, 2017

Distributions made by a company to its shareholders are generally taxed as dividends at the following rates in excess of the £5,000 dividend allowance: Basic rate taxpayers £0 – £33,500 7.5% Higher rate taxpayers £33,501 – £150,000 32.5% Additional rate taxpayers > £150,000 38.1% Where a company has ceased to trade and the shareholders wish…

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Apprenticeship Levy – Watch Out!

Written by Arnold Hill on July 19, 2017

The Apprenticeship Levy (“the Levy”) was introduced with effect from 6 April 2017 and effects employers with an annual wage bill of £3 million or more. The £3m threshold is calculated according to the tax year as opposed to the employers’ accounting year and essentially includes most regular payroll costs except benefits in kind. The…

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Informal Winding Up of a Company

Written by Arnold Hill on July 18, 2017

Shareholders of companies that have ceased business can appoint a liquidator to carry out a formal winding up of that business to pay out the accumulated profits that have built up over the life of that business. The appointment of a liquidator under a formal winding up can mean that the shareholders are treated for…

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Automatic Exchange of Information and The Common Reporting Standard

Written by Arnold Hill on July 17, 2017

Automatic Exchange of information (AEOI) agreements have been made between the UK and many other countries. They allow the exchange of information between tax authorities of different countries about financial accounts and investments to help combat tax evasion.  The OECD developed a “common reporting standard” for the exchange of information in 2014. Until then information…

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Changes to PSC and Confirmation Statement Filing

Written by Arnold Hill on July 14, 2017

As from 26th June 2017, the information required to be submitted to Companies House in relation to confirmation statements and the register of people with significant control (PSC register) has been amended. There is no longer a requirement to disclose PSC information with the confirmation statement. The new rules apply to all confirmation statements produced…

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Scottish Limited Partnership – People with Significant Control

Written by Arnold Hill on July 13, 2017

On 6 April 2016, the PSC requirement was introduced which required a company or limited liability partnership (LLP) to disclose a register of people who have ‘significant control’ over the entity. The scope has now been extended to capture Scottish Limited Partnerships (SLPs) and Scottish Qualifying Partnerships (SQPs). A SQP is a partnership with solely…

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Online Registration for Trusts and Estates

Written by Arnold Hill on July 12, 2017

New trusts and estates must now register with HMRC using the online registration service, which replaces the old form 41(G) Trusts.  All trusts with a UK tax liability should be registered with the online service on or before 5 October following the tax year in which the trust or estate is set up.  You need…

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Setting up of a Private Limited Company

Written by Arnold Hill on July 11, 2017

Incorporating a private limited company has many benefits including the company being legally and financially separate from the individuals running it. In order to incorporate a company you will need the following; Suitable and available company name The name of the company cannot be the same or too similar to another registered company. In addition,…

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Form 17 – Recording Interests in Let Properties

Written by Arnold Hill on July 10, 2017

Most people will accept as sensible the starting point of HMRC in assuming that income arising from property held jointly by a husband and wife will be split equally between them. Income Tax Of course an equal split is not always the most beneficial split in terms of the allocation of profits and so HMRC…

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Annual Tax on Enveloped Dwellings (ATED)

Written by Arnold Hill on July 7, 2017

Although not a new tax, there have been changes with ATED since its introduction in 2013 which makes a refresher in respect of the current regime worthwhile. From 1 April 2016 ATED applies to dwellings valued at £500,000 or more. If the dwellings were owned on 1 April 2012, it is the 2012 open market…

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Audit Exemptions for UK Subsidiaries

Written by Arnold Hill on July 4, 2017

Small groups Subsidiary companies registered in England and Wales can claim exemption from the statutory requirement for an audit if the group they are in meets the definition of a ‘small’ group. This requires that the group they are a part of is smaller than at least two of the limits below: Gross Net Turnover…

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Extended Deadline for 2016/17 Share Scheme Returns

Written by Arnold Hill on July 3, 2017

Companies who operate employee share incentive schemes, for example the tax advantaged EMI scheme, are required to submit information to HMRC in the form of an Employment Related Securities (ERS) annual return. From 2014/15 onwards, companies have been required to submit their ERS annual returns online. The statutory deadline for submitting the return is 6…

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Tax Implications of Staff Entertaining

Written by Arnold Hill on June 30, 2017

 HMRC only allows tax relief and the claiming of VAT on the cost of entertaining your business’s employees. The first question that needs to be resolved is to determine who are your employees? Former and previous employees don’t qualify, nor do subcontractors or shareholders who do not work in the business. If you’re a sole…

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Key Tax Deadlines

Written by Arnold Hill on June 29, 2017

Income Tax 6th April 2017 First day of new tax year 31st July 2017 Deadline for second self-assessment payment on account for tax year ended 5th April 2017 5th October 2017 Deadline to notify HMRC for necessary Income Tax / Capital Gains Tax if not registered already for self-assessment 31st October 2017 Deadline for paper…

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Considerations before applying for EIS

Written by Arnold Hill on June 28, 2017

EIS qualifying conditions need to be met by both company and investor for duration of the holding period of three years; Company Company must not be controlled by or control another company Company must be unquoted at the time shares are issued Company has fewer than 250 employees Company has gross assets that do not…

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Charity VAT – Basics Covered

Written by Arnold Hill on June 27, 2017

Grants & Donations Grants and donations are not generally consideration for a supply and therefore treated as outside the scope of VAT. This is on the basis that income is freely given with no strings attached and hence treated by the charity as a gift. However, it is very important that this income has to…

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UK Film Tax Relief

Written by Arnold Hill on June 26, 2017

For all British qualifying films of any budget level, the film production company can now claim a payable cash rebate of up to 25% of UK qualifying expenditure. The tax relief is capped at 80% of core expenditure i.e. even if you spend 100% qualifying expenditure in the UK, tax relief is payable on up…

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Offshore Funds – Tax Treatment on Disposal

Written by Arnold Hill on April 3, 2017

Offshore funds are non-UK resident investment vehicles, such as companies and the overseas equivalent of unit trusts. When disposals of such funds are made, care needs to be taken as certain types of offshore funds attract income tax, rather than capital gains tax (CGT), on the arising gain. Broadly speaking, funds which accumulate income are…

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Extension of Probate work to accountants

Written by Arnold Hill on March 31, 2017

When a person dies, their executors (if they have left a Will) need to apply to the Courts for a grant of probate in order that their estate can be administered. Whilst some individuals are prepared to make a personal application to the Court, it is very common for the task to be left to…

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SSE Note

Written by Arnold Hill on March 29, 2017

Where the relevant conditions are met, the Substantial Shareholding Exemption (“SSE”) exempts gains arising on a qualifying disposal of shares from a charge to corporation tax. The SSE was originally introduced in Finance Act 2002, but HMRC are now broadening its scope by loosening some of the conditions for qualification in Finance Bill 2017. The…

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Business Investment Relief

Written by Arnold Hill on March 23, 2017

Business Investment Relief (BIR) is available to non-UK domiciled individuals who are assessed to UK tax on the remittance basis. This valuable relief exempts from UK income tax or capital gains tax any foreign income or capital gains remitted to the UK which are used to make a qualifying business investment within 45 days. A…

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Rebasing Updated

Written by Arnold Hill on March 21, 2017

As a follow-up to our article in respect of becoming deemed domiciled in the UK [insert link], with effect from 6 April 2017 it is important to consider the impact of that change. Although being taxed on worldwide income and gains is undoubtedly the headline change, it is important to consider some of the finer…

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Deemed UK Domicile – Changes from April 2017

Written by Irina Dumitru on March 13, 2017

From 6th April 2017, new rules regarding non-domiciled individuals will take effect. Those resident in the UK for at least 15 of the past 20 tax years will become “deemed” UK domiciled for income, capital gains and inheritance tax purposes. Such individuals will no longer have the option to claim the remittance basis and therefore,…

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Budget 2017 – Personal Tax Highlights

Written by Kate Kalina on March 9, 2017

Income tax The personal allowance will increase to £11,500 and the basic rate band to £33,500 from 6 April 2017. From April 2018 the annual dividend allowance will be reduced from £5,000 to £2,000. The capital gains tax annual exemption will increase to £11,300 in 2017/18. The Government plans to consult on the redesigning of…

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Change of Accounting Date

Written by Arnold Hill on December 12, 2016

For various reasons, an unincorporated business, whether a sole trader or a partnership, may wish to change its accounting date. A change of accounting date might offer the opportunity for profits to be taxed at a lower rate of tax. This would be particularly relevant when the top rate of income tax changes from one…

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Tax Free Remittances

Written by Arnold Hill on December 1, 2016

Tax Free Remittances This article is aimed at non-UK domiciled taxpayers who elect to be assessed on the remittance basis. Such individuals are likely to be aware of remittances of foreign income and gains to the UK. Here we will look at what does not constitute a remittance for UK tax purposes. Clean Capital Taxpayers…

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Stamp Duty Land Tax on Additional Residential Properties

Written by Arnold Hill on November 17, 2016

New rules introducing higher rates of Stamp Duty Land Tax (SDLT) on purchases of additional residential properties came into force on 1st April 2016. The higher rates are part of the Government’s plan to support home ownership and first time buyers. The higher rates will only apply to purchases where the individual owns two or…

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Enterprise Investment Schemes (“EIS”) and Seed Enterprise Investment Schemes (“SEIS”)

Written by Arnold Hill on November 16, 2016

EIS Introduction The Enterprise Incentive Scheme (EIS) is a government initiative designed to encourage investors to undertake investments in small, higher risk, trading companies by providing income tax and capital gains tax reliefs. Since the EIS was launched in 1993-94, almost 22,900 individual companies have received investment through the scheme and over £12.2 billion funds…

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EMI Note for Publication

Written by Arnold Hill on November 14, 2016

Enterprise Management Incentive Introduction An Enterprise Management Incentive (EMI) scheme is an employee share option scheme. It is designed to help small, higher risk companies recruit and retain employees who have the skills to help them grow and succeed. The options are very tax advantageous and can also be a method for rewarding employees for…

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Correcting Mistakes in Financial Statements

Written by Arnold Hill on November 11, 2016

Despite the best efforts of all those responsible for the preparation and approval of financial statements, from time to time Prior Period Errors occur. International Accounting Standard 8 and FRS 102 adopt a similar approach for dealing with those errors. IAS 8 defines Prior Period Errors:- Prior Period Errors are omissions from, or misstatements in,…

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Minority Interest Discounts in Unfair Prejudice Claims

Written by Arnold Hill on November 10, 2016

A colourful case in its own right, the judgement in Murrell v Swallow and Sanders is an interesting reminder of how the courts can look at minority interest discounts in unfair prejudice actions. In this particular case the petitioner was a 3% shareholder and became a shareholder when he acquired 1.5% of the company from…

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VAT Flat Rate Scheme… Are You Eligible?

Written by Arnold Hill on October 12, 2016

The standard rate of Value Added Tax (VAT) in the UK currently stands at 20 percent. The amount of VAT which an organisation pays (or reclaims) from HM Revenue and Customs (HMRC) is, in most cases, the difference in value between the VAT charged by the business on their taxable supplies and the VAT the…

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Client notification letter

Written by Arnold Hill on October 10, 2016

The International Exchange of Information Manual issued by HMRC imposes certain obligations on ‘Specified Relevant Persons’ which would include Arnold Hill & Co LLP.  If you have any queries, please do not hesitate to contact your relevant Partner.  Tel: 0207 306 9100


Ready…Steady…Auto Enrol!

Written by Arnold Hill on September 26, 2016

There is no doubt that you have already seen the adverts, the billboards, and heard the “we’re all in” catchphrase countless times by now. However, despite all this, are you ready for auto enrolment? This article aims to explain what auto enrolment is, how it may affect you and the processes involved. Auto enrolment is…

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EMI Options

Written by Arnold Hill on September 14, 2016

The EMI (Enterprise Management Incentives) scheme is a government endorsed share options scheme available to employers as a way for smaller companies to retain staff in competitive markets, especially the information technologies industries, for example, by providing them with a long term incentive. But EMI share schemes can only be used by UK companies who…

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Business Investment Relief – HMRC Consultation

Written by Arnold Hill on September 5, 2016

Business Investment Relief (BIR) was introduced in April 2012 to encourage individuals who are taxed on the remittance basis to invest their foreign income and gains in businesses in the UK. The scheme effectively treats funds brought to the UK for the purposes of making a qualifying investment as not remitted to the UK and…

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Business Property Relief – Lloyds Underwriting Activities

Written by Arnold Hill on September 2, 2016

Although not necessarily thought of in the conventional meaning of trading, it is noteworthy that Lloyds Underwriting activities are considered a trade for Business Property Relief (“BPR”) purposes. This can be very attractive for both the value of the underwriting business and also for the ancillary trust fund assets. In the correct circumstances, accumulated income…

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No More Annual Returns

Written by Justin Moore on June 29, 2016

Replacing the Annual Return with the Confirmation Statement From 1 July 2016 for both companies and LLPs registered in England, Wales and Scotland, the Annual Return filed at Companies House each year will be replaced with a Confirmation Statement.  A Confirmation Statement must be filed at least annually and within 14 days of the Confirmation…

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Will Tax Planning – Life Interest Trusts

Written by Justin Moore on June 21, 2016

It is very common in a Will to leave a significant part of one’s estate to a surviving spouse/civil partner. Any amount left to such a person is normally exempt from Inheritance Tax (although restrictions may apply if the transferee is not domiciled in the UK –see separate article on this subject). However the same…

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Surviving (non-dom) Spouse Relief for IHT

Written by Justin Moore on June 21, 2016

Surviving spouse exemption for a non-domiciled spouse of a UK domiciled deceased. Today most of us – especially if we are considered to be UK domiciled – might take the ability to transfer without limit assets from one spouse / civil partner to another for granted. But the situation is different where the transferee spouse…

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The Budget 2016 – Highlights

Written by Justin Moore on March 17, 2016

We are pleased to set out below some of the highlights from today’s budget.  This is not intended to be a detailed commentary which will follow in due course.  The comments below are intended to announce the changes and should not be construed as advice.  Please do not make any decisions in respect of the…

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Changes to the Taxation of Dividends

Written by Robert Usher-Somers on March 1, 2016

There are significant changes proposed in the way dividends received are to be taxed, starting with dividends paid after 5th April 2016. Summary of the changes Dividends will no longer be “grossed up” with a 10% notional tax credit. There will be a dividend nil rate band; initially set at £5,000. This means that the…

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Wind up of Private Companies – Tax Treatment Changes

Written by Robert Usher-Somers on February 26, 2016

The attraction of Entrepreneur’s Relief encourages the owners of owner managed trading companies to wind them up and pay only 10% capital gains tax on liquidation distributions. Phoenix type arrangements whereby the shareholders then form a new company to carry on the same trade are not looked on favourably by HMRC. To counter this, new…

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Pension Contributions

Written by Robert Usher-Somers on February 18, 2016

Reduction in annual allowable amount to £10,000 Imminent changes are about to limit tax relief for contributions to personal pension schemes, from £40,000 to only £10,000 per annum in many cases. From 6th April 2016 where both of the following income limits are exceeded, there will be a reduction in the annual allowance: Threshold income…

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Property Income Tax: Changes from April 2016

Written by Arnold Hill on December 4, 2015

The Summer Budget introduced new rules to limit tax relief on finance costs (FC) incurred by buy-to-let landlords. The main reason for this change is to make the system fairer for individuals who buy a home to live in and do not have the option to offset their mortgage interest against their taxable income as…

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Offshore Funds

Written by Robert Usher-Somers on October 9, 2015

Investing in offshore funds can result in unexpected tax results depending on the type of fund held. There are Reporting Funds and Non-Reporting Funds. Disposals of units in a reporting fund are subject to the normal capital gains tax rules if a gain or loss is made. However if non-reporting units are disposed of at…

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Discretionary Trusts and Business Property Relief

Written by Justin Moore on October 1, 2015

The tax cost arising on settling assets into a discretionary trust severely inhibits the use of those trusts in passing wealth on to future generations. However, there are circumstances in which assets can be transferred to the trust with no tax charge on the settlement, and in these circumstances the advantages of using the trust…

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Inheritance Tax Planning Through Deeds of Variation

Written by Justin Moore on September 30, 2015

Deeds of variation It is not always the case that the provisions of a deceased’s will are the most desirable arrangement from the perspective of the beneficiaries of the estate as a whole. For instance, sometimes particular assets are bequeathed to particular beneficiaries and sometimes the way in which assets are bequeathed could lead to…

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Taxation of Partnership Gains

Written by Justin Moore on September 15, 2015

Given the targeting of private equity and investment managers in recent budgets, it is pleasing to see that the updating of the guidance around the taxation of gains in partnerships has not been fundamentally changed in the latest revision to Statement of Practice D12 (SoP D12), published yesterday.  Instead the changes incorporate only the clarity…

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Earn While You Learn – Why being an Apprentice Accountant can pay Dividends!

Written by Kelly Southby on July 20, 2015

Are you interested in the accountancy sector? Think you need to get a degree to become an accountant? University is not the only route to your future success and a fantastic career in the accountancy sector. Apprenticeships are primarily focused on training for a particular career and if you are motivated, dedicated and enthusiastic, a…

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Entrepreneur’ Relief Restrictions FA 2015

Written by Robert Usher-Somers on June 19, 2015

The disposal of an unincorporated business, or of shares in an unquoted trading company, as well as assets used in such a business or company, can give rise to capital gains tax (CGT) at 18% or 28% of any gain realised depending on the seller’s marginal rate of income tax and subject to any annual…

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Does My Trust Need Reviewing?

Written by Lucy Duncan on June 4, 2015

Most people who run Trusts, the Trustees, follow good practice by actively managing the assets, obtaining appropriate and timely advice and preparing regular accounts. By doing this they are able to comply with any taxation or other reporting requirements and to establish who is entitled to the capital or the income derived from it. A…

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Employment Related Securities

Written by Jennifer Boath on May 27, 2015

Share Scheme Registration Deadline of 6th July 2015 From 6th April 2014, HMRC required companies to register all share schemes, both new and existing with them. From April 2015, HMRC require all information returns to be filed online. These changes include both approved and unapproved share schemes and affect Company Share Option Plans (CSOP), Share…

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Pre Trading Expenditure

Written by Chandni Dattani on May 27, 2015

Many people think about setting up their own business and often incur costs ahead of beginning to trade. So how does it work in getting relief for those costs? HOW IT WORKS: Individuals wishing to set up their own business, should that be a bakery, an accounting firm or wanting to be a self-employed diving…

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Transfer of assets between spouses and civil partners

Written by Kate Kalina on March 25, 2015

If you are married or in a civil partnership, you may wish to consider making gifts of assets to your spouse or civil partner as there are a number of tax advantages that follow. In this article “spouse” means husband, wife or civil partner. Capital Gains Tax Transfers of assets between spouses generally bear no…

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Tax Planning suggestions before 5th April 2015

Written by Robert Usher-Somers on March 12, 2015

Pensions  During 2014/15 you can pay up to £40,000 gross into a pension plan (provided you have sufficient earnings). To the extent that you have not used up your contribution limit (£50,000 pa for 2011/12 to 2013/14) in any of the three previous tax years, you may be able to increase the contributions in 2014/15…

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ATED Extension

Written by Justin Moore on March 6, 2015

You will recall that in Budget 2014 the Chancellor announced that the Annual Tax on Enveloped Dwellings (“ATED”) legislation was to be extended from 6th April 2015 to include residential properties held by non-natural persons and valued at more than £1m. At the same time it was announced that from 6th April 2016 this regime…

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Inheritance Tax (“IHT”) by Instalments

Written by Justin Moore on March 6, 2015

IHT relating to land, certain shares and securities and business assets can, in certain instances, be paid by instalments. Land in the context of this relief can be of any description, situated anywhere in the world. The most common instance where this relief will be relevant and claimed is in respect of a transfer which…

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Pension Contributions – possible cap at £10,000 per annum

Written by Robert Usher-Somers on February 26, 2015

Currently an individual can pay a pension contribution of up to £40,000 gross per annum into a personal pension plan provided he or she has sufficient relevant earnings against which to set the contributions. From 6th April 2015 this will reduce to £10,000 for money purchase pension contributions where the member has dipped into the…

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EC Sales list – Getting it right!

Written by Arnold Hill on February 20, 2015

What is an EC Sales List? Any VAT registered business in the United Kingdom which supplies goods or services to VAT registered customers in another country within the European Union (EU), must report these supplies to HM Revenue and Customs. An EC Sales List includes three separate pieces of information:- The customer’s country code Details…

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VAT – Getting the basics right can be so important!

Written by Arnold Hill on December 23, 2014

Two incredibly important points to note:- VAT invoices must be complete if you’re looking to rely on them to recover input VAT; and Invoices can be corrected before, but not after HMRC has made a decision as to their validity. Sounds very simple, but one straightforward case highlights that this is not always so. In…

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Disguised Fee Income

Written by Arnold Hill on December 18, 2014

The Autumn Statement announced proposals to change legislation in respect of the taxation of management fees received by investment fund managers and draft legislation was subsequently published in the Finance Bill 2015. The proposed new legislation is intended to come into effect from 6 April 2015 with no grandfathering provisions in respect of existing arrangements….

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SDLT rates from 4 December 2014

Written by Arnold Hill on December 17, 2014

Residential land or property SDLT rates and thresholds From 4 December, SDLT for residential property is charged at different rates depending on the portion of the purchase price that falls within each rate band. There is no change to how SDLT is calculated on purchases of non-residential property or on the rent payable when a…

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Reduced Administrative Burden for ATED Returns

Written by Arnold Hill on December 11, 2014

The Finance Bill has introduced a new type of ATED return called ‘the relief declaration return’.  For each type of relief being claimed, the company will submit a ‘relief declaration return’ stating that a relief is being claimed in respect of one or more properties held at that time.  No details will be required of…

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Autumn Statement 2014

Written by Arnold Hill on December 5, 2014

Further to yesterday’s Autumn Statement we set out below a very brief note of some of the key items announced Stamp Duty With effect from midnight on 3 December 2014 the method of calculating the stamp duty chargeable on the purchase of residential property by a natural person has changed.  Previously the stamp duty rate…

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Importance of taking professional advice

Written by Arnold Hill on November 9, 2014

Sometimes the failure of clients to take professional advice can mean paying significantly more tax than is necessary. This failure may result from not realising that there might be a different way of structuring a transaction or simply a reluctance to incur professional fees. The following cases are examples of where significant tax savings may…

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The guidance on the application of the remittance basis rules

Written by Arnold Hill on September 17, 2014

HMRC published new guidance on 4th August 2014 in respect of the remittance rules surrounding offshore loans to non domicilaries. Previously, non-doms were able to secure their offshore loans against offshore assets (income/gains) and bring the loan to the UK without triggering a remittance as long as the interest/capital loan repayments were not made from…

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HM Treasury Consultation Document: “Implementing a capital gains tax charge on non-residents”

Written by Arnold Hill on May 7, 2014

Last month the UK coalition government released a consultation document proposing the implementation of a capital gains tax charge on non-residents in respect of sales of UK residential property.  The details of the proposal remain relatively vague and are likely to be amended throughout the consultation and legislation process.  However at this stage the following…

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Relief and restrictions for trade losses

Written by Arnold Hill on March 14, 2014

Relief When an unincorporated business makes a trading loss, there may be some consolation to the sole trader or partner, if for tax purposes he or she may be able to claim relief for that loss by deducting it against other income and possibly obtain a tax refund.  The tax legislation allows some flexibility over…

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Tax Planning Suggestions before 5th April 2014

Written by Arnold Hill on March 7, 2014

Pensions During 2013/14 you can pay up to £50,000 gross into a pension plan (provided you have sufficient earnings). That limit reduces to £40,000 with effect from 6th April 2014.  To the extent that you have not used up your £50,000 contribution limit in the three previous tax years, you may be able to increase…

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Environmental Week!

Written by Arnold Hill on February 26, 2014

Arnold Hill is currently mid way through its inaugural environmental awareness week.  All of our staff members have been tasked with challenging the policies and processes currently adopted within our workplace.  By doing so we hope to better understand the impact that we are having, both locally and globally.  At the end of this week…

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LLP’s and treatment of salaried members

Written by Justin Moore on January 13, 2014

Ever since LLPs were introduced it has been HMRC’s practice to treat all members as self-employed even if they would otherwise have been regarded as salaried partners/employees. This led to significant numbers of individuals being made members of LLPs because of the significant National Insurance Contributions savings which were possible. Perhaps with this in mind,…

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Bah, Humbug!

Written by Justin Moore on December 10, 2013

The festive season is upon us and although the first thought should not be of the taxman, he’s worth bearing in mind! Most employers should be aware of the long-standing rules whereby staff entertaining (e.g. Christmas parties) are tax-free if the cost, including VAT, is not more than £150 per head. This ‘per head’ limit…

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Autumn Statement – Main Issues

Written by Arnold Hill on December 6, 2013

Income Tax and National Insurance From 2014/15 a spouse/civil partner will be able to transfer £1,000 of his or her personal allowance to his or her spouse/civil partner. Employer National Insurance Contributions for employees under the age of 21 are to be abolished from April 2015 (unless their annual earnings exceed the upper earnings limit,…

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Airbnb – Tax Pointers

Written by Justin Moore on December 2, 2013

Many people will be aware of Airbnb, the online community marketplace for people to list accommodation and to invite guests to stay. Indeed, Airbnb (www.airbnb.co.uk) suggests that it has assisted more than 9,000,000 guests with their stays away from home and its success and take up is incredible.  Whilst we understand that tax would not…

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Internationally Mobile Employees

Written by Jennifer Boath on September 24, 2013

Increasingly, individuals are travelling abroad to carry out duties in relation to their employment in addition to carrying out some of their duties in the UK. It is important for those individuals to consider the tax implications surrounding this and the effect on their UK tax position. If you are a non-domiciled individual who has…

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