There is a corporation tax (CT) charge (CTA 2010, s 455) on loans made to ‘participators’ in close companies that are outstanding at the end of a CT accounting period (CTAP). This charge used to be at a fixed rate, which Chancellors changed from time to time. However, some years ago, George Osbourne altered this
‘Section 455’: An Unannounced Tax Rise Read More »
The basic rule for considering the place of supply of goods is that they are supplied where they are physically located when they are sold or allocated to the customer. In the simplest scenario, goods located in the UK at the time they are supplied to a customer are treated as supplied in the UK
Buying and Selling Goods Located Overseas Read More »
Interest income for UK individuals can arise from a variety of sources, including (but not limited to) savings accounts, current accounts, fixed-term deposits, corporate bonds, government gilts, peer-to-peer lending platforms, and some unit trusts. For most individuals, the interest they receive will be from banks and building societies. Whether an income tax liability will arise, and
Very Interest-ing! Read More »
Tax and romance – not exactly the perfect match! However, in this Valentines season, the thoughts of the lovestruck (but fiscally frugal!) may turn to sharing their caring nature in a tax-efficient way. Here are some tax tips for a twosome (NB references to spouses include civil partners). It’s theThought that Counts! Gifts of assets
Who Says Romance is Dead?! Read More »
When capital assets are disposed of, capital gains tax (CGT) must be considered, but when assets other than ‘real property’ and intangibles like shares are sold, there is the possibility that no tax is payable at all. A Chattel A chattel is defined within Administration of Estates Act 1925, s 55(x) as: ‘tangible moveable property, other than
One of the ‘badges of trade’ used by HMRC to determine if a trade is being conducted is the presence of a ‘profit motive’ where the “object of acquiring an asset was to re-sell it at a profit, without any intention of holding it as an investment.” However, for various reasons, a business may incur losses instead
Loss Relief: A Reminder Read More »
The New Year is typically a month for planning ahead and focussing on our health. The gym is always busier, and the pubs and restaurants are quieter. But are there any tax savings available that can help shed the pounds? Self-Employed Unfortunately, the costs of a gym membership, sports clothing, or buying your own gym equipment are
Tax Helps Shed the Pound! Read More »
The maximum capital gains tax (CGT) saving on a gain of £1m with the current rate of business asset disposal relief (BADR) of 14% (for 2025/26) is £100,000. When the rate increases to 18% from 6 April 2026, the maximum saving reduces to £60,000. Then and Now… Take the situation of a private trading company owned 50:50
Going, Going, Almost Gone! What is Left of BADR? Read More »
The recovery of VAT on motoring expenses continues to cause confusion to businesses and advisers alike, so here is a quick look at the different methods of recovering VAT and the advantages of each. The basic systems for recovering VAT on motoring expenses are: Claim all the VAT back on road fuel and pay the motoring
Reclaiming VAT on Motoring Expenses Read More »
Dividends are payments by companies to their shareholders as a way of distributing profits. Because those profits are subject to corporation tax, dividends have been taxed at different rates than interest income and capital gains and are subject to their own tax rules. Taxation of Dividends In explaining ‘How dividends are taxed’, HMRC states first: ‘You do
Taxing dividends in 2025/26 Read More »
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