“For those restructuring property portfolios into limited companies, remember the benefits of multiple dwellings relief, i.e. the ability to transfer residential properties at much lower Land and Buildings Transaction Tax (LBTT) rates assuming 6 or more eligible properties are transferred at the same time.”
“The cost of materials can be permitted in R&D claims although only where those materials do not end up as part of a product or service sold for value.
Therefore consumable items within product testing will qualify for example.”
“Residency is an important factor when deciding which country a taxpayer should pay tax in and rules vary between countries. If you’re receiving foreign income and are a UK resident, you need to report your worldwide income in your UK tax returns.
Tax residence matters are important and neglecting issues when they arise can end up being incredibly costly. Speak to your accountant who can help with your worldwide tax position.”
“We’ve all spent long hours on the phone to HMRC waiting for an adviser to take our call.
Don’t tell everyone but the best time to contact HMRC is usually first thing in the morning in order to avoid the long call time waits. They open at 8am!”
“In concluding any business sale, the split of proceeds between property, goodwill, stock and other assets is often a contentious area where the objectives of the purchaser and seller are often polar opposites.
Given that this can cause a deal to be derailed at the 11th hour, we suggest this is negotiated early in the process.”
“Since 2017, trustees were required to register with the Trust Registration Service (TRS) if their trust was liable to pay tax. New rules introduced in 2020 extended the scope of the trust register to UK and some non-UK trusts, with some specific exclusions, regardless of whether or not the trust is liable to pay any tax.
The deadline for registrations is 1 September 2022 and we would advise you to check if you have any assets held in trust that need to be set up and to speak to your accountant as soon as possible.”
“One of the great fundamentals of tax planning is good timing. Be aware of legislative changes, looming deadlines, personal circumstances etc.
Interesting to think that good timing is the one thing that tax planning and comedy have in common!”
“Remember to pay your second payment on account by 31 July 2022, to avoid any unnecessary interest.
It is not too late to reduce it, if you believe your 2021/22 income is lower than previously estimated.”
“COVID-19 has clearly had a negative impact on the value of many investments, properties and businesses.
Can you use these to assist a succession strategy to the next family generation?”
“Employee Ownership Trusts allow the payment of tax free bonuses to staff of up to £3,600 per person per annum.
That’s a great way to say thank you!”