Q1. How do I work out my share of a capital gain?
I owned a quarter share in a property that was sold in 2015. It was not my main residence at any time during my period of ownership. I am trying to work out my share of the capital gain arising on the property. Do I simply divide the purchase price, sale price, and any improvement costs by four to work out how much tax I will have to pay?
A: Assuming that all the improvement costs and the…
The Government has recently announced that it is to bring forward plans to introduce a criminal offence for corporations who fail to stop their staff facilitating tax evasion.
At the time of the March 2015 Budget, the Chancellor confirmed that the government would be delivering on its pledge to introduce the measure in this Parliament. Prime Minister David Cameron has now confirmed that the offence will be introduced in legislation brought forward this year.
The government has already confirmed plans to create a cross-agency taskforce to investigate all evidence of…
Repayment of student loans is a shared responsibility between the Student Loans Company (SLC) and HMRC. Employers have an obligation to deduct student loan repayments in certain circumstances and to account for such payments ‘in like manner as income tax payable under the Taxes Acts’ (Education (Student Loans) (Repayment) Regulations 2000, SI 2000/944, reg 14).
With effect from 2016/2017 there are two plan types for student loan repayments:
– plan 1 with a 2016/2017 threshold of £17,495 (£1,457 a month or £336 per week);
– plan 2 with a 2016/2017 threshold…
Further to the Budget 2016 announcement, HMRC have published a consultation document covering proposals to introduce a fulfilment house due diligence scheme whereby fulfilment houses in the UK will be required to register, maintain accurate records and be able to evidence the due diligence they have undertaken to ensure their overseas client is a bona fide supplier.
The scheme may directly affect all UK-based businesses that fulfil orders of imported goods. Some rules may also apply to businesses that import goods or those that transport imported goods to…
Clients may be interested to know that HMRC have introduced a new schedule of fees, which apply from 1 April 2016, and replace the former 1.5% fee. The new rates vary depending on the type of card used and whether the card is a personal or corporate card.
Broadly, the fees for paying using personal credit cards have been reduced and the rates for corporate credit cards have increased. The new rates can be found in the schedule to The Fees for Payment of Taxes, etc. By Credit…
5 – End of 2015/16 tax year. Last day to use up your annual exemptions for capital gains tax, inheritance tax and ISA’s
14 – Return and payment of CT61 tax due for quarter to 31 March 2016
19 – Deadline for finial submission of the year – 19th April. Penalties for late submission.
19 – PAYE/NIC, student loan and CIS deductions due for month to 5/4/2016 or quarter 4 of 2015/16 for small employers. Interest will run on any unpaid PAYE/NIC for the tax year 2015/16
30 – Additional daily penalties…
Q. Can I transfer my personal allowance?
I work part time and don’t earn enough to pay tax, but my wife earns £25,000 a year from her full time job. I have been told that I can transfer some of my personal allowances to her so she can save some income tax. Is this true?
A. Claiming the marriage allowance can save married couples or civil partners up to £220 in 2016/17, but many couples have not claimed it yet.
The allowance was introduced from 6 April 2015, and enables married…
Following announcements made in the 2016 Budget on 16 March, HMRC have published furtherguidance on the changes that are being made to stamp duty land tax (SDLT), and how they affect non-residential property transactions from 17 March 2016.
The changes mean that:
– on or after 17 March 2016, the SDLT rate for non-residential freehold and leasehold transactions will only be payable on the portion of the consideration which falls within each band (rather than tax being due at one rate on the entire value);
– SDLT on the rental…
Following recommendations made by the Low Pay commission, the government has announced increases in the national minimum wage (NMW), which will take effect from October 2016.
The new rates will be as follows:
– The rate for 21- to 24-year-olds will rise by 3.7% to £6.95 an hour.
– The rate for 18- to 20-year-olds will rise by 4.7% to £5.55 an hour.
– The rate for 16- to 17-year-olds will rise by 3.4% to £4.00 an hour.
– The apprentice rate will rise by 3% to £3.40 an hour.
For further information, see…
The Office of Tax Simplification (OTS) has published its recommendations on closer alignment of income tax and national insurance contributions. The report contains some bold recommendations for what would be a major reform of the UK’s tax rules.
At summer Budget 2015, the government asked the OTS to look at options for aligning Income Tax (IT) and National Insurance Contributions (NICs). This followed on from recommendations made by the OTS as far back at 2011, and the latest report builds on earlier work of the OTS including the…