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June Questions and Answers

Q1. I am thinking of purchasing a new house that I will use as my main residence, but I will still own other properties. Will I be liable to the new 3% stamp duty land tax (SDLT) change?

A: HMRC guidance on the new higher rates of SDLT for purchase of additional residential properties explains that if a previous main residence is replaced within three years, then you will not be liable to the additional 3% SDLT charge, even though you own other residential properties.

Q2. I commenced trading…

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Free pension advisory services to be merged

Pension Wise, the free advice service set up to promote and advise on pensions reform and annuity freedoms, is to be merged with other publically funded advice services on pensions, to create a single website and advisory service.

The Low Incomes Tax Reform Group (LITRG) believes that the merger is a great opportunity for the new unified service to better help those on low incomes. Commenting on the merger, LITRG chairman, Anthony Thomas, said:
‘Advice on money matters has previously been delivered in penny packets by bodies specialising in discrete…

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HMRC go live with Verify identity authentication

Gov.uk Verify, the online service taxpayers will need to use to prove their identity before accessing HMRC’s digital services and other government online services, is now live. The central government platform for online identity assurance has been under development for some time by the government digital service (GDS) and has been available in a beta version. It has now passed its service assessment.

It should take around ten minutes for an individual to verify their identity the first time they use gov.uk Verify, and a couple of minutes any…

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OTS examines potential for new trading vehicle

The Office of Tax Simplification (OTS) recently published a series of recommendations following its simplification review of small company taxation (see OTS recommends simplifications for small companies, April 2016 newsletter). The review focused on incorporated businesses with fewer than 10 employees, known as ‘micro’ businesses, of which there are now some 4.1 million in the UK, with 1.3 million operating through a company structure.

Currently, the UK operates a corporate tax regime on a ‘one-size fits all’ basis, modelled on a traditional company, with third party shareholders and clear…

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New PSC register requirements take effect

From 6 April 2016, all unlisted UK companies, limited liability partnerships (LLPs), or societas europaea (SEs)  are required to maintain a register of the people who have significant control over them. This new register of ‘people with significant control’ is known as the PSC register, and its purpose is to identify individuals who ultimately own or control more than 25% of a company’s shares (or more than 25% of an LLP’s assets), more than 25% of the company/LLP’s voting rights, or who otherwise exercise control over the company…

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Tax & Financial Strategies 2016/17

Tax has become a political hot topic in recent years, but the fact remains that sensible tax planning within the law – making sure you take advantage of the allowances and incentives that the Government has deliberately put in place – is perfectly sound practice.

 

If you have any questions or would like one-to-one advice tailored to your needs, please call us on 01792 466 428 or email [email protected].

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May Key Tax Dates

2 – Last day for car change notifications in the quarter to 5 April – Use P46 Car

19/22 – PAYE/NIC, student loan and CIS deductions due for month to 5/5/2016

31 – Deadline for copies of P60 to be issued to employees for 2015/16

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May Questions and Answers

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…

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Companies to be liable for employees who facilitate tax cheating

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…

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New student loan plans take effect

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…

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