In the Government’s Summer Update on 8 July 2020, the Chancellor announced a six-month reduction in the VAT rate on supplies of food and non-alcoholic drinks from restaurants, pubs, bars and cafes, as well as to supplies of accommodation and admission to tourist attractions.
The rate cut from 20% to 5% took effect on 15 July 2020 and will be in place until 12 January 2021 to support businesses and jobs in the hospitality sector across the UK.
Many smaller businesses use the VAT flat rate scheme (FRS) as it…
Recent research revealed that property transactions fell by more than 50% in May and house prices have fallen for first time in eight years. In an attempt to help boost the housing market, a temporary reduction in stamp duty land tax (SDLT) in England and Northern Ireland has been introduced. The Scottish and Welsh Governments have also announced corresponding reductions to Land and Buildings Transaction Tax (LBTT) and Land Transaction Tax (LTT).
The nil rate band threshold for SDLT payments on residential property has been temporarily increased from £125,000…
Under new rules capital gains tax (CGT) on disposals of UK residential property must be reported by 31 July to avoid a penalty.
Finance Act 2019 made certain changes regarding payment of CGT, which took effect from April 2020 and broadly align the position of UK residents and non-UK residents. From 6 April 2020, a UK resident who sells a residential property in the UK will have 30 days to tell HMRC and pay any CGT owed. Failure to notify HMRC within 30 days of completing a sale may…
Lifetime ISAs (LISAs) continue to provide a tax-efficient savings vehicle for investors as there will be no income tax to pay on interest earned and no capital gains tax to pay on subsequent profits arising on the money invested. Up to £4,000 a year can be invested in a LISA, with the government providing a 25% bonus on contributions at the end of each tax year up to the age of 50.
LISAs can generally held by an individual who:
– is 18 years old or more;
– is under 50…