Archive:March 2021

Please find below all the articles from March 2021.

Venture Capital Trusts – are the dividends exempt?

Thursday, March 4, 2021

When preparing a tax returns, it is easy to look at a dividend statement from a VCT and think “It’s exempt” and simply file it away. Of course, in most cases this is probably sufficient. However, sometimes a little more care is needed.

Dividend exemption

Where an individual aged 18 or over acquires qualifying shares up to the permitted annual maximum of £200,000, any dividends paid on the shares whilst the VCT remains approved are exempt from tax. In addition, if the VCT shares are newly issued, the individual may…

Reporting Covid-19 support payments

Tuesday, March 2, 2021

A business receiving support payments for Covid-19 needs to ensure the receipt is correctly recorded as taxable income for corporation tax purposes. For unincorporated businesses using the cash basis, this is straightforward enough. However, where the accounts are prepared using GAAP, more care is needed.

Section 106 of Finance Act 2020 that payments received under the following schemes are within the scope of this:

– the coronavirus job retention scheme;
– the self-employment income support scheme;
– any other scheme that is the subject of a direction given under section 76 of…

Import One-Stop Shop

Tuesday, March 2, 2021

One of the consequences of Brexit is that exports of goods from GB to customers based in the EU are now zero-rated as far as UK VAT is concerned. However, if the consignment is valued at more than £22 there will be an import VAT liability at the other end. This isn’t too much of a problem for B2B sales where the customer is VAT registered – they can simply claim back the VAT according to the particular process relevant to that country. However, for unregistered businesses and…

Latest news round up

Tuesday, March 2, 2021

Covid-19

There have been relatively few announcements related to Covid-19 support this month. The only real announcement of note was an amendment to the terms of the Pay As You Grow scheme for repaying Bounce Back loans. Under the revised rules, a borrower will be able to take a six-month repayment holiday without needing to have made any previous instalments. Before the amendment, they would have needed to have made at least six payments before this was an option. Full details are available here.

Self-assessment

A welcome announcement in February…