Archive:December 2021

Please find below all the articles from December 2021.

Let property: improvement v repair

Thursday, December 2, 2021

The tax rules property businesses have changed considerably since 2010, for example the restriction of relief for financing costs to the equivalent of a basic rate tax reducer (at best). Almost all these changes have been made with the aim of making property letting less attractive. This makes it all the more important to ensure legitimate deductions are correctly identified and claimed.

One area where there is often confusion is the issue of whether work done on a property constitutes a repair, in which case the cost is allowable…

EIS – FTT considers risk to capital condition

Thursday, December 2, 2021

The enterprise investment scheme (EIS) is a collection of tax incentives aimed at encouraging private investment into younger trading companies. EIS is well established; however, the rules have been subject to various changes and additions over the years.

In summary, the reliefs available on a qualifying investment are:

– income tax relief of 30%;
– capital gains tax reinvestment relief;
– capital gains tax exemption for the EIS shares themselves;
– automatic share loss relief against income (subject to adjustment for income tax relief given).

Of course, as the reliefs…

Using the Import One-Stop-Shop for low value sales

Thursday, December 2, 2021

The old low value import VAT threshold of €22 was abolished in June 2021. All exports (which now include sales of goods to the EU) are subject to VAT. Where the total value of the shipment doesn’t exceed €150, the seller can opt to charge VAT at the point of sale in order to avoid the customer needing to pay import VAT in their member state, which can lead to delays.

The new Import One-Stop-Shop (IOSS) can be used for these sales, which can simplify reporting. If a business…

Latest news round-up

Thursday, December 2, 2021

The first tax sites in the Freeports announced at the Spring Budget have now been designated, meaning that businesses operating within them can now access some of the reliefs.

The sites are located in three of the eight Freeport sites; namely Humber, Thames and Teeside as follows:

– Humber – Hull East and AMEP
– Teeside – Teesworks East and West, and Wilton International
– Thames – Dagenham, Tilbury and London Gateway

As a brief reminder, the tax breaks now available will include 100% first year allowances for plant and…