What is the inheritance tax residence ‘nil rate’ band?

Inheritance tax has long placed a heavy burden on families during an already difficult period. Announced in the 2015 budget, the inheritance tax residence nil rate band (RNRB) is a measure designed to alleviate this strain for many people. While the addition of an extra layer of relief to the existing inheritance tax structure brings its benefits, it may also appear to complicate … Continue Reading

Do companies pay Capital Gains Tax?

Capital Gains Tax is not paid by limited companies or unincorporated associations like community groups or sports clubs.  Instead, companies pay Corporation Tax, which is another type of payment.  It is important that business owners are aware of the difference between certain taxes so that they know which ones they are eligible to pay.

What is Capital Gains Tax?

Capital Gains T… Continue Reading

6 Ways to Pay less Capital Gains Tax

Capital Gains Tax is due on the difference between the price you pay for something and the price you ultimately sell it for. This includes almost all assets including property which isn’t your main dwelling, antiques, shares and a range of other items. If you want to minimise the amount of Capital Gains Tax you need to pay, one of the most effective approaches you can take is to plan wel… Continue Reading

Capital Gains Tax For non-UK Residents

Since 6 April 2015 HMRC have been charging capital gains tax on property disposals by non UK residents. This means that HMRC now need to be informed of a property sale owned by a non-resident individual, company or fund and CGT has to be paid on the disposal within 30 days of the date of sale. For properties that are owned jointly, each person must inform HMRC of the sale on separate tax re… Continue Reading

Tax Advice for US Citizens in the UK

If you are an American citizen living and working in the UK, you need to be aware of and compliant with both UK and US tax regulations. Common issues may arise if you are unaware of certain regulations, but with the right advice these can be avoided.

When is the US tax year?

The US tax year aligns with the calendar year, running from 1st January to 31st December, with the UK tax year running … Continue Reading

How the American FATCA Legislation is Affecting Britons.

In 2010 new legislation was passed in the US designed to prevent tax avoidance by American citizens working overseas, particularly in Europe. However, as of July this year the “Foreign Account Tax Compliant Act” (or FATCA) also applies in the United Kingdom and could affect British citizens and British companies. The total cost to British companies and individuals has been esti… Continue Reading

Receiving Rental Income? Get Your Tax Affairs Up to Date

Since the autumn of 2013 HMRC has been running a campaign concerning let property.  This campaign offers individual landlords, and those renting out their own homes, the chance to disclose any taxable income to HMRC that they have not previously disclosed and get their tax affairs up to date. The tax authorities have recognised that some people might have been unaware that their r… Continue Reading

Fairer treatment for modest earners under Labour’s proposed mansion tax

According to a recent BBC report, the Shadow Chancellor Ed Balls has stated that those who are “asset rich but cash poor” will be treated fairly under Labour’s proposed mansion tax. People who own homes valued at over £2m but who do not have large incomes could obtain tax relief. A mansion tax is opposed by the Tories but supported by the Lib Dems. The Labour plan is… Continue Reading

Flipping Your Main Residence: Is a Change Imminent?

UK residents who own more than one home can currently decide which of those properties is their main residence for tax purposes. This means they can claim “Private Residence Relief” (PRR) on that property so that they are not liable for any Capital Gains Tax (CGT) when they come to sell it. But this current system has been open to abuse as the homeowner could choose to … Continue Reading

Paying Too Much Income Tax?

Why you might have a wrong HMRC tax code

One of the most common reasons for paying too much income tax is that you have been assigned the wrong tax code. This can happen for a number of reasons such as when you change jobs and your new employer does not have the correct code so an incorrect or sometimes a temporary code is allocated to you. If you have returned to the UK from working overseas y… Continue Reading