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At its simplest, tax planning is just a case of arranging your financial affairs in such a way as to pay as little tax as possible within the law and so not much different from “tax avoidance”. Politicians and the media are struggling to agree exactly what “tax avoidance” is and are starting to use […]

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On July 20th this year the Chancellor George Osborne announced the establishment of the Office of Tax Simplification (“OTS”) charged with the task of providing the Government with independent advice on simplifying the UK tax system. Not before time! Today the OTS announced details of two initial reviews, which are to be completed before the […]

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Capital Gains Tax (“CGT”) was introduced by Harold Wilson’s Labour Government in 1965. Its purpose was simple: To tax the profit or “gain” made on the sale or “disposal” of an asset by individuals. Companies do not pay CGT but instead any gain is taxable as part of their Corporation Tax bill. The original reason […]

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The Enterprise Investment Scheme offers generous income tax and capital gains tax reliefs to investors in certain companies. These reliefs are available to “qualifying individuals” who subscribe for “eligible shares” in “qualifying companies” undertaking “a qualifying business activity”. Simple, isn’t it? The purpose behind the scheme is to encourage investment in start up companies and […]

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The new Conservative/Lib Dem coalition government has just published the text of the Coalition Agreement made between the parties. Should you wish you may view this via the link below. The agreement states that it is the intention of the new government to increase the rate of Capital Gains Tax (“CGT”) for “non business assets”.  […]

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To try and deal with some of the economic problems encountered last year when Ireland’s “Celtic Tiger” economy collapsed in chaos, the Irish Government introduced a tax holiday for companies which commenced trading during 2009 under which, subject to certain conditions, they would pay no tax for a three year period. As things have not […]

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Any business can claim tax allowances, called capital allowances, on certain purchases or investments. This results in a reduction in the business tax bill – which can’t be bad. In general capital allowances are available on plant and machinery, buildings – including converting space above commercial premises to flats for renting – and research and […]

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I’ve suddenly had a lot of people contact me to ask the above question regarding the tax free ISA (Individual Savings Account) products that are available to UK taxpayers. This is probably due to changes that came in last month. If you don’t know what an ISA is then have a look at this earlier article. […]

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Her Majesty’s Revenue & Customs (HMRC) has issued a warning that fraudsters are sending out fake e-mails promising rebates.   An estimated five million people filed their tax returns online last month and now many of them are receiving emails which purport to come from HMRC saying there has been an error in calculating their […]

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Deciding on whether it would be beneficial for a property investor to use a Limited Company can be quite complicated. A lot will depend on your personal circumstances but also on what type of property business you are engaged in. For example if you buy property to renovate and then sell on at a profit […]

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An Individual Savings Account (ISA) allows any UK taxpayer aged 18 or over to save up to £7,200 each year (for 16-17 year olds this is £3,600 cash) and not pay tax on the income they receive from the investment. They are now a permanent feature of the UK savings landscape. Tax Advantages of ISAs All income […]

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Here are some simple ways to save tax: Keep accurate accounting records, remember to note down all business expenses; File your tax return before the 31 January and avoid unnecessary fines; Pay your tax on time so avoiding having to pay interest as well as a 5% surcharge; If you are married consider organising your […]

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