Autumn Budget 2021 – the tax Budget that never was!

You can never truly know the content of the Budget until the Chancellor has sat down and you get to grips with all of the publications generated by HM Treasury, even in this day and age, when numerous announcements are leaked to the press in the run up to the big day. Often those publications […]

Budget 2021 – corporation tax Groundhog day

The Chancellor has taken us back in time today with the increase in the rate of corporation tax.  Some of you may recall that before 1 April 2014, there were three corporation tax rates – the main rate, the marginal rate and the small profits rate.  This system is being re-introduced from 1 April 2023. […]

Budget 2021 – what’s the meaning of a super-deduction?

During his speech, the Chancellor had everyone scratching their heads over his announcement of a super-deduction for investment – how super would it be, what is meant by investments and who would qualify? Now the wait is over, with the release of some further details – although we have to wait for the Finance Bill […]

Budget 2021 – greater flexibility to offset losses

A welcome extension to the loss relief provisions was announced today by the Chancellor in his budget speech. In summary, the extension will provide a three year carry back of trading losses crystallised in certain period for all businesses. Losses carried back under these provisions will be set against profits of the later years first. […]

Overdrawn director’s loan accounts: A penalty problem

There are statutory time limits for notifying chargeability to various taxes, including the tax charge that can arise when a company director shareholder’s loan account becomes overdrawn. Don’t be late! The general time limit for a company to notify chargeability to tax (where HM Revenue and Customs (HMRC) has not given a notice to file […]

Having a takeout

Earlier this year, a readers’ forum query ‘Company residential property transfer to daughters’ (Taxation, 28 February 2019, page 22) questioned the tax implications of the transfer of residential properties from a company to two daughters of the company’s sole director and shareholder. It is relatively common for assets to be transferred from a company on […]

Having a takeout

Earlier this year, a readers’ forum query ‘Company residential property transfer to daughters’ (Taxation, 28 February 2019, page 22) questioned the tax implications of the transfer of residential properties from a company to two daughters of the company’s sole director and shareholder. It is relatively common for assets to be transferred from a company on […]

Writing off directors’ loans: Taxing times!

Director’s loan accounts (DLAs) are a common feature in the financial statements of family and owner-managed companies in particular. HM Revenue and Customs (HMRC) is keen to ensure that DLAs are treated correctly for tax and National Insurance contributions (NICs) purposes, and regard DLAs as a ‘risk’ in terms of potential errors. Such is HMRC’s […]

Company Tax Relief For Shares – A ‘Hidden’ Gem!

Share transactions invariably have tax consequences. For example, when an individual subscribes for shares in their employer company for less than market value, it is generally necessary to consider the income tax (and possibly National Insurance contributions) implications of the share acquisition. A pleasant surprise? However, it is sometimes overlooked that the employer company can […]