Business Tax Planning

There has been a long-standing practice, which has been in existence for over 40 years, that has granted furnished holiday homes beneficial tax treatment compared to other residential property landlords.

With the new Labour government promise to hit the ground running in the first 100 days of power, no time was wasted announcing their first tax changes.

For many companies the idea of paying tax is unpleasant let alone paying tax before it is due, however doing so could mean that you actually receive a payment from the Government by way of interest.

This was a nasty surprise in the Budget announcement – the removal of MDR. The announcement concluded it didn’t benefit the intended taxpayer and has been subject to frequent abusive claims.

Changes to capital allowances rules have for many years been a prominent feature of the annual announcements from the Chancellor, generating endless rate changes and transitional measures. These yoyoing rules and thresholds have made it particularly difficult for businesses to plan tax efficiently for capital expenditure.

Those expecting a buccaneering pre-election Budget from Jeremy Hunt will be feeling rather let down: this was a modest affair, full of measures which had been pre-briefed, and without even the traditional rabbit pulled out of the hat to please his own backbenchers.

Shaun Davison reacts to the Chancellors announcement on a reduction in Capital Gains Tax on Non-Principal Residences.

Despite falling inflation, the cost of living crisis is still with us - and that means businesses need to put in place strategies to mitigate high prices.

On 12 February 2024, HMRC issued new tax guidance on the tax treatment of double cab pick-up trucks, which classified them as cars, opposed to commercial vehicles, for benefit in kind (BIK) and capital allowance purposes.

Last week, HMRC published their draft rules and restrictions on contracted-out R&D and overseas workers. Overseas expenditure draft guidance has remained relatively similar to its original however there has been some significant and promising changes to contracted-out R&D compared to previous communications from HMRC.

As we approach the festive season, one question we are commonly asked is what the tax implications are to gifts we provide to our staff.

The Chancellor announced the Autumn Statement on 22nd November, Shaun Davison and James Shipp give their initial reaction.

The optimal time to sell a business can be influenced by the potential tax implications. UK Corporate sellers can claim the “substantial shareholding exemption” (“SSE”) to exempt a gain on a sale from corporation tax.

There are significant tax advantages to choosing an EV in addition to the environmental benefits, says Nathan Bowden of Lovewell Blake.

How your business is taxed will be a big factor in how you structure it, says Leigh Thurston.

The Chancellor Jeremy Hunt announced in the November 2023 Budget that full expensing for capital allowances will be made permanent, with the aim to help boost business investment and increase global competitiveness.

Chartered accountants Lovewell Blake have appointed Ed Passmore as a partner.

The UK government has announced that they are going to issue a consultation on the use and effectiveness of Employee Ownership Trusts (EOTs). The focus seems to be ensuring these are primarily being used to incentivise employees.

To support the economy in response to coronavirus, the government introduced the ‘Super-Deduction’ in April 2021 allowing companies investing in qualifying new plant and machinery assets to claim enhanced capital allowances up to 130%.

Financial year-end planning is something that is commonly overlooked by companies. It is always advisable to think how you can work on different aspects of the business to help to improve for the future. After all, growth and sustainability are often two of the most important factors for most businesses.

In his Autumn Statement, the Chancellor announced several changes to the taxes surrounding electric vehicles. Mat Waters, a Business Services Partner in our Lowestoft office summarises the current tax implications to business owners for owning or leasing electric vehicles

The UK's tax burden will rise after Chancellor Jeremy Hunt reduced the threshold on the top rate of tax and announced freezes on other taxes in the Autumn Statement.

Jeremy Hunt said that everyone would feel the pain in his Economic Statement; that is certainly true of businesses, and SMEs in particular. Given that they are the real engine of growth in the UK economy, he may find that attacking them on every front will not prove popular in the business community.

Individual taxpayers, both employees and investors, are facing bigger bills following the Autumn Statement.

For UK start-ups and small enterprises, the Chancellor significantly reduced R&D Tax Credits in his Autumn Statement.

After a series of announcements and reversals, the dust has settled on tax rates on dividends and bonuses.Even so, the Chancellor, Jeremy Hunt, included some additional elements in his Autumn Statement as part of a renewed focus on raising tax.

Where there is land and or property in a partnership, in very simple terms, it is ‘held in trust’ for the benefit of all the partners in the partnership. Although the value of that land may be credited to individual partners’ capital accounts, it has as a matter of law become partnership property and therefore is held to benefit all the partners.

HM Revenue & Customs (HMRC) have announced they are reviewing the position of taxpayers who have made substantial gains during their lifetime and may have inadvertently exceeded their lifetime limit for Business Asset Disposal Relief (BADR).

As an employer, there are various ways to remunerate your team. Increasing salary may be enough to retain some staff whilst others want a ‘slice of the action’. Company share schemes are an increasingly common way to incentivise employees, and there are various different ways to achieve this, depending on your requirements, and theirs.

The Enterprise Management Incentive (“EMI”) scheme is a tax-advantaged share option scheme.

The deadline for filing your annual ERS (Employment Related Securities) return is 6 July following the end of the tax year.

In 2012, due to concern that the UK population weren’t taking adequate measures to save for their retirement, the Government took the radical measure of introducing auto-enrolment.

When the cross-party Treasury Committee made a series of recommendations to Government in March 2021, there were specific suggestions, some of which were introduced in the spring Budget, but also a more general plea for a clear tax strategy.

The Covid pandemic has been tough on many businesses; one of the consequences of the economic turmoil of the past 12 months has been a significant increase in the number of new businesses starting up.

In 2020, the pandemic sparked a ‘race for space’ which saw the average UK house price rise by 7.6% in the year to November 2020. This means that a dwelling previously valued at £465,000 12 months ago could now potentially be worth over £500,000 and give rise to a tax issue under Annual Tax on Enveloped Dwellings (ATED).

One of the biggest headlines to emerge from the budget is that corporation tax will be rising to 25%. Business owners may well think this is a bit of a kick in the teeth, but all is not what it seems.

The company car is a valuable negotiating tool offered by employers, looking to promote or reward key employees within the business, however, the popularity of uptake has reduced in recent years - mainly due to increases in the company car tax rates, with employers looking to offer cash allowances as an alternative.

If you are considering the purchase of a new car for your business then you may want to think about the benefits of an electric or ultra-low emissions vehicle (ULEVs).