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Tax Exemption for Trivial Benefits in Kind   We have some good news for employers, directors and employees. There is a new exemption from tax and National Insurance Contributions for trivial benefits from 2016/17.   The following conditions need to be satisfied:- The cost of providing the benefit does not exceed £50 (or the average… Read more

Change to Personal Savings Allowance A new nil rate of tax for savings income (eg interest) applies to individuals from 6 April 2016. Each individual now has an annual savings allowance of £1,000, unless they have any higher‐rate income for the year (in which case their allowance will be £500) or any additional‐rate income (in… Read more

The Autumn Statement in December 2015, brought some more bad news for property investors with changes to Stamp Duty Land Tax. Higher rates of Stamp Duty Land Tax (SDLT) will be charged on purchases of additional residential properties (above £40,000), such as buy to let properties and second homes, from 1 April 2016. Additional rate… Read more

In the summer budget the government announced that landlords will get tax relief only at the basic rate for interest paid on loans to acquire buy-to-let property. The new rules are to be phased in over three years, starting in April 2017.  They apply to 25% of the interest paid in 2017/18, 50% in 2018/19… Read more

Taxation of dividend income from 6 April 2016 From April 2016 the Dividend Tax Credit will be replaced by a new tax-free Dividend Allowance. The Dividend Allowance means that you won’t have to pay tax on the first £5,000 of your dividend income, no matter what non-dividend income you have. You’ll pay tax on any… Read more

Capital Allowances on Plant & machinery The Summer Finance Bill 2015 increases the permanent Annual Investment Allowance limit to £200,000 from 1 January 2016. It was scheduled to decrease to £25,000. Where a business has a chargeable period that spans 1 January 2016, the maximum allowance for that business’s transitional chargeable period comprises 2 parts: (a) the… Read more

Tax free loans – what do you need to know? It is possible for an employer to make a loan to an employee at a beneficial rate of interest or even at zero interest. When this happens it is called a beneficial loan and there maybe tax consequences for the employee receiving the loan if… Read more

Have you considered how the transferable tax allowances for married couples will impact you? With effect from April 2015 a spouse or civil partner will be able to transfer £1,000 of their personal allowance to their spouse or civil partner. This option will be available where neither spouse nor civil partner is a higher or… Read more

Have you considered a low emission car? For capital allowances purposes it is possible to receive a 100% deduction from profits when you choose a car with CO2 emissions below 95g/km or less. This first year allowance is available for vehicles purchased before 31st March 2015 which means that the full cost of the vehicle… Read more