Alongside the Autumn Statement, the government has announced the outcome of its ‘Making Tax Digital’ review for small businesses. The outcome of the review has prompted some welcome simplifications and tweaks to the regime that should make it easier for taxpayers to interact with the Making Tax Digital for Income Tax Self-Assessment (MTD ITSA) regime.…
Have you considered preserving your family wealth? It is a common occurrence in times of economic uncertainty, most recently the COVID-19 pandemic and the 2008 financial crisis, that asset valuations slump. In recent weeks, there has been widespread concern about the economy and in particular the housing market, with the volume of transactions and…
The ‘gifts out of surplus income’ exemption is a powerful, yet often forgotten about, Inheritance Tax (IHT) exemption. As the name suggests lifetime gifts made from surplus income are immediately exempt from IHT, provided that certain conditions are met. To qualify for this valuable relief, the following conditions need to be satisfied: The gifts…
Now that the 5th April 2023 has passed many self-assessment taxpayers will be turning their attention to preparing and submitting their self-assessment personal tax returns for the 2022/23 tax year, which covers the tax year ended 5th April 2023. Although the filing deadline is 31 January 2024 (31 October 2023 for paper returns) it is…
Now that the 30 April 2023 Annual Tax on Enveloped Dwellings (ATED) filing deadline has passed, it is important to remember that additional returns may need to be submitted to HMRC during the ATED chargeable period, which runs from 1 April 2023 to 31 March 2024. The most common events which cause this are explained…
What is the Annual Allowance (AA) The AA is the maximum that can be saved into all of your pension pots in any one tax year before incurring a tax charge. For the current 2022/23 tax year the annual allowance is set at £40,000. Every tax year your annual allowance is compared to your pension…
Annual tax on enveloped dwellings (ATED) is an annual tax charge payable by companies, partnerships (with at least one corporate partner) and certain collective investment schemes that own UK Residential properties exceeding £500,000. Revaluation dates For ATED purposes, properties need to be revalued at fixed revaluation dates, regardless of when the property was acquired.…
What is ATED? Annual tax on enveloped dwellings (ATED) is an annual tax charge payable by companies, partnerships (with at least one corporate partner) and certain collective investment schemes that own UK residential properties exceeding £500,000 in value. When do I need to value the property? The property needs to be valued on specific…
What is a scheme pays election? Scheme pays is a facility that allows you to ask NHS pensions to pay some or all your annual allowance excess charge. However, by making a scheme pays election you suffer a permanent reduction in the pension benefits that you will receive in retirement. If I make a scheme…
What is the annual allowance? The annual allowance for the 2022/23 tax year is £40,000 and each year this is compared with your pension input amounts. Your pension input is defined as the increase or growth in the capital value of your NHS pension benefits across all pension schemes. Any growth in excess of the…