Mercer & Hole’s Business blog - Corporate & Business Tax
Non-Doms - Making the pips squeak?
Date: 12th February, 2008 | Author: David Mansell | Comments: 0
As the Chancellor’s proposals on taxing the so-called “non doms” (people born overseas or with foreign parentage) become clearer, it is apparent that his £30,000 annual levy is the tip of what could be a very large iceberg. Media coverage over the past few days has highlighted the very real prospect of many non doms leaving the UK, as the potential impact of some of Mr Darling’s other ideas hit home. ...
Research & Development (R&D)
Date: 8th February, 2008 | Author: Cathy Corns | Comments: 0
R&D is a wide ranging and generous tax relief. In our experience many businesses are not claiming the relief to which they are entitled because they do not recognise that they are actually undertaking any qualifying research and development activities, e.g. product development, improvement, etc. The DBERR (formerly DTI) website http://www.berr.gov.uk/files/file36112.pdf gives examples of businesses that have qualified – the range of qualifying trades is amazing. R&D tax relief has recently become much more accessible to businesses; the set up of the new specialist units with Inspectors who...
Solvent Liquidations - Tax Planning and other issues
Date: 5th February, 2008 | Author: Costas Pavlou | Comments: 0
A members' voluntary liquidation ("MVL") can be a tax efficient exit option for the shareholders of a solvent company. Under current legislation shareholders receiving a distribution through an MVL or, where appropriate, using Extra Statutory Concession C16, may benefit from the business asset taper relief provisions. The government has recently announced (http://www.hmrc.gov.uk/cgt/disposal.htm) that as from 6 April 2008 all capital gains will be taxed at a flat rate of 18% irrespective of the marginal income tax rate of the taxpayer concerned; and also that the current systems of taper relief and of indexation allowance will...
Changes to the car benefit rules from 6 April 2008
Date: 4th February, 2008 | Author: Cathy Corns | Comments: 0
Just to remind you, for company cars the benefit is calculated by multiplying the list price (not the cost price) by the ‘appropriate percentage’. The appropriate percentage is based on the car’s CO2 emissions figure, with some adjustments to take account of different fuels. The calculation of the appropriate percentage changes in three ways with effect from 6 April 2008: the lower threshold, the CO2 emissions figure which determines the appropriate percentage for all cars, is reduced from 140 to 135. A new ’10 percent band’ is introduced for cars with CO2 emissions figure of exactly 120 g/km...
Reducing administration
Date: 24th January, 2008 | Author: Cathy Corns | Comments: 0
Is a key issue for most business particularly where tax is concerned. But did you know that HMRC run a committee just to look at the issue. (The question of another layer of administration reducing administration can be left for now I think). The last minutes were interesting reading – in particular – ...
Update on Capital Gains Tax changes
Date: 23rd January, 2008 | Author: Cathy Corns | Comments: 0
According to the Financial Times - there is a meeting today finally to decide on the much heralded (and on which the details are long awaited). We will report on the changes once they are eventually published – watch this space. ...
Tax problems on couple’s buy-to-let property
Date: 9th January, 2008 | Author: Cathy Corns | Comments: 0
There is a possibility that, as currently drafted, the new income shifting provision could affect an individual who transfers ownership of half of a property together with the rent generated to a spouse or partner. If so, for tax purposes, all the rent will be taxed on the first individual. Under the new provisions the status of the couple is irrelevant....
UK not in line with Europe’s position on Capital Gains Tax?
Date: 3rd January, 2008 | Author: Cathy Corns | Comments: 0
A group of UK companies is considering appealing to the European Court of Justice (ECJ) against tax charges imposed on UK businesses that relocate their tax residence to another EU member state on the grounds that this is a breach of European Community Law. The ECJ has already indicated that taxation of capital gains on assets transferred to another Member State infringes the principle of freedom of establishment (de Lasteyrie du Saillant v Ministere de l’Economie, des Finances et de l’Industrie (Case C-9/02) [2005] STC 1722). The ECJ has further suggested that taxpayers are discriminated against by being...
UK corporation tax on foreign income
Date: 12th December, 2007 | Author: Cathy Corns | Comments: 0
An ECJ ruling on Dutch tax law could affect the Treasury’s on-going review of the UK corporation tax system on foreign income. The ECJ has ruled (Amurta SGPS v Inspecteur van de Belastingdienst/ Amsterdam) that the Dutch system of dividend withholding taxes is contrary to EU law. ...
Permanent Health/Income Protection Insurance
Date: 6th December, 2007 | Author: Cathy Corns | Comments: 3
Income protection insurance (IPI) (previously known as permanent health insurance) is designed to provide regular sums to an insured individual in the event that he is unable to work through accident or sickness. The insurance can be taken out by employees or self employed individuals who wish to protect against the costs of being unable to work, and by employers who wish to limit their exposure to the payment of ongoing sick pay....
