Mercer & Hole’s Business blog - Entrepreneurs
Unfairness for all?
Date: 6th March, 2008 | Author: David Mansell | Comments: 0
In his quieter and more introspective moments, Alistair Darling must wonder if he has the Midas touch in reverse; and if he doesn’t, many others are probably doing it for him. Fresh from the Revenue’s “clarification” of his proposals for non-doms, which effectively reversed much of what he and they had said previously, the Chancellor now faces criticism from business leaders that his new plans favour non-doms over British-born entrepreneurs. Under the new proposals, non-doms will be able to elect for a “deemed sale” of their British and overseas assets at 6 April 2008,...
Capital Gain Tax - Non business assets
Date: 30th January, 2008 | Author: David Mansell | Comments: 0
Last week, the Chancellor announced details of his so called “Entrepreneurs’ Relief”, the replacement for taper relief, for business owners facing an increase of more than 80% from 6 April 2008. It would be easy, given all the hype surrounding this new relief, to forget the position for people holding assets that would never have qualified as “business assets” and the 10% capital gains tax rate. By this, I mean assets such as shares in investment companies, residential “buy to let” properties and others not used in trading businesses. In some respects, their position is more complicated,...
Capital Gains Tax - Commercial property
Date: 29th January, 2008 | Author: David Mansell | Comments: 18
The Chancellor’s announcement of the new “Entrepreneurs’ Relief” from 6 April 2008 appears to herald a marked change in the tax position of owners of commercial property. Though the details have yet to be formalised, it seems that unless the property is let to the owner’s business – or to a company in which the owner has at least a 5% shareholding – the minimum tax rate on selling that property will increase to 18%. Since 2000, anyone owning a commercial property used by an unquoted trading company would qualify for the higher rate of taper relief and...
Entrepreneurs’ Relief
Date: 29th January, 2008 | Author: David Mansell | Comments: 2
As we reported last week, Alistair Darling has released details of what he and HM Revenue & Customs are calling “Entrepreneurs’ Relief” (which probably sounds better than the U-turn that many consider it to be). Under this new relief, which is set to become law from 6 April 2008, the self-employed, employees and directors will qualify for a 10% tax rate on selling their interest in the trading business or company for which they work. ...
Business concerns
Date: 13th September, 2007 | Author: Cathy Corns | Comments: 0
The Institute of Directors recently unveiled a policy paper ‘The SME Glass Ceiling – Growth Obstacles in 2007’, which identified a series of priority issues for government action. Apparently regulation, taxation and education are (and were) of concern to businesses of all sizes. The report identifies five issues that are highlighted specifically by small and medium-sized enterprises (SMEs). ...
July hassle - will anyone listen?
Date: 28th August, 2007 | Author: Cathy Corns | Comments: 0
Now that all the hassle is over I took some time to reflect on the pressures applied to business by the Revenue. I know the returns of benefits (forms P11d) have been around for years but so has the old “higher-paid” limit of £8,500. So employers have to fill a form in for anyone paid the minimum wage who receives any benefit at all. Sure dispensations can help but actually getting one out of the Revenue is not always as easy as one would hope....
Donations to charity
Date: 16th August, 2007 | Author: Cathy Corns | Comments: 0
I was asked recently for advice by a client, a 40% taxpayer. He wanted to make a substantial donation to charity, funded by the sale of an investment property. The property had a market value of £100,000 and the cost was £20,000. Basically he had two choices: gift cash, or gift the property. If he sold the property and gifted the funds to charity the position would be: ...
Double tax relief on loans
Date: 10th August, 2007 | Author: Cathy Corns | Comments: 0
Every business aims to achieve maximum tax relief on borrowings. There is a difference between the rules for tax relief on loans between income and corporation tax and IHT. For income and corporation tax, relief is given for interest paid on borrowings incurred for the purpose of a trade including a rental business. Accordingly, relief on interest is given based on the purpose of the loan. However, for IHT purposes, a loan relates to the value of the assets on which it is secured or charged. ...
Planning-gain supplement may be dropped
Date: 17th July, 2007 | Author: Cathy Corns | Comments: 0
Whilst outlining the Government’s draft legislative programme for the next Parliamentary session to the House of Commons recently, Gordon Brown indicated that the Planning Gain Supplement Bill may be dropped! In his statement the Prime Minister said: ...
How private is your house?
Date: 27th June, 2007 | Author: Cathy Corns | Comments: 0
An Englishman’s home is his castle – well maybe, but HMRC are looking to storm the drawbridge. In a recent consultative document HMRC put forward some plans - unannounced visits to private homes. In HMRC’s view private residences come in three guises: ...
