Corporate Tax rates are coming down to 18% – will the investment funds in your pension still be taxed at 20%?

 Authorised Investment Funds, Corporate Tax, Investment Tax  Comments Off on Corporate Tax rates are coming down to 18% – will the investment funds in your pension still be taxed at 20%?
Jul 312015
 

For years, retail investment funds have been subject to corporation tax at a special rate of 20% – special, because for a long time, the main corporate rate was 30% or more. But recently, corporate rates have been gradually coming down, till at last, this summer we are told that the main rate will eventually go down to 18% by 2020.

But what about authorised investment funds? Are they to be included in the new bonanza for corporates? Or will they continue to be taxed at the same 20% rate?

(This article can be downloaded in pdf format at Academia.edu)

Continue reading »

Jul 152015
 

8140678383_b981c48d95No, it’s not really goodbye. Goodwill hasn’t gone away, it’s still there all right. A company that acquires a business is still required to write down the value of the purchased goodwill in its accounts. But from 8 July 2015, it will no longer be able to deduct the amounts written off when calculating its taxable profits.

This isn’t great news. Not great news at all – it was actually hidden away towards the bottom of the list on the relevant GOV.UK webpage. I only found it easily because I’ve got into the habit of looking for those Budget measures to be effective immediately, so I can start writing my own Budget page.

So what does it all mean? And why do I find myself laughing? Continue reading »

Jul 102015
 

I recently attended a conference at the Said Business School in Oxford, “celebrating” Fifty Years of Corporation Tax in the UK. Yes, that’s right, fifty years have passed since a special tax was introduced for companies. No, it doesn’t mean they weren’t paying any tax before, they just paid a different tax – what that tax was called I couldn’t possibly tell you, since I wasn’t in practise at the time.

This was the first tax conference I’d been to for a very long time. The last time was in 2003 in London, one of those conferences organised for tax practitioners by IBC or whatever they call themselves these days. This conference was held in Oxford – the first time I’ve attended the Said Business School, which I’ve passed on a number of occasions, since I live locally, and sometimes go day tripping to the City of Spires. Continue reading »

Summer Budget 2015 – Tax relief restricted for residential landlords (and other news)

 Investment Tax, Property Tax  Comments Off on Summer Budget 2015 – Tax relief restricted for residential landlords (and other news)
Jul 092015
 

The second Budget of 2015 has not been particularly kind to those people who buy homes to rent them out to those who need a place to stay.

Starting from 2017, individual landlords of residential property will only be able to claim tax relief on their finance costs at the basic rate. We shall look at these rules in further detail, as well as some of the other measures that will affect property landlords following the latest Budget. Continue reading »

Summer Budget 2015 – where to find the documents

 Miscellaneous  Comments Off on Summer Budget 2015 – where to find the documents
Jul 072015
 

Remember we have a Budget tomorrow? Well, this is where you can find the documents. And you can also find a special Summer Budget 2015 page at Tax Notes.

What fun this is going to be. Everyone else will be enjoying the tennis, while we hard working, dedicated tax people will be spending the day staring at that GOV.UK page.

Jul 022015
 

In this article we take a look at the Venture Capital Schemes and ask whether the risks involved are really worth it. In particular we see there are two types of risk – investment risk and tax risk. Investment risk can lose you money, but losing the tax reliefs is not necessarily fatal.

This article was first published on linkedin. Continue reading »