Showing posts with label HMRC. Show all posts
Showing posts with label HMRC. Show all posts

Friday, 21 April 2017

Budget 2017 - Tax & Rate Updates!

Corporate Tax Measures

The Chancellor announced that the Government is committed to continue to have the lowest corporate tax rate of the G20 major trading nations.  As already announced the corporation tax rate reduces to 19% from1 April 2017 and then to 17% from 1 April 2020.

The corporation tax rate for small and medium sized companies trading in Northern Ireland will be reduced so that such companies can compete with those in the Republic where the rate is 12.5%.

The Government is also keen to continue to encourage investment in research and development (R&D) and the Chancellor announced that the R&D tax credit claim procedure would be simplified.

Tax Free Childcare Scheme Starts 2017

The chancellor also announced that the new tax-free childcare scheme is due to start in 2017.

The scheme will provide up to £2,000 a year in childcare support for each child under 12 where the parents save in a special account. If they save £8,000 the government will top up the account with 20% to a total of £10,000 which can then be used to pay for childcare costs.

Business Rates Relief For Small Businesses

There has been much lobbying from the small business sector to reduce business rates. The Chancellor stated that 600,000 small businesses currently benefit from small business rates relief.

He also announced that no small business that is coming out of small business rates relief will pay more than £600 more in business rates this year than they did in 2016/17.

In order to support the licenced trade from April 2017, pubs with a rateable value up to £100,000 will be able to claim a £1,000 business rates discount for one year.

Advisory Fuel Rate For Company Cars

These are the suggested reimbursement rates for employees' private mileage using their company car from 1 March 2017.

Engine Size
1400cc or less


1600cc or less


1401cc to 2000cc


1601 to 2000cc


Over 2000cc


Where there has been a change, the previous rate is shown in brackets.

You can continue to use the previous rates for up to 1 month from the date the new rates apply.

New Vat Limits

As mentioned earlier, the VAT registration limit increases by £2,000 to £85,000 from 1 April 2017. At the same time the de-registration limit increases to £83,000.

Contact us if you need more information or business help:
APJ Accountancy | ☎ 020 89310165 | ☏ 07900537459 | ✉

Delay The Start Of Digital Reporting!

Changing Your Accounting Date Can Also Delay The Start Of Digital Reporting.

Another way of delaying the start of Making Tax Digital (MTD) would be to change the year end of your business. The legislation in the latest Finance Bill specifies that MTD will apply to accounting periods commencing on or after 6 April 2018.

This means that if you currently prepare accounts to 30 April then the first quarterly update to be submitted to HMRC will be for the period to 31 July 2018. However, if you changed the accounting date of your business to 31 March then the first quarterly update would be for the period from 1 April to 30 June 2019.

Contact us to discuss the full tax implications of such an action.

Thursday, 2 February 2017

Tax News UK - February 2017!

Making Tax Digital To Be Delayed?

The Treasury Select Committee has reviewed the proposals for the introduction of “Making tax digital” (MTD) and have agreed with the various professional bodies that if the new systems are introduced too quickly there could be a disaster. It would significantly increase burdens on small businesses. In their report they comment that the overall benefits of  mandating the digitising of record keeping and quarterly reporting, as is currently envisaged, have yet to be proven.

The Select Committee further note that the cost to business of introducing MTD, as well as the continuing costs of maintaining digital records and submitting quarterly updates are of further concern to the Committee, as is the availability and functionality of the free software that has been promised.

At the time of writing we are awaiting the Government response to  the November 2016 consultation and we will keep you updated about the implications for your business. Remembers that the proposals as they are currently drafted will apply to property rental businesses as well as trading businesses.

Do You Have Enough Shares To Qualify For CGT Entrepreneurs’ Relief?

Entrepreneurs' Relief reduces the rate of CGT to 10% on the first £10 million of gains on the disposal of qualifying business assets. This would include sole traders disposing of their business and partners disposing of their interest in a partnership carrying on a business. With many businesses operating as limited companies these days it is important to appreciate that not all shareholdings qualify for this generous relief.

Shareholdings qualify for Entrepreneurs' Relief provided the company is a trading company or the holding company of a trading group. There are additional conditions that the shareholder is an officer or employee of the company and holds 5% or more of the company's ordinary share capital and votes. All of these conditions must be satisfied throughout the twelve months up to the date of disposal.

A couple of recent tax tribunal cases have considered the 5% test and the HMRC view is that most shares except for certain preference shares need to be considered. Always contact us first if you are considering issuing additional shares in your company as it may have a detrimental effect on other shareholders' entitlement to CGT Entrepreneurs' Relief.

Shareholders Must Also Be Officers Or Employees

In order to qualify for CGT entrepreneurs' relief on the disposal of shares, the shareholder must have been an officer or employee of the trading company or group throughout the twelve months up to the date of disposal. Although there is no minimum  number of hours, it is important that there Is evidence that this condition is satisfied, so for example the employee/ director should not resign before the disposal of shares takes place.

HMRC are known to request such evidence and recent tax tribunal cases have resulted in Entrepreneurs' Relief being denied .

New Government Savings Scheme Starts In April 2017

From April 2017,adults under the age of 40 will be able to open a Lifetime ISA (LISA) and pay in up to £4,000 each tax year. They will be able to continue making contributions up to the age of 50. The government will add a 25% bonus to these contributions. This means that individuals who save the maximum will receive a £1,000 bonus each year from the Government.

The tax-free funds, including the Government bonus, can be used to help buy a first home worth up to £450,000 at any time from 12 months after first saving into the account. The funds, including the Government bonus, can be withdrawn from the LISA from age 60 tax-free for any purpose. LISA holders will also be able to access their savings if they become terminally ill.

If savers make withdrawals before age 60 for other purposes a 25% charge will apply  to the amount of withdrawal. This returns the bonus element of the fund (including any interest or growth on that bonus) to the Government.

“Help to Save”, aimed at supporting people on low incomes to build up their savings will follow in 2018. That scheme will add a 50% Government bonus on savings up to £50 a month for up to four years. Help to Save will be available through NS&I to any adult who is receiving working tax credit or universal credit with minimum household earnings equivalent to 16 hours a week at the National Living Wage.

Don’t Forget Your 2016/17 ISA Allowance

The current ISA allowance is £15,240, rising to £20,000 for 2017/18. Remember that there is no longer a 50% restriction on the amount that you can invest in a cash ISA; the £15,240 annual limit covers all ISA investments which could be in shares, bonds, cash or certain other investments.

And Make Pension Payments Before 6 April

The current annual pension limit remains at £40,000. In addition, unused relief from the previous three tax years may be utilised once the current £40,000 limit has been used. However, the relief from 2013/14 will lapse on 6 April 2017.

If, for example, you have £10,000 unused allowance from 2013/14 you would need to make pension contributions of at least £50,000 by 5 April 2017 to avoid losing your 2013/14 relief. Remember also that pension savings continue to qualify for higher rate tax relief and may help to reduce your payments on account.

Property Sales – Trading Or Capital Gain?

In the December edition of this newsletter we flagged up that new anti-avoidance legislation in Finance Act 2016 will tax certain transactions in UK land as trading transactions instead of capital gains.

Just before Christmas, HMRC issued guidance to clarify the scope of the new rules. The legislation as enacted in Finance Act 2016 was drafted in such a way that it could be interpreted as catching certain disposals by buy to let landlords. The HMRC guidance states that the new rules do not apply to businesses which acquire and repair properties in order to generate rental income, even if those businesses also enjoy capital appreciation from those properties. So the average buy-to-let landlord should not be subject to income tax on the gains he makes when he sells properties which were acquired for letting.

The HMRC guidance also makes it clear that the new transactions in UK land rules are directed at businesses which conduct a trade consisting of property development or property dealing.

This is a complex area and you should contact us so that we can help you ensure that the sale is treated correctly for tax purposes.

Scottish Income Tax Rates And Thresholds

The Scottish Government has the devolved power to set certain tax rates, principally income tax and land transaction tax (equivalent to SDLT in England and Wales). Although it proposes to freeze the basic, higher and additional rates at 20%, 40% and 45% respectively, the thresholds will not be the same as the rest of the UK.

The higher rate income tax threshold will increase by inflation to £43,430 in 2017/18. Whereas the higher rate threshold for the rest of the UK will be £45,000.

Scottish income tax applies to Scottish taxpayers who are UK resident but who live for most of the year in Scotland. Where they work is irrelevant but workers who live in Scotland are liable to Scottish income tax on their non-savings income. If you employ staff who live in Scotland they should have a special PAYE code so that the correct tax is deducted. This will be particularly important when there is a lower, higher rate threshold in Scotland.

On the land and buildings transaction tax (LBTT), the equivalent of stamp duty land tax in the rest of the UK, rates have been kept on hold for 2017/18 at their current 2016/17 levels.

Contact us if you have any questions or need business help:
PJ | ☎ 020 89310165 | ☏ 07900537459 | ✉

Thursday, 10 November 2016

Quarterly Report By Employment Intermediaries!

Ever since 6 April 2015, employment agencies and other intermediaries have been required to make quarterly reports of payments made directly to workers or via partnerships, LLPs and companies where no tax has been deducted from the payments.

HMRC have recently updated their guidance to intermediaries to make it clear that, where an employment intermediary has supplied no workers in a specific quarter, a “nil report” must still be filed by the reporting period's deadline.

From 6 April 2015, employment intermediaries must use the template to send information about workers where they don't operate Pay As You Earn.

Separate HMRC guidance on how to use the employment intermediaries online report template has also been updated. 

Saturday, 28 May 2016

Monthly UK Tax Updates - May/June 2016

Changes Next Year for Public Sector Workers “Off Payroll”

It was announced in the March Budget that Finance Bill 2017 will include measures to change the rules for those workers supplying their services to public sector bodies via their own company. The current rules require the intermediary to consider whether or not the IR35 rules apply to the engagement, and if so apply PAYE and National Insurance (NIC) to the income paid via the intermediary company.

If the proposed changes go ahead the public sector body will be required to assess whether the IR35 rules apply and operate PAYE and NIC.

For these purposes public sector includes central Government departments, Local Authorities, the NHS, schools and other bodies such as the BBC.

Tax Relief for Travel Expenses For IR35 Workers

Another measure affecting such workers, and those in the private sector, concerns tax relief for travel and subsistence expenses. New legislation in the current Finance Bill 2016 seeks to deny relief for travel and subsistence expenses incurred by workers caught by the IR35 rules. The restriction will also apply to agency workers where there is supervision, direction and control (SDC) over the worker by the end user client.

According to updated HMRC guidance the SDC test will be the only test used to determine whether the new rules will apply and ignores the other employment status factors. The HMRC examples suggest that if there is no expertise within the end user organisation then there is likely to be limited SDC and the worker will continue to be entitled to relief for travelling to the client’s premises.

Possible New “Look Through” Entity Will Change Small Company Taxation

The Chancellor announced in his Budget Speech that the Government is considering further major changes to small company taxation following a review by the Office of Tax Simplification (OTS).

As in many small companies the directors are also shareholders the OTS believe that it would simplify matters if the shareholders of such companies were to be taxed on their share of profits made by the company in proportion to their shareholdings. In other words the shareholders would be subject to income tax in a similar way to members of a partnership or LLP and there would be no corporation tax paid by the company. This would clearly level the playing field between limited companies and unincorporated businesses. However it is likely to result in more tax payable than under the current rules!

We will monitor further discussions on this possible future change and keep you updated.

Changes to Construction Industry Scheme (CIS) Reporting

Following the abolition of monthly paper CIS returns from 6 April 2016 HMRC have indicated that some leniency will be allowed for late returns for the first three months of the new tax year. Contractors and other businesses required to operate CIS now have to submit their returns online.

It is proposed that from April 2017 contractors will also be required to verify subcontractors online.

Remember that it is not just mainstream contractors that are required to operate CIS. The system extends to property developers who pay plumbers, electricians, and others in the building trade. However CIS does not apply to home owners and property investors who renovate a property prior to renting out to tenants.

Thinking of Building Your Own House? You Can Reclaim The VAT

You can apply to HMRC for a VAT refund on building materials and services if you are building a new home, or converting a property into a home. In order to qualify the home must be separate and self-contained, be for you or your family to live or holiday in, and not be for business purposes (although you can use one room as a work from home office). Builders working on new buildings should zero rate their work anyway and you won’t pay any VAT on their services.

Where there is an existing dwelling on the site you will normally need to demolish the existing building, however it will count as a new build where a single façade is retained if that is a condition of the planning consent. You may also claim a refund for builders’ work on a conversion of non-residential building into a home, or a residential building that hasn’t been lived in for at least 10 years.

When you make your claim you must supply a copy of the planning permission, a full set of building plans, the invoices - including tenders or estimations if the invoice isn’t itemised, and proof the building work is finished. Please contact us if you need advice or assistance on this or any other VAT matters.

Scottish Taxes

In these newsletters we tend to focus on tax matters that apply generally throughout the UK. However, under powers devolved to the Scottish Government there is now a different system of tax for the transfer of property in Scotland instead of SDLT.

Please contact us if you are considering buying a property in Scotland. We will also keep you up to date with other Scottish tax developments from time to time. 

Thursday, 4 February 2016

Changes on contracted-out NICs & how you report to HMRC!

Contracting Out of Additional State Pension
From 6 April 2016, employees of contracted-out defined benefit (DB) schemes will automatically be brought back into the State Pension scheme and will no longer be able to use a contracted-out salary related (COSR) occupational pension scheme to contract out of the State Scheme. Employees will, depending on their level of earnings, start to accrue entitlement to the new State Pension instead.

National Insurance Contributions
Eligibility for the contracted-out National Insurance Contributions (NICs) rebate of 3.4% for employers and 1.4% for employees will also cease from this date.

This will bring with it some changes in what and how you report to HMRC:

from 6 April 2016: You will not be able to use your Contracted-out Salary Related (COSR) occupational pension scheme to contract employees out of the new State Pension scheme

there will no longer be a requirement to report the Employers Contracting-out Number (ECON) and Scheme Contracted-out Number (SCON) details on Full Payment Submission (FPS) for tax years commencing 6 April 2016 and onwards

there will no longer be a requirement to separate the National Insurance (NI) earnings between the Primary Threshold (PT) and Upper Accrual Point (UAP) & UAP to Upper Earnings Limit (UEL)

there will be a requirement to report NI earnings between the PT to UEL as there was prior to 2009

there will be one less column to complete on forms P11 and P60. These forms will be updated in due course and available on the Basic PAYE Tools or can be ordered from the Employer order-line.

All HMRC systems will be amended to reflect these changes and the UAP data field will be removed from the FPS and Earlier Year Update (EYU).

All payroll software will need to be amended.

National Insurance Categories from 6 April 2016
Contracted-out National Insurance tables/ categories D, E, I, K, L, N, O and V will be replaced by Standard National Insurance tables/categories A, B, J, M, P, Q, R, T, Y and Z

Contact us if you have any further questions!☎ 020 89310165 ☏ 07900537459 

Wednesday, 3 February 2016

Stamp Duty Land Tax Changes from April 2016!

Consultation on 3% SDLT Supplement on Second Homes from April 2016!

You should be knowing that you must pay Stamp Duty Land Tax (SDLT) if you buy a property or land over a certain price in England, Wales and Northern Ireland. The current SDLT threshold is £125,000 for residential properties and £150,000 for non-residential land and properties.

HMRC are consulting on the details of the higher rates of stamp duty land tax (SDLT) on purchases of additional residential properties announced in the 2015 Autumn Statement.

The Government will include detailed rules in the Budget on 16 March 2016.
The higher rates will not apply if at the end of the day of the transaction an individual owns only one residential property, irrespective of the intended use of the property.

In line with the CGT rules there will be an 18 month period between sale of a previous main residence and purchase of a new main residence for the purpose of determining whether the higher rates apply.

To know more about Stamp Duty Land Tax, Exemptions and more, go to

Contact us for all your Tax & Accounting needs!
☎ 020 89310165 ☏ 07900537459 

Tuesday, 2 February 2016

Single Director Companies Excluded From £3,000 Nic Employment Allowance!

From 6 April 2016 the Employment Allowance increases from £2,000 to £3,000, but if you’re the only employee in a company, and also the director, your company will no longer be eligible for the NICs Employment Allowance.

HMRC is currently consulting on the draft legislation for this change which will mean that the £3,000 allowance will not be available to offset against the employers’ NIC liability of such companies. 

Contact us for all your Tax & Accounting needs!
☎ 020 89310165 ☏ 07900537459 
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Friday, 27 November 2015

HMRC Business Records Checks To End… BUT

HMRC have recently announced that they have wound down their business record checks and will no longer initiate new checks using this process. HMRC say that they “remain committed to helping businesses to keep better records”.

A HMRC spokesperson said:

“We are honouring commitments made for checks but will not be undertaking any new ones. Best practice from the records checks will be embedded into routine compliance activities.”

He added:

“Our approach to supporting business in meeting their obligations changes over time as technology and the way we use data evolve. Business records checks have successfully helped many businesses to improve their record keeping and over time the checks delivered diminishing returns.

HMRC remain committed to helping businesses keep better records through online learning packages as well as digital tax accounts which mean businesses can easily interface with HMRC using their own accounting software.”

At the same time HMRC have updated their fact sheet on compliance checks.

…But They Can Still Visit Business Premises As Part Of A Compliance Check

Although HMRC have announced that they have wound down their business record checks, they may still need to visit business premises as part of a compliance check.

HMRC occasionally make unannounced visits to business premises, however they will normally give you at least 7 days notice of such a visit. This can include your home address where the business is run from home. You can ask us to be there when HMRC visit, and we would strongly advise this. If you prefer, we can request that HMRC look at your records at our offices or at HMRC premises.

HMRC do not usually need to talk to people who work for you about their checks but they may ask to speak to the people who keep your records up to date, such as payroll and finance records.

HMRC may also need to speak to some of the people who work for you if they are looking at their employment status and are trying to check whether or not they should be on your payroll.

Contact us if you have any issues or need help:

☎ 020 89310165 | 📱 07900537459 | ✉

Monday, 1 June 2015

Monthly Tax and Accounting News and Updates - What you need to know on June?

Our Monthly Tax and Accounting News and Updates post is designed to keep you informed of the latest tax and accounting issues for businesses.
We are here to help you if you need further information on any of the topics covered.


Emergency PAYE Tax Code To Be Applied To Certain Pension Withdrawals

The new flexible pension rules came into force from 6 April 2015 for those aged 55 or over with money purchase pension schemes. As announced by the Chancellor in last year’s Budget, these individuals will be able to withdraw as much as they wish from their pension fund but will be taxed on the amount withdrawn at their marginal tax rate. In some cases, the pension fund administrator will apply an emergency PAYE tax code to the payment on a month 1 basis which may result in more tax being deducted than the amount eventually due. This can either be reclaimed at the end of the tax year or during the year if you complete the appropriate HMRC form. Note that we can advise you of the tax implications of the amounts that you are considering to withdraw from your pension fund and, where necessary, assist you in reclaiming any excess PAYE deducted.

Further Budget On 8th July

Following the Election result on 8 May, the Chancellor has announced that there will be a second Budget. We expect this to include a number of Conservative manifesto tax pledges.

HMRC Don’t Yet Have The Power To Raid Taxpayers’ Bank Accounts

HMRC are seeking the power to recover unpaid tax over £1,000 from taxpayers’ private bank accounts and legislation was originally going to be included in the 2015 Finance Act. However the new measures were not included in the first Finance Act but may be included in the next one!

This new power will only be used where the taxpayer has ignored several demands for payment. Additionally, the taxpayer’s bank account should not be reduced below £5,000 by HMRC.  If enacted, this proposed new power will extend to joint bank accounts in the tax debtor’s name, but not those in the spouse’s sole name.

Considering Giving Shares In Your Company To Employees?

More and more companies now give their employees the opportunity to acquire company shares. If correctly structured, this can be a very tax efficient way of attracting and retaining staff, as they are able to share in the success of the company. However, if you get things wrong there can be significant tax charges on the employee and employer. As a general rule, if employees are allowed to acquire shares at less than market value, the discount is taxable as employment income and PAYE; national insurance may also be due. So for example, where the employee pays just £1 for a share worth £10, the £9 difference would be taxable.

The issue of shares to an employee also needs to be reported to HMRC using Form 42 by 6 July following the end of the tax year. There are a number of schemes that you may wish to consider where the receipt of the shares will not be taxed as employment income and in some cases will only be subject to capital gains tax when the shares are eventually sold. It used to be possible to ask HMRC for confirmation that the share scheme satisfied the rigid rules for the tax advantages to apply, but this is no longer possible and employers are now required to “self certify” that the share scheme complies with the legislation. We can assist you with this process if you would like to consider putting a share scheme in place.

Enterprise Management Incentives (EMI) Share Option Scheme

The best employee share option scheme currently available is the EMI share option scheme. In order to take advantage of this, both the company and employees must meet certain conditions. The company must carry on a qualifying trading activity and have a gross asset value of no more than £30 million. The employee or director must work at least 25 hours a week for the company and not hold more than 30% of the company’s shares at the time that the EMI options are granted. The main tax advantages of EMI share options are that provided the option price is set at the correct value there would be no income tax or national insurance when the option is granted or exercised. Furthermore, the employee will then usually benefit from CGT entrepreneurs’ relief which provides a 10% rate when the shares acquired under the option are eventually sold, such as on the sale of the business.

Corporation Tax Relief For Employee Shares

A further tax advantage of allowing employees to acquire shares in the company is that the employing company may be entitled to a corporation tax deduction. This deduction is the difference between the amount payable by the employee and the market value of those shares at the time they are acquired. This will generally be the amount taxable on the employee so, for example, if the employee pays £1 a share when the shares are worth £10 each then the £9 per share discount will be deductible for the company.

Forms P11D Due By 6 July

As mentioned in the tax diary, the deadline for filing the 2014/15 returns of benefits and expenses paid to employees is 6 July 2015. Note that there can be significant penalties for incorrect returns so they need to be completed with great care. Remember that unless the employer holds a dispensation from HMRC, employees’ and directors’ reimbursed expenses (such as travel and subsistence) also need to be reported. We can assist you in completing the forms and to put in place control procedures that will satisfy HMRC requirements to grant a dispensation from reporting certain expenses.

Contact us for if you have any doubts or Accountancy needs!
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Saturday, 6 December 2014

Autumn Statement 2014: Surprise Announcements - What you need to know!

Autumn Statement 2014: surprise announcements on restriction of Entrepreneur's Relief on incorporation and new Stamp Duty Banding.
Income Tax
Personal allowance increased to £10,600 for 2015/16 (a £100 increase on the previously stated £10.500).
Higher rate threshold to be increased to £42,385 from April 2015.
NI upper earnings and upper profit limits will increase in line with the higher rate threshold
Confirmed no changes to come into effect before April 2017, relating to restricting the personal allowance for non-residents.  Any changes will be subject to further consultation.

Remittance Basis
In the next Parliament, the remittance charge for non-UK domiciled individuals is set to increase for longer UK residence. The basic charge of £30,000 will remain unchanged, but for non-doms who have been resident in the UK for 12 out of the past 14 years, it will be increased to £60,000, and for those UK resident for 17 of the previous 20 years, it will increase to £90,000.
From April 2015, the 55% tax charge on inherited pensions is withdrawn, allowing unused pension pots to be passed on tax free.
Joint life or guaranteed term annuities will also be able to be passed on tax free where death occurs before age 75.
Corporation Tax
Creative sector reliefs
Reliefs extended to include a new children’s TC tax relief from April 2015.
Consultation announced to introduce a new orchestra relief from April 2016.
R&D Relief
Tax credit for small and medium companies increased from 225% to 230% and the credit will be increased from 10% to 11% from 1 April 2015.
From 1 April 2015, the costs of materials incorporated in products that are sold will be excluded from relief.
New advanced assurance scheme to be introduced for small businesses making their first claim and new guidance to be developed.
Employers and employees
Government to review the use of employment intermediaries ‘umbrella companies’ with a view to introducing possible counteraction measures in Budget 2015.
In addition to the removal of NIC’s form under 21’s from April 2015, with effect from April 2016, employers will not have to pay NI contributions for apprentices aged under 25 earning up to the Upper Earnings Limit.
From April 2015 the £2,000 annual NI ‘Employment Allowance’ is extended to households that employ care and support workers.
Proposals to introduce a new form of employee shareholding vehicle in order to reduce the costs for employee controlled companies have been shelved for the time being. Consultation revealed a lack of interest amongst employers and share scheme specialists. Plans to change the definition of marketable securities have also gone back to the drawing board.
Capital Gains Tax
NEW – Entrepreneurs Relief (ER) will no longer be available on the disposal of goodwill on transfer of a business to a related close company (incorporation). The measure has effect for transfers on or after 3 December 2014.
ER will now be allowed where a qualifying gain, which has been deferred into investments qualifying for Enterprise Investment Relief (EIS) and Social Investment Tax Relief (SITR), is subsequently realised.
Stamp Duty
NEW - Significant changes to the Stamp Duty Land Tax (SDLT) regime
The old rules whereby the rate of SDLT would be determined by the purchase price of the property and applied to it in full (known as the ‘slab’ system) has been abolished with effect from 4 December 2014.
The new rules introduce a banding system whereby the SDLT is determined by the rate applicable to the amount of the overall purchase price which falls within a given band (akin to the current income tax system)
The new bandings and rates are;
0 -125,000
125,001 – 250,000
250,001 – 925,000
925,001 -1,550,000
1,500,001 and over
Transitional provisions are in place where contracts have been exchanged but not completed, which allow the purchaser to choose whether to apply the old or new rules.

Enveloped properties
From 1 April 2015 the Annual Tax on Enveloped Dwellings (ATED) will be increased;
£20m and over
From April 2015, search and rescue and air ambulance charities will be eligible for VAT refunds, and hospice charities will also receive refunds for VAT incurred.
Inheritance Tax
The government will not introduce a single settlement nil-rate band for trusts, but will target avoidance through the use of multiple trusts in Finance Bill 2015.
IHT exemption for members of armed forces extended to members of emergency services and humanitarian aid workers responding to emergency situations.
ISA limit increased to £15,240 with effect from April 2015.Junior ISA and Child Trust Fund limits increased to £4,080.
From 3 December 2014, an ISA holder can pass their ISA benefit to their spouse or civil partner on death. The additional ISA allowance will be equal to the value of the savers ISA holdings at the date of their death. This is in addition to thesurvivor’s own normal ISA limits.
Business Rates
‘High street discount’ increased from £1,000 to £1,500 from April 2015 to March 2016.
Small Business Rate Relief doubled for a further year.
Check these resources for more information: