The Statutory Residence Test

At last we now have a statutory residence test which has been long overdue!  The new rules should clarify who is, and who isn’t, deemed to be resident in the United Kingdom for taxation purposes. Up to now residence has been determined by complicated and subjective arguments leaving the position unsatisfactorily unclear.  The revised statutory residence test is designed to provide simple transparent and objective Read more…

Loans from Close Companies to their Participators

On the 20 March 2013 the Government announced their intention to bring in legislation to counter various arrangements under which close companies seek to avoid a charge to tax when making loans to their participators.  They also confirmed that they will be undertaking a wider review of loans to participators and it is understood that a consultation document will be published later this year. There Read more…

Treatment of Liabilities for Inheritance Tax (IHT) Purposes

IHT is normally charged on the net value of a deceased person’s estate after deducting the following: liabilities which were outstanding at the date of death reliefs exemptions and a nil rate band. Hitherto, a deduction for liabilities has been given for the full sum owed to the deceased’s creditors. It has not been limited to the amount actually repaid after the person’s death or Read more…

Benefit in Kind Changes

Car Benefit Where a car is made available to an employee by reason of his employment the benefit-in-kind income tax charge is based on a percentage of the car’s list price, graduated according to the level of the car’s CO2 emissions measured in grams per kilometer. For 2013/2014 the range is 0% where CO2 emissions are less than 75 grams per kilometer up to 35% Read more…

Capital Allowances and Cars

Businesses purchasing low CO2 emission cars (including electric cars) were eligible to claim 100% first year allowances on the cost of such vehicles up to and including 31 March 2013.  The Chancellor has decided to extend this regime for a further 2 years (up to 31 March 2015) but the qualifying CO2 threshold was reduced on the 1 April 2013 from the previous level of Read more…

UK counts £52bn cost of fraud

Fraud is costing the UK economy billions of pounds a year, new research has found.

The Annual Fraud Indicator, compiled by the National Fraud Authority (NFA) and published on 6 June, put the annual cost at £52 billion.

Private businesses were estimated to have suffered total fraud losses of £15.9 billion while the public sector faced a £20.6 billion fraud bill. The cost to individuals was put at £9.1 billion, while charities were estimated to have suffered losses of £147 million. Fraud affecting financial and insurance activities was put at £5.4 billion.

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Red tape freeze extended to more businesses

A freeze exempting small businesses from some new regulations is to be extended to larger enterprises.

Business Minister Michael Fallon announced on 6 June that the freeze exempting businesses with fewer than ten employees from burdensome new regulations would be extended to firms with up to 50 staff, and will continue from 2014.

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