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FREE Breakfast Briefing - 30 March 2011

A FREE Breakfast Briefing in association with Horsham Unlimited.

a couple of points arising in the budget/finance bill on property investment!

The Budget made an interesting change for property investors. The Finance Bill 2011 is introducing a reduction in stamp duty land tax payable for ‘bulk purchases’.

budget changes affecting the residency and domicile of individuals

The current rules to determine whether an individual is UK resident or not are very unclear and complicated. George Osborne announced on 23 March that the government would be looking to introduce a statutory definition of residence.

gatwick diamond pastries and networking

It was great to welcome the Gatwick Diamond Business Association and CADIA into our Horsham office for a pastries and networking event this morning.
It proved really popular and more than 50 businesses joined us to find out more about the impact the Budget announcements could have on them.

Lee-Ann Connor from the Gatwick Diamond congratulated Spofforths for being chosen as finalists in the 2012 Business Awards. It was a really nice surprise when she presented us with certificates to mark our achievement in two categories - The Award for Corporate Responsibility sponsored by THALES, and Business of the Year sponsored by pwc.

Autumn Statement date set

This year's Autumn Statement will take place on Wednesday 5th December, Chancellor George Osborne has announced.

Autumn Statement 2012

Chancellor George Osborne is set to deliver his Autumn Statement on Wednesday 5 December 2012 and we are preparing to review the impact new measures will have on businesses and individuals. The Statement will confirm government's plans for the economy, accompanied by the latest forecasts and analysis from the Office for Budget Responsibility.

Autumn Statement - Business Tax

The Chancellor has just finished his Autumn Statement. The highlight for small and medium sized businesses appears to be a substantial increase in the Annual Investment Allowance for investment in new plant and machinery.

Budget 2013

As we eagerly await the Chancellor’s Budget report on Wednesday 20 March Spofforths Tax Partner Bryan Elkins is preparing to review the announcements. He will be providing the Sussex media with an overview of the impact the Budget may have on businesses and individuals.

Budget Reaction

George Osborne has delivered the 2013 Budget and our initial reaction is that there are significant changes being introduced by the government including the expected promise of anti-avoidance changes. The most surprising announcement is in fact not a tax matter, but assistance to home-buyers with a “Help to Buy” package.

Employee shareholder status

In the Budget the Chancellor confirmed the new ‘employee shareholder status’ which will give a Capital Gains Tax exemption on a future sale of shares. The exemption will apply to shares worth up to £50,000 when they are received, but with no limit on the ultimate proceeds received on sale of the shares. In order to get the benefit, employees will have to waive some of their employment rights.

Inheritance Tax threshold frozen

The Chancellor has confirmed that the Inheritance Tax threshold has been frozen at £325,000 until at least 5 April 2018. This means that any increase in the value of assets over the next 5 years will potentially be subject to Inheritance Tax without any increase in the tax-free amount for inflation over the period. This has been done to help fund the recently announced cap on care costs of £72,000. Thought should be given to removing assets from your estate that could increase in value over the coming years.

Corporation Tax Rates

The Chancellor has announced that the main rate of Corporation Tax will be reduced to 20% from 1 April 2015 meaning a single tax rate for companies in the UK.

Income Tax

The anticipated £10,000 personal allowance which the government have hinted about for the last couple of years was confirmed today with the announcement that it will come into effect from 6 April 2014.

Seed Enterprise Investment Scheme

It was announced that the government are to extend the Capital Gains Tax (‘CGT’) relief for reinvesting gains in SEIS shares to gains accruing in 2013/14.

New childcare scheme

As announced yesterday a new childcare scheme will be introduced in autumn 2015. The new scheme is designed to help families contribute to their childcare costs with support of up to £1,200 per child.

FREE 2013 Budget Report

Please click here to view a report summarising the 2013 Budget announcements made by the Chancellor.

What will the Chancellor focus on in his Autumn Statement?

The Chancellor will make his announcement on Thursday 5th December. ICAEW’s Tax Faculty have highlighted areas where announcements are expected:

Fuel Duty – Further Freeze

It has been confirmed that the fuel duty rise expected next year has been cancelled.

Spofforths comment on 2013 Autumn Statement

2013 AUTUMN STATEMENT – Comment by Bryan Elkins of Spofforths on the main tax measures announced by George Osbourne on 5 December 2013

Budget 2014 – Personal Allowance Increase Announced

The Chancellor confirmed that the personal allowance (the amount of income you can have before you pay tax) is increasing to £10,000 with effect from 6 April 2014 and this will increase to £10,500 with effect from 6 April 2015.

Budget 2014 - Tax Anti-Avoidance Crackdown Continues

The Chancellor has announced the crackdown on marketed tax avoidance will continue. Participants in notified schemes will be required to pay the disputed tax “up front”. They can only recover this when the litigation concludes in their favour.

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Xero - Cloud based accounting software

In a demanding society our needs, both business and personal, are constantly changing and evolving, making it hard to predict the next step. The advancement of online accounting software has meant that the way in which we can now do business has changed beyond all recognition.

Autumn Statement 2014

The Autumn Statement will be delivered by George Osborne, Chancellor of the Exchequer, on Wednesday 3 December 2014. We will update our website as more becomes available.

The Tax-Free Personal Allowance: Further £100 in April 2015, to £10,600

The personal allowance – the amount you earn before you have to start paying income tax – will be increased again from £10,000 to £10,600 in April 2015. This will benefit all taxpayers.

The Chancellor announced their intention to increase the allowance to £12,500 by 2020, so that anyone earning National Minimum Wage will not pay tax.

In addition, there will be inflationary increase in the higher rate threshold, so higher rate taxpayers will also benefit.

2015 budget date announced

The Budget will take place on Wednesday 18 March 2015

Spofforths Bryan Elkins gives his thoughts on the pre-election Budget 2015

George Osborne will be presenting his pre-election Budget on Wednesday. This is unlikely to be the bearer of too much “bad news” as clearly he will not want to alienate voters prior to the election….indeed, it is often the case that such a Budget results in “sweeteners” to get voters on-side!

Changes to Annual Tax on Enveloped Dwelling (ATED) from 30 April 2015

On 30 April 2015 the next tranche of Annual Tax on Enveloped Dwelling (ATED) returns are due to be filed.

Budget 2015 - Entrepreneurs' Relief changes

In today’s Budget the Chancellor announced two changes that are effective immediately that restrict the situations when Entrepreneurs’ Relief (ER) can be claimed. ER reduces the rate of Capital Gains Tax to 10% when the qualifying conditions are met.

Pre Election Budget 2015

The Chancellor has finished giving his 2015 pre-election statement. This focused on the achievements of the current Government to date and the fact that “Britain is walking tall again”.

Budget 2015 - Gift Aid available on street collections by charities increased

From 6 April 2016 the maximum annual amount which can be claimed through the Gift Aid Small Donations Scheme has increased from £5,000 to £8,000 giving a charities and Community Amateur Sports Clubs, an income boost of up to £2000 a year.

Budget 2015 - Annual Investment Allowance to reduce

The Chancellor has confirmed that it is not expected for the Annual Investment Allowance (AIA) to reduce to £25,000 in April 2016 as previously announced.

Budget 2015 - Announcement for Farmers

The Chancellor announced that from April 2016 farmers will now be allowed to average their profits over 5 years as opposed to 2. This is welcome news for those in the agricultural sector whose profits are volatile due to uncontrollable factors such as the weather.

Budget 2015 - Chancellor announces further pension rule changes

The Chancellor has today announced even more changes to the pension rules.

Budget 2015 - Tax Returns may become a thing of the past

Apparently Tax Returns for many will become a thing of the past!

Budget 2015 - Personal Allowance changes

The tax free personal allowance for individuals is set at £10,600 for 2015/16, this was pre-announced in the Autumn Statement.

Budget 2015 - new ISA for first time buyers

The Budget has introduced the concept of a new ISA for first time buyers along with a number of other interesting measures

Budget 2015 - Class 2 NICs abolished

As part of the simplification process for the self-employed the Chancellor announced that Class 2 NICs will be abolished in the next Parliament.

Budget 2015 - Inheritance Tax

In his final Budget before the election the Chancellor has hinted that Deeds of Variation that have an Inheritance Tax effect may be stopped in the future.

Budget 2015 - Personal Savings Allowance

A new Personal Savings Allowance is to be introduced, whereby every individual will be entitled to receive interest of up to £1000pa (or £500 if you pay tax at the 40% rate) without paying tax.

Spofforths 2015 Budget Summary

Here is a detailed summary of the 2015 Budget.

Summer Budget date announced by the Chancellor

The Chancellor of the Exchequer George Osborne has announced that there will be a Summer Budget on Wednesday 8 July 2015.

What will the Chancellor’s Budget Statement on 8 July contain?

Set against a back drop of a largely unexpected majority government, pressure to reduce the deficit and maintain stability in the UK economy and the continued turbulence in the Euro zone, the emergency budget is likely to include a finely balanced set of measures.

Removal of tax relief for companies on purchased goodwill

Since April 2002 it has been possible for companies to claim Corporation Tax relief on the amortisation (or write off) of purchased goodwill and customer related intangible assets.

New National Living Wage announced

A new National Living Wage will be introduced for workers aged 25 and above from next April. All such workers will be paid £7.20 (a rise of 70p relative to the current National Minimum Wage). The chancellor has promised that this will increase to £9 per hour by 2020.

New dividend tax free allowance

From 6 April 2016 the government will remove the existing 10% dividend tax credit.

Changes to Corporation tax

Changes to Corporation tax just announced in the Budget

New Inheritance Tax allowance

As widely publicised before the Budget, the Chancellor has announced a new Inheritance Tax allowance. The additional allowance will apply when a residence is passed on death to either children or grandchildren. The additional allowance will come into effect from April 2017 initially at £100,000, increasing to £175,000 by April 2020.

Pension Changes announced in Budget

The Lifetime Allowance for pensions is to be reduced from £1.25M to £1M from April 2016 and then indexed annually in line with the CPI from April 2018.

Rent a room to increase

From 6 April 2016 rent a room relief will increase to £7,500 per annum. This is the amount that an home owner can receive, tax free, from the letting of individual rooms in their home. This tax free sum was originally set at £ 4,250.

Restriction on mortgage interest relief for landlords

One cost which a landlord is able to use to reduce their taxable profits is mortgage interest. The amount of relief was based on the money borrowed, restricted to the original cost of the property, or the market value of the property when it was first let.

Income and Capital Gains Tax changes for non-UK domicile long-term UK residents

From April 2017, individuals who have been resident in the UK for more than 15 out of the last 20 years will automatically be taxed on their worldwide income on an arising basis. This means they will no longer be able to claim the remittance basis and pay the £90,000 charge.

Big changes for non-UK domiciled individuals

From April 2017 the government intends to bring all UK residential property held directly or indirectly by foreign domiciled individuals into charge for UK IHT, even if the individual is non-UK resident at the time of their death.

Increased tax free Personal Allowances

The tax free Personal Allowance is set to increase to £11,000 in 2016/17 (and £11,200 in 2017/18). This tax free amount is reduced for taxable income in excess of £100,000, with the Personal Allowance fully retracted for taxable income in excess of £122,000 in 2016/17.

Employment Allowance boosted

The Employment Allowance which reduces the Employer’s National Insurance contributions (“NIC”) paid by eligible businesses and charities will rise from £2,000 to £3,000 from April 2016.

Summer Budget Report 2015

We have prepared this summary to outline the issues that are most likely to be of interest to you. We have included informative comments to help you assess the likely effect that the proposed changes may have on you personally and their significance.

If you have a question concerning any of the issues covered in this summary, or would like advice on the best possible course of action in a particular area, please contact us.

Summer 2015 Budget Roundup

The Summer Budget has introduced a number changes to the UK tax system. The Chancellor vowed to put “Security First” in the first pure Conservative budget since 1996.

Summer Budget Property Bulletin

There were some interesting and key changes in the Chancellor's Budget last week. We have produced a property bulletin highlighting some of these important topics.

HMRC announce consultation on income tax for farmers

HM Revenue & Customs (HMRC) is consulting on how to introduce changes to income tax rules that will allow farmers to average their profits over five years.

Spofforths' Tax Consultant Jo White covers key budget points for Landlords

Jo White from our Tax Consultancy Team has written an article for letting agents Leaders about the recent Summer Budget.

Implications for Housing Associations following Summer Budget

The National Housing Federation has published a briefing following the Chancellor’s announcements in the Summer Budget on 8 July, and the subsequent announcement of a productivity plan on 10 July.

Should I continue trading through a limited company?

In the Summer Budget, George Osborne announced fundamental changes to the way in which dividends are taxed. The changes take effect for dividends received from 6 April 2016. Some individuals who extract profits from their company as dividends may want to consider taking additional dividends payments before this date.

Stamp Duty changes for landlords

The Chancellor has announced that from 1 April 2016 people purchasing additional properties such as a buy to let or second home will pay an additional 3% SDLT charge. This is on top of the interest relief changes announced in the Summer Budget.

The Chancellor has completed his Autumn Statement.

The Chancellor has completed his Autumn Statement.

Loans to trustees of charitable trusts

In yesterday's Autumn Statement The Chancellor made an announcement concerning loans to trustees of charitable trusts.

Chancellor announces extending averaging for farmers

One of the announcements made by The Chancellor in his Autumn Statement 2015 related to self-employed farmers.

Chancellor announces change to Gift Aid Small Donations Scheme (GASDS)

Gift Aid Small Donations Scheme (GASDS) allows eligible charities and Community Amateur Sports Clubs to claim a Gift Aid style payment on small cash donations of up to £20.

Chancellor announces housing associations to pilot right to buy scheme

George Osborne announced that five housing associations will begin a pilot into right-to-buy.

Spofforths partner Bryan Elkins talks to Sussex Life about the Chancellors recent announcements

In the January issue of Sussex Life Bryan Elkins talks to Sussex Life about the surprises and changes announced by the Chancellor.

The Budget 2016

George Osborne presented the first Spring Budget of this Parliament on Wednesday 16 March 2016.

Commentary and analysis - Autumn Statement 2016

Philip Hammond’s first Autumn Statement announcement will be held on 23 November 2016, and as usual we will be producing commentary and analysis during and after the announcement.

Autumn Statement: Chill economic winds require focus on investment, trade and a creative education.

With the colder weather comes the Autumn Statement and businesses will be looking for help to allow them to weather expected storms caused by the impending Brexit.

Autumn Statement and the 'wish list' for social housing associations

There is an opportunity to improve provisions for social housing associations within the Autumn Statement (23 November). Hopefully the Government will take it.

Chancellor announces potential changes to employment income

The Chancellor has announced a number of potential changes to employment income which will affect both employers and employees.

Autumn Statement - tax issues for large corporates

The Chancellor has confirmed that two previously announced tax relief restrictions will indeed come into effect from 1 April 2017. First, those groups with a UK net interest expense in excess of £2M will see their interest deductibility capped at 30% of EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) (or a group ratio rule if this yields a more favourable result). This legislation effectively implements the recommendations of BEPS Action Plan 4, and represents a contribution to combatting the perceived tax abuse engaged in by multi-nationals.

Autumn statement - Charities

In today’s Autumn Statement the government committed a further £102 million of baking fines over the next four years to support Armed Forces and Emergency Services charities as well as other related good causes. This money comes directly from the fines paid by banks found to have been involved in the Libor fixing back in 2012 and the government has been handing out this revenue to charities since 2012.

The OBR has highlighted the cost to the Exchequer of incorporation

In recent years rates of Corporation tax have been falling; a policy to support business set up and expansion in the UK. Some individuals have taken advantage of this to lower the overall tax payable on their own affairs.

Autumn Statement – investing in the UK

It is clear from Phillip Hammond’s inaugural speech to parliament that he intends to boost investment into UK business, which can only be a good thing for the UK agriculture sector.

Landlords and the Autumn statement

When the Chancellor Philip Hammond stood up to deliver his first Autumn Statement, I would imagine a number of landlords were holding their breath, to hear whether or not they would see yet more changes.

Autumn Statement 2016 – Life Sciences

To alleviate concerns about Brexit’s impact on the UK’s life sciences industry, the Chancellor, in his first (and last!) Autumn Statement reiterated the government’s commitment to investing in UK technology and innovation.

Fine-tuning continues the crackdown on VAT avoidance

All the measures announced or re-announced by the Autumn Statement have a similar theme: anti-avoidance and anti-evasion.

Autumn Statement – the storm continues for education

Disappointingly, there was no real boost to the education sector in the last ever Autumn Statement earlier today. School leaders hoping for additional cash to address the severe funding pressures have been left empty-handed – unless they’re looking to expand their grammar school of course! Therefore the “perfect storm” will continue and schools will have to continue to manage their budgets and resources carefully – if they can?! With curriculum being cut and some sixth forms closing already, the future does not look good

Autumn Statement – effects on the charitable sector

“The employment rate is at a record high and the deficit has fallen by almost two thirds. But more needs to be done.” So says the Executive Summary of the 2016 Autumn Statement. The government’s aims are to reduce the deficit further and increase productivity. The backdrop to these ambitions is a more uncertain economic outlook following the decision to leave the EU.

Mind the Gap

While the housing gap was mentioned early on in the Chancellor’s speech, surprisingly the tax gap was not. However, buried in the detail of the 72-page Autumn Statement, the tax gap is mentioned under “Avoidance and Evasion” and while the UK’s tax gap remains one of the lowest in the world, the Government are committed to reducing the perceived gap and also to raising further revenues given that tax receipts were lower than expected this year.

Financial Planning's review on the Autumn Statement

The Chancellor announces a £400m injection into venture capital (VCTs) funds to help start up companies. This is a boost for VCTs, and evidences, continued support for this form of investment and the tax incentives that it provides to investors.

Autumn Statement: Going for growth with borrowing spree

Solid, workmanlike and without any flashy surprises, perhaps the Autumn Statement perfectly reflects the man who delivered it?

Autumn Statement summary 2016/17

Phillip Hammond introduced his first Autumn Statement by effectively abolishing future Autumn Statements - to be replaced by a single Annual Budget in the Autumn.

Spofforths trading as Kreston Reeves from January 2017

Following the merger of Spofforths and Kreston Reeves in June this year, Spofforths will trade as Kreston Reeves from January 2017.