Posts Tagged ‘Tax’
Monday, January 16th, 2012
Today is the first working day of the obligation under the Localism Act 2011 for local authorities and single status fire and rescue authorities to produce a Pay Policy Statement. The government issued draft guidance for consultation before Christmas and once that comes out in final form authorities will know exactly what is expected.
While a lot of local authorities will already have started thinking about drafting a statement it will require a lot of input from both officers and members and will need to be approved by the full authority. This approval is aimed at making the authority more accountable to the local tax payers with the hope that the gap between the highest and lowest earners will reduce.
The policy must be applied from 1 April 2012 and it will be interesting to see if the government’s wish to effectively “cap” the pay of the most senior officers will come true.
Posted by Anja Beriro, who specialises in : local authority law, public sector procurements, commercial agreements, projects and shared services; clients: local authority and private sector bodies
Anja Beriro
0115 976 6589
aberiro@brownejacobson.com
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Tags: fire and rescue authorities, government bodies, local authorities, local tax payers, localism act 2011, Localism Bill, pay policy statement, Tax
Posted in Commercial Litigation, Government bodies, Local Authorities, Public Sector, Tax | No Comments »
Friday, December 9th, 2011
The change in Government left auto enrolment and NEST hanging in the balance. Following the publication of an independent review earlier this week, it appears that it is full steam ahead with auto enrolment and NEST.
The good news is that a 3 month waiting period has been introduced before the auto enrolment requirement kicks in, and some of the thresholds have been increased (the earnings threshold at which an individual is auto enrolled has been increased to match the income tax personal allowance; the threshold for pension contributions to become payable matches the National Insurance primary threshold).
However the not so good news for smaller employers is that the requirements apply to all employers irrespective of size.
It still seems that many of the principles which caused concern for employers in terms of costs and administrative burden remain.
Posted by Victoria Leybourn, who specialises in advising companies and trustees in all aspects of pensions law and local authorities and contractors on their obligations regarding public sector pension schemes.
Victoria Leybourn
0115 976 6160
vleybourn@brownejacobson.com
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Tags: auto enrolment, employee pensions, income tax, NEST, Pensions, pensions law, Tax
Posted in Employment, Local Authorities, Pensions, Public Sector, Tax | No Comments »
Wednesday, November 23rd, 2011
The European Heart Network (EHN) is today calling on the UK to introduce a tax on fatty and sugary foods, as well as greater controls on the advertising of unhealthy foods aimed at children.
The ECN believes the UK needs to introduce decisive policies in light of growing evidence of the impact of diet and physical activity on coronary heart disease.
The introduction of a fat tax in the UK would be very difficult for the Government to suggest right now and for the industry to stomach. The impending Food Information Regulations are already making waves and the force of the Nutrition and Health Regulations is only just being felt.
Introducing a tax on foods which would be sure to cripple certain producers would not be a sensible move. The Nutrition and Health Regulations should have a significant impact on the way certain foods are marketed so it would be wise for Government to let regulators try this weapon first before introducing a new one.
Posted by Nina Best, who specialises in regulatory matters; entertainment licensing; advertising and marketing law; advice and representation on infringement of Food Safety Manufacturing Product Regulations.
Nina Best
0115 976 6529
nbest@brownejacobson.com
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Tags: european bureaucrats, european foods standards agency, european heart network, food, food information regulations, Tax, the nutrition and health regulations
Posted in Advertising & Marketing, Brands, Food & drink | No Comments »
Tuesday, September 13th, 2011
Earlier this week (6 September 2011) the chancellor, George Osborne, announced that he will make his autumn statement on 29 November 2011.
From 1997 to 2009 this statement took the form of a pre-Budget report – almost a “mini-Budget” -under which initial details of proposed changes to the tax regime were often released ahead of the main Spring Budget.
The government is currently under pressure to make tax cuts, with some arguing that the standard rate of VAT should be reduced and others pushing for the 50% “super rate” of income tax to be abolished.
However, in contrast to the pre-Budget reports, the Coalition’s autumn statements focus more on the economy’s current performance and respond to the Office for Budget Responsibility’s forecasts and so Mr Osborne is unlikely to be giving us a taster of the 2012 Spring Budget in November.
For now, therefore, speculation over future tax changes will continue. Watch this space…
Posted by Beth Dowson, who specialises in taxation aspects of a wide range of property, corporate and commercial matters; provides taxation support to other internal departments.
Beth Dowson
0115 976 6186
bdowson@brownejacobson.com
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Tags: 50% tax rate, coalition, Edd Balls, George Osborne, government, pre-budget report, spring budget, Tax, vat
Posted in Tax | No Comments »
Friday, August 5th, 2011
Buyers acquiring multiple residential properties in one go may be able to pay less Stamp Duty Land Tax (SDLT) than before.
The relief was announced in the Budget earlier this year but has only recently come into force (from 19 July 2011).
Instead of the existing linked transaction rules which use the aggregate purchase price to set the rate of SDLT, this new SDLT relief uses the average price of the residential properties being bought to set the SDLT rate. For multiple residential purchases this could provide up to a 3% SDLT saving.
The relief could be great news for bulk buyers in the residential sector. But as ever with SDLT the devil is in the details, which could restrict how much relief is available to begin with or lead to claw back of relief later, depending on the circumstances.
Posted by Andrew Noble, who specialises in corporate and real estate tax, employee share incentives, UK and cross-border; advises clients from private individuals to listed companies; Chartered Tax Adviser.
Andrew Noble
0121 237 3952
anoble@brownejacobson.com
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Tags: bulk residential purchases, multiple dwellings, SDLT, stamp duty land tax, Tax
Posted in Tax | No Comments »
Thursday, April 28th, 2011
A taxpayer business has recently won a decision against HMRC in the First Tier Tax Tribunal over an SDLT saving scheme which was put in place on a property transaction with a purchase price of about £65million. The saving relied on a combination of two SDLT reliefs, for sub-sales and for connected party transfers into partnerships.
It’s been very rare for HMRC to take SDLT cases to the courts since the introduction of SDLT in 2003, and this defeat for them may give them cause for thought over possible future court action, despite a concern amongst tax advisers that HMRC are looking strongly into challenging SDLT saving schemes.
The particular scheme used in this case may not be workable now, given that SDLT anti-avoidance legislation has been introduced since the transaction in question took place. What will be really interesting is if HMRC dare go to court in future on the grounds of that anti-avoidance legislation, so we can see if the courts will back it up.
Posted by Andrew Noble, who specialises in corporate and real estate tax, employee share incentives, UK and cross-border; advises clients from private individuals to listed companies; Chartered Tax Adviser.
Andrew Noble
0121 237 3952
anoble@brownejacobson.com
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Tags: first tier tax tribunal, hmrc, SDLT, sdlt saving scheme, stamp duty land tax, Tax
Posted in Tax | No Comments »
Friday, April 8th, 2011
So, 6th April has been and gone, and another tax year has begun. You will have seen numerous recent announcements in the press about proposed changes to tax rules/rates but many of them have now actually come into force. How are you affected? Can you actually tell?!
On the one hand, the amount of tax-free income you can earn has gone up, the annual capital gains allowance has increased, the entrepreneurs’ relief limit has doubled and you can invest more in your ISA. On the other hand, the higher rate income tax threshold has been reduced, NICs have increased, SDLT is now 5% on £1m+ residential property, the IHT threshold has been frozen and pension tax relief has been restricted, and that’s to name but a few of the changes. Some people will win out overall, but I fear that there will be many more that end up worse off instead.
Happy New Year!
Posted by Beth Dowson, who specialises in taxation aspects of a wide range of property, corporate and commercial matters; provides taxation support to other internal departments.
Beth Dowson
0115 976 6186
bdowson@brownejacobson.com
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Tags: IHT, income tax, ISA, SDLT, Tax
Posted in Employment, Tax | No Comments »
Wednesday, February 23rd, 2011
In December 2010 HM Revenue and Customs (“HMRC”) published its draft “Disguised Remuneration” legislation in relation to which it launched a two month consultation period. Broadly, the anti-avoidance provisions are designed to accelerate income tax and NIC charges where employees and directors are remunerated via third-party arrangements.
However, the proposed drafting was so wide that there were concerns that the legislation could (unintentionally?) apply to various legitimate remuneration structures, including non-approved share incentive schemes involving an Employee Benefit Trust, even where there was no tax avoidance/deferral intention.
The consultation period has now come to a close and HMRC has published a set of FAQs in response. Whilst these clarify that some changes will be made to the draft legislation, e.g., in relation to allocating shares for certain employee share plans, they do not address all concerns. Many are therefore still anxious to see the final form legislation, which is expected by the end of March.
Posted by Beth Dowson, who specialises in taxation aspects of a wide range of property, corporate and commercial matters; provides taxation support to other internal departments.
Beth Dowson
0115 976 6186
bdowson@brownejacobson.com
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Tags: disguised remuneration, employee benefit trust, hmrc, Tax
Posted in Tax | No Comments »
Monday, January 31st, 2011
HM Revenue & Customs have issued draft guidance and a summary of their consultation process on various capital gains changes to be introduced in Finance Bill 2011. This follows their original announcements before Christmas, and they have invited further comments by 22 February 2011. One of these measures changes where the liability for a capital gains de-grouping charge will sit. After the change, the de-grouping charge will sit with the seller company, rather than in the company which is leaving the group. This is an important point to note when planning a corporate sale out of a group.
A knock on effect which could help the tax position of a group when selling a subsidiary, is that if the disposal of the shares in the subsidiary qualifies for substantial shareholding exemption (“SSE”), then following this change any de-grouping charge may also qualify for SSE.
Posted by Andrew Noble, who specialises in corporate and real estate tax, employee share incentives, UK and cross-border; advises clients from private individuals to listed companies; Chartered Tax Adviser.
Andrew Noble
0121 237 3952
anoble@brownejacobson.com
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Tags: capital gains, finance bill 2011, hm revenue and customs, hmrc, Tax
Posted in Tax | No Comments »
Thursday, January 6th, 2011
Given recent media coverage, we surely all know that the standard rate of VAT was increased from 17.5% to 20% from midnight on 4 January 2011.
This will affect supplies of many goods and services and, for those who can’t recover VAT, the extra amount will be an absolute cost. It’s therefore worth remembering that:
1) a price includes VAT unless otherwise stated; and
2) there are some optional special rules for supplies made (but not invoiced or paid for) before 4 January 2011, where VAT can still be charged at 17.5%.
Those who can fully recover VAT may simply be expecting a small impact on cash flow. However, some businesses are expected to take the opportunity to increase prices by more than is strictly necessary – by as much as 8% in some cases – which could have a significant impact on everyone, regardless of their VAT status.
Posted by Beth Dowson, who specialises in taxation aspects of a wide range of property, corporate and commercial matters; provides taxation support to other internal departments.
Beth Dowson
0115 976 6186
bdowson@brownejacobson.com
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Tags: 2.5% VAT increase, Tax, vat, VAT increase
Posted in Tax | No Comments »
Thursday, December 16th, 2010
On 9 December 2010, HM Treasury announced that from 1 April 2011 Academy schools should be put on the same footing as local authority maintained schools, in terms of their ability to recover VAT from HM Revenue & Customs in certain situations.
The announcement focuses on Academies recovering VAT which they incur on incoming supplies of goods and services, which are then used by the Academy for its non-business activities. Since providing education free of charge is generally a non-business activity, this is a very relevant point for Academies.
At the moment, Academies don’t have the same powers as local authority schools to recover VAT which they incur in this non-business context. Additional grant funding has been available from the government to try to bridge this gap. But from 1 April 2011 the intention is for Academies to be treated in the same way as local authority maintained schools on this issue.
Posted by Andrew Noble, who specialises in corporate and real estate tax, employee share incentives, UK and cross-border; advises clients from private individuals to listed companies; Chartered Tax Adviser.
Andrew Noble
0121 237 3952
anoble@brownejacobson.com
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Tags: academies, hm revenue, local authorities, maintained schools, Public Sector, Tax, vat
Posted in Tax | 1 Comment »
Thursday, December 10th, 2009
…tax savings for SME research and developers?
Yesterday, Alistair Darling announced that he intends to reduce corporation tax on income flowing from licensing of patents to 10%.
His noble aim is to encourage research and development in the pharmaceutical and biotech industries. Great news for the SME you might have thought.
There is a downside though – the reduced rate only applies to income from April 2013, and it only affects patents granted after the legislation is passed (which may be in 2011) – so don’t break open the bubbly just yet.
Of slightly more immediate benefit to those who develop technology is the Government’s announcement (to be included in the Finance Bill 2010) to make it easier for SMEs to take advantage of research and development tax relief.
If the legislation is passed, SMEs will no longer have to demonstrate that any intellectual property deriving from the relevant research and development is owned by the company making the claim for relief. The enhanced relief (of up to 175% of qualifying expenditure) may well be more widely available as a result, so it’s a good time to check whether you qualify.
Posted by Mark Daniels
0121 237 3993
mdaniels@brownejacobson.com
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Tags: Intellectual Property, Patents, SME, Tax
Posted in Intellectual Property | No Comments »
