Insights
52 results
-
19 Feb 2021What will the Budget hold for businesses?
The Government has spent hundreds of billions trying to protect jobs and the economy during the pandemic, and it is now widely accepted that an increase in taxes is inevitable, at some point, to recoup some of these costs. Any tax increases will, however, need to be balanced with the need to provide support and stimulus to encourage a strong economic recovery and promote growth. The impact of announcing tax increases while we are struggling through another lockdown will also be on the Chancellor’s mind. -
19 Feb 2021Spring Budget and personal tax: what’s in the box?
The Chancellor is due to deliver his next Budget on 3 March 2021, postponed from the Autumn. Below, we discuss what the Chancellor may target in his second Budget, as he starts work on rebuilding the economy after a tumultuous first year in office. -
18 Feb 2021Budget 2021 wish list: Seven areas for change
Julia Rosenbloom, tax partner at Smith & Williamson, is calling on the government to bring about changes in the upcoming Budget that would see greater wealth transfer to younger generations, and a series of temporary tax reliefs that would provide a much needed boost to struggling areas of our economy. -
12 Mar 2020Professional practices: support for business investment continues
There was some clarification on HMRC’s ability to amend LLP members’ returns where an LLP submits a partnership tax return on the basis it is operating ‘with a view to profit’ and is subsequently found to be operating without a view to profit. As this measure preserves the status quo for the vast majority of LLPs, most professional practices will not see any change in their obligations or liabilities. -
12 Mar 2020A chance to draw breath for non-doms and other international individuals
Over recent years, individuals with international personal tax affairs have been subject to a raft of tax changes. The Chancellor’s first Budget brings welcome respite, with the only significant change for such individuals being the expected introduction of a stamp duty land tax (SDLT) surcharge for non-residents. -
12 Mar 2020Welcome announcements for the financial services sector
There were several welcome short-term measures for businesses that may be affected by COVID–19. The Government was cautiously optimistic regarding growth in the UK’s ‘modern and dynamic’ economy. -
12 Mar 2020The Entrepreneurs’ Relief lifetime limit reduced from £10m to £1m
The Chancellor announced cuts to Entrepreneurs’ relief, with the lifetime allowance reduced from £10m to £1m with immediate effect. The move followed a review, which found the relief was “expensive, ineffective and unfair” and cost the Government over £2bn a year, with 75% of the relief being given to 5% of the claimants. -
12 Mar 2020Welcome boost to the real estate industry
The Budget brought a surprise benefit for businesses holding property- the rate of Structures and Buildings Allowance (SBA) is to increase from 2% to 3% from April 2020 providing a further benefit for businesses investing in assets that had not attracted allowances since the phasing out of Industrial Buildings Allowances. -
12 Mar 2020Further regulation but plenty of incentives for large corporates and international businesses
-
12 Mar 2020Something and nothing for personal taxes
Although limited announcements were made impacting personal taxes, there was one major restriction to entrepreneurs’ relief which greatly reduces the value of this CGT relief. -
11 Mar 2020Employee Ownership Trusts offers possible solution for those hit by Entrepreneurs' Relief cut
Employee Ownerships Trusts could help business owners hit by changes to Entrepreneurs’ Relief in the latest Budget. -
11 Mar 2020Budget 2020: Payroll and employee incentives
The employment allowance, which reduces employer's national insurance contributions, will increase from £3,000 to £4,000 from April, saving businesses an extra £1,000. The Chancellor has announced a review of the enterprise management incentive scheme, looking at whether more companies should be able to access the scheme. He has also called for evidence on disguised remuneration schemes. Previously-announced changes to the loan charge and the off-payroll working rules will be introduced. -
11 Mar 2020Budget 2020: Income Taxes
Pension changes for high earners will apply from April 2020. The thresholds at which the annual allowance of £40,000 begins to reduce will be raised by £90,000. This is designed to combat the pension problems faced by the NHS, but will apply to all taxpayers at these levels of income. The minimum annual allowance has been cut by 60% to £4,000, but this will not affect those earning under £300,000. -
11 Mar 2020
Budget 2020: Business Taxes
The Chancellor has confirmed the Government's commitment to 'unleashing' the potential of UK businesses, and announced tax measures to encourage investment and strengthen economic activity. Research & development relief has been increased, and several aspects of the capital allowances regime have been extended. The anticipated digital services tax will be introduced from April 2020, and reviews of several regimes within corporation tax will be undertaken. -
11 Mar 2020Budget 2020: Capital Taxes
The most significant change to capital taxes is the reduction in the lifetime limit for entrepreneurs' relief from £10 million to £1 million. This is effective from the date of the Budget, and may also apply to some earlier transactions designed to forestall any changes to the relief. Despite speculation, no changes have been made to the inheritance tax regime. -
11 Mar 2020Budget 2020: VAT and indirect taxes
The changes to VAT and stamp duty land tax demonstrate the Government's use of the tax system to support social change. Zero-rating for VAT will be introduced on some products, and measures to alleviate homelessness are to be funded by a surcharge on foreign buyers of UK property. The Government has also announced changes to VAT compliance requirements and further engagement with taxpayers to simplify the burden on businesses, particularly in respect of cross-border activities.