Showing posts with label taxes. Show all posts
Showing posts with label taxes. Show all posts

Thursday, December 1, 2016

Saving tax with Deferral of Capital Gains

While Capital Gain Taxes have been slashed in the recent budget to 10% and 20% (from the 18% and 28% that it used to be), CGT has remained unchanged for residential property gains. While the tax rate for gains is lower than the one for income, amounts tend to be much bigger and far appart, making it harder to use allowances and low rate bands.

This is where deferral comes in handy. The Enterprise Investment Scheme (EIS) provides one of the mechanisms that allows such a deferral. Most people misunderstand that the general EIS conditions for income tax relief are much more restrictive than the conditions for CGT deferral. In particular the requirement that one owns less than 30% of the company or that one is connected to the business only applies to the income tax relief component of the EIS, not the CGT deferral. Same thing for the requirement that the investment be held 3 years or more: if you sell earlier the deferral just ends then (see HMRC note).

Wednesday, November 5, 2014

UKTI Export Week starting next Monday

UK Trade & Investment will be holding its 6th Export Week during the week of 10-14 November. Across the week there will be a varied series of events all over the UK, aimed at businesses to either start their export journey or increase their international business. Previous Export Weeks have seen over 17,000 companies in the UK attend exporting focussed events. This week we will again have over 70 events across the UK; there will be at least one event per day in every part of the UK.

The flagship road show, ExploreExport, will be touring the entire country at 11 venues across England, Scotland, Wales and Northern Ireland. Over 120 UKTI Trade Officers worldwide will be available for 1-2-1 meetings on their dedicated markets to help companies “explore” the possibilities of exporting to their countries. The aim is to bring the world to all parts of the UK.

Friday, November 22, 2013

UK moves up 2 notches in tax competitiveness

The UK is climbing the ranks of the most business-friendly tax regimes in the world, behind only three other countries in the western world. Only Ireland, Canada and Denmark beat the UK in Europe and North America, and the UK comes 14th overall, in a table of 189 tax jurisdictions worldwide. According to the newest report from PwC and the World Bank called "Paying Taxes 2014 – The global picture", the British tax system has climbed two places in the last year, surpassing Luxembourg.

On average, UK firms pay 34 per cent of their commercial profit in tax, taking 110 hours per year, and balanced across eight payments. The world average in each case is higher: internationally, companies pay 43.1 per cent of their tax in profits, spread over 26.7 payments, taking 268 hours. In the nine years that the report has been conducted, the amount of tax that firms pay is down nine percentage points on average, the number of hours taken down by 55, and the number of payments lower by seven.

Wednesday, September 12, 2012

France unleashes €20bn tax tidal wave

Faced with an acute crisis and significant drop in popularity in the polls, French President François Hollande has announced that the country’s 2013 budget will provide for additional taxes next year of €10bn for both households and businesses in France. During an interview on TF1, President Hollande said that the government plans to redress the public finances within two years, despite expected growth this year of just above zero, and forecast growth for next year of 0.8%.

Highlighting the fact that he has tasked the government with drawing up the 2013 budget based on a realistic growth forecast for next year, probably of 0.8% rather than the 1.2% initially expected for 2013, the French President stressed that the government would not spend one euro more in 2013 than in 2012.