Where contracts are entered into after 29 October 2018 for construction projects on non-residential properties, taxpayers can now potentially benefit from a claim for Structures & Building Allowances (“SBA’s”) on these costs. The claim is made at a rate of 2% per annum (on a straight-line basis) and can be made if a qualifying activity is being carried out.
The UK government understands that promoting UK innovation is key to making the UK more competitive globally, increasing productivity and fuelling economic growth. One aspect of this is the promotion of Innovation tax reliefs available to both Small and Medium Sized Enterprises (SME’s) and large companies.
A radical overhaul of the current UK Inheritance Tax (“IHT”) system has been recommended by a group of MPs. The All-Party Parliamentary Groups (APPG) for Inheritance and Intergenerational Fairness has published several bold suggestions which, if adopted, would represent the biggest change to IHT as we know it for many a decade. The report has been compiled in light of the IHT system’s perceived unfairness and unnecessary complexity. It states that fewer than 5% of deaths actually result in the payment of any IHT. It is fair to say that IHT is a hot and sensitive topic at the moment, with the Office of Tax Simplification also publishing findings on a review of the system last year and making other, much less dramatic, suggestions for change.
The 2018 budget announced the elimination of Enhanced Capital Allowances (“ECAs”) for expenditure on energy and water efficient plant and machinery from 1 April 2020 for companies and 6 April 2020 for unincorporated businesses. This date is fast approaching and it is important that anyone who is considering investing in ‘energy-saving’ or ‘environmentally friendly plant machinery’ consider if the purchase can be made prior these dates to enable them to benefit from the attractive cash flow opportunities that still exist.
*Updated 1 May 2020*
In April 2016, HMRC introduced new legislation to allow employers to provide tax-exempt gifts and entertainment to employees, namely Trivial Benefits. This exemption reduces reporting obligations and any tax or National Insurance charge where all of the following conditions are met:
Since the downturn, bridging the gap between buyer and seller price expectations has been a constant challenge and for some time the gap was just too big for many to give serious consideration to a transaction. However, in recent years we have seen more deal activity where buyers and sellers are willing to be more open to finding innovative solutions in bridging the gap.
2019 was an interesting year for deal-making as despite the political and economic challenges, there were a number of notable transactions closing across a range of sectors including energy, food & drink, technology and construction. Although deal volumes involving large corporates were reduced, I agree with a number of my peers that a number of transactions were put in a holding pattern towards the end of last year, and would anticipate discussions to reconvene now that there appears to be greater market stability in which to transact.
It looks like time is about to be called, albeit initially gently, on the significant tax breaks enjoyed by many pensioners retiring to Portugal.
The Scottish budget for 2020/21 has been delivered, but what does it mean for the Scottish taxpayer?
HMRC have this morning announced a fundamental change to the upcoming off-payroll reforms and formally published the updated guidance following their slip up earlier this week.