The Office of Tax Simplification ‘OTS’ published a document in June 2021 setting out its intention to review the benefits, costs and wider implications of changing the end of the tax year to either 31 March or 31 December. The UK tax year currently runs to 5th April each year.
I wear a lot of hats at AAB, two of which are leading a team that supports our family business clients; and Corporate Finance partner, where I help clients to grow their businesses through investment, acquisition or refreshed strategic thinking. These two roles don’t come together as often as I’d like, as family businesses can often delay decisions that are more strategic than operational. Why this is the case is an interesting question, and it varies from business to business. It could be a reluctance to change, or a desire to remain what we would call ‘a lifestyle business’, or the family dynamics may make the conversation seem too difficult.
The government is proposing to introduce a new tax, Residential Property Developer Tax (‘RPDT’), from April 2022 on profits made by large residential property developers.
A common misconception about the additional tax relief available to companies undertaking Research and Development (‘R&D’) activities is that it is only available for companies that are in high tech or scientific industries. However, this couldn’t be further from the truth.