Making Tax Digital (“MTD”) for Income Tax has been talked about for many years now. The idea that the tax return process can be completed by third parties providing all relevant information to HMRC is still a long way off, but it is the direction HMRC are heading. A pre-populated tax return sounds like a great solution and is what HMRC hope to achieve but there are lots of moving parts.
The quantity and quality of scale-up technology businesses continues to increase in Scotland with technology incubators such as ONE in Aberdeen, Codebase in Edinburgh and Stirling and universities such as Heriot Watt, Napier and Strathclyde providing a clear pathway for entrepreneurs to turn their ideas into a business.
What is ATED?
Many businesses have had to think on their feet in the past year as a result of COVID-19, but none more so than those in the charitable sector. The pandemic has provided new challenges, not only in providing core services to those in need but also in keeping on top of the day-to-day finances.
Business Owners will most likely be aware of the important Inheritance Tax (“IHT”) relief currently available on the value of their businesses. Business Relief (“BR”) can relieve the full value of the business and it has long been recognised that the policy objective behind the relief is to prevent the breaking up or sale of businesses on death. Whilst this may be hugely advantageous for all businesses, the benefit is perhaps most keenly felt by family businesses where the legacy is as much about heritage and history as it is about a continuing trade.