tax and investment news

Income Shifting - PBR 2008

One of the most important and overlooked announcement of last week’s Pre Budget Report was the statement that measures to combat ‘income shifting’ were being delayed.

Pre Budget Report 24th November 2008

Pre Budget Report Summary
National Insurance Contributions:

The Chancellor has raised the upper earnings limit by almost £4000 from 2009/2010 in order to align it with the upper limit of basic rate tax. The lower earnings limit will be aligned with personal allowances from April 2011. The rates at which Class 1 and Class 4 contributions are levied will be increased by 0.5% on the same date.

Inheritance Tax: Slump in house prices could make ITH bills worse

The recent slump in property prices and stagnant property market is not just bad news for homeowners and investors but is also bad news for those who are about inherit property as the slump in property prices could leave them with higher than expected tax bills. It is often forgotten that the value of the property for inheritance tax purposes is taken at the date of death and not the date of sale and that the probate value must accurately reflect at the market value at that date.

Volume of self assessment tax returns crash HMRC computer system

As we predicted earlier this month, the HMRC computer system yesterday failed under the weight of traffic from those seeking to return their self assessment tax returns.

The use of Agency Companies and Principal Companies to manage tax liabilities

The use of ‘agency companies’ as a structure for international tax planning is a relatively simple concept. This structure involves the establishment of an offshore company which would act as principal. This offshore company would then appoint an English company to become its agent. As the agent the English company would act for it in respect of the collecting in fees, commissions or other moneys that are due to the principal.

Companies relocating to Dublin for tax benefits

During the first week of December three large stock market listed companies announced plans to quit Britain and move there corporate headquarters either to Ireland or Luxembourg . These were, Henderson, an asset manager, Charter, an engineering company and Regus, the serviced offices provider . Another, Brit Insurance, is also understood to be actively considering the issue of tax domicile.

Working Abroad

There are many tax issues involved when your work takes you abroad. Choosing to work as a contractor through a UK limited company can be both commercially beneficial and very tax efficient. With the constant debate about recent changes to the UK tax system it is easy to overlook the fact that UK still has one of the lowest rates of Corporation Tax in the EU. There are however, several issues that you should consider before working abroad.

Short changed by the Revenue

A few weeks ago the revenue announced changes to the way tax overpayments would be treated. In a controversial move they have now placed a new limit on the length of time you have to claim any overpayments back. The limit, originally six years has now been reduced to four. This could potentially see millions of taxpayers who have made over overpayments loose and net the treasury hundreds of millions of pounds. The rules themselves smack of double standards as the rule changes leave HMRC's ability to go back six years intact.

Property Authorised Investment Funds

Corporation tax exemption on a pool of income and gains

A Property Authorised Investment Fund (Property AIF) is an open-ended investment company which is a form of authorised investment fund. Its investment portfolio comprises predominantly one or more of:

real property (commercial and residential)
shares in UK Real Estate Investment Trusts (UK- REITs)
shares in certain foreign entities equivalent to UK-REITs

Cash is king

Managing cashflow in uncertain times

Business confidence dropped sharply during the second quarter of 2008 but a recession remains unlikely, according to the Institute of Chartered Accountants in England and Wales.

Your Business: To sell, or not to sell?

The most important financial deal you'll ever make

Selling your business could be the most important financial deal you'll ever make. For many owners, selling the business they've spent years building up can also be emotionally difficult. And unless you've sold another business previously, you'll have no experience to draw on.

Companies Act 2006 - Brief Overview

Companies Act 2006: The principle changes introduced by the Act

Codification of directors’ duties. Directors duties have been codified and consolidated into seven fundamental obligations. This includes the new duty to promote the success of the company;
Directors' service addresses. Directors will have the option to file service addresses on the public record rather then private residential addresses;

Imminent changes to rules regulating companies set to come into effect

The next few months see some of the most important changes contained in the Companies Act 2006 come into force. Some of these could have a major impact on your business especially if a company’s board is entirely made up of nominee directors, whilst others are designed to ensure the personal protection of directors and their families.

One in three of the UK’s biggest businesses pay no tax

Today, the FT reports that figures from the National Audit Office indicate that one in three of Britain’s biggest businesses pay not tax.

Mongolia now offering some of the highest property investment returns:

With the slowdown in the UK property market and the US property market going into reverse, accelerated by the problems over ‘sub prime’ lending, yields and capital returns are diminishing at a rapid rate.

Buying Property in Mongolia using Offshore Companies

The property market in Mongolia is booming at the moment and a variety of different people are purchasing property in Mongolia. There are no restrictions on who may purchase property in Mongolia.

Offshore Companies have a multiple of uses and purchasing and owning property is a key use for an Offshore Company as they provide an invaluable business service.

Why relocate or develop your global business operations in the UK?

The UK is one of the most important business centres in the world. It is not only a gateway to Europe but also a bridge to the US. According the World Bank, the UK is one of the easiest places to set up and run a business.

1. According to the World Bank, the UK is one of the easiest places to set up and run a business in the World. The UK is ranked 6th overall in the World and 2nd only to Denmark in Europe.

Director Services UK, Director Duties - An in depth look at each of the specific seven duties

In this second article on the new provisions for directors duties contained in The Companies Act 2006, we will be looking in depth at each of the seven specific duties and assessing in detail the best way to implement the new legislation whilst assess what the impact and implications may be on corporate administration.

Directors Duties - An overview of changes made by the Companies Act 2006

The Companies Act 2006 is the first substantial overhaul of company law since 1985. The Act makes numerous provisions for various aspects of the establishment and operational practice of companies and these have been staggered to come into effect between November 2006 and October 2008; the timetable for which, lays out the full implantation schedule for the Act.