Enterprise Investment Scheme (EIS) Reinvestment Relief

Enterprise Investment Scheme (EIS) Reinvestment Relief

This week we look at a valuable capital gains tax (CGT) relief which enables a gain on the sale of any asset to be deferred by reinvesting the gain into qualifying Enterprise Investment Scheme (EIS) shares. Assuming various conditions are met, the deferred gain only...
Tax-efficient profit extraction

Tax-efficient profit extraction

As previously announced by the government, increased NIC started to apply on 6 April 2022. The rate of employer’s NIC above the ‘secondary threshold’ (currently £9,100 per annum) is now 15.05%, up by 1.25% from the previous 13.8%. Below the secondary threshold, the...
Planning for increases in corporation tax rates

Planning for increases in corporation tax rates

Currently the rate of corporation tax is a flat 19% of taxable profits. As part of the government’s plan to recover financially from COVID, from 1 April 2023 the rate of corporation tax will increase to 25% for companies with taxable profits of over £250,000 per...
Securing Business Asset Disposal Relief (BADR)

Securing Business Asset Disposal Relief (BADR)

We have written in previous Tax Tuesday pieces about the value of the various tax reliefs which are available to entrepreneurs here in the UK. However, the complexity of the tax legislation means it is all too easy to inadvertently miss out on these reliefs if...
Year-end tax planning

Year-end tax planning

With the end of the tax year (5 April) fast approaching, taxpayers are well advised to consider whether any action can be taken before the year end to optimise their tax position. Some of the more common points to bear in mind are as follows. 1. Salary for spouse...