In-depth analysis of the issues facing our private clients, entrepreneurs and their businesses.
Technical Updates
The UK Hybrid Mismatch Rules
The hybrid mismatch rules are aimed at counteracting tax mismatches where the same item of expenditure is deductible in more than one jurisdiction or where expenditure is deductible but the corresponding income is not fully taxable (or the income is taxed at a beneficial rate or is deferred to a future period). The rules were introduced in response to the OECD’s base erosion and…
EIS and SEIS
The Enterprise Investment Scheme (EIS) and Seed Enterprise Investment Scheme (SEIS) are designed to help businesses raise finance by offering investors generous tax breaks. These schemes are particularly popular with new companies as they help attract investors.
While the tax relief for investors is extremely beneficial, ensuring that all the conditions to qualify for the relief…
Trading with the EU after a "No Deal" Brexit
The Withdrawal Agreement, which was roundly rejected by Parliament on 15 January 2019 following agreement in principle with the European Union on 25 November 2018, provides that VAT and customs processes in relation to trade between the UK and the EU will not immediately change when the United Kingdom leaves the EU at 11pm GMT on 29 March 2019. The Agreement envisages that the…
The Taxation of Trusts Consultation
HMRC recently published a new consultation ‘The Taxation of Trusts: A Review’ considering whether the current system for taxing trusts meets the key principles of transparency, fairness, neutrality and simplicity. The consultation covers the three direct taxes which apply to trusts: income tax, capital gains tax and inheritance tax.
The consultation had been trailed in the Spring…
Making Tax Digital for VAT
This update concerns the significant changes to the timing and scope of Making Tax Digital (‘MTD’). For more detailed background information, please see our MTD March 2017 and July 2017…
VAT Mini One Stop Shop - Upcoming changes
Update: The changes described below which were planned to come into effect from 1 January 2021 have been delayed until 1 July 2021 due to Coronavirus.
Since 1 January 2015 businesses supplying digital services (telecommunication services, radio and TV broadcasting services and electronically supplied services) to non-business customers have been liable to account for VAT in the…
Charities SORP Update Bulletin 2
The Charity Commission published their second Update Bulletin on 5 October. The amendments apply to all charities for reporting periods beginning on or after 1 January 2019, except for the clarifying amendments which are applicable from the publication date. Early adoption is permitted, but all changes will need to be adopted at once.
Note that the published SORP FRS 102 document…
2018 Budget Update
This document highlights the more important tax changes and announcements from the 2018 Budget.
UK Tax Data Card 2019/20
Please click the download PDF button to view the UK Tax Data Card 2019/20.
There is also a version of the tax data card which should be easier to read on a mobile device here.
Museum and Gallery Tax Relief
Museums and Galleries Exhibition Tax Relief (MGETR) is available to incorporated museums and galleries from 1 April 2017. The objective of the relief is to recognise the cultural value of museums and galleries in the UK and encourage more diverse and high quality exhibitions. The relief allows companies to claim an enhanced corporation tax deduction for qualifying expenditure or…
Corporate Interest Expense
The worldwide debt cap rules were repealed effective from 1 April 2017 and have been replaced by the new corporate interest expense rules.
The motivation behind the new rules is to restrict the amount of tax relief for interest expenditure claimed by large or multinational groups that are highly leveraged.
For companies that have a year-end spanning this commencement date (e.g 31…