In-depth analysis of the issues facing our private clients, entrepreneurs and their businesses.
Technical Updates
Trading with the EU after the end of the Transition Period
From 1 January 2021 the UK will cease to be treated as an EU member state for VAT purposes. Although the UK left the EU on 31 January 2020, a period of transition was agreed until 31 December 2020. This means that, until that date, VAT rules continue to apply as if the UK remained in the EU. In 2021 there will be fundamental changes in the way that trading with the EU takes place…
The 5th Money Laundering Directive as it relates to trusts
The EU’s 5th Money Laundering Directive (“5MLD”) was transposed into UK law on 10 January 2020. The Directive affects all UK express trusts and many non-UK express trusts, and extends the reach of the 4th Money Laundering Directive (“4MLD”), which itself was transposed into UK law on 26 June 2017.
On 15 July 2020, the report on the government’s consultation on the implementation…
VAT Update: Temporary reduced rate of VAT at 5% on hospitality supplies, hotel accommodation and admissions to attractions
Following the budget on 3 March 2021, the government announced that the temporary reduced rate of VAT of 5% will be extended until 30 September 2021, having previously been extended to 31 March 2021. To help businesses manage the transition back to the standard 20% rate, a 12.5% rate will apply for the six months to 31 March 2022.
Summer Economic Update
The Chancellor of the Exchequer delivered his summer economic update which sets out the government’s plan for the second phase of a three phase plan for economic recovery from coronavirus.
The main focus of this phase is to protect, support and create jobs for people who have been particularly impacted by the rapid contraction in the economy.
The third phase of the government’s…
New intra-EU call-off stock arrangements for VAT
With effect from 1 January 2020, a new arrangement for call-off stock within the EU VAT area has been brought in to simplify VAT treatment. The UK continues to remain within the EU VAT area and so the changes also apply to UK businesses.
A “Call-off stock” arrangement is when goods are transferred from a supplier in one EU member state (known as the Member State of origin) to a…
Changes to Capital Gains Tax payments – residential property
These provisions were introduced in Finance Act 2019 applied to non-UK resident taxpayers since 6 April 2019 and apply to UK residents from 6 April 2020.
UK resident taxpayers have, historically, reported the disposal of UK residential property through a Self Assessment tax return, and then paid any tax due by 31 January following the end of the tax year of disposal.
Under the new…
COVID-19 - Tax and Financial Reliefs
The disruption to business as a result of measures put in place to limit the spread of COVID-19 is unprecedented. The UK Government has announced a number of measures designed to cushion the financial impact to businesses, and although no details have been announced, what we know about these measures is summarised in this update.
UK Tax Data Card 2020/21
Please click the download PDF button to view the UK Tax Data Card 2020/21.
There is also a version of the tax data card which should be easier to read on a mobile device here.
Non-Resident Landlord Companies
From 6 April 2020, non-UK resident companies that carry on a UK property business or have other UK property income will be brought within the scope of corporation tax (as opposed to UK income tax, as is currently the case). The change in legislation also applies to those who invest in UK property through collective investment vehicles.
The aim of the legislation is to equalise…
2020 Budget Update
This document highlights the more important tax changes and announcements from the 2020 Budget.
Community Interest Companies (CICs)
A CIC is a company designed for social enterprises which aim to use their profits and assets primarily for the benefit of the community or to trade for a social purpose. They are not strictly 'not for profit', and CICs can, and do, deliver returns to investors. A CIC may be limited by shares, but it is more usual for them to be limited by guarantee. It is even possible for a CIC…