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First time buyer relief for SDLT and investment property trap

First-time buyer relief for SDLT and investment property trap First-time buyer relief may reduce the stamp duty land tax (SDLT) that a first-time buyer pays when they buy their first home in England or Northern Ireland. A similar scheme applies in Scotland for Land and Buildings Transaction Tax (LBTT), but there is no first-time buyer …

Distributions on cessation of a company

Distributions on cessation of a company Companies cease for various reasons, some closing for the personal reasons of their directors or shareholders, rather than being forced to close by creditors.  Many companies will have accumulated monies or assets that need to be distributed to shareholders on cessation (after all creditors’ liabilities have been settled). The …

‘Trivial benefits’ – PAYE

‘Trivial benefits’ – PAYE Legislation surrounding ‘Trivial Benefits’ was introduced to save employers from having to report relatively small amounts given to employees as taxable on a form P11D.  Under the rules there are no tax or NIC consequences for the employee receiving the benefit of the gift: costs less than £50 (HMRC consider this …

Incidental overnight expenses

Incidental overnight expenses A tax exemption enables an employer to meet small personal expenses when an employee stays away from home for work, without the employee suffering a tax charge and without any need to report the expenses to HMRC. What are incidental overnight expenses? Incidental overnight expenses are personal (i.e. non-business) expenses incurred when …

Making the most of pension tax allowances

Making the most of pension tax allowances Pension savings can be tax efficient as contributions to registered pension schemes, attracting tax relief up to certain limits. Limit on tax relief Tax relief is available on private pension contributions to the greater of 100% of earnings and £3,600. This is subject to the annual allowance cap. …

Trivial benefit traps – Contractual obligations

Trivial benefit traps – Contractual obligations The trivial benefits exemption allows employers to provide employees with low cost benefits free of tax and National Insurance and any reporting obligations. For the purposes of the exemption, a benefit is trivial if the cost per head is not more than £50. Where trivial benefits are provided to …

Reporting low emission vehicles – Changes from April 2020

Reporting low emission vehicles – Changes from April 2020 From 6 April 2020, new appropriate percentage bands – and new lower charges for low emissions cars – will apply for company car tax purposes. From the same date, the way in which carbon dioxide emissions are measured is also changing. This means that in order …