Changes lie ahead to the way in which tax relief is claimed on capital expenditure – planning is essential over the next 2 years as tax reliefs are erroded to help correct the well publicised budget deficit!
Jonathan Crowther summarises the new regime…
Following last months Budget the Chancellor, George Osborne, said that the 28% CGT rate introduced in the Budget will remain in place for at least the length of this parliament.
During his address of the Treasury Select Committee today, Mr Osborne said that the previous rate of 18% (and taper relief) had encouraged abuse of the CGT system.
He said that he regards the change as permanent and he is not planning to revisit this decision in this parliament and it was a hole that needed to be plugged.
Responding to questions about how he came to the 28% figure, Mr Osborne said ‘we kept it at 18% for basic rate taxpayers, which is around half of the people who pay CGT, and raised it to 28% for higher rate tax payers.’
The new coalition government’s first Budget was held on Tuesday 22 June 2010. Due to the political and financial situation, this was one of the most talked about Budgets in recent times. The speculation is now over and we know the changes.
You can download our budget summary right here – 2010 Budget Summary.
Whilst the Budget has been covered extensively on the national news and in the press, we have prepared this summary to outline the tax issues that we hope are of most common interest.
For further details please contact Jonathan Crowther at our Pershore Office (01386 552644) or speak to Sandy Lewis at our Ledbury Office (01531 631500).
From 1 April 2010 all cheque payments sent by post to HMRC will be treated as being received on the date when cleared funds reach their bank account – not the date when they receive the cheque. This means that businesses must allow enough time for their payment to reach HMRC and to clear their bank account no later than the due date shown on their VAT return.
Original Article by Sophie Howard – November 2009 (see comments for updates)
In the April 2009 Budget it was announced that the rules for furnished holiday lettings (FHL) in the UK would be withdrawn in April 2010, but what does this really mean for landlords?
Sophie Howard ACA, our Agricultural Manager, takes a look at the implication for farmers and other owners of furnished holiday property.