Posts Categorized: Tax

Tax Question of the Week

Question My client owns an investment property and pays higher rate tax on the rental income but her husband has some unused personal allowance and fully available basic rate band. It would make sense for him to have some of the income but she wants to leave the property on her death to her children… Read more »

Tax Question of the Week

Question My client spends time working from home and wishes to claim a deduction against her trading profits for use of home expenses. I doubt whether the income tax savings will be significant and could easily be outweighed by future capital gains tax payable because of a loss of principal private residence relief. What should… Read more »

Tax Question of the Week

Question I have a client who wishes to gift his sole trade business to his son.  No consideration will be paid by the son.  What is the position with the trading stock?  Will this trigger a tax charge?   Answer If a person permanently ceases to carry on a trade, in calculating the profits of… Read more »

Tax Question of the Week

Question I have been told it is possible to give an employee £1,000 tax free in recognition of long service. Is this correct? Answer No, but it is possible to make tax free non-cash awards to employees with no less than 20 years’ service provided the value of the award does not exceed £50 for each… Read more »

Tax Question of the Week

Question My client has fallen out with his employer and as well as receiving compensation for loss of his office he is negotiating a lump sum payment in return for giving various undertakings to the employer. What are the tax implications of this payment?   Answer The tax treatment will depend upon the precise nature… Read more »

Tax Question of the Week

Question   I have been told I can sell part of my garden for development free of tax. Is this correct?   Answer   This concerns the “principal private residence” (PPR) relief from capital gains tax. The relief is given against gains arising on a disposal of a dwelling-house or part of a dwelling house… Read more »

Tax Question of the Week

Question I note that the higher rate of stamp duty land tax on the purchase of additional dwellings only applies to the acquisition of a major interest. Does this mean the higher rate does not apply if I buy only a 49% share in a property? How is the tax charged if I arrange to… Read more »

Tax Question of the Week

Question I note that entrepreneurs’ relief is given on the disposal of the whole or part of a business. I have a few clients who will soon be retiring or semi-retiring. With particular reference to the latter, what is meant by “part of a business”?   Answer Case law relating to retirement relief draws a… Read more »