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Welcome to our winter newsletter.
This issue we focus on the distinction between the 50% income tax rate, being introduced from 6 April 2010, and the 18% capital gains tax rate if transactions fall within the capital gains tax rules. Will you pay 18%, or will it be 50%?
Areas of HMRC focus continue to feature heavily in our winter newsletter. They are always looking at ‘tax havens’ and have now turned their attention to Liechtenstein. An estimated 5,000 British investors own bank accounts in Liechtenstein and now is the time to come clean! They are also interested in the company law elements of dividends. Is the extraction of profit a dividend or could it be seen as a loan and taxed accordingly? Our ‘Painful extractions’ article explains further.
The construction industry is another HMRC target as the employed v self employed debate rumbles on. The government wants to use certain limited tests to clarify the position and we review their proposals.
With the VAT rate set to change on 1 January 2010, we have included a brief overview covering special rules for sales of goods and services that span the change in rate.
There is some good news when it comes to tax and we have included an update on Agricultural Property Relief, the vehicle scrappage allowance and temporary first year allowances.
Finally, after such a difficult year for many, we look at the tax position of saying thank you to the staff with a party or gift.
Please contact us if you have any questions regarding any of the articles included in our newsletter or if you would like further information on a topic we haven’t covered.
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