Maxwells Chartered Accountants

Capital Gains Tax - You Only Have 60 Days Post Completion You must report and pay any tax due on UK residential property using a Capital Gains Tax on UK property account. You must do this within: 60 days of the completion date of selling the property. If you do not report and pay before the deadline you’ll be due a late filing penalty and may be charged interest if you do not do this by the 60-day deadline. This can be very expensive. f you miss the deadline by: -up to 6 months, you will get a penalty of £100 -more than 6 months, a further penalty of £300 or 5% of any tax due, whichever is greater -more than 12 months, a further penalty of £300 or 5% of any tax due, whichever is greater A 60-day CGT return is not required if the disposal has not resulted in a capital gains tax liability, for example if: -The residential property disposal has resulted in a capital loss -The gain (together with other residential property gains that have already happened in the same tax year) is within the annual capital gains tax exemption -Reliefs are applicable to the property disposal which reduces the taxable gain to nil -Capital losses are available to be used against the gain to reduce it to nil, either from previous tax years or from disposals in the current tax year, before the completion date Even if a 60-day CGT return has been filed and capital gains tax has been paid, the disposal will still usually need to be reported on the annual self-assessment tax return completed after the end of the relevant tax year. A credit will be given for the tax paid during the year. In most cases the 60-day return will have been filed on an estimated basis as income affecting the CGT rate will not be known until after the end of the tax year. If you need assistance with the return or any advice on CGT generally please get in touch https://lnkd.in/eW8chm3

Lovely to meet Gavin Roberts of Maxwells Chartered Accountants and give our congratulations on being shortlisted as one of the finalists in the Best Employer category at the Sedgemoor Business Awards. Thanks for the tour of the offices and introduction to the team.

We are all behind you Indee, good luck!!

Spotlight on: ELECTRIC, LOW EMISSION COMPANY CARS AND SALARY SACRIFICE Q: A company wishes to lease an electric car for use by one of its employees. What is the tax and NIC impact of doing this via a salary sacrifice arrangement? A: This question is becoming more common as electric cars become more affordable, accessible and their use more widespread in society. With that, employers are looking for new ways to introduce these types of cars into their company car fleet on account of reducing their carbon footprint and fuel costs. One option is leasing electric cars in combination with agreed salary sacrifice arrangements between employers and their employee’s. The principle of a lease car by way of a salary sacrifice arrangement is where an employer contracts with a lease car company for a car, generally of the employee’s choosing, which they provide to employees under a salary sacrifice arrangement. The cost of the lease is offset against the saving the employer makes by reducing their staff pay-bill. Normally under optional remuneration rules, this type of arrangement would oblige the employer to consider the salary foregone versus the cash equivalent of the benefit being provided when computing the benefit to be reported on form P11(d), for a company car this would be calculated under section 121A ITEPA 2003. However, if an electric car is being provided, the usual rules of OPRA do not apply (low emission 75g/km or less vehicle exemption). The employer is only obliged to calculate the cash equivalent of the company car benefit by using the standard rule. Simply put, this is the list price multiplied by the appropriate percentage for the cars CO2 emissions – currently 2% for tax year 2022/23. Benefits: Reduction in employer class 1 NIC Employee use of a company car whilst saving on employee class 1 NIC as well as tax via the salary sacrifice. The employee will only pay tax on the low company car benefit charge https://lnkd.in/eW8chm3

🚨 Attention young adults! If you were born between 1 September 2002 and 2 January 2011, you might have unclaimed savings in a Child Trust Fund! These accounts, set up by the government, often contain around £2,212. You can claim this money once you turn 18, but over half a million accounts remain unclaimed. Don't miss out—find your Child Trust Fund provider by using the tool on (https://lnkd.in/e5cUtB_R) and take control of your savings today! Learn more: https://lnkd.in/eTZirttJ

💼💥 Side Hustle Alert! The Low Incomes Tax Reform Group is urging HMRC to take action before a tax "time bomb" explodes for online traders. With new rules set for 2025, HMRC will gain more insight into sellers' earnings, but without clearer guidance, confusion could reign. Sellers using online platforms need to be aware that they might need to file a tax return! 🚨 Don’t let this sneak up on you—be prepared! 📊 #TaxUpdates #SideHustle #OnlineBusiness #HMRC #TaxPlanning Read more: https://ow.ly/unlz50TM0Mu

Spotlight on Stamp Duty Land Tax and Claiming Back the 3% Surcharge on Multiple Residencies Q: My wife and I have an existing main residence in London and have purchased a second residential property in Bedford with the intention of it becoming our new main residence. As a result of owning more-than one residential dwelling at the point of purchase we paid the 3% Stamp Duty Land Tax (SDLT) supplementary charge. We only resided in the newly acquired property for 4 months before putting it on rent, and then returned to live in the London residence. We have now sold the first property and moved back into the second property: will we now be able to claim a refund of the 3% supplementary charge? A: The purchase of an additional residential property for a consideration of £40,000 or more would be within the scope of the 3% charge, and the rules apply equally where only a part-shares of property with a value of £40,000 or more. The rules also take into account residential properties owned anywhere in the world for this purpose. There is, however, relief available for a purchase as the replacement of your main residence, the main conditions are: - At the time of purchase, the new property was intended to be the purchaser’s main residence - In the 3 years following the purchase of the new property, the purchaser must have disposed of a main residence HMRC has the discretion to extend the period upon the taxpayer’s application with an effective date no earlier than 1 January 2017. This was intended to allow for some flexibility during the COVID-19 emergency. - The previous residence must have been used as their main residence at some point in the three-year period preceding the date of the purchase of the new property - Immediately after the disposal of the old property, neither the purchaser nor the purchaser’s spouse or civil partner had a major interest in the old property. In your case, it needs to be established whether the terms of occupation of the new property demonstrate sufficient intention to reside there with a degree of permanence. The contentious point in your case is the initial occupation of the property for only a short period, together with the prompt re-occupation of the first property. What were the circumstances for returning to the original property? Was there a good reason, changes in employment for example. Fundamentally, it is not about the quantity, but the quality of stay. Did the taxpayer transfer all their belongings, change electrical register, change doctors and take all the other necessary steps that people typically take when changing their main residence? HMRC would be looking for such indicators to establish genuine intention. You will need to review the specific facts involved before you can reach a decision. If you determine that a refund is due, remember that this must be claimed within 12 months of the sale of the old property. https://lnkd.in/eW8chm3

Autumn Budget 2024 - Full Guidance and Webinar Avaialable Now! Chancellor Rachel Reeves delivered her Budget on Wednesday 30 October 2024. She pledged to ‘invest, invest, invest’ to drive growth and ‘restore economic stability’. Ms Reeves said the Budget will raise £40 billion in taxes. Employers’ National Insurance contributions (NICs) will be increased from next April while Capital Gains Tax rates will also rise. Inherited pensions will fall within the Inheritance Tax net from April 2027 while reliefs will be reformed on the passing down of agricultural and business assets. The Chancellor also confirmed the introduction of VAT on private school fees and the abolishment of the tax regime for non-UK domiciled individuals. We have produced some comprehensive guidance on our website, you can download handy tax and rates guides as well as our summary of the budget, There is also a link to a webinar where we brief small business on the Autumn Budget key topics, give it a watch if you want a bitesize review without having to read all the detail! https://ow.ly/CwIw50TXYZx

Autumn Budget 2024: Key Tax Highlights In the latest Autumn Budget, Chancellor Rachel Reeves outlined significant tax changes to balance fiscal stability with growth. Key highlights include a £40bn tax increase, primarily impacting businesses and high earners. Business Tax Updates: 🍂National Insurance: Employers' contributions rise to 15%, covering over half of the total tax hike. 🍂Corporation Tax: Capped at 25%, but 90% of small businesses will pay less due to thresholds. 🍂Energy Profits Levy: Rises to 38%, with investment allowances abolished, and a decarbonization allowance set at 66%. 🍂Business Rates & VAT: Private schools lose rate relief in 2025 and will be charged 20% VAT. Personal Tax Changes: 🍂Capital Gains Tax: Rates increase to 18% (basic) and 24% (higher) with a £1m lifetime cap on Investors’ Relief. 🍂Non-Domiciled Individuals: Shifts to a residence-based tax model from April 2025, ending remittance-based taxation. 🍂Inheritance Tax: New rules include taxing unused pension funds and death benefits in estates from April 2027. 🍂Agricultural & Business Reliefs: Adjusted rates, with a 50% rate beyond a £1m threshold starting in 2026. These tax measures reflect a clear shift towards increasing revenues from businesses and high-net-worth individuals to support public services and long-term investments. As this budget unfolds, businesses and individuals will need to navigate these changes, planning to optimise tax efficiency and align with new fiscal rules. For more insights and support in navigating these changes, feel free to reach out. #AutumnBudget2024 #TaxUpdates

📢 Exciting News on Apprenticeship Reforms! 🎓 The government has announced significant reforms aimed at strengthening the apprenticeship system! These changes will make apprenticeships even more accessible and beneficial for both businesses and aspiring professionals. Key highlights include: ✅ Improved funding opportunities for employers. ✅ More flexibility in training programs to meet industry needs. ✅ Enhanced support for apprentices to help them succeed in their careers. These reforms are set to pave the way for a more skilled workforce and a brighter future for businesses. If you're considering taking on an apprentice, now is the perfect time! 💼 For more information, check out the full details here 👉 https://ow.ly/pRSq50TM04i #Apprenticeships #BusinessGrowth #SkillsDevelopment #MaxwellsAccountants