Merit Accountants and Tax Advisors Ltd

TAX EFFICIENT EXIT PLANNING FOR OWNER MANAGERS You are the sole director and shareholder of a trading group. You are planning to retire in the near future, and are looking at succession planning options. What different things could you look at? For more details, read the full article below 👇 https://lnkd.in/e9keMw7v

NEED EXTRA CASH? BORROW FROM YOUR COMPANY TAX FREE As a company owner manager if you borrow cash from your company HMRC applies tax charges on you and your business. However, it’s possible to legitimately avoid these and benefit from a tax-free loan indefinitely. What’s involved? For For more details, read the full article below: https://lnkd.in/e7KJcb8P

HAVE YOU PAID ENOUGH TAX ON PROPERTY PROFITS? HMRC is writing to individuals it suspects may not have paid enough tax on profits from real estate. What should you do if you receive a letter? HMRC often sends nudge letters to individuals who may not have declared income or capital gains, and this time, it is targeting profits from letting activities and capital gains from the sale of properties. Anyone who receives such a letter will be asked to check that they have correctly reported property income and/or capital gains and paid any tax due. If they haven’t, individuals can either call HMRC or use an online disclosure facility to bring their tax affairs up to date. This should be done as soon as possible and must be done within 30 days of the date of the letter. Those that have correctly reported and paid their taxes still need to respond to HMRC to confirm as such within 30 days of the date of the letter. Otherwise, HMRC will open a compliance check which could lead to higher penalties if tax has been underpaid.

TAX EFFICIENT IHT PLANNING WITH RESIDENTIAL PROPERTY An individual has a significant property portfolio which provides them with their sole source of income. They want to gift shares in some property to their daughter but retain the income. Can they do this without triggering the Inheritance Tax "gift with reservation of benefit" rules? https://lnkd.in/eREh8iPH

The furnished holiday lettings (FHL) regime will soon be abolished, and HMRC has published clarification on how the policy will work. What are the key points? The FHL regime will be abolished from 6 April 2025. In response to common issues raised during the consultation process, HMRC has published further guidance to clarify some of the tax implications. It is now confirmed that post 6 April 2025: - VAT at the standard rate continues to apply to holiday accommodation - Revenue expenses for consumables such as toiletries and cleaning products can continue to be claimed - Writing down allowances/balancing charges or allowances can continue to be claimed on qualifying expenditure incurred prior to 6 April 2025; and - Businesses commencing in 2024/25 may need to meet the occupancy conditions beyond 6 April 2025 to qualify for the FHL regime, but the FHL status will only apply to the 2024/25 tax year. The guidance stresses that general tax principles continue to apply as the only change is the removal of tax reliefs that currently apply to FHLs. The guidance also highlights that spouses and civil partners will be taxed on a 50:50 basis for jointly owned property income in the absence of the FHL regime, unless there is a Form 17 in place declaring that the property is owned in unequal shares. Affected couples should consider completing Form 17 prior to 6 April 2025, but note that this must mirror the actual underlying ownership, so it may be necessary to change the beneficial interests. https://lnkd.in/edRJhbJY

START PLANNING NOW TO REDUCE IHT ON PENSION SAVINGS One of the big changes announced in the Budget was that from April 2027 a person’s pension savings that remain when they die will be subject to inheritance tax. How will this work and are there steps you can take to mitigate the extra tax?

TAX RELIEF FOR LOSS-MAKING COMPANIES You’ve decided to wind up an unsuccessful business venture. After a good start the business has made losses in the last few financial years. What tax relief, if any, can be claimed to mitigate the losses?

As the furnished holiday lettings (FHL) regime is being repealed next year, many landlords are seeking advice as to whether their business may be a trade and so continue to enjoy the benefits attributable to FHLs. What’s the position here? https://lnkd.in/e2gB4jD4

Small businesses braced for extra capital gains tax burden! The 2024 Autumn Budget included a number of capital gains tax (CGT) announcements, including increases to the main rates. But why will small business owners be feeling particularly targeted?