Rachel W.

AUTUMN BUDGET ’24: CGT & BADR CHANGES 💼 From yesterday, the lower rate of Capital Gains Tax (CGT) will increase from 10% to 18%. The higher rate of CGT will increase from 20% to 24%. The rates for sale of residential property remain unaltered. The ‘carried interest’ CGT rate is increasing to 32% from April 2025, with further reform from April 2026 to tax it under income tax. ‘Carried interest’ is a share of the profits generated by an investment fund, paid out to the fund’s investment managers. Business Asset Disposal Relief (BADR) stays at 10% for 2024/25, then 14% from 2025/26, then 18% from 2026/27. The 14% difference between sales qualifying for BADR and the new main rate of CGT should be an incentive to move sales forwards to before April 2025. Stay tuned for our full Budget breakdown, releasing soon. https://lnkd.in/ePZrjsW7 #AutumnBudget2024 #BudgetUpdates

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🌟 Exciting News from ICAEW! 🌟 ICAEW has unveiled transformative updates to its world-leading ACA qualification, set to launch in September 2025. The Next Generation ACA brings a streamlined structure, enriched resources for digital skill development, and the ability for students to specialise earlier in their careers. Focused on three core pillars – technology, sustainability, and ethics – this updated qualification is designed to equip future accountants with the tools they need to thrive in a rapidly evolving business landscape. These changes reflect our commitment to preparing the next generation for the challenges and opportunities of tomorrow. Read more > https://lnkd.in/eS9Vk7Jk #ACA #NextGenACA #FutureAccountants #ICAEW #Sustainability #DigitalSkills

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I've had some interesting and insightful conversations with business owners and entrepreneurs recently, and one recurring concern is the potential impact of a Capital Gains Tax increase under a new government. With the possibility of changes in government policies, it's important to be proactive and informed about how this could affect succession and de-risking events for shareholders. I've found Dan Hartland's thoughts below to be as helpful as always. #CGT #GTDeals

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Exits I joined a call the other day with a group of accountants and Liquidation Practitioners, who where discussing the current situation in the UK's SME world. Much of what we anticipated was going to happen when the flurry of covid loans were being dolled out, to all who fearlessly asked for them, has started coming to fruition. Money has gone from being free, to a very rare and expensive commodity for many of the smaller entities in the UK. This coming at a time when customers are feeling the pinch and stalling payments, creating a perfect storm of business failures. For many small business owners who are living from hand to mouth in this era of constantly rising costs and taxes, there seems to be little hope. The banks who they have trusted to keep their money safe for years and who, a few short years ago were clamouring over themselves to offer loans, are nowhere to be seen or heard. If you need a loan now and want to speak to a bank manager, you are probably going to struggle to get hold of anyone. Most of the high street banks have outsourced their Client manager functions to faceless AI bots, and left many a business owner with very few options for funding their struggling businesses. The Liquidators I have spoken to recently are indicating that things are starting to pick up in their industry, but it is not the tsunami that we are expecting - yet. The thing is, financial woes are not the only issue that cause business failure, or untimely exits, divorce, discontentment, death and disease can play a nasty role in causing problems for your retirement plans. But how about Unrealistic Expectations on the value of your business. Many owners believe that the blood, sweat, tears and sacrifice they had sown into their business for years has a price way higher than a reasonable buyer is willing to pay for it. So as a result, their ideas of a comfortable retirement are dashed, as they are confronted with retirement funds which are significantly less than they need for the remainder of their time on this mortal coil. Managing your expectations as well as those of your loved-ones is critical when planning the exit from your business. So where is the silver-lining in all this? There are a few things you can do as a business owner to give yourself a chance at a beneficial exit. Here are a couple of things to think about: - Know your business value now - Know your number (how much money do you need to fund the lifestyle you desire when you sell up) - Know what you are going to do when you have exited (there is little point in exiting to spend time travelling in a motorhome if you have never tried a holiday in a motorhome.) - Know how dependent your business is on you - Have a plan to extract yourself from your business, while still having the business create value for its stakeholders If this has sparked an cord of concern or interest for you, feel free to DM me and we can explore this further for your business. Until then, Be blessed

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All very true. Empathy and understanding and expert knowledge aquired over a long and successful career. The portfolio FD should deliver everything that the client needs from an FD in just a few hours per month. #portfoliofd #parttimefd #financedirector

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I've seen a fair amount of finance roles being recruited for recently, with the top point on the "essential" list being, (1) ACA/ACCA/CIMA Qualified. 5 further essential points follow on the spec, all of which skill sets can be excellent without point 1 being a ✅. In the modern day, it surprises me how many employers continue to overlook the QBE market & are living in a somewhat ancient 🌎. Use your brain, or allow a good recruiter to guide you. Unless the sector specifically requires ACA/ACCA/CIMA to be a ✅ box, then employers need to loosen up, stop being so narrow & think outside the box to enhance the pool of candidates they are looking at. A good QBE will compete with a good ACA/ACCA/CIMA, and similarly a not so good QBE will likely be just as average as a not so good ACA/ACCA/CIMA candidate. Have a great Friday people. 👍🏾☕

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Hot off the press...more detailed information from Grant Thornton UK LLP on the upcoming changes to FRS102 and what you need to be thinking about in advance, with our very own Jennifer Ilsley bringing to life some of the key considerations in this short video #FAAS #FRS102 #financialreporting #accountingstandards

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Whilst Employee Share Schemes and their value to growing the economy were not mentioned in yesterday’s Budget, the changes to Capital Gains Tax (CGT) rates – not being as high as many commentators expected - do feed through to such schemes and will increase the amount of CGT payable by employees on disposals of shares on or after 30 October 2024:   * EMI Options – where conditions are met for Business Asset Disposal Relief (BADR) on the sale of shares acquired under a qualifying EMI Option, the applicable rate of CGT on the first £1m of lifetime gains will be 10% until 5 April 2025, 14% in 2025/26 and 18% from 2026/27.  Capital Gains in excess of the lifetime limit will be taxed at 18% or 24%. * CSOP Options – any capital gain made on disposal of shares acquired under a CSOP option will be subject to new rates of CGT unless the seller meets the conditions for BADR generally. * Unapproved Options - any capital gain made on disposal of shares acquired under an unapproved option will be subject to new rates of CGT of unless the seller meets the conditions for BADR generally. Capital gains made on shares held within a Share Incentive Plan trust (or SIP) are still exempt from CGT.  For company’s thinking of all-employee type plans, this arrangement has further merit where Partnership Shares are used given that the deductions from an employee’s gross salary used to acquire Partnership Shares (capped at £1,800 per year) are exempt from Employers’ NIC. 

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With any potential change of government comes the worry about a change in the tax regime. There has been a lot of speculation about how Labour may choose to raise the tax take if they win in the next election, everything from capital gains tax on main residences, to a hike in capital gains tax rates, a reversal on pension lifetime allowance rules and VAT on school fees (and everything in between!). We will undoubtedly experience some level of change, but without a crystal ball, what that change will look like and when it will be implemented is still a complete unknown. What we do know is that having a plan that is aligned to your financial wants and needs (both in business and personally) will put you in a better position should you need to adapt some of the structuring. Any framework is only as good as the foundation its built on ...... so now is a really good time to look at how your financial plan really works for you, your family and your business. https://lnkd.in/epirU72X #financialadvice #financialplanning #businessowner #wealthmanagement #tax

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I attach the 10th edition of BDO's popular Regional Manufacturing Outlook Report in partnership Make UK, our yearly benchmark of the sector.   #manufacturing #ukmanufacturing #bdo

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#AutumnBudget2024 Yesterday's Budget gave some much needed certainty and as widely expected, significant changes have been announced to almost all of the headline taxes, including:   🔔 Alignment of CGT residential and non-residential rates up to 18% and 24%, and scaling back Business Asset relief   🔔 Expansion of IHT to capture pension pots, and restricting relief for agricultural and business assets including AIM shares   🔔 Reform to non-dom regime to be replaced with a residence-based regime, with some generosity in transitional provisions and the IHT 'tail' but protection for offshore trusts to be removed   🔔 Employer NIC rate increasing to 15% and the threshold at which employers start to pay NIC to be halved   Interestingly a raft of measures, the "most ambitious ever" according to the government's policy paper, have also been announced to target the tax gap. Significant investment into HMRC's resources against non-compliance and tax fraud, and consultations on reforming HMRC's corrective powers and processes have all been pledged. Follow Crowe UK as we continue to digest the announcements and what they will mean for you and your clients

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My #icaewchartoftheweek for ICAEW looks at what we all do for a living this week, highlighting how half of us are economically active (employees, self-employed or unemployed seeking work) and the other half are (what the statisticians call) economically inactive. The government is very keen to get as many as possible of the 1.5m people who are unemployed, and the 3.0m not working because of illness or disability, into work. This would benefit the public finances twice over by not only reducing the cost to the exchequer of welfare payments paid out, but also by increasing the amount of tax receipts coming in. Read more: https://bit.ly/3VdcpmA

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We do things a little differently here. Ok, perhaps it's largely the same as other accountants, but with more penguins 🐧 One thing I think we're unique on, is that we charge clients "late fees" if they leave it all to the last minute in sending over their tax information. We're 100% transparent about this with all our clients when they join us. No surprises! I'm keen to know what business owners - and other accountants - think of our approach. Have a read of this blog where I set out our approach. Let me know what you think - positive, negative, or just telling me I can't spell properly...

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The UK government published today Changes to the taxation of non-UK domiciled individuals. No new scoops here and the real detail will be in the next budget announcement on 30 October 2024. A forewarning of 'it's happening' but no details on the table. As expected from 6 April 2025: 📋 a 4-year foreign income and gains (FIG) regime labelled as an 'internationally competitive residence-based regime' from 6 April 2025. 📋 no protection from tax on income and gains arising within settlor-interested trust structures (other than under 4-year FIG regime). 📋 No 50% reduction in foreign income for the first year of the new regime as offered by the Conservative Party. 📋 Rebasing assets for CGT purposes is on the table and the government will consider 'the appropriate rebasing date'. 📋A new Temporary Repatriation Facility (TRF) will be available for individuals who have been taxed on the remittance basis. The rate and the length of time that the TRF will be available will be set to make use as attractive as possible. We await futher information. 📋 New residence-based system for IHT based on a 10 year tail... 😧 📋 An end to the use of Excluded Property Trusts to keep assets out of the scope of IHT. We await details and exact wording. #UKbudget #domicile #IHT #TRF #tax #HMRC #labour #crownstone #taxtipper https://lnkd.in/dDKSMmHt

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What skills make a great management accountant? 💡 Whether you choose CIMA, ACCA, or ACA, becoming a top-notch management accountant requires a combination of skills: ✔️ Analytical Mindset: Ability to analyse financial data and provide insights. ✔️ Communication: Clearly explaining financial information to non-financial stakeholders. ✔️ Technological Proficiency: Skill with accounting software and new tech. ✔️ Strategic Thinking: Aligning financial strategies with business goals. ✔️ Detail-Oriented: Thorough in identifying discrepancies and trends. In today's fast-paced business environment, these skills are essential. But what do you think? Drop your thoughts below! #ManagementAccountancy #FinanceSkills #CareerDevelopment

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The low value exemption relieves pressure on HM Revenue & Customs having to process large volumes of low value collections, diverting valuable resources from other activities. It's a loophole only in so much as it was designed to reduce pressure on government resources. Crowe Global Crowe UK Labour resists calls to close UK tax loophole used by Shein - https://on.ft.com/3Vx4yjb via @FT

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