Have I lost the CGT exemption?..Q. I made an investment through the enterprise investment scheme (EIS) in 2016/17. I didn’t claim income tax relief as my tax bill was very small - I just wanted to
enjoy the capital gains tax (CGT) exemption on the shares which I believe will increase. Is this correct? A. Unfortunately not. In order to claim the CGT...
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One of your corporate clients has agreed to join forces with a competitor and operate the combined businesses as a joint venture. How can the reconstruction reliefs be used to undertake the company
merger tax efficiently?
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Your client is single director company. It paid a dividend to the sole shareholder over the summer, but due to coronavirus it doesn’t have distributable profits to cover it, and the shareholder can’t
afford to repay it. What should you advise?
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Your client’s company is struggling for cash due to the second coronavirus lockdown. It has approached its bank for a loan but the interest rate being offered is eye-watering. How could your client
use pension recycling as a tax-efficient alternative?
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There have been new rules governing the treatment of termination payments in effect since April 2020. Sadly, many clients will be dealing with these first hand sooner than they would have expected.
How can you help improve the efficiency of such payments?
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The Office of Tax Simplification has made a number of recommendations to the government, including aligning capital gains tax (CGT) rates with income tax. What should you be advising clients who
believe that rates will increase in 2021?
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The end of the Brexit transitional period was 31 December 2020. For your clients that buy and sell services, rather than goods, most issues will remain the same. However, what two key changes do
you need to advise them about?
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Chancellor confirms April 2021 NLW increase..Listening. The Spending Review 2020 (see Follow up ) contained some important announcements regarding the national living wage (NLW). Firstly, the
government has accepted an independent commission’s recommendation to extend the NLW to 23 and 24 year olds. Previously, the NLW only applied to the over 25s....
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Claims can be made with e-signatures..Gift relief. Holdover relief under s.165 Taxation of Chargeable Gains Act 1992 can apply in circumstances where qualifying business assets are transferred for
less than their market value. Notably, it is used when making gifts, e.g. of company shares to an adult child for succession planning. Problem. One problem...
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