What taxes must you pay, what are the rates, and what’s in the Budget for you and your business?

Enterprise Investment Scheme

The Enterprise Investment Scheme offers generous income tax and capital gains tax reliefs to investors in certain companies. The reliefs are available to ‘qualifying individuals’ who subscribe for ‘eligible shares’ in ‘qualifying companies’ undertaking ‘a qualifying business activity’. The regime is currently under review, but the consultation is ongoing. What are the investment limits? Individuals may invest any amount in Enterprise Investment Scheme shares. However, only the first £400,000 invested in any one tax year (£200,000 prior to the tax year 2006/07) will qualify for income tax relief and capital gains tax (CGT) exemption. For this purpose a husband and wife are treated separately. Individuals must subscribe a minimum of... »

Discretionary Trust, Wills & Inheritance Tax

Although any unused nil rate band is transferred to a surviving spouse or civil partner, making provision for a discretionary trust in your will could still be worthwhile. How do the inheritance tax rules work? The first slice of any individual’s estate, including gifts that they have made in the last seven years, is generally free of inheritance tax. This slice, referred to as the ‘nil rate band’, was increased to £325,000 from 6th April 2012. Inheritance tax is charged at 40% on the amount that exceeds the nil rate band. Any unused nil rate band can now be transferred to a surviving spouse or civil partner. This means that where the second death occurs on or after 9th October 2007, the benefit of any unused nil rate band on the death of the first spouse is transfe... »

Employees & Company Car Tax

A guide for company car drivers from ComCar The emissions–based regime for taxing company cars has been in force since April 2002. Introduction The provision of a fully expensed company car is still a common employee benefit. Some even suggest that it will become more popular as shortage of finance and soaring insurance costs cause “cash takers” to give up their allowance and move back to the company car. The success of salary sacrifice could also increase the size of the company car park. Taxation policy is strongly focused on the CO2 emissions of the vehicle, perhaps making this the area where environmental taxation is at its most advanced as well as its highest level in terms of tax per tonne of CO2. There are implications for income tax, VAT, Employers and Employees n... »

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