For a range of reasons, perhaps including the tax changes imposed on landlords, some investors have looked to woodland as a potential investment. Indeed the commercial occupation of woodlands in the UK or EEA benefits from favourable treatment in respect of income tax, corporation tax, capital gains tax and inheritance tax. To benefit from these … Continue reading Tax Efficiency in Commercial Woodlands
Planning to minimise the inheritance tax (IHT) due on your estate is always important, but the recent introduction of the residence nil-rate band (RNRB) means now could be the ideal time to review your existing plans. What is the RNRB? IHT is charged at 40% on estates worth in excess of the nil-rate band, which … Continue reading Is It Time to Review Your Estate Plan?
As of 6 April 2017 the tax relief landlords receive for mortgage interest and other finance costs is restricted. The restriction is being introduced gradually so that by 2020/21 landlords will receive tax relief for finance costs at basic rate (currently 20%) instead of at the rate at which they pay tax. This change does … Continue reading To Have, Hold & Share Rental Income Tax Efficiently
The various tax allowances available to individuals in 2017/18 mean that it is possible for directors with a substantial credit on their director’s loan account to extract up to £22,500 out of the company and incur no personal tax. This table illustrates how it works: 2017/18 Personal allowance: this is the amount of income an … Continue reading Tax Efficiency and the Directors Loan Account
The start of the 2016/17 tax year saw the introduction of the Personal Savings Allowance (PSA); from 6 April 2016 basic rate taxpayers can receive £1,000 interest income free of tax. Interest from ISAs does not count towards the PSA because it’s already tax free. Higher rate taxpayers have a £500 allowance and those with … Continue reading Tax Efficient Income Extraction from Your Limited Company
As of 6 April 2016 the tax payable on overdrawn director’s loan accounts increased from a rate of 25% to 32.5%. A director’s loan occurs when a director or participator takes money from the company which is not a salary, a dividend nor an expense repayment. Reversely, directors can loan money to the company which … Continue reading Reminder: Increased Tax on Director’s Loan Accounts
Our Tax Saving Newsletter is now available here: Green & Co Tax Saving Newsletter It includes: Capitalising on personal allowances Making tax-efficient savings and investments Tax-efficient pension planning Extracting profits – tax-efficiently Considering your company car