This time we feature: Small Companies: What's New? Last chance tax reliefs and disclosure opportunities and our 2016 rolling tax planner, read on...

Now that the dust has settled from the Autumn Statement we are looking forward to reading the draft legislation on Finance Bill 2016 together with consultation documents on various new proposals. The Office of Tax Simplification has been carrying on a review of small company taxation over the past few months, and we anticipate some heated discussion on taking small company tax into the digital age. What this means for the dividend proposals as tabled is anyone's guess. With the anti-dividend tax lobby now up to some 40,000 signatures, changes to IR35 may be even more unpopular.

We have a reminder on the Annual Investment Allowance and an illustration to show the effects of the rate changes on 1 January 2016. The last time there was a change we had a lot of queries from advisers who had found that (unbeknownst to them) their clients had gone ahead with investment in plant without warning them and had lost out as a result. Timing is everything.

We now have less than a month to say farewell to both the Crown Dependency and Liechtenstein Tax Disclosure Opportunities. As April 2016 will herald the introduction of a new criminal offence for failing to disclose offshore assets and new enhanced penalties, it is advisable to settle up now if you can as the penalties are only 10%.

HMRC have now provided details of their new R & D Advanced Assurance scheme.

We have a couple of cases this time. My pick is the one where EIS relief was denied as a result of changing the company's articles without fully referencing the EIS rules. It did not help that HMRC's manuals were possibly also misleading.

Finally, I will leave you with this thought: walking through town the other morning I was taken aback by the sheer volume of vagrants shuffling around on the streets. Then I realised that they were not 'carrier bag men and women' but the general public out doing their Christmas shopping with their recycled plastic bags... #vivacarrierbagtax!

Back soon


Nichola Ross Martin FCA Tax Director


Your Virtual Tax Partner®: online PRACTICAL support for accountants & tax advisers BY accountants & tax advisers

Quick News

Last chance for capital allowances
The 1 January change to the Annual Investment Allowance may cause unexpected results.

Last chance for the Crown Dependency Disclosure Opportunity
With only 10% penalties on offer this opportunity to "wipe the slate clean" should not be missed.

Tax credit U-turn
NEW: what is happening to tax credits now?

Help to buy ISA
The new ISA is available now

Autumn Statement 2015: the small print
UPDATE: our hand guide formatted into readable content

Case Update

EIS: rights changes disqualify shares
In Flix Innovations Ltd v HMRC [2015] TC04710, EIS relief was denied as company's ordinary shares carried preferential rights on winding-up. The devil is in the detail: tinkering with the articles disqualified the ordinary shares, depite what HMRC's manuals appeared to say.

Interest on non-UK loans had a UK source
In Ardmore Construction and Andrew Perrin v HMRC [2015] UKUT 633 the Upper Tribunal (UT) confirmed that loan interest paid by UK residents on foreign loans had a UK source even though the loans were not governed by UK law. This meant that foreign lenders did not avoid UK taxes.

Editor's Choice

Small Company Tax & OMBs: What's New Nov/Dec 2015
NEW: what's hot and what's not, following the Autumn Statement, we summarise the key developments affecting small companies and their owners. 

Pensions: tax rules and planning - What's new?
UPDATE: for the key changes between now and 2016

Finance Acts 2015: rolling planner
UPDATE: this planner shows you what was new in 2015/16, see the guide below for later years.

Finance Bill 2016: rolling planner
NEW: we summarise the latest announcements in tax. This rolling guide incorporates measues included in the 2015 Finance Acts, consultations and measures proposed for April 2016 and later.

Quick Briefings 

Stamp Duty Land tax & other residential property
NEW: a 3% increase in SDLT on residential property

CGT: the different ways of taxing UK property
A handy guide for individuals and company owners

Dividend Tax: client briefing
A briefing note to go over with your clients to explain and illustrate the new rules for the taxation of dividends from 2016/17.

VAT: Land and property at a glance 
A useful first reference when dealing with land and property transactions.

Missed last time's update?

Nichola's Autumn Statement summary

Features updates on:

  • Autumn Statement: the small print
  • Autumn Statement: the speech
  • Cases:
    • Mansworth v Jelly
    • Discovery and proof

Subscribe now

Come and join our Cloud

Subscribe (and UNLOCK the whole site) A single user annual subscription is £349 (+ VAT). 

What do you get?

  • We keep YOU up to date in SME tax.
  • FULL access to www.rossmartin.co.uk: your firm's personal TAX INTRANET containing over 1,500 actively maintained tax guides, briefings, toolkits and checklists.
  • Want to know more? Commission your own articles and checklists.
  • Structured CPD: our detailed SME tax updates "for Advisers Only" provide topical summaries and planning notes & our NEW webcasts provide you with structured CPD at your desk.
  • Regular client tax briefings: these cover the latest business and employment tax issues and are designed to assist you plan meetings and improve your client services.
  • Nichola’s regular SME tax news web-update: we do the reading and cherry pick the best of the taxpress, magazines and websites for you.
  • You can also commission guides and checklists for your own practice, post comments and upload your own articles.
  • Access to the Virtual Tax Partner ® service provides subscribers with FREE quick calls and a discount of on phone, email and tax support and mentoring.