Hello
Scotland has set its budget for 2025-26, we look at the UK's Corporation Tax roadmap and reforms to Carried Interest. We are now in office party season and it's still raining in many places. 'Ho, ho ho: is it beginning to feel a bit like 'Christmas'?
Scotland has decided to raise its basic rate tax thresholds. Scotland as you know, has many more tax thresholds and tax rates than the rest of the UK. It all makes for a curious experiment in terms of raising tax revenue, persuading taxpayers that the tax system is fair and motivating people to take up work. I think it's fair to say that many of us are interested in the outcome.
The Government's Corporation Tax roadmap indicates 'business as usual' and a commitment not to raise taxes further. Many companies have a March year-end and have yet to sign off a Corporation Tax payment to HMRC at a tax rate of 25%. Something to look forward to on the first of January 2025.
To cheer you up we have a festive quiz and it's free to join.
More news and updates below, see you next week or at the quiz!
Nichola and the Team
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Quick News
Scottish Budget 2025 to 2026
'A budget by Scotland, for Scotland', tax highlights of the Scottish Budget 2024 speech given by Shona Robison, Cabinet Secretary to the Scottish Parliament on Wednesday 4 December 2024.
The Corporate Tax Road Map
In the Autumn Budget 2024, the Government published the Corporate Tax Roadmap (the 'Roadmap'). The Roadmap aims to enhance predictability, stability and certainty to build confidence and encourage investment and growth in the UK.
Consultations continue for carried interest
HMRC have published the summary of responses for their call for evidence on 'The Tax Treatment of Carried Interest', announced 'next steps' and published a new consultation on qualifying conditions.
Alternative finance arrangements consultation response
From 30 October 2024, individuals and companies using qualifying alternative finance arrangements will no longer be subject to Capital Gains Tax (CGT), Corporation Tax (CT) or Income Tax (IT) charges, where the same charge would not apply when using conventional financing arrangements.
Festive CPD
Festive Fun: Christmas Tax Tips
There's nothing quite like...Christmas CPD. Add more points to your CPD records by joining us for a FREE festive tax tips webinar.
Tax Cases
Oral agreement to transfer shares on death was binding
In Lane v Lane [2024] EWHC 2616 (Ch), the High Court found that a father and son had entered into a binding contract for their respective shareholdings to pass to the survivor on the first of their deaths.
Appeal allowed in classification of wetsuits
In O’Neill Wetsuits Ltd v HMRC [2024] TC09362, the First Tier Tribunal (FTT) found that wetsuits should be classified as ‘vulcanised rubber’ which has a 4% customs duty rate rather than 'textile' which has a 8% customs duty rate.
Harry Potter star liable to Income Tax on £4.5 million
In Rupert Grint vs HMRC [2024] UKFTT TC09337, the First Tier Tribunal (FTT) found that a sum of £4.5 million declared by Harry Potter star Rupert Grint on his tax return as a capital gain should have been declared as income, arising from his role in the films.
Editor's Choice (subscribers)
Self Assessment Return 2023/24: What's new?
2024 Self Assessment toolkit: top tips for completing tax returns for the year ending 5 April 2024.
Guides & Updates
Self-employed
Failure to notify chargeability to tax
What is failure to notify chargeability to tax? What happens if you fail to notify HMRC about your taxes? What penalties apply for failing to notify HMRC that you have a tax liability?
Side-Hustles & Tax: At a glance
Do I need to pay tax on my side-hustle income? Is a side-hustle taxable? Is there a new side-hustle tax? Do I need to register for tax when I sell on eBay, Vinted or Etsy etc?
Partnerships
Partnerships: What's new 2024/25
What's new for partnerships in 2024-25? What are the issues on Basis Year reform? What is the fuss about hybrid structures? Where are we on partnership tax appeals?
Directors & Companies
Directors: Do I need to file a tax return
Do I need to file a Self Assessment tax return? What if I am a director? Can HMRC make directors file tax returns? When should I file a Self Assessment return?
R&D: Contracting out R&D & Externally Provided Workers (EPW)
What is contracting out R&D? When does contracted-out R&D qualify for relief? Who can claim the relief? When do externally provided worker costs qualify for relief? What are the special rules applying to Northern Ireland companies?
Compliance
Named tax avoidance schemes, promoters, enablers and suppliers
UPDATE: HMRC publishes a list of named tax avoidance schemes, promoters, enablers and suppliers. It is not recommended that taxpayers use any of these schemes, as HMRC does not consider that they work and you may end up with a significant tax liability if you engage with the scheme suppliers.
Employers
Employment-Related Securities (ERS): What's new 2024/25
Employment-Related Securities (ERS): What’s New? HMRC have published a couple of their ERS bulletins of late and we combine their update with a 'What’s New' of our own.
Travel (employer's guide)
How do employers apply the tax rules to travel costs? What is available for subsistence costs? What are the rules on home-to-work travel?
Private Client & Estate Planning
IHT: Main Residence Nil-Rate Band (RNRB)
What is the Main Residence Nil-Rate band? When was it introduced? How does it work? Who can claim it?
Land & Property
Freeports and Investment Zones: Tax breaks
What are special tax sites? Where are they located? What are the tax advantages?
VAT News & Cases
Government response: VAT and private school fees technical consultation
HM Treasury has published a response to its technical consultation on VAT and private school fees, that ran until 15 September 2024. Several technical amendments to the draft legislation will be made, with several new exemptions from the policy being introduced.
Private school fees and VAT
On 29 July 2024, the Chancellor announced that from 1 January 2025, all education services, vocational training and boarding services supplied by a private school, or a connected person, will be subject to VAT at the standard rate of 20%. What does this mean?
Tax Tools & Calculators
Tax tools & calculators
UPDATE: 2024/25 versions available now. We have a suite of useful tax tools that help agents, business owners and sole traders calculate their taxes.
Calendar of tax deadlines and new tax measures
UPDATE: This is a freeview 'At a glance' rolling calendar of common recurring tax deadlines, new tax measures and other tax-significant events.
CPD
CPD for lunch: Byte-sized chunks of lunchtime CPD (free for our Subscribers)
- CPD: Income Tax and Trusts
- Free Study Skills Session - Preparing for Your Tax Exams
- CPD: Change of basis periods: Transitional rules 2023-24 Returns
- How to run the most tax-efficient business 2024/25.
- Purchase of Own Shares: all the details.
- Anti-money Laundering Update and Firm-Wide Risk Assessment ...More...
Tax Queries?
UK Agent for registration of Overseas Entities
Do you require assistance in the registration and verification of an overseas entity that owns UK land or property?
Virtual Tax Partner© Support
Have a tax query? Need a second option? Open a ticket and ask a question. A team of tax experts with a wide range of expertise: covering direct and indirect tax, as well as accounting, R&D claims, reorganisations and much more.
Missed the Last Tax Update?
Ross Martin Tax: SME Tax News 28 November 2024
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- Visual effects costs defined
- Rising rates and shrinking safety nets for NLW
- Agent Update: November 2024
- Advisory fuel rates from 1 December 2024
- Accounting period not covered by Advance Pricing Arrangement
- FTT rules loan had an unallowable purpose
- SDLT sub-sale tactic increased tax liability
- Coronavirus support calculated on 'unpaid' wages
- Deposit Return Scheme: Drink containers UPDATE ...More
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