Last year HMRC published their commitments to make tax easier to understand and make ‘doing tax’ simpler and quicker. This year they are publishing an update which showcases the improvements and new products HMRC has developed. They have listened to small businesses, who told them an online document would be more useful for them, so this year HMRC has developed an online interactive format which included lots of links to services and products for small businesses- helping them to get their tax right, first time. HMRC hope that many small businesses will find the guide useful. It has been structured around a number of themes, so businesses can dip in and out of the sections that are of most interest to them: improving support - setting out what support and help is available to small businesses, including apps and products like business tax dashboard delivering simpler tax rules - including the new employment allowance of £2000, available from April, as well as tax reliefs and incentives reducing burdens - how HMRC has reduced costs to small business, and improving services - improving transactions. HMRC has also described what’s coming up in the next 18 months or so - especially their new personalised online account service which will allow small businesses to deal with their business tax affairs in one place, simply and easily. You can access the guide here .
Capital Gains Tax (CGT ) Private Residence Relief – Final period rule
The final period exemption applies to a property that has been a person’s private residence at some time even though they may not be living in the property at the time they dispose of it and they may be claiming private residence relief on another property at the same time. From 6 April 2014 the final period exemption will be reduced from 36 months to 18 months.
CGT Non-residents and UK residential property
From April 2015 a capital gains tax charge will be introduced on future gains made by non- residents disposing of UK residential property. A consultation on how best to introduce this will be published in early 2014 on GOV.UK.
CGT Annual Exempt Amount
The annual exempt amount will be £11,000 for the year 2014/15 and £11,100 for 2015/16 and subsequent years. The exemption for most trustees will be £5,000 and £5,500 respectively.
Social Investment Tax Relief
A new tax relief for investment in social enterprise will commence in April 2014. Following consultation investment in Social Impact Bonds will also be eligible.
ISA, CTF, SIP and SAYE Annual subscription limits 2014/15
for Share Incentive Plans (SIPs) the individual limits on the ‘free’ shares companies can award to employees for 2014/15 will be increased from £3,000 to £3,600 per year and the individual limits on the ‘partnership’ shares employees can purchase will be increased from £1,500 to £1,800 per year (or 10% of an employee’s annual salary)
CIPP Policy News Journal
16/04/2014, Page 35 of 519
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