ENHANCED RESEARCH & DEVELOPMENT TAX RELIEF NOW EFFECTIVE

Date Added: 26 August 2008

The good news...

From 1 August 2008 the enhanced deduction from trading profits in respect of qualifying expenditure increased from 150% to 175% for small or medium-sized enterprises (SMEs). For large companies the increase from 125% to 130% came into effect from 1 April 2008. Relief for staffing costs will be extended to include compulsory social security contributions of another EEA state or Switzerland.

And the not so good news ...

The rate of tax credit for which SMEs can surrender a loss attributable to qualifying expenditure is, however, reduced from 16% to 14%.

CALL FOR GOVERNMENT TO STOP PENALISING LONG TERM SHARE OWNERSHIP

Date Added: 26 August 2008

In a pre-budget submission to the Treasury (19 August) , the Association of Private Client Investment Managers and Stockbrokers (APCIMS) called on the UK Government to build on its simplification of Capital Gains Tax (CGT) in order to stop penalising long term share ownership.  APCIMS called on the Government to move the base date and cost value for securities held prior to 1998 to that date for the computation of Capital Gains Tax. We await the Government's response with interest.

THE GRASS IS NOT ALWAYS GREENER

Date Added: 26 August 2008

Following the recent decision in HMRC v McLean, there is now a major question mark over whether Business Property Relief will be available to mitigate Inheritance Tax charges for landowners who let land, with significant hope value on a 'grass keep' basis. Despite the fact that the landowner had arranged for hedge-cutting fencing and ditching to be carried out, the Special Commissioners ruled that letting land on a grass keep arrangement was not running a business and consequently the value of the land was not shielded from Inheritance Tax.