Practical and intelligent tax saving solutions for you and your business
Whether personal or business tax affects our everyday life and it never stands still.
In the current climate clients expect their advisers to help them make more savings each year through careful tax planning.
Shipleys have a team of knowledgeable tax and accountancy experts who constantly look at ways to add value and provide practical effective solutions whether it’s an owner-managed business or a multi-national group. Our clients know that we genuinely value their custom and ensure that they are always more than satisfied with our work and costs.
- Structuring your Business
- Property Tax
- Capital Allowances
- Inheritance Tax Planning
- Asset Protection and Preservation
- Non UK Resident Domicile & Property Holding Structures
- Tax & VAT Investigations
- VAT Planning
Structuring your Business
Did you realise that the way your business is structured could be affecting how much tax you’re paying?
Do you get the feeling that you could be paying too much tax?
Operating through the appropriate legal entity is vital but can often be neglected if a business has grown organically.
We can provide advice on the most suitable business structure – sole trader, partnership, company, limited liability partnership.
We can help you to structure your business in the most tax efficient way, saving you tax and improving the efficiency of the business.
We also have the expertise to advise on all areas of corporate structuring issues such as:
• Reorganisations and mergers
• Company Purchase of Own Shares
• Reductions in share capital
• Planning with share rights
• Group tax planning
The taxation issues can be complex, but with our expertise we can guide you through, helping you meet your commercial objectives in a tax efficient way.
One of the most common questions we hear is “how do I get my profits out of the company paying as little tax as possible?”
We work with our clients to consider the tax picture as a whole – getting an understanding of both personal and corporate, short term and long term goals.
Because we take into account the whole picture, we can ensure that when it comes to tax, you won’t miss a trick and that all avenues of tax relief are explored.
We know that working with us, through careful planning, you can extract tax from the business without facing a hefty tax bill.
We can also help you to calculate the taxation impact of extraction policies by dividend or salary/bonus; provide advice in relation to pension contributions and also have particular expertise in tax planning using different classes of share capital.
If you like the sound of working with people who have your goals and aspirations at the heart contact us now.
Shipleys are experts when it comes to property tax matters, advising you on how to arrange your property transaction in the most tax efficient manner. With effective strategies, we can significantly reduce the exposure on property transactions.
Speak to us about:
- Services for developers
- Services for investors
- Professionals working in the property sector
- Services for property agents
When you buy, lease or improve a commercial property, HMRC allows you to offset some of that expenditure for tax purposes. Your advisors have probably claimed for the more obvious features, but as capital allowance specialists we dig much deeper to make significant additional claims on your behalf.
Typically, we identify Capital Allowances of between 10% and 30% of the commercial property purchase price.
We use specialist surveyors with tax expertise, to visit your property to uncover this extra layer of allowable items. This service is relevant for two types of clients:
1. Commercial property owners and investors who can retrospectively claim for unused allowances, (going back many years in some cases), for alterations, extensions and upgrades to their buildings.
2. Buyers and sellers of commercial property who need to agree a value for plant and machinery as part of the purchase process.
Inheritance Tax Planning
IHT has been commonly described as a ‘voluntary tax’ and with good reason. It can usually be reduced with proper and often simple planning, ranging from lifetime planning, will planning or even after death variation or disclaimer can mitigate tax.
IHT planning will assist in preserving family wealth and will reduce tax bills for your heirs, With careful lifetime planning, you can even reduce your exposure to IHT whilst retaining the asset and income.
Asset Protection and Preservation
Asset Protection Essential for protecting and preserving company and family assets from third party claims, divorce, bankruptcy, spendthrift spouses, and youthful improvidence. Asset Protection has a number of forms, including:
Company Asset Protection – The valuable assets in a company, namely property, cash and brand, may in certain circumstances be protected by a restructuring exercise, using group structures, all without triggering taxes on the restructure whilst affording protection.
Family Asset/Wealth Protection – Family assets/wealth can be protected and preserved from claims, bankruptcy and divorce. Typically assets are placed into a properly constituted trust within certain limits with the result that the preservation and protection of the family assets is achieved without adverse tax consequences.
Non UK Resident Domicile & Property Holding Structures
This topic always seems to raise the most debate about the fairness of the UK tax system. And has been squeezed over the years, however if you are in the tax privileged position to be either non UK Dom or non UK Resident the tax benefits are still extra ordinarily valuable in the right circumstances, to say the least. However, this valuable status is generally under used (except by the super rich).
A key area of tax planning is on property holding structures for non UK resident and non UK domiciles individuals as properly structured solutions achieve significant tax savings.
Tax & VAT Investigations
Tax investigations by HMRC often come as an unpleasant shock to individuals or businesses and can be very stressful. Those under enquiry often feel targeted and victimised.
At Shipleys we are non-judgmental, vigorous in defending our clients and aim to resolve the investigation in the most efficient manner possible without compromising the quality of our work.
We have the experience and know how to handle local district cases to large tax fraud cases both in direct and indirect (VAT) tax.
Our VAT experts trained with HM Revenue & Customs (HMRC) and have a complete understanding not only of the legislation but of HMRC’s policies and procedures.
Our work extends to every aspect of VAT but some of the services we are most often asked to provide involve negotiation with HMRC on liability issues and agreeing partial exemption methods, providing VAT planning ideas for clients to improve cash flow, assisting clients through the maze of VAT property law, and advising them on EU and other international transactions.
Some of the areas we cover most include:
• VAT and property
• VAT and not-for-profit organisations
• VAT and offshore companies
Contact us now for a free no obligation consultation with a tax consultant.
Latest news & blogs…
Where a property has at some point been the owner’s only or main residence, any gain relating to the final period of ownership is exempt from capital gains tax. Prior to 6 April 2020, the final period is set at 18 months, subject to a period of 36 months where the person making the disposal is a long-term resident of a care home or is disabled.
However, for disposal on or after 6 April 2020, the final period exemption is halved from 18 to nine months. However, it remains at 36 months for disposal by long-term care home residents and disabled persons.
If you are planning to dispose of a property which has not been your only or main residence throughout the whole period that you have owned it, speak to your professional advisers to ascertain how the timing of the disposal can impact on the capital gains tax payable.
Lettings relief is a valuable relief that applies on the disposal of a property which has been let out and which has at some point been the owner’s only or main residence.
Under the current rules lettings relief applies to shelter part of the gain arising on the sale of a property which has been let out as residential accommodation and which at some time was the owner’s only or main residence. The amount of the lettings relief is the lowest of the following three amounts:
• the amount of private residence relief available on the disposal;
• £40,000; and
• the gain attributable to the letting.
However, from 6 April 2020, the availability of lettings relief is to be seriously restricted. From that date, lettings relief is only available where at some point the owner of the property lets out part of their main residence as residential accommodation and shares occupation of that residence with an individual who has no interest in the residence.
Where the gain would otherwise be chargeable to capital gains tax because it relates to the part of the main residence which is let out as residential accommodation, it is only chargeable to capital gains tax to the extent that it exceeds the lower of:
• the amount of the gain sheltered by private residence relief; and
If the property is let but the landlord does not live in the property with the tenant, lettings relief will not be available for disposals on or after 6 April 2020.
Lettings relief can shelter up to £40,000 of gains. Where a disposal of a property that would currently attract the relief is on the cards, it may be beneficial to dispose of the property prior to 6 April 2020. Speak to your professional adviser to ascertain the impact that the disposal date has on the available reliefs and the capital gains tax, if any, that will be payable.
Residential property gains
Although no capital gains tax will arise on the disposal of a property which has been the owner’s only or main residence throughout the period of ownership, a liability may arise on the disposal of a residential property which is or has at some point been a second home or which has been let.
Prior to 6 April 2020, where capital gains tax is payable on a gain arising on the disposal of a residential property, the gain is notified to HMRC on the self-assessment return and the tax is payable by 31 January after the end of the tax year in which the disposal took place.
However, from 6 April 2020, taxpayers will be required to make a payment on account of the capital gains tax liability arising on the disposal of a residential property. The taxpayer will also be required to make a return to HMRC giving notice of the disposal. The return must be delivered to HMRC within 30 days of the date of completion of the disposal. Payment of any associated tax must be made within the same window.
Capital gains tax on chargeable residential property gains is payable at higher capital gains tax rates of 18% and 28%.
If you are planning on disposing of a second home or buy-to-let property on or after 6 April 2020, speak to us about how the new return and payment rules will affect you.
Car enthusiasts would not have unnoticed the unveiling of a stunning car recently: the Porsche Taycan Turbo. And it’s an all electric beauty.
Convenient then, to look at the current tax advantages of buying an electric vehicle (the Porsche starting at a relatively modest £83,367).
So how does the company car tax rules work? In a nutshell, the lower the Co2 emissions the lower the tax “benefit” percentage, and, there are some upcoming attractive tax reliefs for all electric company cars.
For 2019/20 the appropriate percentage for cars with Co2 emissions of 50g/km or less is 16%, while the appropriate percentage for cars with CO2 emissions of 51-75g/km increases to 19%. The appropriate percentage is set at 22% for cars with emissions in the 76-94g/km band and at 23% for cars within the 95-99g/km band. Thereafter, the charge increases by 1% for each 5g/km rise in CO2 emissions until the maximum charge of 37% is reached for cars with CO2 emissions of 265g/km and above.
The diesel supplement remains at 4% for 2019/20 and applies to cars with emissions not certified to Real Driving Emissions 2 (RDE2) standards or which do not meet the Euro standard 6d (subject to not exceeding the maximum charge of 37%).
For 2019/20 the fuel multiplier is set at £24,100.
Looking ahead to 2020/21, the charge for electric and hybrid cars is to be reduced. From 6 April 2020, the appropriate percentage for zero emission cars falls to 2% and the appropriate percentage applying to cars in the 1-50g/km band will depend on the level of the car’s CO2 emissions as shown in the table below.
By choosing an electric or hybrid company car, it is possible to significantly reduce the associated tax bill from 2020/21 onwards.
Speak to us about the tax implications of your company car and how to make a tax-efficient choice telephone 0114 275 6292 or email email@example.com.
Following the decision of the First-tier Tribunal in two cases which involved the use of tax avoidance schemes and disguised remuneration arrangements to avoid tax and National Insurance, HMRC have published a spotlight which draws attention to why these arrangements do not work. In each case HMRC were successful. The Tribunal found that the disguised remuneration arrangements that were being promoted were notifiable under the Disclosure of Tax Avoidance Schemes (DOTAS) legislation.
The spotlight (Spotlight 52) is available on the Gov.UK website at www.gov.uk/guidance/disclousure-of-tax-avoidance-schemes-tax-avoidance-using-offshore-trusts-spotlight-52.
If you need help with this, or have been approached by anyone promoting offshore tax avoidance schemes, contact us for an authoritative review on firstname.lastname@example.org or telephone 0114 275 6292.