What does the ‘Personal Tax Allowance’ mean?

Every person who is resident in the UK is given a personal allowance each tax year. It operates as follows: The personal allowance is the amount of income you can receive before paying tax – and it generally increases each tax year.  For the 2021/22 tax year, it is...

What lawyers can miss when handling taxes on sales of property.

Although, generally, property lawyers know about taxes associated with transfers and disposals (sales) of property, I have come across a couple of instances where they have not fully advised their clients. When a property is owned by a couple (married or civil...

What is the marginal rate of tax?

The marginal rate of tax paid is “the percentage of tax paid on earnings for the next pound earned.” What that means is that if you earn £50,000 your marginal rate of tax is 40% because for the next pound that you earn, you will be paying tax at 40%.  Below are the...

Breakdown of annual exempt amounts for Capital Gains

There is an order for deciding how to set off the Annual Exempt Amount (for Capital Gains) and Capital Losses against Capital Gains The Annual Exempt Amount (2020/21 £12,300) is set against any Capital Gains in the year BEFORE any Capital Losses are brought forward....

How do I register for CIS (the Construction Industry Scheme)?

How to register for CIS The Construction Industry Scheme is a scheme that applies to payments to self-employed workers and businesses in the Construction Industry.  Under the scheme tax is deducted from payments and paid over to HMRC. There are two sorts of people...