How do I use allowances and losses against capital gains tax?

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 (2021/22 £12,300) is set against any Capital Gains in the year BEFORE any Capital Losses are brought forward....

Should you buy a car via HP or lease a car?

Most importantly, it depends on the deal.  So, get your calculator out!  But do watch out for excessive mileage penalties in lease agreements. Tax treatment varies depending on the method used to acquire a car – but it is often not tax efficient for a Company to...

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 £50,270 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...

Can paying dividends reduce your Company’s tax bill?

No it can’t.  A Company pays Corporation Tax on its profits before dividends are paid out.  Consequently, shareholders are treated as having already paid some tax on their dividends but they still have 7.5% dividend tax to pay (on dividends above £2,000) – and...

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...