Contents
Don't leave it to chance
Family tax planning
Tax payback - tax credits
Pay rise for the other half?
Jam today, or jam tomorrow?
Pension payments and tax relief
Employee pensions
Children's pensions?
Borrowings and tax
Investment limits
Employee cars and fuel
Give generously and save tax
Capital gains
Capital losses
Second homes
Company or trade?
Inheritance tax
Children's savings?
Business tax
Two jobs = too much NIC?
Should VAT be flat?
Mutiny and bounty
One careful owner
A matter of trust
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The Stock Market has done better this year than last, but many people will have still have some capital losses in their investment holdings. You can hold onto these investments and hope that they will recover, but if you have gains above your annual exemption this year, it may be worth triggering the losses by disposing of the shares in order to save tax now. Some people will have made gains in the past, and have current losses. It is frustrating that you cannot generally get back CGT paid in earlier years on account of current losses. However, it is possible to recover that CGT, by "reinvesting" in a new qualifying Enterprise Investment Scheme company. Although such investments are risky, the CGT recovery and income tax relief on investment provide a substantial return straight away, reducing the exposure significantly. In 2003, the Revenue changed their view of the calculation of gains on shares which were acquired by employees in share option schemes. If the employee paid income tax on the exercise of the options, it is likely that gains previously reported ought to be losses, and small losses ought to be larger losses. Most of those affected will already know about this, but if you have ever paid income tax on the exercise of employee share options, and you haven't done anything about capital losses since 2003, it's worth investigating.
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© Bayar Hughes & Co., 2010.