February 2016

A recent tax case has highlighted how easy it is to make a mistake with the Enterprise Investment Scheme (EIS). The scheme allows investors to obtain a 30% set off against their income tax liability up to £1,000,000 investment each tax year, as long as they are not connected to the Company.

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A major change to Inheritance Tax (IHT) is being phased in from 6 April 2017. The additional Inheritance Tax Residence Nil Rate Band (RNRB) starts being phased in to enable individuals to pass on their family home to direct descendants.

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In the Summer Budget Newsletter we outlined the dramatic new rules for taxing dividends that will apply from 6 April 2016.

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If your company is located in one of the 24 or so enterprise zones, there are significant Government incentives to encourage investment.

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The Employment Allowance is increasing from £2,000 to £3,000 on the 6th April 2016. This is good news for employers, but bad news if you’re the only employee in a company, and also the director, as your company will no longer be eligible for the NICs Employment Allowance.

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