HLAS

Annual Tax on Enveloped Dwellings (ATED) is payable by ‘non-natural persons’, such as companies, that hold an interest in UK residential property valued at over £500,000. The ATED charge is based on the property’s value and applies unless an available relief is claimed. One such relief applies to dwellings that are let to a third party on a commercial basis and are not, at any time, occupied or available for occupation by anyone connected with the owner. If this relief is applicable, it should be claimed in an ATED return. ATED is payable for a chargeable period ending on 31 [...]

2024 marked the first year that digital platforms such as Amazon and eBay were required to report information about vendors to HMRC. The reporting requirements apply unless the vendor made fewer than 30 sales in a year and received less than €2,000 (approximately £1,700) from those sales. The new rules simply enhance HMRC’s data collection powers and do not introduce any new tax obligations for individuals. However, they do increase the likelihood that HMRC will identify online traders who have not been declaring their income. There has been widespread misinformation online and on social media regarding the new rules, with [...]

The loan charge was introduced to tackle the use of certain tax avoidance schemes that aimed to circumvent Income Tax and National Insurance by disguising remuneration as loans. However, HMRC’s policy and settlement process for loan charge liabilities have led to complex and long-standing issues, with many taxpayers facing significant financial hardship. An independent review of the loan charge is currently underway, focusing on cases where tax liabilities remain unresolved. If you have been affected and would like to submit evidence, please get in touch with us.

In 2024, the main rates of Capital Gains Tax (CGT) increased for disposals taking place on or after 30 October 2024 (now 18% and 24%). It was also announced that the CGT rate on Business Asset Disposal Relief (BADR) gains will rise from 10% to 14% from 6 April 2025, with a further increase to 18% planned from 6 April 2026. These upcoming changes mean that mistiming a BADR-qualifying disposal could result in a higher CGT liability. As a general rule, for CGT purposes, the disposal date for unconditional contracts is when the contract is entered into, rather than when [...]

With just over a year remaining before Making Tax Digital for Income Tax (MTD for IT) becomes mandatory, now is the time to assess whether your business will need to comply with the new requirements from 6 April 2026. If you are a sole trader or operate an unincorporated property business, and your ‘qualifying income’ (typically turnover from a sole trade or property business) is £50,000 or more in the 2024/25 tax year, you will be required to join MTD for IT from 6 April 2026. It’s too soon to determine your 2024/25 income until your accounts or tax return [...]

While numbers don’t lie, it’s well known that they can be manipulated to fit a particular narrative. Can you spot when this happens? The Office for National Statistics (ONS) is hosting a webinar that they describe as eye-opening, offering an in-depth exploration of statistical misuse. The session will examine how the Office for Statistics Regulation (OSR) investigates statistical misuse, how the ONS publishes statistics in various formats to ensure clarity and transparency, and how the ONS works to ensure its statistics are reported fairly and accurately in the news. This interactive webinar will be held on Microsoft Teams. It will [...]

Topps Tiles, the largest tile specialist in the UK, acquired 30 CTD Tiles stores as part of a deal following CTD’s administration in August 2024. CTD was previously the second-largest specialist tile retailer in the UK, making this a significant acquisition within the tile industry. However, after receiving complaints, the Competition and Markets Authority (CMA) has raised competition concerns in four areas of the UK: Dorking, Edinburgh, Inverness, and Aberdeen. The reduction in competition in these locations could result in less favourable deals and services for customers and businesses. At this stage, the CMA has completed a Phase 1 investigation, [...]

According to a survey of 2,000 businesses conducted by the Chartered Institute of Personnel and Development (CIPD), just over a third are planning redundancies or reducing recruitment ahead of the National Insurance and Minimum Wage increases this April. 42% of those surveyed stated they will raise prices to offset the increased costs, while 25% are considering cancelling or scaling down plans for investment or expansion. The chief executive of the CIPD, Peter Cheese, described these findings as the “most significant downward changes in employer sentiment we’ve seen in the last 10 years, outside of the pandemic.” Separately, research conducted by [...]

Beginning last week (17 February), Local Authorities were able to start awarding a 40% reduction in business rates bills to film studios. This tax relief is designed to support the UK film industry and contribute to the production of more box office successes. The creative industries sector employs 2.4 million people and contributes £124.6 billion to the UK economy. The government aims to increase both of these figures through the introduction of this relief. The Film Studio Business Rates Relief will be available to eligible studios in England until 2034 and, where applicable, can be backdated to 1 April 2024. [...]

Latest figures released by the Office for National Statistics (ONS) indicate that average wages continue to grow at a faster rate than inflation. After adjusting for consumer price inflation (CPI), wages increased by 3.4% between October and December 2024 compared with the same period in 2023. Unemployment figures also present an encouraging picture, with the UK’s unemployment rate holding steady at 4.4%. However, the ONS has cautioned that the response rate to its survey was low, meaning these figures may not fully reflect the true position. What lies ahead in the coming months? With forthcoming increases to the national minimum [...]