HLAS

When considering the wording of your Will, you should note that the inheritance tax (IHT) nil rate band continues to be frozen at £325,000, subject to any announcements in the Spring Budget. There is currently an additional nil rate band of up to £175,000 for passing on the family home to direct descendants on death. We can work with your solicitor to make sure your Will is tax efficient. Where some of the nil bands are unused on the death of the first spouse, the balance is available on the death of the surviving spouse, potentially allowing a married couple [...]

If you leave at least 10% of your estate to charity, the rate of Inheritance tax on the amount chargeable Is reduced from 40% over the nil rate bands to just 36%. This would reduce the amount passing to other beneficiaries and needs to be carefully considered.

Many were expecting an announcement from the Chancellor in the Autumn Statement about cuts to, or the possible abolition of, inheritance tax (IHT). Maybe he is saving that for his Spring Budget, but in the meantime, it may be worth utilising the £3,000 gifts annual exemption for 2023/24 and, if available, the unused amount from 2022/23. More generous amounts can be given away by taking advantage of the exemption for regular gifts out of income.

One tax planning opportunity that many thought the chancellor might restrict was the exemption from inheritance tax for regular gifts out of an individual’s surplus income. Inheritance tax is designed to tax transfers of capital, so if the donor can demonstrate that the gifts are made out of surplus income then the transfers are not taken into consideration for IHT. The exemption applies where there is a regularity to the payments, such as a standing order to pay school fees or pension contributions on behalf of children or grandchildren. HMRC will also require proof that the payments are paid out [...]

Normally an individual’s payments into a pension scheme are limited to their relevant earnings in a given tax year. This restriction does not apply where the contributions are less than £3,600 gross, allowing parents and grandparents to make payments on behalf of children and grandchildren with limited income. Payments of £2,880 a year would attract a 25% uplift from the government which could grow to a substantial amount by the time the child reaches retirement age (currently age 55, but increasing to 57 in 2028). The parent or grandparent may be able to justify that the payments qualify for the [...]

The Made Smarter Innovation | Digital Supply Chain Hub (DSCH) is inviting applications from businesses interested in developing and deploying digital technology solutions in the DSCH testbeds. A supply chain testbed can be defined as an end-to-end supply chain environment, where technologies can be deployed and tested using real data but without risking business disruption. Together with the testbed companies, the DSCH has identified seven potential challenge areas: standardised naming system for automotive spare parts; project finance and market modelling in the emerging hydrogen supply chain; digital product passport for the textile supply chain; connected life cycle assessment in the textile supply [...]

The Department for Energy Security and Net Zero (DESNZ) has launched a consultation seeking views on proposals for a new six-year Climate Change Agreements scheme to begin in 2025. The new scheme would add three new target periods running from 2025 to 2030, resulting in three certification periods running to 31 March 2033. It will provide further reductions in the Climate Change Levy for eligible participants. The scheme would be open to new entrants who qualify under the current eligibility criteria. The consultation outlines: aspects of the current scheme that will be retained for the new scheme, as well as [...]

There are many reasons a solvent company needs to be brought to an end; perhaps due to retirement, illness, or simply a desire to extract the proceeds tied up in the company. Once a decision has been made to cease trading and begin winding up the company’s affairs, the next step is to determine the most appropriate way of closing the business down officially. When looking at your options, there are a number of processes which should be fully explored to ensure maximum suitability is achieved. This decision will be determined, in the main, by the financial position of the [...]

The Working Minds campaign has been created by the Health and Safety Executive (HSE), Britain’s national regulator for workplace health and safety is committed to improving the health of workers. Tackling stress isn’t just the right thing to do, it’s a legal obligation. Working Minds can help you make it a routine priority for your business. There are three main reasons employers should be looking to prevent stress and support good mental health in business: It's the law; It’s good for business; and It’s the right thing to do. Whether you’re a small business or a large corporation, the law [...]

Innovation has generally been recognised as essential for value creation, both for individual companies and for the UK economy as a whole. The development of new ideas, processes and technologies and their flow across different sectors is a significant driver of economic growth and productivity. Recently, innovation has also been identified as crucial to the transition of the economy away from fossil fuels and carbon-intensive business activities. There are many factors that affect whether and how businesses innovate, for example the availability of skills and capital and government policy measures such as tax incentives. However, none are more important that [...]