ICM Accountancy’s Post

Upcoming Changes to Capital Gains Tax (CGT) in the UK: Key Impacts for Small Businesses Starting 30 October 2024, the UK government will make some important changes to Capital Gains Tax (CGT) that will affect small businesses. The lower CGT rate will rise to 18%, and the higher rate will increase to 24%. The lifetime limit for Investors’ Relief will be lowered to £1,000,000. For businesses selling qualifying assets, the tax rates for Business Asset Disposal Relief and Investors’ Relief will go up to 14% on 6 April 2025 and then to 18% on 6 April 2026. Additionally, the tax on carried interest gains will increase to 32% starting on 6 April 2025, eventually being taxed under Income Tax rules by 6 April 2026. Importantly, businesses will be able to raise money using their existing assets without facing a tax charge, giving them more flexibility in managing their finances. #uktax #taxation #taxsavings #taxpayers #taxadvices #taxupdates #smallbusinessowners

Is your savings interest subject to UK taxes? 🤯 The UK has a Personal Savings Allowance (PSA) which means you can earn a certain amount of interest tax-free. ✅ Basic rate taxpayers (20%): Can earn up to £1,000 in interest tax-free. ✅ Higher rate taxpayers (40%): Can earn up to £500 tax-free. ✅ Additional rate taxpayers (45%): Pay tax on all savings interest. No tax-free allowance. If you earn over your allowance, you'll pay tax at your usual income tax rate. 💰 Have a question? Our contact details can be found on our website www.taxqube.co.uk #UKTax #Savings #MoneyMatters #accountant #taxoninterest

Essential Tax Rules for UK Small Businesses: Understanding Personal Allowances and Reliefs: For small businesses in the UK, understanding personal allowances and tax reliefs is crucial. The personal allowance decreases when earnings exceed £100,000, reducing by £1 for every £2 above that limit, and is eliminated at £125,140 for the 2024/25 and 2025/26 tax years. Basic-rate taxpayers can transfer unused allowances to their spouse, while the married couple’s allowance offers 10% tax relief. The first £1,000 of trading income is tax-free, but expenses cannot be claimed if income exceeds this amount. Income tax thresholds are frozen until 2027/28, with inflation adjustments starting in 2028/29. These rules are essential for small business owners managing varying income levels and investments. #uktax #taxation #taxsavings #taxpayers #taxupdates #taxadvices #smallbusinessowners

HMRC has raised the maximum tax debt eligible for online Time to Pay arrangements to £30,000 for individuals and £50,000 for businesses. Learn how you can manage your tax bills with these new limits ~ https://buff.ly/3WIqyJU #TaxNews #HMRC #TimeToPay #BusinessFinance #TaxDebt #TrustedBespokeCommitted

🚨 Reforming Capital Gains Tax could raise £14bn while benefiting 100,000+ taxpayers! 🚨 Centre for the Analysis of Taxation reveals that reforming Capital Gains Tax (CGT) would generate £14bn for the UK and remove nearly 40% of current taxpayers from the tax entirely. It finds a bolder CGT system could also foster economic growth and reduce inequality. 💼💡 ❗ Read all about it here: https://lnkd.in/eVXkRuvM

Key Income Tax Updates for Small Businesses in the 2025-26 Tax Year: For the 2025-26 tax year, most Income Tax allowances and rates in the UK will remain unchanged, with some notable adjustments for small businesses. The Married Couple's Allowance will increase to £11,270 for those born before 6 April 1935 and the minimum to £4,360. The Blind Person's Allowance will rise to £3,130. Other allowances will stay frozen until 5 April 2028, and ISA investment limits will not change. Additionally, Making Tax Digital (MTD) will become compulsory for sole traders and landlords earning over £20,000, though no specific date has been set. Small businesses should be aware of these updates, especially regarding MTD compliance, for effective financial management. #uktax #taxation #taxpayers #taxupdates #taxadvices #taxsavings #smallbusinessowners

As of October 2024, the UK corporation tax rate has been capped at 25% for profits over £250,000. Small businesses with profits up to £50,000 remain at the lower 19% rate, and there’s a gradual increase for profits between £50,000 and £250,000. To keep more of your hard-earned money, it’s smart to manage your profits so they stay below that threshold. By being savvy with your finances - like maximising deductions and using tax reliefs - you can avoid the higher rate and have more cash to reinvest in your business. It’s not just about saving money now; it’s about setting yourself up for future growth without a big tax bill hanging over you. #financebroker #commercialfinance #assetfinance #businessfinance #moneymatters #financegoals #taxplanning #taxmitigation #reducetaxes

'HMRC gave me £49,000 tax relief, but wants it back' Some small businesses that received tax breaks for their innovation work are now being chased to pay the money back HMRC is reassessing past research and development (R&D) tax relief claims, after underestimating the level of error and fraud over many years. It says it has to make sure that claimants are entitled to the reliefs. But business groups say the process is being "mishandled" and is "crippling" small firms. One start-up told the BBC it is being asked to return £49,000. https://lnkd.in/d8f9_9GY #randd #hmrc #smallbusiness #researchanddevelopment #tax #taxrelief

With differing tax points, rates, and payment deadlines between the US and UK, managing double taxation requires strategic planning. Annabel breaks down the nuances and offers valuable tips to minimize tax burdens. #Taxation #USUKTax #CarriedInterest #buzzacott

Attention UK earners! Did you know that once your income exceeds £100,000, your income tax personal allowance is gradually taken away? This means that if your income is between £100,000 and £125,140, you'll face a hefty marginal income tax rate of 60%. For example, someone earning £100,000 and receiving an extra £10,000 will pay a total tax of £6,000, which is 60% of the extra income. And if your income exceeds £125,140, you'll start paying income tax at 45% on most types of income. Keep in mind that the personal allowance saves you up to £5,028 in tax if you are a higher-rate taxpayer (£12,570 x 40%). These are important tax facts to keep in mind as you plan your finances. #UKtax #incometax #personaltaxallowance