Entries by Taxfile

IHT: Transfer of unused nil-rate band

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The Pre-Budget 2007 Report published on Tuesday 9th October announced various changes, one of them referring to the inheritance tax (IHT). Previously, married couples could transfer an unlimited sum to each other when one died without paying inheritance tax. But when the survivor died, their estate was then taxed at 40% on anything exceeding £300,000. […]

Introduction to Stamp Duty & Stamp Duty Land Tax

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Stamp Duty is a type of tax you pay when you buy land or shares. You pay a Stamp Duty Land Tax when you buy property and Stamp Duty Reserve Tax when you buy shares. You pay Stamp Duty Land Tax on such properties like houses, flats , other buildings and land. There is a […]

Is Your Estate Excepted From IHT?

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(for UK domiciliaries only) From 6 April 2004, there are two types of estates are qualified to be excepted from IHT for UK domiciliaries. 1. Low valued estates When the total value of estates does not exceed the inheritance tax threshold, then those estates do not suffer IHT. Which threshold should be applied is determined […]

Something You Need to Know about Principal Private Residence Relief to Avoid CGT

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Before you start the game of property investment, be aware that the Inland Revenue is always interested in the profit you make by selling your properties. But the sale of your main home will rarely result in any Capital Gains Tax (CGT) liability, because of the principal private residence (PPR) exemption. •Determination of Principal Private […]

Casual labour / subcontracting

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It is not widely known that you must establish someone’s status when you pay them any money for helping you with their labour.The trick or tip is to get them to supply their unique tax reference number. They should invoice you for their services . If they don’t offer an invoice, it’s best to issue […]

Your personal tax allowance

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Everyone who lives in the UK is entitled to a personal allowance. This is the amount of income you can receive each year without having to pay tax on it. Depending on your circumstances, you may also be able to claim certain other allowances. There are three levels of personal allowance for 2007/2008 tax year: […]

What is the Construction Industry Scheme?

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The Construction Industry Scheme (CIS) sets out the rules for how payments to subcontractors for construction work must be handled by contractors. A contractor is a business or other concern that pays subcontractors for construction work. A subcontractor on the other hand is a business that carries out construction work for a contractor. Under the […]

Taxfile knows everything about taxi drivers’ tax!

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There are a few things that need to be considered when it comes to taxi drivers’ tax. Among them we can mention the following: •Mileage Allowances Taxi drivers can claim as an alternative to vehicle running costs mileage allowances of 40p for the first 10,000 miles and 25p per mile thereafter. You may not claim […]

Business welcomes tax Tory plans

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The Tories yesterday set out proposals for easing the burden of tax and regulation on British businesses in an attempt to improve the economy’s competitiveness. However Chancellor George Osborne said that any tax reductions would have to be paid for by tax increases elsewhere, such as new environmental taxes: ” Any reductions in specific taxes […]