Tax for Individuals / December 23rd 2014

What is the difference between residence and domicile for UK tax purposes?

When it comes to completing your UK self-assessment tax return, there is often a lot of confusion between your residence and your domicile with many believing that both concepts are the same. This is not the case as being a UK resident or UK domiciled can have very different consequences from a tax perspective. Domicile T

Inheritance tax is normally payable upon the death of an individual, but can also be due during the lifetime of an individual when they make a chargeable lifetime transfer. However there are a number of lifetime gifts that can be made free of IHT, including: Small gifts of up to £250 per person A number of gifts

If you are not a UK resident (for tax purposes) for the full tax year, it is possible to claim to be assessed on the split year treatment. Under HMRC’s new Statutory Residents Tests (SRTs), UK individuals are subject to three separate tests to determine their residency position: Automatic Overseas Test, Automation

A deductible expense is a cost incurred which can be claimed when calculating taxable profits from a business or income source.  Individuals with rental properties will incur expenses which may or may not be deductible when calculating the profit which is liable to income tax. (more…)

Capital gains tax (CGT) is a UK tax which applies on any gain realised on the disposal of most assets.  Depending on the amount of this gain, the rate of CGT that will apply is up to a maximum of 28%.  However there is also an annual exemption of just over £10,000. (more…)

In the UK, you may be required to prepare an individual self assessment tax return for a number of reasons.  This return applies to individuals, normally where they receive income which is not fully taxed at source. (more…)

Paying National Insurance Contributions (NICs) build up your entitlement to state benefits and state pensions. The total amount of NICs contributed depends on your average weekly earnings and there are a number of different percentages of NICs for each type of employee. (more…)

Most owner-managers of companies will often have to make a decision about how they take money from the company. Of course, a salary is paid to an employee, whilst a dividend is paid to a shareholder. In many small companies, there will be one owner, who is also an employee. (more…)

Just like for income tax, each individual has an annual exempt amount for capital gains tax purposes. The annual exempt amount is simply the value of gains that they can realise without paying capital gains tax. This amount is generally increased each year in line with inflation. For the tax year 2013/2014, this amount is Â

There are a number of investments which benefit from tax efficient status. The first of these tax efficient schemes is an Individual Savings Account (ISA). These are widely available from high street banks and building societies. Returns (interest, dividends and capital gains) from the ISA are normally free of income tax a