A supplement applies on top of the residential stamp duty rates where a person has two or more residential properties. The supplement is set at 5% and applies where the consideration for the second or subsequent property is £40,000 or more. However, special rules apply where a person replaces their main residence and the SDLT supplement is not payable where both of the following conditions are met: · the new property replaces the main residence; and · the former main residenc

Where a property business is operated through a company, the profits need to be extracted if they are to be used personally. One of the ways of extracting profits in a tax-efficient manner is to pay dividends, particularly if the shareholder’s personal allowance has been used elsewhere. All taxpayers regardless of the level at which they pay tax are entitled to a dividend allowance. For 2025/26 this is set at £500 and will remain at this level for 2026/27. There is no persona

The abolition of the furnished holiday lettings regime abolished day counting for tax purposes from 6 April 2025 onwards. However, where a property is let as a holiday let, there is still a need to count the days on which the property is available for letting and actually let to check that the property is within business rates rather than council tax. As many holiday lets will be eligible for small business rate relief, this is a definite bonus, as there will be nothing to pa

A director’s loan account (DLA) is an accounting record that tracks funds owed by a company and its individual directors. Usually, a DLA will be in debit (i.e. the director has taken more money out of the company which has not been otherwise repaid in the form of salary, dividends or reimbursement of expenses). However, there may be occasions where the DLA is in credit (i.e. when the director has put more money into the company than they have taken out). This can arise throug

Directors of limited companies are generally not personally liable for unpaid corporation tax as limited liability usually protects them. A company is a separate legal entity and limited liability is one of its core features. However, in some circumstances, HMRC may pursue directors personally. The risk increases where non-payment of corporation tax is due to deliberate behaviour, negligence or fraud. If directors pay themselves rather than settling their company tax bills th

For owner-managed businesses, paying school or university fees through the company can appear attractive, especially if the company has surplus cash. However, tax consequences may arise for the individual. Should the company reimburse the individual, the amount counts as earnings subject to PAYE income tax as well as employee and employer Class 1 NIC. Therefore, reimbursement is generally the least efficient method of funding. Company’s tax position Where a company pays for a

In personal and family companies, director shareholders often borrow money from the company. Where a company is close, as most personal and family companies are, if a loan to a director or other participator remains outstanding on the corporation tax due date for the period in which the loan was taken out, the company must pay tax on the outstanding amount of the loan. Corporation tax is due nine months and one day from the end of the accounting period. The tax that is due on

From 6 April 2026, the 100% rate of agricultural property relief (APR) and business property relief (BPR) is only available on the first £2.5m of qualifying business and agricultural property. The allowance was increased to £2.5m from £1m following extensive lobbying by farmers. APR Agricultural property relief (APR) allowances a person to pass on agricultural property either free of inheritance tax or at a reduced rate either during their lifetime or on their death. Agricult

As the tax year draws to a close, directors of personal and family companies should consider whether it is worthwhile paying a dividend before 6 April 2026. However, it is only possible to pay a dividend where the company has sufficient retained profits from which to pay it. Also, where a class of share has more than one shareholder, dividends must be paid in proportion to shareholdings. Unused allowances Where a shareholder has not used their dividend allowance (set at £500

State pension entitlement depends on a person having sufficient qualifying years, which in turn depends on them having paid or been treated as having paid sufficient National Insurance contributions. A person will receive the full single tier state pension (also known as the new state pension) if they have at least 35 qualifying years. Where a person has less than 35 qualifying years but at least ten, they will receive a reduced state pension. A person with less than ten qual

As the end of the 2025/26 tax year approaches, it is a good idea to undertake a financial review and assess whether there is any action you can take to cut your tax bill. Tip 1 – Don’t waste your personal allowance If you have not used your 2025/26 personal allowance, it will be lost – you cannot carry it forward to 2026/27. To prevent wasting it, consider whether you can advance income so that you receive it in 2025/26 rather than in 2026/27. If you are claiming capital allo

In the not-too-distant past, incorporation was synonymous with automatic tax savings. However, successive governments have eroded these tax benefits. With additional administration and costs, many directors are considering disincorporation. As ever, there are tax implications for both the company and individual. Asset transfer Whatever the reason for disincorporation, when a company with assets closes, HMRC generally treats the company as disposing of those assets to the dire

Many digital platforms and online marketplaces in the UK, such as eBay, typically consider a seller to be a trader if they list items frequently or in bulk, or if the individual is perceived as selling items with the intent to generate profit. Being classified as a trader leads to additional fees not applied to private sellers. In addition, if 30 or more sales transactions are completed or total sales exceed approximately £1,707 after fees, eBay and other similar platforms ar

Many employees see being allowed the use of their own company car as acknowledgement of their status in a company. While the employee will be taxed on the benefit, the tax charge is usually not as high as having to finance the car out of their own savings or taking out a loan. However, should the employer also offer to pay for all fuel (usually via use of a company fuel card), including for personal use, the employee could face a sizeable tax (and NIC) charge. Many company ca

One of the key requirements under Making Tax Digital for Income Tax Self-Assessment (MTD for ITSA) is the need to keep digital records of income and expenses. A digital record is a record of income or an expense that is created and stored using software that is compatible with MTD for ITSA. There are different software options available. A landlord within MTD for ITSA can either choose a single software package that does everything or different software products that work tog

Unincorporated landlords who had combined property and trading income in 2024/25 of £50,000 or more must comply with Making Tax Digital for Income Tax Self-Assessment (MTD for ITSA) from 6 April 2026. This requires them to keep digital records and make quarterly returns and a final declaration to HMRC using MTD-compatible software. Where landlords jointly own a property, there are some points to note. Working out qualifying income A landlord is only within MTD from 6 April 20

From April 2026, many businesses may find that their business rates increase. This is as a result of the revaluation of properties for business rates purposes, and for businesses operating in the retail, hospitality and leisure (RHL) sector, the withdrawal of reliefs introduced in the Covid pandemic. Nature of business rates Business rates in England and Wales are charged on most non-domestic premises, including offices, shops, warehouses, factories, restaurants, pubs, hotels

Making Tax Digital for Income Tax Self-Assessment (MTD for ITSA) will apply from 6 April 2026 to sole traders and unincorporated landlords with combined trading and property income in 2024/25 of at least £50,000. Under MTD for ITSA, traders and landlords must keep digital records and make digital returns to HMRC using MTD-compatible software. A digital record is a record of income and expenses that is created and stored in software that works with MTD for ITSA. Under MTD for

In difficult trading conditions, a sole trader may realise a loss rather than a profit. Where this is the case, it is important that the trader realises that they may be able to claim tax relief for that loss. There is more than one way in which this can be done, and the best route will depend on the trader’s other income and personal circumstances. The relief must be claimed. Option 1: against other income of the same or previous tax year Where the trader has other income, s

Employees often incur expenses in doing their job and they may be able to claim these back from their employer through the expenses system. Where an employer reimburses expenses, there may be tax implications to consider. Exemption for paid and reimbursed expenses A tax exemption applies to certain paid and reimbursed expenses. It is available if the expenses which are paid or reimbursed by the employer would be fully deductible from an employee’s earnings had the employee me