Category Archives : Tax Advise

Will be putting articles on how you could reduce your your tax liability here. Use the contact us form if you have any specific questions.


Gift Relief on Shares in a Business – Capital Gains Tax

Individuals have a number of reliefs from Capital Gains Tax. Some of the reliefs include Roll-Over relief, Incorporation Relief, Gift Relief and Entrepreneurs relief. The different reliefs have different conditions that need to be met attached to them so you will need to look at these first in order to determine if you are entitled to any of the above mentioned reliefs. The different reliefs also have different implications to your liability and a brief description of each of the reliefs is given below: Roll Over Relief – defers tax on chargeable gains when a person disposes of a qualifying business asset and buys another. Incorporation Relief – Applies when […]


Pensions and Death Taxes – How It Works As An Inheritance Planning Tool

In the years gone by, death used to be followed by a huge 55% tax hit on any money you left behind to your loved ones. However, rules introduced last year mean it is now possible to pass on your entire pension pot to your beneficiaries, tax-free. ‘In this world nothing can be said to be certain, except death and taxes.’ Benjamin Franklin How Passing On Your Pension Tax Free Works If you die before the age of 75 and have a Self Invested Personal Pension (SIPP), you can pass on your entire pension fund to your beneficiaries tax free. The money can be passed down as a cash lump […]


Capital Gains Tax Treatment of AB InBev (BUD) Takeover of SABMiler (SAB)

At the beginning of last month, the giant beer takeover of SABMiler by Anheuser-Busch InBev went ahead for £79 billion. For the investors of SABMiler, this takeover has provided a handsome pay-out. Each investor in SABMiler, depending on their preference received £45 for every share they owned or £4.6588 in cash and 0.483969 restricted shares. Whilst shareholders have received a premium of more than 50% as compared to the stock price the day before the takeover deal was announced, they are capital gains tax consequences for those investors who did not hold their shares in a tax shelter such as a Pension or ISA. Capital Gains Tax consequences of the […]


If you want to buy US listed shares, fill out a W-8BEN form (American stocks for foreign investors) 4

The rise of online platforms over the past decade has been great. From HL, to Youinvest, to interactive investor, these platforms allow individual investors like you and I to buy shares all over the world for a reasonable price. With this easy access to US, European and Asian stocks, many people forget to do research on how the system in these overseas countries works in a different way to ours. One example of this is Dividend Withholding Tax (DWT). If you buy shares in a foreign company, the dividend you receive from that company will be subject to DWT. This means that as a foreign investor, you do not get […]


Why you should not care about corporate tax dodging!

Around the world, and especially in the UK, there is a growing resentment towards large corporations and the huge profits they make. It is widely known that many corporations try to minimise their tax bills by using various organisational and legal structures. This tax planning conducted by multinational corporations has led individuals to believe that these companies do not pay their fair share of taxes. This leaves many individuals angry at ‘the system’ and feeling helpless. But I’m here to tell you that you should not waste your time of effort thinking how little corporation tax multinationals pay. This is because the money saved by a corporation on a reduced […]


Capital Gains Tax Relief when selling your business – Incorporation Relief

Individuals have a number of reliefs from Capital Gains Tax. Some of the reliefs include Roll-Over relief, Incorporation Relief, Gift Relief and Entrepreneurs relief. The different reliefs have different conditions that need to be met attached to them so you will need to look at these first in order to determine if you are entitled to any of the above mentioned reliefs. The different reliefs also have different implications to your liability and a brief description of each of the reliefs is given below: Roll Over Relief – defers tax on chargeable gains when a person disposes of a qualifying business asset and buys another. Incorporation Relief – Applies when […]


Dividend Withholding Tax Rates for Different Countries Around the World – Foreign Stocks 4

Over the years, various studies have shown that investors tend to favour home stocks as opposed to foreign stocks. One of the reasons is that people are more familiar with companies that are based in their own country than abroad. As a UK investor, I would rather hold Uniliver in my portfolio over Clorox, or Royal Dutch Shell over Exxon Mobil. Whilst there is undoubtedly an element of home bias in favour of local stocks, I believe that one of the biggest deterrents in ownership of foreign stocks is taxes – in specific withholding taxes on dividends. What are withholding taxes and how do they work? A dividend withholding tax […]


Saving in A Pension (SIPP) VS a Lifetime ISA (LISA) for retirement? Which is better 2

Planning for retirement is something that needs to be considered carefully because after all, your life will depend on it. However, understanding pensions and retirement funds can be a little confusing and people often need final salary pension advice to plan out their later years. There are numerous different savings accounts available for those looking to put away money and save for retirement but how do you know which one will suit you best? Not every account is designed the same and they all come with varying benefits, so it’s important to do plenty of research before settling. With the recent introduction of the Lifetime ISA (LISA), the whole debate […]


The new UK dividend tax rules – £5000 tax free and no more dividend tax credits 3

The rules surrounding UK dividends have always mystified many people. The artificial dividend tax credit of 10% has caused confusion over the years and if you want to see why, just look at the post I did on the old dividend tax rules. But thankfully, the taxation of UK dividends changed as of the 2016/2017 tax year. The new rules which take effect as of 6 April 2016 are as follows: Each individual has a £5,000 tax-free dividend allowance. This means that no tax is paid on any dividend income earned below £5,000. If dividend income exceeds £5,000, the rate of tax they will need to pay on the amount […]


How Much Tax you Really Pay on a Purchase – Your Tax Rate is Higher than you Thought!

Apart from debt, on of the greatest stumbling blocks to building wealth is taxes. Don’t get me wrong, I do believe that tax is the price to pay for living in a civilised society. But the amount of tax we pay is way too high. Look at Corporation Tax for example, it is a tax on a tax on tax. Every company in a supply chain has to pay tax and this means that at every point in the supply chain, prices get jacked up by the current corporation tax rate of 20%. Look at the following illustration to see what I mean: If you go to a furniture store […]