Howlader & Co Blog

With immediate effect SDLT rate of 7% will apply to residential property at over £2m A penalty rate  of 15% will apply to residential property purchased by a “non-natural” person (e.g.  company) after this limit. This is (one could argue) a fluffy version of the proposed the “mansion tax”. The overseas company loophole on stamp […]

The £30k charge rises to £50k if they are claiming the remittance basis and have lived in the UK for 12 or more of the last 14 years. This is effectively the “rent” for living in the UK if you are not paying tax on your worldwide earnings.  

In a couple, the partner earning more than £50k will suffer a new tax from January 2013 – 1% of the benefit for every £100 over 50k. This obviously becomes 100% once earnings are 60k. Clearly it isn’t compulsory to pay this tax if benefit isn’t claimed. The welfare system is being overhauled and this […]

Sole trade losses and gift aid These are being capped. Before, if a sole trader started a business and made opening year losses or other trading losses for example, he could relieve these against other income (sideways loss relief). This is now being restricted to the greater of 25% of income or £50,000. The same […]

At £10,600. In real terms a freezing of exemptions means more tax to pay but one could argue that property prices have not increased on average by an awful lot.  

For 2013/14. People over the age of 65 and 75 have  higher and higher still personal allowances. This is being phased out gradually. By 2015 it is likely to have disappeared altogether. There is no escaping the fact that pensioners are comparatively worse off. This is a decision Mr Osborne may well regret (looking at today’s […]

From Apr 12 Personal allowances increase to £8,105 (from £7475)   Now, higher rate taxpayers are slightly better off if earning exactly the same (the higher rate threshold has reduced by a lesser amount) but basic rate payers are much improved position. Last year higher rate payers were indifferent.  

Highest rate reduction to 45% (from 50%) from Apr 2013 for incomes over £150k. Highest dividend rate reduction to 37.5%   The 50% income tax rate was somewhat punitive and the amount of tax raised debateable so we welcome the slight reduction. The thinking is that more will be raised this way (higher declaration). However, […]

If a business is under the VAT registration threshold (£77,000) they can account and pay tax using a cash accounting scheme This is probably our favourite bit of the budget and one we had been hoping for for years. To explain: before, a company declares income as soon as the invoice is made – or […]

On business cars – more strict with respect to CO2 emissions (capital allowances on business cars) This was inevitable – and in line with “green” policy