It was the month in which John Major resigned as Conservative Party leader to face down the eurosceptic “bastards” destabilising his government. In the City of London, meanwhile, the London Stock Exchange (LSE) was preparing to launch what it now describes as “the most successful growth market in the world”. The Alternative Investment Market (Aim) opened its doors on 19 June 1995.
Over-55s who take money out of their pension pots during the coronavirus crisis may have to claw back larger than usual tax overpayments from HMRC, pensions consultancy LCP has warned.
At the start of a new tax year (2020/2021) we run through tax rules and allowances, as well as detailing some changes that have made.
Anyone who has recently inherited shares may be entitled to a refund on previously paid inheritance tax (IHT) due to the recent stock market falls, according to private client law firm Wilsons.
IHT is calculated on the value of assets on the date of the deceased passing, with the tax due to be paid six months from that date. Therefore, any shares inherited before the recent market crash will have incurred a tax bill reflecting what were historically high prices for shares.
Following concerns last week that expatriates and UK non-residents who find themselves stranded in the UK as a result of the coronavirus shutdowns could end up with unexpected UK tax bills, HMRC has published guidelines on what counts as “exceptional circumstances”.
British expatriates and non-residents who are stranded in the UK because of coronavirus travel restrictions could face unexpected tax bills, warns accountancy group UHY Hacker Young.
Under what’s known as the statutory residency test (SRT), non-residents and British expats pay UK income tax only on UK earnings; they pay no tax on their overseas earnings, provided they have been absent from the UK for one complete tax year and spend a maximum of 183 days in the UK in any tax year.
It has been a gloomy time for investors in smaller UK companies. Investors concerned that they are too vulnerable to the volatile UK economy in the wake of Brexit have shied away.
In this context, the popularity of venture capital trusts (VCTs), which have raised record amounts, is an anomaly. Figures from the Association of Investment Companies show that investors committed £731 million to the sector during the 2018/19 tax year, up from £728 million in the previous year and an impressive 70% higher than the £429 million invested five years ago.
For tax purposes, I am resident in Australia, where I have been living since 1974. I have some M&G investment funds that I have held in one form or another since 1983. If I were to sell these shares, would I be subject to CGT and/or withholding tax, and how much would I have to pay? Would M&G act on behalf of HMRC and retain the tax payable, or would it deposit the gross proceeds from this sale in my UK bank account?
Joseph Zekan, by email
Everyone can have both an Isa and a pension – and as each type of tax wrapper has advantages and disadvantages, investors should try to make the most of both products.
Medieval accounting practices coupled with a switch to the Gregorian calendar have left us with a tax year that starts on 6 April. That date may not have quite the same cachet as 1 January, but it’s one that’s well worth remembering, as many allowances are linked to the tax year.
This 10-point checklist straddles the tax year end to remind you of the tasks you need to do before the clock strikes midnight on 5 April, and those you need to focus on in the new tax year.