Taxation

AIC Press Release on VCTs

To follow on from my last blog post, another interesting press release from the AIC today was that on the performance of Venture Capital Trusts (VCTs). That's particularly so when everyone is considering their tax bills at this time of year, i.e. those just paid and how they can avoid such big ones for the current year and next. VCTs do of course offer upfront income tax relief when investing in new shares, and also tax free dividends thereafter. Many have been ...

Brexit, Industrial Strategy and Productivity

What next now that we are committed to Brexit? Well first we need an "industrial strategy" to help us develop a new place in the world and possibly to pay for the up to £60 billion that might be demanded by the EU (as settlement for outstanding commitments if you believe that - yes divorce can be expensive). Now it just so happens that the Government has just published a Green Paper entitled "Building our Industrial Strategy" on that topic which ...

Losses From Withholding Taxes on Dividends

An issue that has come to the notice of ShareSoc is the problem of the Withholding Tax introduced on dividends in South Africa. Even though Pan African Resources Plc (PAF) is registered in the UK, it is dual listed on AIM and the Johannesburg Exchange (JSE). Because of the way South Africa introduced the tax change, any shareholder is going to get 15% deducted before payment (or 10% for UK residents under a dual tax treaty). To get the lower rate, you ...

Stamp Duty Review

The Office of Tax Simplification is currently undertaking a review of Stamp Duty. Stamp Duty is paid on share transactions, although there are numerous exceptions and ways to avoid paying it. Although this review seems to be primarily focussed on technical aspects and how to remove paper processes (still needed for off-market transfers for example), ShareSoc argues that the tax should be scrapped altogether. (more…)

Chancellors Autumn Statement – How Does It Affect Investors?

The Chancellors Autumn Statement yesterday was effectively a cold shower for those who might be positive about the economy. Government debt is going to be allowed to rise so...

Pension Protection – It’s Easy

The question of whether to apply to HMRC for “Pension Protection” is something that investors might wish to consider. With the Chancellor’s Autumn Statement coming up on Wednesday (23rd...

Who Caused the Stock Market Collapse? And consequences.

Who or what caused the stock market falls immediately after the Brexit vote? It was not just the UK market that fell, but many international ones plus of course the pound fell very significantly - to its lowest level since 1985. It was somewhat unexpected that the impact would be so immediate. The UK stock market has recovered to a large extent in the large cap stocks, many of which will benefit from the lower pound and a move to more "defensive" ...

What’s the Beef About the Cameron’s Tax Planning, and Tata?

The attacks on David Cameron over his family's tax planning seem wildly excessive. His father set up an offshore investment fund to invest in dollar based shares without incurring the risk of double taxation. David did hold some of the units but subsequently sold them. His mother gave him £200,000 after his father died, with the probability (not certain) of that being outside inheritance tax if she lived for another 7 years. That is not exceptional tax planning, it's just common ...

FAMR and Advice Services

Just before the Budget was announced, the Final Report of the Financial Advice Market Review (FAMR) was published. That Review was the latest examination of the financial advice market. To put it in some historic perspective, the Retail Distribution Review (RDR) was introduced to improve the quality of financial advice provided and remove obvious bias. So financial advisors had to stop bundling, and effectively hiding, the cost of advice when selling financial products but had to declare it. This certainly improved the ...

Budget Spring 2016 – You Won’t Need Sugar to Sweeten this Pill

The Chancellor appeared to be in a buoyant mood delivering his budget speech today even though he noted that the global economy is weak and financial markets are turbulent. He reported a fast growing UK economy and lots of personal tax cuts. Indeed he emphasised that with 1% of the richest taxpayers contributing 28% of all income tax, this was proof "that we are all in this together" in case you did not realise it! But the wealthy certainly won't be ...