Join the 100's of highly satisfied clients all around the UK who receive a friendly personalised service all year round.  

Limited company formation services

A fast track & individually tailored service. (Click here) 

Small business start up and structuring advice

We can help you achieve your entrepreneurial ambitions and expertly structure and manage your Tax & Accountancy responsibilities.

Fast track transfer

We can contact your existing accountants to arrange a professional transfer.

 

Budget 2011

 

The Chancellor of the Exchequer presented his Budget to Parliament on 23rd March 2011. Summaries of the main announcements which affect Small businesses, Contractors / Freelancers, Private individuals and  Landlords are outlined below.

 

All applicable clients will automatically receive an expert and bespoke review of their tax affairs to identify any specific and relevant tax planning opportunities or restrictions arising from the legislative changes.

 

Rate and threshold changes

 

(click here)

.

Research and Development Tax Credits for SME

 

The rate of the additional deduction for expenditure on research and development (R&D) for companies that are small or medium sized enterprises (SMEs) is to increase from 75% to 100% from 1 April 2011.

 

Approved Mileage Allowance Payments Rates

 

The current higher rate of 40p per mile for the first 10,000 business miles is increased to 45p per mile. The rate for mileage over 10,000 miles remains at 25p.

 

Capital Gains Tax Entrepreneurs’ Relief

 

The lifetime limit on gains qualifying for entrepreneurs' relief is to be increased from £5 million to £10 million with effect from 6 April 2011.

 

Capital Allowances

 

Businesses and landlords incurring expenditure on an item of plant or machinery from April 2011 onwards will be able to make a short life asset election if the item is expected to be sold or scrapped within an eight year cut off period.

 

Anti-avoidance measures

 

Measures will be introduced in an attempt to restrict specific loopholes. These include:

  • Regulations listing specific avoidance schemes and ensuring users do not benefit from a cash flow advantage from retaining the tax due through an additional charge for late payment of tax.

  • Reviewing the legislation on reliefs for income tax losses which can be set against other income in the same or previous years. The aim of the review will be to ensure it is effectively targeted at those intended to benefit and reduce its use for tax avoidance.

  • Introducing an anti avoidance measure to prevent the benefit of double tax treaties being given where arrangements have been made in relation to the claim to avoid UK tax.

IR35

 

The provisions are to remain in law with increased compliance checks.

Company degrouping charges

The use of planning techniques used by groups to allow tax free disposals of shares in subsidiaries by avoiding capital gains degrouping charges will be made ineffective from 23/03/11. These structures were typically used by groups acquiring a target which was to be broken up.

Furnished holiday lettings

As previously announced, changes will be made to tax rules for furnished holiday lettings (FHL) and the regime will be extended to properties situated in the European Economic Area.

From 6 April 2011 (for individuals) losses made by a qualifying FHL business can only be set against income from the same letting business. In addition, from 6 April 2012, the minimum period a qualifying property must be available for letting to the public in the relevant period is increased from 140 days to 210 days and the minimum period that the property must be actually let to the public is to be increased from 70 to 105 days.

A ‘period of grace’ will be introduced to allow businesses that do not continue to meet the ‘actually let’ requirement for one or two years to elect to continue to qualify throughout that period. The existing capital gains tax reliefs associated with FHLs will continue unaffected.

Enterprise Investment Scheme and Venture Capital Trusts

 

The rate of income tax relief will be increased from 20% to 30% with effect from 6 April 2011.

 

The following changes to the Enterprise Investment Schemes (EIS) and Venture Capital Trusts (VCT) are proposed from 6 April 2012:

  • An increase in the thresholds for the size of qualifying company for both EIS and VCTs to fewer than 250 employees and to the company having no more than £15million of gross assets before the investment.

  • An increase in the annual amount that can be invested through both EIS and VCTs in an individual company to £10million.

  • An increase in the annual amount that an individual can invest through EIS to £1million.

Inheritance Tax

A reduced rate of IHT will apply where 10% or more of a deceased’s net estate (after deducting IHT exemptions, reliefs and the nil rate band) is left to charity. In those cases the current 40% rate will be reduced to 36%. The new rate will apply where death occurs on or after 6 April 2012.

Business Premises Renovation Allowance

 

The allowance will be extended for a further five years from 2012

Non-Domiciled individuals

The following reforms are to be introduced:

  • An increase to the existing £30,000 annual charge to £50,000 for non-domiciles who have been UK resident for 12 or more years and who wish to retain access to the remittance basis.

  • An exemption to the tax charge when non-domiciles remit foreign income or capital gains to the UK for the purpose of commercial investment in UK businesses.

  • A statutory definition of residence is to be formulated.

 

 

"...I am so grateful for your very efficient work on this, and most impressed with what you have achieved. I have already been recommending you to my friends..."

 (Unsolicited and verifiable written client quote)

 

(Click here for more client quotes and testimonials)

"...I have been extremely pleased with the efficient and friendly service you offer, and it's nice to do business with someone you can trust..."

(Unsolicited and verifiable written client quote)

 

(Click here for more client quotes and testimonials) 

 

© 2002-2012 Professional 2U Limited. All rights reserved.

 

The contents of this website are the intellectual property of Professional 2U Limited. Accountant 2U ® is a registered trademark No.2388286.

 

The Accountant 2U Direct name and logo and all related service names are the trade names, trademarks or servicemarks of Professional 2U Limited.

 

Registered with The Chartered Institute of Taxation as a firm of Chartered Tax Advisers.

 

Accountant 2U Direct is the trading name of Professional 2U Limited. Registered in England No. 04442461. VAT No. GB-784-4138-09.

 

Terms of Use      Privacy Notice