Author: Glenn

One of the most commonly used and valuable exemptions from Capital Gains Tax (CGT) is for the sale of a family home. Generally, there is no CGT on a property that has been used as your main family residence. However, an investment property that has never been used as your main home will not qualify. This relief is known as Private Residence Relief (PRR).

The rules change if you live abroad. Since April 2015, non-UK residents are subject to CGT on the sale of UK residential property. Only the portion of the gain made after 5 April 2015 is liable for tax. In certain situations, PRR may still apply if the property was the owner’s only or main residence.

If a UK non-resident sells UK residential property, they must submit a non-resident CGT (NRCGT) return and pay any CGT within 60 days of the sale. This return is required even if no CGT is due, or if there is a loss on the sale, and regardless of whether the taxpayer will report the sale on their self-assessment tax return.

There are penalties for not filing the NRCGT return on time or for failing to pay any tax owed by the deadline.

It is important to take the necessary steps to protect your land and property from fraud.

You are at a higher risk if:

• Your identity has been stolen
• You rent out your property
• You live abroad
• The property is empty
• The property is not mortgaged
• The property is not registered with HM Land Registry

HM Land Registry offers a free property alert service to help protect against fraud. This service monitors properties that might be at risk of fraudulent sale or mortgage. You can monitor up to ten properties through this service.

The alert service is available for any property in England or Wales registered with the Land Registry. Once you register, you will receive email alerts about specific activities on your properties, such as when a new mortgage is taken out, so you can act if needed.

For properties in Scotland or Northern Ireland, you will need to check different registers.

The VAT Flat Rate Scheme allows businesses to pay VAT as a fixed percentage of their total turnover, which includes VAT. The applicable percentage varies based on the business type. This scheme is designed to simplify VAT accounting, thereby reducing the administrative burden associated with VAT compliance.

The scheme is open to businesses that expect their annual taxable turnover in the next 12 months to be no more than £150,000 (excluding VAT). This annual taxable turnover includes all sales—standard, reduced, zero rate, and other supplies—but excludes the actual VAT charged, VAT-exempt sales, and sales of capital assets.

Since April 2017, a 'limited cost trader' test has been in place. Businesses that meet the conditions as limited cost traders must use a fixed rate of 16.5% under this scheme. For these types of businesses, it is usually beneficial to opt out of the VAT Flat Rate Scheme and use traditional VAT accounting.

Once enrolled, businesses can remain in the scheme as long as their total income does not exceed £230,000 in any 12-month period, with special provisions for temporary increases in turnover. Additionally, there is a 1% discount available for businesses in their first year of VAT registration.

If you have lost or forgotten your National Insurance number, there are several ways to retrieve it.

You can find your National Insurance number:

• On a document you already possess, such as a P60, payslip, or letters regarding benefits.
• In your personal tax account.
• In the HMRC app.
• In your Apple or Google Wallet (if you have previously saved it there).

You can also download a letter showing your National Insurance number through your personal tax account or the HMRC app.

If you are still unable to find your National Insurance number, you can request it online, submit a written request to HMRC using form CA5403 or contact HMRC by phone. Teenagers will usually receive a letter with their National Insurance number just before turning 16.

If you have never been issued a National Insurance number, you can apply for one, provided you meet the eligibility criteria.

The letters in your tax code indicate whether you are entitled to the annual tax-free personal allowance. These codes are updated each year and help employers calculate how much tax should be deducted from your salary.

For the current and upcoming tax year, the basic personal allowance is £12,570. The tax code corresponding to this amount is 1257L, which is the most common tax code used for those with a single job, no untaxed income, and no unpaid tax or taxable benefits (such as a company car).

Your tax code might include various other letters and numbers. For instance, letters like "M" indicate that an employee is claiming the marriage allowance, or "S" shows that Scottish income tax rates apply. If your tax code numbers change, it often means your personal allowance has been reduced.

There are also emergency tax codes (W1 or M1), which are used when a new employee does not have a P45. These codes calculate tax based on the current pay period.

If your tax code starts with a 'K', this means deductions for company benefits, state pension, or previous tax owed, exceed your personal allowance. However, the tax deduction for any pay period cannot exceed half of your pre-tax salary or pension.

It is essential to verify your tax code to ensure the correct information is being applied. If you have any questions, we are here to help.