Businesses can reclaim VAT on pre-registration expenses if they relate to taxable supplies made after VAT registration. The rules differ for goods and services, with time limits of 4 years for goods and 6 months for services. Proper understanding ensures you don't miss out.

VAT can only be reclaimed if the pre-registration costs relate to taxable goods or services that will be supplied by the business after it becomes VAT registered.

Different rules apply depending on whether the costs are for goods or services:

Goods: VAT can be reclaimed for goods still held by the business or for goods used to produce other goods still in possession of the business.

•  Time limit for reclaiming: 4 years from the date of registration.

  Services: VAT can be reclaimed for services related to the business.

•  Time limit for reclaiming: 6 months from the date of registration.

Pre-registration VAT should be reclaimed on the business’s first VAT return. In certain cases, it may be possible to backdate the VAT registration. This should be considered if there is additional Input Tax that can be recovered.

There are specific provisions for partially exempt businesses, businesses with non-business income, and the purchase of capital items under the Capital Goods Scheme (CGS). These rules may affect the recoverability of VAT and should be reviewed in detail based on the circumstances of the business.

The 2023 Revaluation updates business property rateable values, based on April 2021 valuations. While challenges are open until March 2026, beware of false claims about earlier deadlines and unscrupulous agents pushing for quick decisions or upfront payments.

The Valuation Office Agency (VOA) periodically reassesses the rateable values of business properties through a process known as Revaluation. This is done to update the rateable values in line with changes in the property market. The most recent revaluation took effect on 1 April 2023, with rateable values now based on the valuation date of 1 April 2021.

The VOA is aware of false claims that are being made about upcoming deadlines to appeal the 2023 rating lists. These are not true. You should be wary of anyone making these claims.

You are generally able to challenge your property valuation on the 2023 list at any time until March 2026. Any claims of an earlier deadline are false.

You should be cautious of any agent who:

• tries to pressure you to decide a course of action or sign a contract;
• makes claims about ‘unclaimed credits’ or similar;
• says they are acting on behalf of the VOA; or that
• demands large sums of money up front.

The VOA reiterates that, although the majority of agents are trustworthy and offer excellent service, there is a small minority that operate in bad faith.

Owning more than one property? You can claim Capital Gains Tax (CGT) relief on just one at a time. By formally electing your main residence within two years of property changes, you can optimise your CGT exemption and make the most of key tax benefits.

Taxpayers who own more than one property should be aware of a number of important considerations. An individual, married couple, or civil partnership can only claim Capital Gains Tax (CGT) relief on one property at a time. However, it is possible to designate which property will benefit from the CGT exemption at the time of sale by making a formal election.

To nominate a property as the main residence, a letter must be sent to HMRC specifying the full address of the property being nominated. This nomination must be signed by all owners of the property and the election must be made within two years of any change in the combination of properties owned. Additionally, the property must have been occupied as the main or only residence at some point in the past.

There are specific rules governing overseas properties and for non-UK residents. It is important to carefully consider the timing and frequency of making such elections. Notably, if a property has been used as a private residence at any time, the final nine months of ownership are disregarded for CGT purposes even if the individual was not residing in the property when it was sold.

Gift Aid transforms charitable donations by allowing charities and CASCs to claim 25p extra for every £1 given—at no additional cost to you. Higher and additional rate taxpayers can also claim valuable tax relief, making giving even more rewarding.

Higher and additional rate taxpayers can claim tax relief on the difference between the basic rate of tax and their highest rate. This can be done through their self-assessment tax return or by requesting HMRC to adjust their tax code.

Example: 

If a taxpayer donates £1,000 to charity, the total value of the donation to the charity is £1,250. The taxpayer can claim additional tax relief based on their tax rate:

• £250 if they pay tax at 40% (£1,250 × 20%)
• £312.50 if they pay tax at 45% (£1,250 × 25%)

It is important to ensure that the taxpayer has paid enough tax in the relevant year. Donations will qualify for tax relief as long as the total claimed does not exceed four times the amount of tax paid in that year. If more tax relief is claimed than entitled, the taxpayer must notify the charity and repay the excess to HMRC.

Additionally, taxpayers can make donations directly from their wages through a payroll giving scheme if their employer operates one approved by HMRC. This allows donations to be made tax-free from salary or pension payments.

Business Asset Rollover Relief allows you to defer Capital Gains Tax (CGT) when reinvesting proceeds from selling business assets. By rolling gains into the cost of new assets, tax is postponed until the new asset is sold. Learn how this relief can optimise your business investments.

Rolling over capital gains is a useful way to defer CGT when you sell or dispose of business assets.

Essentially, if you use the proceeds from selling an old asset to buy a new one, the gain is "rolled over" into the cost of the new asset. This means you do not have to pay CGT on the gain immediately; instead, the tax is deferred until you sell the new asset. This relief is known as Business Asset Rollover Relief. The amount of the gain is effectively rolled over into the cost of the new asset and any CGT liability is deferred until the new asset is sold.

If you do not use all the proceeds from the sale to buy a new asset, you can still make a partial rollover claim. Additionally, you can apply for provisional rollover relief if you plan to buy new assets but have not yet done so.

Rollover relief also applies if you use the sale proceeds to improve assets you already own.

The total amount of relief depends on how much you reinvest in new assets. There are a few conditions to keep in mind.

• the new asset must be purchased within 3 years of selling the old one (or up to a year before), though HMRC can sometimes extend this period;
• both the old and new assets must be used for your business, and your business needs to be trading when you sell the old asset and buy the new one; and
• claims for relief must be made within 4 years of the end of the tax year when the new asset was bought (or the old one was sold, if that happened later).