Tax relief - Revision history

Editor at 15:43, 18 August 2021

2021-08-18T15:43:07Z

← Older revision		Revision as of 15:43, 18 August 2021
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	* Budget.		* Budget.
		+	* Business Asset Disposal Relief BADR.
	* Capital allowances.		* Capital allowances.
	* Business case.		* Business case.

Designing Buildings at 07:25, 18 November 2020

2020-11-18T07:25:06Z

← Older revision		Revision as of 07:25, 18 November 2020
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		+	= Introduction =
		+
	Tax relief describes a situation in which an individual or company's liability to tax is reduced as a result of an entitlement to claim allowances or offset certain permitted expenditures against income.		Tax relief describes a situation in which an individual or company's liability to tax is reduced as a result of an entitlement to claim allowances or offset certain permitted expenditures against income.

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	* VAT - Protected Buildings.		* VAT - Protected Buildings.

−	[[Category:~~Other_legislation~~]] [[Category:DCN_Legislation]] [[Category:Taxation]] [[Category:Cost_/_business_planning]]	+	[[Category:DCN_Definition]] [[Category:DCN_Guidance]] [[Category:DCN_Legislation]] [[Category:DCN_Policy]] [[Category:Other_legislation]] [[Category:Taxation]] [[Category:Cost_/_business_planning]]

Editor at 18:15, 17 June 2019

2019-06-17T18:15:49Z

← Older revision		Revision as of 18:15, 17 June 2019
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	Companies and non-incorporated businesses obtain tax relief by setting business running costs against income. They can also obtain relief by claiming capital allowances when they purchase assets for use in their businesses.		Companies and non-incorporated businesses obtain tax relief by setting business running costs against income. They can also obtain relief by claiming capital allowances when they purchase assets for use in their businesses.

−	~~= Find out more =~~	+	= Related articles on Designing Buildings Wiki =
−		+
−	=== Related articles on Designing Buildings Wiki ===	+

	* Budget.		* Budget.
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	* Scheme for Construction Contracts.		* Scheme for Construction Contracts.
	* Staircase tax.		* Staircase tax.
		+	* Tax.
	* VAT		* VAT
	* VAT - Option to tax (or to elect to waive exemption from VAT).		* VAT - Option to tax (or to elect to waive exemption from VAT).
	* VAT - Protected Buildings.		* VAT - Protected Buildings.

−	[[Category:Other_legislation]] [[Category:Taxation]] [[Category:Cost_/_business_planning]]	+	[[Category:Other_legislation]] [[Category:DCN_Legislation]] [[Category:Taxation]] [[Category:Cost_/_business_planning]]

Editor at 18:25, 18 June 2018

2018-06-18T18:25:03Z

← Older revision		Revision as of 18:25, 18 June 2018
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	* Financial management tools.		* Financial management tools.
	* Funding options.		* Funding options.
		+	* Hourly rate.
	* Housing Grants, Construction and Regeneration Act.		* Housing Grants, Construction and Regeneration Act.
	* PAYE.		* PAYE.

Editor at 17:06, 31 January 2018

2018-01-31T17:06:37Z

← Older revision		Revision as of 17:06, 31 January 2018
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	* Research and development tax relief.		* Research and development tax relief.
	* Scheme for Construction Contracts.		* Scheme for Construction Contracts.
		+	* Staircase tax.
	* VAT		* VAT
	* VAT - Option to tax (or to elect to waive exemption from VAT).		* VAT - Option to tax (or to elect to waive exemption from VAT).

Editor at 13:03, 21 September 2017

2017-09-21T13:03:16Z

← Older revision		Revision as of 13:03, 21 September 2017
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		+	Tax relief describes a situation in which an individual or company's liability to tax is reduced as a result of an entitlement to claim allowances or offset certain permitted expenditures against income.

−	Tax Relief describes a situation in which an individual or company's liability to tax is reduced as a result of an entitlement to claim allowances or offset certain permitted expenditures against income.	+	= Individuals =
−		+
−	= ~~'''~~Individuals~~'''~~ =	+

	Individuals are entitled to personal allowances which provide tax relief by reducing taxable income. They can also obtain tax relief if they are able to utilise other allowances which HM Revenue and Customs permit in certain circumstances.		Individuals are entitled to personal allowances which provide tax relief by reducing taxable income. They can also obtain tax relief if they are able to utilise other allowances which HM Revenue and Customs permit in certain circumstances.

−	== Personal ~~Allowances~~ ==	+	== Personal allowances ==

	These are set by HM Government and usually change each financial year to take account of changes in the cost of living. From time to time however these allowances may remain unchanged for a longer period of time. Depending upon the particular circumstances of each individual, the amount of the allowance is free from assessment to tax. The level of personal allowance depends upon age and also income.		These are set by HM Government and usually change each financial year to take account of changes in the cost of living. From time to time however these allowances may remain unchanged for a longer period of time. Depending upon the particular circumstances of each individual, the amount of the allowance is free from assessment to tax. The level of personal allowance depends upon age and also income.

	For 2014/15 Personal Allowance:		For 2014/15 Personal Allowance:
−	*under 65 years of age £10,000	+
−	*65 - 74 £10,500	+	* under 65 years of age £10,000
−	*75 and over £10,660	+	* 65 - 74 £10,500
		+	* 75 and over £10,660

	If an individual's income exceeds £100,000 the amount of the allowance reduces by £1 for every £2 income exceeds £100,000. Thus it can be seen that at an income level of £116,210 the allowance for an individual under 65 disappears completely.		If an individual's income exceeds £100,000 the amount of the allowance reduces by £1 for every £2 income exceeds £100,000. Thus it can be seen that at an income level of £116,210 the allowance for an individual under 65 disappears completely.
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	Married Couples Allowance is available where one partner is at least 75 years of age in the financial year in question. Married Couples Allowance provides tax relief at 10%.		Married Couples Allowance is available where one partner is at least 75 years of age in the financial year in question. Married Couples Allowance provides tax relief at 10%.

−	== Pension ~~Contributions~~ ==	+	== Pension contributions ==

	Individuals may obtain tax relief by contributing to personal or occupational pensions schemes with a view to building up a fund to provide income in retirement. Contributions made in this way entitle the individual to tax relief at their marginal rate of tax. For a 40% taxpayer therefore, tax relief of £20,000 may be obtained against a contribution of £50,000. There are detailed rules and limits governing pension schemes and amounts that may be contributed, more details of which are available from [http://www.hmrc.gov.uk/incometax/relief-pension.htm HM Revenue and Customs].		Individuals may obtain tax relief by contributing to personal or occupational pensions schemes with a view to building up a fund to provide income in retirement. Contributions made in this way entitle the individual to tax relief at their marginal rate of tax. For a 40% taxpayer therefore, tax relief of £20,000 may be obtained against a contribution of £50,000. There are detailed rules and limits governing pension schemes and amounts that may be contributed, more details of which are available from [http://www.hmrc.gov.uk/incometax/relief-pension.htm HM Revenue and Customs].

−	== Gift Aid/Deeds of ~~Covenant~~ ==	+	== Gift Aid/Deeds of covenant ==

−	Tax relief is available to support charitable giving. For a U.K. taxpayer the amount of the gift is deemed to be net of basic rate tax. In "grossing up" the value of the gift, relief is obtained at the taxpayers marginal rate. At the same time, the recipient of the gift can reclaim the basic rate of tax deducted at source.	+	Tax relief is available to support charitable giving. For a U.K. taxpayer the amount of the gift is deemed to be net of basic rate tax. In "grossing up" the value of the gift, relief is obtained at the taxpayers marginal rate. At the same time, the recipient of the gift can reclaim the basic rate of tax deducted at source.

	== Enterprise Investment Schemes (EIS) ==		== Enterprise Investment Schemes (EIS) ==

−	Tax relief is also available to individuals who are prepared to invest in new businesses. The EIS pemits relief of 30% on the investment into shares in approved companies upto a maximum of £5,000,000. Thus maximum tax relief of £1,500,000 is available if the investors have sufficient taxable income against which the EIS relief can be set. There is also a carry - back provision which permits the tax relief to be set against income tax liability arising in the tax year immediately prior to the year in which the share acquisition is effected. Shares must be held for a mnimum of three years otherwise the tax relief granted will be withdrawn.	+	Tax relief is also available to individuals who are prepared to invest in new businesses. The EIS pemits relief of 30% on the investment into shares in approved companies upto a maximum of £5,000,000. Thus maximum tax relief of £1,500,000 is available if the investors have sufficient taxable income against which the EIS relief can be set.
		+
		+	There is also a carry - back provision which permits the tax relief to be set against income tax liability arising in the tax year immediately prior to the year in which the share acquisition is effected. Shares must be held for a mnimum of three years otherwise the tax relief granted will be withdrawn.

	= Companies =		= Companies =
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	=== Related articles on Designing Buildings Wiki ===		=== Related articles on Designing Buildings Wiki ===
−	*Budget.<br/>
−	*Capital allowances.
−	*Business case.
−	*Business plan
−	*Business rates.
−	*Cashflow.
−	*Cash flow forecast.
−	*Financial management tools.<br/>
−	*Funding options.
−	*Housing Grants, Construction and Regeneration Act.
−	*PAYE.
−	*Research and development tax relief.
−	*Scheme for Construction Contracts.
−	*VAT
−	*VAT - Option to tax (or to elect to waive exemption from VAT).
−	*VAT - Protected Buildings.

−	[[Category:Other_legislation]]	+	* Budget.
−	[[Category:Taxation]]	+	* Capital allowances.
−	[[Category:Cost_/_business_planning]]	+	* Business case.
		+	* Business plan
		+	* Business rates.
		+	* Cashflow.
		+	* Cash flow forecast.
		+	* Financial management tools.
		+	* Funding options.
		+	* Housing Grants, Construction and Regeneration Act.
		+	* PAYE.
		+	* Payment for dilapidations.
		+	* Research and development tax relief.
		+	* Scheme for Construction Contracts.
		+	* VAT
		+	* VAT - Option to tax (or to elect to waive exemption from VAT).
		+	* VAT - Protected Buildings.
		+
		+	[[Category:Other_legislation]] [[Category:Taxation]] [[Category:Cost_/_business_planning]]

Martinc at 14:04, 30 October 2014

2014-10-30T14:04:43Z

← Older revision		Revision as of 14:04, 30 October 2014
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	== Enterprise Investment Schemes (EIS) ==		== Enterprise Investment Schemes (EIS) ==

−	Tax relief is also available to individuals who are prepared to invest in new businesses. The EIS pemits relief of 30% on the investment into shares in approved companies upto a maximum of £5,000,000. Thus maximum tax relief of £1,50,000 is available if the investors have sufficient taxable income against which the EIS relief can be set. There is also a carry - back provision which permits the tax relief to be set against income tax liability arising in the tax year immediately prior to the year in which the share acquisition is effected. Shares must be held for a mnimum of three years otherwise the tax relief granted will be withdrawn.	+	Tax relief is also available to individuals who are prepared to invest in new businesses. The EIS pemits relief of 30% on the investment into shares in approved companies upto a maximum of £5,000,000. Thus maximum tax relief of £1,500,000 is available if the investors have sufficient taxable income against which the EIS relief can be set. There is also a carry - back provision which permits the tax relief to be set against income tax liability arising in the tax year immediately prior to the year in which the share acquisition is effected. Shares must be held for a mnimum of three years otherwise the tax relief granted will be withdrawn.

	= Companies =		= Companies =

Martinc at 14:04, 30 October 2014

2014-10-30T14:04:15Z

← Older revision		Revision as of 14:04, 30 October 2014
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	These are set by HM Government and usually change each financial year to take account of changes in the cost of living. From time to time however these allowances may remain unchanged for a longer period of time. Depending upon the particular circumstances of each individual, the amount of the allowance is free from assessment to tax. The level of personal allowance depends upon age and also income.		These are set by HM Government and usually change each financial year to take account of changes in the cost of living. From time to time however these allowances may remain unchanged for a longer period of time. Depending upon the particular circumstances of each individual, the amount of the allowance is free from assessment to tax. The level of personal allowance depends upon age and also income.

−	For ~~2012~~/13 Personal Allowance:	+	For 2014/15 Personal Allowance:
−	*under 65 years of age £8,~~105~~	+	*under 65 years of age £10,000
	*65 - 74 £10,500		*65 - 74 £10,500
	*75 and over £10,660		*75 and over £10,660
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	If an individual's income exceeds £100,000 the amount of the allowance reduces by £1 for every £2 income exceeds £100,000. Thus it can be seen that at an income level of £116,210 the allowance for an individual under 65 disappears completely.		If an individual's income exceeds £100,000 the amount of the allowance reduces by £1 for every £2 income exceeds £100,000. Thus it can be seen that at an income level of £116,210 the allowance for an individual under 65 disappears completely.

−	Equally the higher allowances for older individuals are gradually reduced in much the same way as is the case for the basic personal allowance above £100,000. For ~~2012~~/13 the age related allowances begin to reduce at a rate of £1 for every £2 of earnings above ~~£25~~,~~400~~ per annum.	+	Equally the higher allowances for older individuals are gradually reduced in much the same way as is the case for the basic personal allowance above £100,000. For 2014/15 the age related allowances begin to reduce at a rate of £1 for every £2 of earnings above £27,000 per annum.

−	Married Couples Allowance ~~of £7,705 (for 2012/13)~~ is available where one partner is at least 75 years of age in the financial year in question. Married Couples Allowance provides tax relief at 10% ~~thus reducing tax payable by £770.50~~.	+	Married Couples Allowance is available where one partner is at least 75 years of age in the financial year in question. Married Couples Allowance provides tax relief at 10%.

	== Pension Contributions ==		== Pension Contributions ==
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	== Enterprise Investment Schemes (EIS) ==		== Enterprise Investment Schemes (EIS) ==

−	Tax relief is also available to individuals who are prepared to invest in new businesses. The EIS pemits relief of 30% on the investment into shares in approved companies upto a maximum of ~~£500~~,000. Thus maximum tax relief of ~~£150~~,000 is available if the ~~investor has~~ sufficient taxable income against which the EIS relief can be set. There is also a carry - back provision which permits the tax relief to be set against income tax liability arising in the tax year immediately prior to the year in which the share acquisition is effected. Shares must be held for a mnimum of three years otherwise the tax relief granted will be withdrawn.	+	Tax relief is also available to individuals who are prepared to invest in new businesses. The EIS pemits relief of 30% on the investment into shares in approved companies upto a maximum of £5,000,000. Thus maximum tax relief of £1,50,000 is available if the investors have sufficient taxable income against which the EIS relief can be set. There is also a carry - back provision which permits the tax relief to be set against income tax liability arising in the tax year immediately prior to the year in which the share acquisition is effected. Shares must be held for a mnimum of three years otherwise the tax relief granted will be withdrawn.

	= Companies =		= Companies =

Designing Buildings at 17:13, 28 October 2014

2014-10-28T17:13:03Z

← Older revision		Revision as of 17:13, 28 October 2014
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	*Housing Grants, Construction and Regeneration Act.		*Housing Grants, Construction and Regeneration Act.
	*PAYE.		*PAYE.
		+	*Research and development tax relief.
	*Scheme for Construction Contracts.		*Scheme for Construction Contracts.
	*VAT		*VAT

Designing Buildings at 07:06, 23 June 2014

2014-06-23T07:06:37Z

← Older revision		Revision as of 07:06, 23 June 2014
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	*Business case.		*Business case.
	*Business plan		*Business plan
−	*Business ~~rate~~.	+	*Business rates.
	*Cashflow.		*Cashflow.
	*Cash flow forecast.		*Cash flow forecast.