The introduction of the statutory residence test provided much needed certainty to an area of law that was unduly complex and lacking clarity. This document is a brief summary of some very detailed provisions – the HMRC guidance alone stretches to 105 pages.
Our Capital Markets specialists have significant experience advising and supporting fully listed, AIM and PLUS clients. This document provides a list of stock market clients as at June 2012.
Two clients came to us wanting to branch out beyond farming activities. The first wanted to start a sandwich shop chain using produce from their farm as the sandwich fillings. The other was considering using a wind turbine as an investment to generate funds while slowing down farming activities before retirement. We provided both with advice and assisted them in their respective ventures.
Anaerobic digesters can be used to generate heat, green electricity and useful fertiliser from various unwanted waste products. Two of our clients, one a start-up enterprise, the other an agricultural college, understood the benefits to be gained from anaerobic digestion plants and so, both came to us wanting to install one. We assisted them both with the preparation of business plans and forecasts for their plants, as well as, helping the enterprise with grant funding applications.
A new client came to us from an accounting practice that did not specialise in the agriculture sector and asked if we could help reduce their tax bill. A special tax rule can be used by farms to help out when they experience two dramatically different years in terms of profits; this is called averaging. Our specialists suggested applying the averaging rules and as a result one partner comfortably saved over £500.
A family farming partnership, spanning two parents and their son, wanted to take action to avoid paying 40% tax. The introduction of a new partner meant that their earnings would be split across four partners instead of three, reducing the income levels for everybody, bringing them all below the 40% tax threshold.
A large and successful farming partnership client had worked hard to increase profitability, but would soon push themselves into the, then, newly introduced 50% personal tax bracket. Our agriculture specialists proposed a structural change in order to keep earnings away from that harsh 50% tax level and as a result saved a huge 30% in taxes.
In this case, a client in our Royston office was delighted to discover that two recent court cases lost by HM Revenue & Customs (HMRC) created a big opportunity for them. Our agriculture specialists advised the client to take advantage of the resulting ruling from these cases, and their taxable profit figures were adjusted accordingly saving them £6,200.
When it comes to minimising your taxes, there is often more than one way that a transaction can be undertaken. In this case, a complex trust arrangement meant that a successful large farming company needed to divide up its assets and realise some cash. By enlisting our help, £313,000 in tax was saved.
The new system of Real Time Information (RTI) is mandatory for all employers and is to be implemented from April 2013.