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Advice

Persons with Significant Control (PSC)

Companies House have issued guidance on how to identify a company’s PSC. A PSC is someone who owns or controls a company. Generally, a person who owns more than 25% of the company’s shares or more than 25% of the voting rights.

However, a person may exert control or influence the company by other means. Such as when an individual has the right to appoint or remove the majority of the board of directors defined in the company constitution or articles of association or when the shares are owned by a trust or firm.

Other situations where a person has the right to exercise control are not so easily defined but might include where the person has an absolute right to:

  • Adopt or amend the company’s business plan
  • Change the nature of the company’s business
  • Make any additional borrowing from lenders
  • Appoint or remove the CEO
  • Establish or amend any profit-sharing, bonus or other incentive scheme of any nature for directors or employees
  • Grant options under a share option or other share based incentive scheme.

Company statutory guidance for the PSC register A record of all PSC’s must be held by the company and declared to Companies House. The following details of the individual must be provided:

  • name
  • date of birth
  • nationality
  • country, state or part of the UK where the PSC usually lives
  • service address
  • usual residential address
  • date they became a PSC

Categories
Advice

Private Residence Relief on Capital Gains Tax

For property disposals after 6th April 2020 the rule regarding relief between purchase and beginning of residence have changed. The relief can be claimed if all the following conditions have been met:

1. The time at which the property or part of it first became the individual’s only or main residence”) was within 24 months of the date of purchase.

2. At no time during the period between purchase and main residence was the property or part of it another person’s residence.

3. Between the date of purchase and moving-in time either the dwelling-house or part of it has been constructed, renovated, redecorated or the individual disposed of an interest in another dwelling-house that immediately before the disposal was the individual’s only or main residence.

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Advice

Additional Costs for Non-Residents Purchasing Property in the UK

From the 1st April 2021 Non-resident individuals, companies (including certain UK resident companies controlled by non-UK resident persons), trusts and partnerships will be charged an additional 2% Stamp Duty Land Tax (SDLT). Therefore, it is worth bringing forward any planned purchases of residential property for a buyer who is not resident in the UK.

This surcharge will apply on top of existing SDLT rates, including the rates applicable to the rental element of leasehold property.

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Advice

Companies House Uploading Documents

Until this month a company had only be able to deliver forms by post or at the one of the Companies House offices. In response to increased delays in processing paper forms due to the pandemic Companies House have developed an interim system to upload some documents online. Details of the service can be found on the gov.uk web site.

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Advice

HMRC Worldwide Disclosure Facility

If you are resident in the UK and receive income or have assets or carry on an activity outside the UK that would be subject to tax in the UK you may have to declare these in your tax return. The main exception to this is if a double taxation treaty exists between the UK and the other country. If there is a double taxation treaty, the terms of the treaty would define where the tax liability rests.

The disclosure facility allows you to report any tax liability from earlier tax years and receive a reduction in the standard penalty of 200% of the tax liability. The amount reduced would depend on if you came forward voluntarily and how much information you provided.

It is worth nothing that over 100 countries have committed to exchange information under the Organisation for Economic Co-operation and Development’s Common Reporting Standard. This is a very complex area of taxation and advice should be sought from a suitably qualified professional.

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Advice

Deferred VAT payments due to coronavirus

The government have announced changes to the scheme for businesses who deferred VAT payments due from the period 20th March to 30th June 2020.

Originally payment was due in full by 31st March 2021, now you can elect to pay by instalments with payment completed by 31st March 2022. The government will announce full details in due course.

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Advice

Business Pre-Trading Costs

If your business is as a sole trader or partnership you can claim for purchase expenses before you start to trade. Your expenses could be Revenue or Capital in nature.

Your Revenue expenses are allowable in the year of purchase. Capital expenses are allowable over the life of the item. However, with the Annual Investment Allowance you may be able to claim all the amount in the year of purchase.

If you have a Furnished Holiday Let, HMRC considers this a business and allows you to claim pre-trading expenses and use the Annual Investment Allowance. HMRC will not consider a residential let a business.

Information correct as at 23rd September 2020. If you need further advice in this area please contact us at sasiow@mail.com or by phone on 07473 938867