Entrepreneurs’ relief wrongly dubbed as Britain’s “worst tax break”, says tax partner Mark Fielden

05.02.19 / Insight posted in KS Comments

The annual cost of Entrepreneurs’ Relief, recently revealed by HMRC to be £2.4bn, has been widely and wrongly criticised, says Mark Fielden a tax partner with Kingston Smith. “It is government policy to support those building businesses, but why not also see ER as an equally valuable way to reward entrepreneurs at the end of…

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Higher rate tax payers missing-out on pension and gift aid tax relief

23.01.19 / Insight posted in KS Comments

“Employees who have been automatically enrolled into a workplace pension do not realise that they may need to claim tax relief on the contributions to their pension scheme as it is not given automatically,” says Tim Stovold, head of tax at Kingston Smith. “Many employers operate ‘relief at source’ schemes where they deduct 80% of…

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New relief for company contributions to grassroots sports: Jamie Whale, Tax Manager, comments

29.01.18 / Insight posted in KS Comments

The 2017 Finance Bill introduced a new relief for companies. It allows a deduction from total company profits for donations to grassroots sports that are made from 1 April 2017 onwards. Relief continues to be available where the recipient is a charity. But this new relief will apply in situations where the recipient is not…

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Property Update – Changes to FRS 102 – hot off the press

15.12.17 / Insight posted in Articles, KS Comments

Yesterday, the Financial Reporting Council released amendments to FRS 102, the accounting standard that now applies to the majority of UK businesses. We are pleased to see the relaxation of some of the more onerous requirements of FRS 102 and the deferral of aligning lease accounting with new IFRS requirements (bringing an asset and liability…

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Toying with us at Christmas – Ian Robert comments on Toys R Us UK’s proposed Company Voluntary Arrangement

05.12.17 / Insight posted in KS Comments

Just weeks after its US operation filed for creditor protection under Chapter 11, the UK business of Toys R Us is hoping to enter a Company Voluntary Arrangement. This will undoubtedly try to distinguish between the more profitable smaller and more centrally located stores and the less desirable warehouse out-of-town leases. While landlords will be…

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PR Week: Bell Pottinger in administration, what’s next?

20.09.17 / Insight posted in KS Comments, Articles

Esther Carder has commented in PR Week on Bell Pottinger’s having passed into administration: “Whether anyone will be prepared to buy business [i.e. client relationships] that they could potentially just take on within a new or existing PR shop is doubtful, given so many clients and key personnel have already left. The value of a…

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Businesses risk unlimited fines over failing to prevent tax evasion

15.09.17 / Insight posted in KS Comments

“Businesses have until the end of the month to put in place measures to ensure individuals working for them do not facilitate tax evasion. Perhaps because of limited resources, SMEs have largely ignored this deadline and have put themselves at risk of unlimited fines,” says Tim Stovold, head of tax at Kingston Smith. “Some SMEs…

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Lush Cosmetics case highlights issues with share valuations

11.09.17 / Insight posted in KS Comments

“A recent case has highlighted that references in a company’s articles or shareholders’ agreement to ‘fair value’ as the basis of valuing shares can give rise to problems,” says tax partner Mike Hayes. “‘Fair value’ will usually be a higher price than ‘open market value’.  Whilst that might be what the parties want to achieve…

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Treasury consults on ‘patient capital’ for growing tech businesses: Mike Hayes comments

02.08.17 / Insight posted in KS Comments

“While government support for longer term investment in innovative tech businesses is welcome, excessive changes to the tax reliefs currently available are not,” says tax partner Mike Hayes. “Ministers recognise that Enterprise Investment Schemes and Venture Capital Trust schemes have delivered a significant quantity of investment to the market. What is required now is for the…

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Creative sector reliefs prove to be popular – but are they effective? Mike Hayes comments

25.07.17 / Insight posted in KS Comments

Recently published statistics from HMRC show the importance and popularity of the tax reliefs for the creative sectors, such as the credits for film, high end TV, animation and theatre. The figures show that in 2016/17, 175 films were made which claimed film tax relief (FTR). The total UK spend on these films was £1 billion,…

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