First-Year Allowances (FYA) allow a business to claim 100% capital allowances in the year the expenditure is incurred, rather than spreading relief over time through writing down allowances. In effect, qualifying expenditure is fully deducted from taxable profits in the period of purchase. Unlike the Annual Investment Allowance (AIA), which is subject to an annual […]

For VAT purposes, one of the first questions to ask when supplying services is where the supply takes place. This is known as the “place of supply”, and it determines whether UK VAT needs to be charged. In simple terms: • If the place of supply is in the UK, UK VAT may apply.• If […]

A company that is not resident in the UK can still fall within the UK corporation tax net in certain circumstances. Broadly, this tends to arise where there is a meaningful UK connection — most commonly through a permanent establishment (PE), or through activities involving UK land. The detailed rules sit mainly within the Corporation […]

As we approach the end of the 2025/26 tax year, this is the ideal time to review profit extraction, corporation tax exposure and personal tax positions. The landscape has shifted significantly over the past two years, and traditional assumptions — particularly around incorporation — no longer automatically hold true. Here is a focused year-end planning […]

Where a business is carried on as a sole trader or partnership, trading losses can be relieved against income, capital gains, or future profits. Once the business is operated through a limited company, trading losses are ring-fenced inside the company and are not the individual’s losses. If an individual funds a limited company that ultimately […]

Introduction From 1 January 2021, Great Britain (England, Scotland and Wales) left the EU VAT system for goods. As a result, the movement of goods between GB and other countries is no longer treated as EU trade. Territorial Treatment of Goods – Great Britain From 1 January 2021: Core VAT Principle – Place of Supply […]

When you sell or close a business, Capital Gains Tax (CGT) may arise on any increase in value. Business Asset Disposal Relief (BADR) (formerly Entrepreneurs’ Relief) is a relief that can, in certain circumstances, reduce the rate of CGT on qualifying business disposals. This article provides a high-level overview of how BADR is intended to […]

Where a director borrows money from their company, a taxable benefit-in-kind (BIK) can arise if the loan is interest-free or carries interest below HMRC’s official rate. This article explains when a director’s loan becomes reportable on P11D in the 2025–26 tax year, and how the benefit is calculated in practice. This note focuses solely on […]

Partnership taxation can be tricky, especially when partners join, leave, or when partnership assets are revalued. These changes affect not only the accounting records but also the potential capital gains tax (CGT) consequences for each partner. This section explains the key rules around admitting new partners and revaluing partnership assets, with worked examples to show […]

Partnerships can be tax-efficient, but when it comes to Capital Gains Tax (CGT), the rules are not always straightforward. Unlike companies, partnerships don’t pay tax in their own right. Instead, gains and losses flow through to the individual partners. This guide pulls together the key principles, HMRC’s Statement of Practice D12, and some practical examples […]