Capital Gearing Share Discussion Threads

[miata] 25/6/2011 19:43

The type of contract terms your IT client will impose on you and the length of each contract may determine your best solution. Consider whether an accountancy firm can give you a compliant solution to IR35. If you find a suitable one it will save you lots, most frequently an Isle Of Man trust company is utilised. [Google IR35]. Setting up your own company will be worth the hassle if you intend to incur sufficient capital expenditure (eg on computer equipment). Complexity apart, there is nothing to stop you using several methods simultaneously (eg umbrella company, own limited company, unlimited sole trader) to minimise tax/NI/VAT and maximise capital allowances (been there done that).

Consider - If you were unable to perform the services yourself and you had a suitable replacement with equivalent skills and experience, would you be able to send them in your place and be responsible for paying them? Do you have general control over your method of work and work pattern? Does your notice period exceed 30 days? Is your client obliged to provide you with work and are you obliged to carry out such work during the contract period? If there were any defects or shortcomings in the services you provided, would you be liable to correct these at your own cost? Were you ever a permanent employee of your client? Do you receive any benefits from the client?

[yobstol] 25/6/2011 18:44

Im about to do some IT contracting.

So Im wanting to set myself up to be a LTD company, get VAT registered, get a business bank account, etc, etc.

Ive noticed that there are various companies like

https://www.kbaccountancygroup.com/index.aspx


that will set up everything for you for a cost of £75/month.

From my point of view I dont want to get involved with the financials at all, so would prefer someone else to do it all.

Has anyone any recommendations of any accountants ? Ideally Id like a good service at a low cost :)

[miata] 25/6/2011 12:08

Lib-Dums resurrect so-called 'mansion' capital gains tax proposals

The Lib Dims will tell George Osborne a supertax on thousands of homes over £1 million must be implemented if he wants to abolish the 50p top rate of tax, levied on incomes above £150,000, before the next election.

Capital gains tax, which is levied at 28 per cent for higher rate taxpayers, would be charged on the slice of the profit over and above the £1million threshold.

[david77] 24/6/2011 18:46

I answered another question "How do I get from CGTcalc to SA108" - seems to have gone now or I imagined it

[ford play] 24/6/2011 11:53

Good morning.

Would appreciate advice on this point.

I sold some property in the 2007/8 tax year and realized a taxable gain of £74,000 after reliefs. I've now rather belatedly discovered that an American company that I invested £76,000 during 2005 was dissolved during the 2008/9 tax year and my contact in Houston has been fobbing me off ever since. The shares are now worthless

Can I offset this loss against the 2007/8 gain? I would need to somehow amend my 2008/9 tax return. I know Darling introduced the ability to roll back losses, but I'm not clear if this applies to CGT as well as corporation tax.

Any advice would be much appreciated.

thank you

[jrrhya] 24/6/2011 10:15

Does anybody know how to fill CGT108 supplymentary pages with the totals produced from CTGcakculator.com with regards the INFO FOR TAX RETURNS. Would be much appreciated.

jrrhya

[verngate] 21/6/2011 14:08

26,118,754

[minime5] 21/6/2011 14:05

Tks Miata.

[miata] 21/6/2011 14:02

OK email sent [26,118,753 people are currently chatting on Skype].

[minime5] 21/6/2011 13:59

Miata no sorry chap not on Skype

[gengulphus] 21/6/2011 13:56

MIATA,

As aforementioned there would be more income tax and more capital gains tax to pay (in the future) than otherwise would be the case - because of the loss of PRR.

I didn't mention those because jojo's question said "(other than my having a second home to be accounted for and taxed in the usual manner)". But yes, I probably should have added "other than the ones you mention" for extra clarity - I'll edit it in.

Gengulphus

[miata] 21/6/2011 13:43

1) No.
2) Average.

[wooster4] 21/6/2011 13:36

a couple of questions. can you still apply inflation (as measured by RPI) to your buying price. Secondly, if i already old say 1000 shares in bp and i buy a further 500 and then sell that 500 - do i have to average my buying cost or do i simply match them to my 500 buy? thanks in advance.

[jojo] 21/6/2011 13:13

Gengulphus

Very many thanks for your reply, and for giving the matter such consideration; I am grateful.

I have to pop to the airport now but will re-read your comments at leisure this eveving.

Once again sincere thanks for your response.

[miata] 21/6/2011 13:12

Are you on Skype?

[minime5] 21/6/2011 13:11

Miata any chance you can email me on di
tia

[miata] 21/6/2011 13:10

You would have to get a valuation of it to act as your base cost for your CGT calculation - but you presumably have to get that anyway to ensure that you are paying full market value. Other than that, I cannot think of any Income Tax or CGT consequences.

As aforementioned there would be more income tax and more capital gains tax to pay (in the future) than otherwise would be the case - because of the loss of PRR.

[bw64402] 20/6/2011 20:41

Sorry if this isn't the right place to ask this, but i'm looking for a personal accountant to help with CGT and personal finances. Looking for someone who is responsive and knows their way around the system. I'm based in Herts, but location less important...

[jojo] 20/6/2011 14:30

Miata again many thanks.

I was simply looking for views on the taxation implications specific to each proposed transacaction.

I am aware of ancillary considerations including the two you mention - there is no deprivation of capital as market value is paid and no gifts will be made.

[jojo] 20/6/2011 13:33

Gengulphus - many thanks for your response.

I don't think POAT is an issue: in 1 the property is sold for full market value and in 2 it would not apply.

If, as I presume would be the case, HMRC's view with regard to any concern over the "intentional depravation of capital" would be the same irrespective of the source of the funds, that would not pose a difficulty.

[jojo] 20/6/2011 11:58

MIATA - 20 Jun'11 - 11:29 - 6154 of 6155

Miata the purpose is of no consequence to others.

I cannot think of other implications, other than the two obvious, and apparently disadvantageous, ones you have mentioned. It would therefore appear a win-win in that HMRC would also be content with such transactions.

Thank you for your response.

[cwa1] 20/6/2011 11:29

Just a quick follow up to the IRG situation I asked about the other day re the transfer from ISA to dealing account due to ineligibility and the CGT implications.

Quite incredibly an important piece of news has potentially broken today re one of their assets and the price quickly climbed quickly and steeply, so I've sold for about 70% improvement on Friday's price for a very reasonable profit on the buying price.

The interesting thing would have been if I had transferred it to the dealing account PRIOR to this piece of news I would now have had a potentially greater CGT bill than is curently the case IF selftrade's opinion was correct and IF I had sold it in the dealing account.

So, a happy ending for me.

I would like to thank the respondents very much for their opinions and help, it was very much appreciated even though there was no definitive outcome. As a small gesture of thanks I intend to make a small contribution to a local cancer charity in recognition of a happy outcome for me and the excellent work that is undertaken,without recompense, by all the fine respondents on this board.

Thanks again.

Cheers