Assigning directors’ loans to children can have significant inheritance tax (IHT) implications, depending on how the transaction is structured and the timing. Here are some key points to consider: 1. Nature of the Loan Transfer Gift vs. Loan:When you assign a director’s loan to a child, it can be viewed as either a gift or a transfer of the loan amount. If the loan is simply transferred without formal repayment terms, HM Revenue & Customs (HMRC) may consider it a disposal or gift. Formal Assignment:Proper documentation of the transfer as an assignment of the debt can help clarify the nature

The treatment of VAT (Value Added Tax) on cryptocurrencies varies depending on the country and its specific tax laws. Here’s a general overview: European Union (EU) Cryptocurrencies as means of payment: Generally, the EU treats cryptocurrencies as a form of electronic money or financial instruments rather than goods or services. VAT applicability: In many EU member states, the exchange of cryptocurrencies for fiat currency (such as euros, dollars) is exempt from VAT. This is because cryptocurrencies are often considered a means of payment. Buying and selling crypto: When you buy or sell cryptocurrencies, VAT typically does not apply to the

In a move that has caught the attention of many UK businesses and taxpayers, Her Majesty’s Revenue and Customs (HMRC) has announced an increase in the interest rates applied to late payments. Effective immediately, the interest rate on overdue amounts has been raised by 1.5%. This change underscores the government’s aim to encourage timely payments and maintain fiscal discipline. What Has Changed? Previously, the interest rate for late payments was set at a certain baseline (for example, 3.0%). With the recent adjustment, the new rate has risen to 4.5%. This means that any outstanding tax liabilities, VAT, or other dues

In the UK, landlords may seek Power of Attorney (PoA) for several reasons related to managing their property portfolios, especially when they are unable to personally handle certain affairs. Here are some common reasons why UK landlords might need a Power of Attorney: Types of Power of Attorney Relevant to Landlords General Power of Attorney: Grants broad authority over financial and property matters, but typically ceases if the donor becomes mentally incapacitated.Lasting Power of Attorney (LPA): Specifically designed to continue acting even if the donor becomes mentally incapable; often preferred for ongoing property management. Important Considerations Legal Validity: PoA documents