September 2020 Newsletter | Cylchlythyr Misol Medi 2020
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On 1 September, the Welsh Government published details of a new Cultural Recovery Fund where a grant of up to £150,000 is available to businesses and freelancers who work within the arts in Wales. Applications open on 14 September and applicants can check their eligibility now by visiting: https://fundchecker.businesswales.gov.wales/culture
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During lockdown, many self-employed individuals have seen a significant reduction in income, whilst expenses are still incurred. Remember that if a loss is recorded in one tax year, it can be utilised against other sources of income in the current tax year or against income from previous years, which could lead to a tax rebate.
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A recent court case has ordered that a number of modified crew-cab company vehicles that were previously treated as company vans should be taxed as cars for benefit-in-kind purposes. If you are considering purchasing a multi-purpose vehicle, please get in touch to discuss the tax implications.
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Ahead of the Autumn Budget in October or November, there is speculation of the potential tax changes that will be announced to deal with the cost of Covid since March. Two areas of potential change are as follows:
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Capital gains tax: if you are considering selling an asset, you may wish to complete this transaction before the Budget.
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Tax relief on pension contributions: if you are considering making a large pension contribution before the end of the tax year, you may wish to proceed ahead of the Budget. Please contact us if you wish to discuss any matters.
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Back in September 2002, the UK Government launched the Child Trust Fund scheme, where children born from September 2002 were given vouchers by the government to invest for the future, with the money only accessible at the age of 18. This scheme was subsequently scrapped in 2011, however the first of these funds will mature from September 2020 onwards. To check if your child has a fund, visit: https://www.gov.uk/child-trust-funds
Ask Huw & Aled: my mother bought shares back in 2010 which I inherited in 2015. I have recently sold the shares in full. What are the capital gains tax implications?
For inherited shares, the capital gain is calculated with reference to the valuation of the shares when inherited in 2015, rather the original date of purchase in 2010. As a result, it is important to obtain a valuation of the shares at probate.
Capital gains from the disposal of shares are taxed at 10% for basic rate taxpayers or at 20% for higher rate taxpayers and each individual receives a personal allowance for capital gains of £12,300 for the 2020-2021 tax year.
