We provide our clients with regular updates on changes in taxation regulation, news from the world of accounting and, of course, information about the latest developments at BERKELEY ACCOUNTANTS.

Here is the list of some of the main types of income that are exempt from income tax:

• Income arising from Individual Savings Accounts (ISAs) or Junior ISAs.
• Interest or terminal bonus on National Savings & Investments certificates and prizes on premium bonds.
• Up to £4,250 gross letting income from letting furnished accommodation in the landlord’s own main residence.
• Dividends on ordinary shares in Venture Capital Trusts (VCTs).
• A terminal Bonus paid under a ‘save as you earn’ (SAYE) scheme.
• Many social security benefits, e.g. universal credit, child tax credit and working tax credit.
• Qualifying care relief of £10,000 plus £200 a week per child under age 11 and £250 a week per child age 11 and over.

There are various tax efficient investment schemes approved by HMRC through which an individual can reduce the income tax. Please find below the brief introduction of these schemes.

All of the above schemes are government initiate to provide attractive tax breaks to UK tax payers. To access them you need to invest in the shares of small and unlisted companies. The details of these schemes can be asked by contacting Berkeley Accountants.

Reforms for residential property Stamp duty 2014-15

In the autumn statement 2014 the Chancellor has announced the reforms in the way we pay stamp duty. Under the old rules, you would have paid the stamp duty land tax on the entire price of the property at a single rate, For example, on the property priced at £180,000, the stamp duty amounting to £1,800 would be paid at the rate of 1%.Now, it is proposed that stamp duty will be paid only on that part of property price which will fall within each tax band, like Income tax. For example, for the property priced at £180,000, nothing will be paid for first £125,000 and £1,100 on remaining price of £55,000 at the rate of 2%. There would be a potential saving of £700.

The new tax rates are as follows: 0% in first £125,000, then 2% on the portion up to £250,000; 5% up to £925,000, then 10% up to £1.5m; 12% on anything above that, saving £4,500 on average priced home.

Changes in ISAs

In the autumn statement 2014, it is announced that ISAs to be transferrable to partners tax free, and ISA threshold increases from £15,000 to £15,240 next April

Important announcements for personal and Business tax

In the autumn statement following are changes are announced;

• 55% death tax passed on to loved ones abolished
• Personal tax allowance to increase to £10,600 next April
• Air Passenger Duty to be scrapped for under-12s from 1 May next year and for under-16s the following year
• Inheritance tax to be cut for families of aid workers who die in course of duty
• Libor fines to support Gurkhas and their families
• VAT paid by hospices and search and rescue organisations to be refunded
• Introduce 25% tax on profits generated by multi-nationals that are shifted out of the UK, set to raise £1bn over five years
• Bank profits which can be offset by losses for tax purposes to be limited to 50%
• New £90,000 charge for non-doms resident in the UK for 17 of the past 20 years.