DFC Accountants

Accountancy and Business Services in Cardiff, Wales

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Reclaiming the SDLT supplement

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Since 1 April 2016 a stamp duty land tax supplement has been payable on the purchase of second and subsequent residential properties costing more than £40,000. Generally, the supplement is not payable where the main residence is replaced, even if the purchaser ends up with more than one residential property after the purchases has completed. However, where the new main residence is purchased before the former main residence is sold, the supplement is payable initially. However, as long as the sale of the old main residence is completed within three years of the purchase of the new home, the supplement can be reclaimed.

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CGT: irrecoverable loans

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When an individual, or a company, makes a loan to a trading business, and that loan is not repaid, the lender can claim a capital loss for the irrecoverable amount under TCGA 1992, s 253. If the funds were provided as a subscription for shares, which have become worthless, the shareholder can make a negligible value claim under TCGA 1992, s 24(2), which also creates a capital loss.

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VAT: bad debt relief

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Many small businesses, who were only VAT registered in order to take advantage of the flat rate scheme (FRS), will have deregistered from VAT last week. It makes sense to submit the final VAT return for those businesses as soon as possible, so that the final VAT debt is known and can budgeted for.

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