Thomas Wells

🚨 Super Thursday for VAT is coming! 🚨 Tomorrow, we’re expecting three major VAT decisions that could reshape key areas of tax interpretation: 1️⃣ UK Supreme Court – Prudential Assurance Final ruling on the tax point of supply between connected companies and whether it occurred during or after their membership of the same VAT group registration. This will determine whether the business has incurred irrecoverable VAT on this intercompany fee. 2️⃣ CJEU – AG Opinion in Lyko Operations Are customer loyalty points that can be redeemed for products vouchers for VAT purposes? If so, is the VAT payable when the points are issued by the retailer or when the points are redeemed? 3️⃣ CJEU – AG Opinion in Zaidimu valiuta MB Is the purchase and resale of in-game “gold” VAT exempt as a virtual currency? Could video game producers be exposed to partial exemption and financial regulations as a result? 📌 It’s going to be a big day for VAT practitioners and their clients in these sectors. Check back here for updates once the decisions have dropped.   #VAT #IndirectTax #CJEU #SupremeCourt #Vouchers #VirtualCurrency #LoyaltyPoints #TaxUpdate 

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As we approach April 2026, significant changes to Business Relief from an inheritance tax perspective will come into effect. These changes will cap the 100% relief at £1 million of value for combined agricultural and business property, with any excess qualifying for only 50% relief i.e. an IHT rate of 20%. This shift underscores the critical need for effective succession planning for all privately owned and family owned businesses. Beyond the tax implications, why is succession planning essential? 🤝 Business continuity - succession planning ensures that your business can continue to operate smoothly during periods of leadership and ownership transitions, minimising any disruptions, securing your workforce and maintaining productivity. ⚠️ Risk management - by identifying and then developing future leaders, you can mitigate the risks associated with unexpected departures or retirements. 🧑‍🧒‍🧒 Talent retention - demonstrating a clear path for career progression can help retain top talent, as employees see a future within the company and could have an opportunity to be part of the next stage of growth. 📈 Financial stability - with the new tax changes, having a robust succession plan can help manage the financial implications, for both the business and the individual owners, ensuring that both remain resilient. Effective succession planning is not just about preparing for the future; it's about ensuring your business thrives in the face of change. Understanding where you are now, identifying any immediate issues and then embarking on a plan that will allow you to adapt as your business, taxation and legislation changes over time, will help you strengthen your business so you can secure long-term success. ➡️ https://lnkd.in/eVzQKbwR #successionplanning #businesscontinuity #taxplanning #financialplanning

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Big news in the tax world – and it affects far more than farmers. After months of speculation, the Government has now published draft legislation on changes to Agricultural Property Relief (APR) and Business Property Relief (BPR) from inheritance tax that take effect from 6 April 2026. While much of the media coverage has focused on farming, the reality is far wider-reaching. Thousands of family and owner-managed businesses across every sector of the UK economy will be affected. The next generation could inherit the family business – but with strings attached in the form of a substantial IHT liability, even if it is payable over 10 years. These changes are an urgent call to action: 👉 If you own a business, review your succession plans, 👉 Update your wills, and 👉 Plan ahead to preserve the business for future generations. I’ll be sharing more insights soon, but the core message is that the Government is showing no signs of a U-turn, and these changes are coming. #IHT #TaxPlanning #SuccessionPlanning #FamilyBusiness #OwnerManagedBusiness #BPR #APR #InheritanceTax #DraftLegislation

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A thought-provoking article in The Times about the owner of Glastonbury Festival caught my eye. The headline was that the founder could avoid up to £80m of Inheritance Tax (#IHT). In my view, the author missed a key point: how would this £80m liability be funded if the founder continued to hold the shares personally? Even if the IHT liability upon death were spread over 10 years, the estate would still need to raise £8m per year to pay the tax. Last year, the company’s pre-tax profits were £6m. So even if the shareholders extracted all profits (which would first be subject to Corporation Tax, and then to Income Tax), it still wouldn’t be enough. The company would most likely need to be sold to cover the IHT. Is that really the desired outcome for a company with such a unique status and charitable ethos — having donated £5.9m to good causes last year alone? The headlines certainly grab attention, but as with any tax, we should also consider the broader impact it could have. #iht #familybusiness #tax #bpr

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Upcoming Changes to Small Company Thresholds For the first time in nearly a decade, the UK government has updated company size thresholds. Effective April 2025, with the implementation of The Companies (Accounts and Reports) (Amendment and Transitional Provision) Regulations 2024, these changes will impact many businesses. Key updates include: Small company thresholds: Turnover limit raised from £10.2m to £15m Gross assets limit increased from £5.1m to £7.5m Employee limit remains at 50 These changes represent increases in turnover and asset thresholds, which is supposed to significantly reduce the burden on small and medium-sized companies. If you’d like to understand how this might impact your business, feel free to get in touch! GTA Accounting - Accounts | Taxation | Strategic Planning #onyourside

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We are pleased to announce the expansion of our presence in Hertfordshire through the acquisition of Watford-based Landmark Accountants. As part of Xeinadin, Landmark will continue to service small- to medium-sized enterprises in Watford and the surrounding areas. Read more here: https://sowo.kr/3eWBYyVu #WeAreXeinadin #Acquisition #Growth #SMEs

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