After the tumultuous events of the past 2 weeks a little political certainty is now appearing returning to the ranks of the Tories, with the Labour Party still to decide their future direction.
The fact remains that there is little the farming community can do but wait and see what happens. The fall in the pound will assist commodity prices at least in the short term and it could be that if a recession does take place in the wider economy as many predict, land prices may firm as a result as was the case back in 2007. That having been said the future of BFP (whilst in place for 2 years) will then presumably come under pressure.
In short, who knows? It seems a lifetime’s politics has taken place in 20 days and any prediction is a ‘mugs game’. It is also more than a little ironic that the leaders of the ‘leave campaign’ are now nowhere to be seen and the new Prime Minister has become leader through her ability to sit on a fence and say nothing. Strange times indeed.
Last week we learned that Venue Retail Limited, represented by John Harris, had defeated HMRC in the First Tier Tribunal. The case concerned the withdrawal of the EIS relief claimed by investors in the company that was formed to operate the merchandising operation for the 2012 Olympic Games.
The case revolved around the definition of the ‘commencement of trade’ and Harris was able to argue that trade started when ‘operations began’, rather than ‘ when the shop doors opened’ as argued by HMRC. Harris based his argument on some old WW1 excess profits tax cases.
As a consequence it is anticipated that the relief that was withdrawn will not be restored. Some £400,000 of taxation is thought to be involved.
The partners are pleased to report that Cherie Howard has recently joined the firm and is currently based in the Agricultural department. Cherie who is 23, is studying for her final AAT exams.
The full text of the budget is attached. Please remember that until this Finance Bill is enacted later in the summer the provisions contained within it are draft. Should you wish for specific guidance please contact the Office.
The office will be shut from 12.30pm on Christmas Eve, reopening on Tuesday 29th at 9.00am. Then we shut on Friday 1st January and open again on Monday 4th January, 2016.
In recent years the Chancellor has run a ‘mini budget’ in the late autumn of each year. Clearly this year he was under significant political pressure given his wish to reduce tax credits. He has partially back peddled in this regard, but there are significant changes in the following areas:
- An apprenticeship levy of 0.5% on big company payrolls.
- A surcharge of 3% on buy to let purchases.
- Basic pension goes up to £119.30 from 6th April 2016.
- A payment on account of CGT on the disposal of second homes.
As always, if you require specific advice in any of these areas please get in touch.
Harris and Clarke LLP are currently looking to recruit an ICAEW qualified / finalist, preferably with agricultural knowledge or experience. Sole traders or those with a client following would also be considered. Apply within.
John Harris and Richard Clarke are pleased to announce the acquisition of a major stake in the above company from Gerry Cochran, its long standing principal. The practice has a mixed portfolio of clients and is a Registered Auditor under the ICAEW, which enables the practice as a whole to extend its services. Gerry, a Chartered Accountant is also welcomed to the firm.
Harris and Clarke are pleased to invite you to a seminar to discuss the implementation of the new auto enrolment legislation and how it affects your business and the various options you have.
It is to be held at the OLD NORTHAMPTONIANS RUGBY CLUB at 10.00am on November 25th. If you would like to attend please contact Miss.Helen Cara at 7 Billing Road on 01604 622274.
25.11.2015 – A big thank you to those that attended and Matt Deegan and Richard Jones of St.James Place for their presentation. The 50 or so clients present were left in no doubt as to the relevance of the change to the pensions regime.
Please contact us at 7 Billing Road for further advice in this important area.
The partners are pleased to announce the recruitment of Jack Hart, a 20 year old AAT student. Based in the agricultural department Jack is a bit of a computer whizz and hopes to quickly complete his studies.