HS Financial Services - Developments in the tax world – Self Assessment and Capital Gains Tax
Developments in the tax world – Self Assessment and Capital Gains Tax

Developments in the tax world – Self Assessment and Capital Gains Tax

Self Assessment – Time to pay

Due to the ongoing COVID pandemic, Government has increased the threshold for Self Assessment customers and has issued new guidance for customers who can benefit from enhanced payment plans for paying tax liabilities. The threshold is now £30,000, increased from the previous £10,000 and the self-serve portal can be used to set up instalment payment plans up to the new threshold. This allows customers to pay their deferred payment on account bill from July 2020, in addition to any outstanding tax owed from 2019 through 2020, and their first payment on account for the current financial year in monthly instalments, up to 12 months. If the tax sum owed is higher than £30,000 or there is a need to extend payments beyond 12 months, customers are invited to contact HMRC directly rather than using the self-serve portal.

To use the self-serve portal, customers are required to meet the following criteria: They need to have no:

   - outstanding tax returns;
   - other tax debt; or
   - other HMRC payment plans set up.

The debt needs to be between £32 and £30,000.

The payment plan needs to be set up no later than 60 days after the due date of debt.

All customers using the payment plan will be required to pay interest on the tax owed. Interest will be applied to any outstanding balances from 1 February 2021.


Capital Gains Tax – Is change afoot?

Recently, there has been a lot of speculation about tax changes in the next budget. One that has been reported on by the dental press relates to Capital Gains Tax (CGT). During the summer, Chancellor Rishi Sunak asked the Office of Tax Simplification (OTS) to investigate aligning CGT more closely with income tax. The number of CGT payers in the UK is less than 1% of the total tax paying population but generates in excess of £8 billion in tax revenue annually. This could be the tax the Chancellor looks at changing in the spring budget.

In March 2020, Rishi Sunak’s first budget as a Chancellor, he made significant changes to Entrepreneurs’ Relief (now known as Business Asset Disposal Relief) by reducing the lifetime limit from £10 million to £1 million. This is the proportion of capital gains that is eligible to be taxed at a lower 10% tax rate. For any dentist selling his or her practice, investment, or property with cumulative lifetime gains in excess of £1 million, he/she will now be taxed at 20% on gains in excess of the £1m lifetime limit.

Currently, any tax due is paid 10 months after the financial year end. In March 2020, Chancellor changed the rules for CGT on residential properties to 30 days from sale.

If you are interested in finding out more about how this may affect your practice valuation or sale please contact the MediEstates team on 01332 321692, contact@mediestates.co.uk or visit www.mediestates.co.uk

Posted by: Maja Thompson on

General Buyer Terms

This agreement is in relation to MediEstates Limited whose registered office is at 1st Floor, Pacific House, Stanier Way, Wyvern Business Park, Derby, DE21 6BF acting for and on behalf of our clients ("the Vendors"); and yourself (Buyer's Name) in relation for an introduction to a prospective sale of a business as a going concern. By registering through this agreement I agree to all terms set out below:

  1. Definitions
    In this Agreement the following terms and phrases shall have the following meaning unless the context otherwise requires:

    Dental Practice business providing dental care. This business is under the MediEstates Ltd sale terms.
    Confidential Information
    Means the actual Vendors identity and all confidential information in respect of the Business, including, but not limited to, any ideas, business methods, prices, accounts, finance, marketing, research, development, manpower plans, processes, market opportunities, intentions, design rights, product information, customer lists or details, employees’ details, trade secrets, computer systems and software, and other matters connected with the products or services manufactured, marketed, provided or obtained by the Vendor, and information concerning the Vendor’s relationships with actual or potential clients or customers and the needs and requirements of such clients’ or customers’ operations.
  2. Obligation of Confidentiality
    The Prospective Purchaser agrees to treat as confidential, information supplied by or on behalf of the Vendor in connection with the sale of the Business.
  3. Exclusions
    The obligation of confidentiality set out in clause 2 does not apply to:
    1. any information received from a third party who was legally free at the time of disclosure to disclose it;
    2. any information which was already lawfully in the Prospective Purchaser’s possession prior to receiving it from MediEstates Ltd on behalf of the Vendor; and
    3. any information which is in its entirety already in the public domain.
  4. Duties of Prospective Purchaser
    1. The Prospective Purchaser shall take such a reasonable security measures to protect the Confidential Information and trade secrets.
    2. The Prospective Purchaser shall not, without the prior written consent of the Vendor, permit any of the Confidential Information:
      1. to be disclosed, other than in confidence to its legal or professional advisors;
      2. to be copied or reproduced;
      3. to be commercially exploited in any way;
      4. to be used for any purpose other than in connection with the prospective purchase of the Business;
      5. MediEstates is registered under the Data Protection Act 2018. Upon Signing this agreement you agree to follow the legal obligations of this act to protect the details of the information supplied to you, with it no to be passed outside of the control of you the prospective purchaser.
    3. The Prospective Purchaser agrees to keep a record of Confidential Information received.
    4. The Prospective Purchaser will return to MediEstates or the Vendor all documents containing Confidential Information and all copies of those documents on demand at any time which are in its possession or under its control, and for this purpose the term “documents” includes computer discs and all other materials capable of storing data and information. The Prospective Purchaser agrees that such documents remain the property of the MediEstates on behalf of the Vendor.
    5. The Prospective Purchaser must not jeopardise or re-direct the sale under any circumstances.
    6. The Prospective Purchaser must not contact the Local Area Team or CCG regarding any practice sale, by any means of media unless written permission is granted from the Vendor.
    7. To carry out own due diligence on practice purchases and accepts that any information MediEstates has supplied is information provided by the vendor and is not responsible for its accuracy or completeness.
  5. This Agreement
    The existence of this Agreement and its terms are confidential and neither MediEstates nor the Purchaser may disclose anything about this Agreement or its subject matter or implementation to any person other than in confidence to their legal or professional advisers.
  6. Duties of Prospective Purchaser
    When buying Dental practices, finance is normally needed. Our organisation operated over more than one of the MediHoldings brand, by completing this from you agree that the information can be shared to our other organisations to avoid the need to register independently and provide the best possible service.

    MediEstates will refer you to the specialist dental lending team and MediFinancial who will contact the necessary banks, whom have preferential healthcare lending rates in some cases, to ascertain which funding is available to you.
    By signing this agreement you do not have to use any of the banks MediFinancial contact, it is just another service which we provide.
  7. Deposit for Dental Practice
    If you are interested in putting forward a formal offer in for a practice, once the offer is accepted there will be a deposit required to secure the practice sale which is dependant of the practice size. This deposit is held in a client account and will be returned to the buyer on completion of the practice sale. You the buyer, will be required to sign a deposit schedule which will cover the buyer and the seller in the event that the practice sale does not proceed.
  8. Changes to this Agreement
    Any changes made to this agreement must be authorised and signed by one of MediEstates Ltd Directors.
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