Stamp Taxes

A 2% stamp duty land tax surcharge for purchases of residential property by non-UK residents comes into force on 1 April 2021.Stamp Duty Land Tax holiday: The nil rate will remain at £500,000 until 30 June 2021.

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Construction industry scheme

In a bid to prevent abuse of the construction industry scheme, HMRC is introducing a number of changes from 6 April 2021. These include:• the introduction of a set-off amendment power;• limiting the exclusion for the cost of materials to cases where the subcontractor directly incurs the cost;• changes to the definition of a deemed contractor; and• expanding the scope of the CIS registration penalty.

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Cap on payable R&D tax credit

A cap on the amount of the payable research and development (R&D) tax credits for small and medium-sized enterprises (SMEs) comes into force for accounting periods beginning on or after 1 April 2021. The cap limits the amount of payable R&D tax credit that an SME can claim to £20,000 plus 300% of its total PAYE and national insurance contributions liability for the period. The cap does not apply to those companies who: • Have employees creating, preparing to create or managing intellectual property; and • Do not spend…

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