Latest news with #tax relief
Telegraph
4 days ago
- Business
- Telegraph
Rachel Reeves's inheritance tax raid has killed our portfolio. Here's our first step to salvaging it
Questor is The Telegraph's stock-picking column, helping you decode the markets and offering insights on where to invest. Inheritance tax relief on Aim shares was halved in last year's Budget. This means that, from April next year, the effective inheritance tax rate on qualifying Aim shares that have been held for at least two years will be 20pc instead of the current 0pc rate. Clearly, this could still represent a substantial tax saving in some cases. However, when coupled with the potential for further tax changes in future budgets, in Questor's view, it is no longer sufficiently appealing to justify the existence of our Aim portfolio. Indeed, by solely focusing on Aim shares, we have previously accepted the opportunity cost of missing out on high-quality companies that are listed elsewhere in the UK stock market in order to obtain a significant inheritance tax saving. Given that the inheritance tax saving from Aim shares could become even less enticing, this column feels that it is more logical to instead allow a broader range of companies to be held in the portfolio that can potentially deliver higher long-term returns. As a result, we will no longer consider just inheritance tax relief and will now include UK-listed companies from outside the FTSE 100 in our portfolio. The reason for excluding FTSE 100 stocks is twofold. Firstly, it limits the crossover with our wealth preserver and income portfolios, which are dominated by FTSE 100 stocks. Secondly, we wish to retain the portfolio's reliance on UK-focused firms because of our upbeat stance on the domestic economy's long-term prospects. Given that FTSE 100 members generate over 80pc of their revenue from abroad, versus 55pc for the FTSE 250, a portfolio that focuses on small and mid-cap stocks fits the bill. With that in mind, FTSE 250 member Cranswick becomes the first addition to our new-look portfolio. The food producer has been tipped several times by Questor over recent years, with its share price having risen by 71pc since our 'buy' recommendation in July 2022. In doing so, it has outperformed the FTSE 250 by 55pc. The company's recently released first-quarter trading statement showed that it continues to make encouraging progress. Like-for-like revenue rose by 7.9pc, with strong volume growth leading its top line higher. The company confirmed that it is on track to meet financial guidance for the full year, while its medium-term outlook remains upbeat. Indeed, the firm is expected to generate 7pc annualised earnings growth over the next two financial years. Some investors, of course, may feel that Cranswick's earnings multiple of 19.2 is a steep price to pay given its good, but not great, profit growth forecasts. Indeed, there are a wide range of small and mid-cap shares that offer superior earnings growth prospects over the coming years. However, in this column's view, the firm's relatively dependable financial performance as a result of its defensive characteristics means it represents good value for money. Furthermore, the company's solid financial position and substantial competitive advantage highlight its status as a high-quality business that is worthy of a premium valuation. For example, despite a 73pc rise in net debt during its latest financial year, the company's net gearing ratio amounts to just 18pc. Meanwhile, net interest costs were covered over 20 times by operating profits last year. Despite its modest use of leverage, return on equity stood at 14pc in the company's latest financial year. This suggests the firm has a clear competitive advantage, while a rise in its operating profit margin of 48 basis points to 7.6pc last year further indicates a continued improvement in the firm's competitive position. To make way for the addition of Cranswick, hospital software specialist Craneware will now be removed from the small and mid-cap portfolio. It has produced a 28pc capital gain since being added in January 2018. This represents a 57pc outperformance of the FTSE Aim All-Share index. In Questor's view, Cranswick offers a favourable long-term investment opportunity. Its solid fundamentals and upbeat, as well as relatively dependable, growth outlook mean it has scope to deliver further capital gains and index outperformance over the coming years. Ticker: CWK
Japan Times
5 days ago
- Business
- Japan Times
Japan eyes tax relief for barrier-free movie theaters
The Cultural Affairs Agency is considering providing tax relief to operators of movie theaters if they renovate them to improve accessibility for people with disabilities, officials said. The initiative aims to help people enjoy cultural and artistic activities regardless of their disability. The agency plans to submit this proposal as part of its tax reform requests for fiscal 2026, which starts in April next year. Currently, operators of theaters and music halls can get a one-third reduction in the fixed property and city planning taxes if they carry out barrier-free renovations that meet government standards. While the agency plans to request that cinema operators be added to the list of businesses eligible for the tax reduction, it will also ask for a two-year extension of the tax relief, which is set to expire at the end of fiscal 2025. Eligible barrier-free renovations are expected to include installing viewing spaces and restrooms for wheelchair users and widening corridors to allow wheelchair users to pass each other.
Yahoo
7 days ago
- Business
- Yahoo
How to contribute to a loved one's pension
Pensions are an incredibly tax efficient way of saving for our future. We know that regular contributions, the tax relief boost and long-term investment performance can super-charge your planning. However, what many people don't realise is that you can also take steps to boost other people's retirements as well. In a recent survey by Hargreaves Lansdown, only about one third of people knew you could contribute to a loved one's pension. Higher earners tended to be much more aware, with well over three-quarters of additional rate taxpayers saying they knew about the rule. This compares to 61% of higher rate taxpayers and 29% of those paying basic rate tax. According to the rules, you can pay up to £2,880 per year into the SIPP of a non-working spouse. Even though they are not working, so not paying tax, they will still get a tax relief top up from government taking it up to £3,600. Read more: How to reclaim overpaid pension tax It's a powerful way to improve the retirement planning of a loved one who is taking time out of the workforce to care for children or other loved ones and can go a long way towards closing the gender pension gap that continues to yawn widely. You can also make payments to your partner's pension even if they are working, as long as total contributions do not exceed their annual allowance. It's a great way to make the most of any spare cash you have if you have made the most of your own pension allowances. The rule can be expanded even further than that of a spouse or partner. You can also contribute to the pension of a child through a Junior SIPP and get their retirement planning off to a flying start. As with a non-working spouse, you can contribute up to £2,880 per year to a Junior SIPP and they will receive the government tax relief top up to £3,600. Even small contributions will make a difference. Combined with tax relief and long-term investment growth, these contributions can grow and give your child a real leg up the retirement planning ladder. Read more: Why thousands of women are missing out on full state pensions Making contributions of the full £3,600 per year could see them with a pension pot of £104,000 by the time they are 18. This puts them well ahead of their peers who are yet to be auto-enrolled. Overall, this early planning could leave them in a much better position. A Junior SIPP can also be a great way of starting your child's financial education journey. You can show them how their SIPP is growing over time and the companies they are invested in. It can really help them get to grips with investment and start a lifelong habit that could serve them very well. Having built up a decent pension can also give them a bit more space in their budget to save for other key milestones such as a car or first home and help them build their financial resilience overall. Read more: Three key issues for the Pension Commission How your health can affect your pension How much money do you need to retire?Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
31-07-2025
- Business
- Yahoo
10 States Where You Pay Taxes on Groceries
In 2024, Oklahoma eliminated its sales tax on food and food ingredients, according to Oklahoma Tax Commission. In 2025, Kansas followed suit, per the Kansas Office of the Governor. Both policy shifts were part of a years-long pattern. Kiplinger reported that the states have trended toward ending their sales tax for grocery purchases, reducing it or offsetting it with tax credits since 2020, when the Center on Budget and Policy Priorities urged more states to join the 33 (including Washington, D.C.) that gave their residents a tax-free supermarket experience. However, the below 10 states still levy at least some sales tax on grocery purchases. For You: Trending Now: Alabama Alabama recently passed legislation that lowered its sales tax on groceries from 3% to 2%, according to the state's official website. It's scheduled to take effect on Sept. 1. Check Out: Arkansas In April, Arkansas Gov. Sarah Huckabee signed a bill that eliminated the state's 0.125% tax on grocery sales, per its official website. The Grocery Tax Relief Act goes into effect on Jan. 1, 2026. Hawaii According to Kintsugi, Hawaii doesn't levy a direct sales tax, but its general excise tax adds 4% to the cost of most services and products, including groceries — and some counties tack on an additional 0.5% surcharge. However, a tax credit tied to income offsets some of the burden for qualified residents. Idaho Idaho levies its full 6% sales tax on groceries, one of the highest in the nation, according to Idaho Education News. However, a tax credit averaging $120 per person allows individuals to enjoy tax-free food shopping on $2,000 worth of purchases, per Idaho State Tax Commission. Illinois In 2024, Illinois House Bill 3144 ended the state's 1% grocery tax, which was already markedly lower than its 6.5% general sales tax, per the Illinois General Assembly. The repeal takes effect on Jan. 1, 2026, but the legislation allows counties to impose their own 1% tax on grocery receipts, according to Avalara. Mississippi Mississippi residents recently got some relief from paying one of the highest supermarket surcharges in America when lawmakers lowered the state's grocery tax from 7% to a still-bruising 5%, per the Mississippi Department of Revenue. The City of Moss Point, Mississippi's website states the reduction went into effect on July 1. Missouri Missouri taxes groceries at a reduced rate of 1.225%, 3% lower than its 4.225% general sales tax, according to Zamp. However, the reduced rate applies only to all SNAP-eligible purchases. South Dakota A ballot bill called Measure 28 would have exempted grocery purchases from South Dakota's 4.2% sales tax, which is slated to return to 4.5% in 2027, as reported by South Dakota Public Broadcasting (SDPB). However, the state's official website shows voters overwhelmingly rejected the measure on Nov. 6, 2024. Tennessee Depending on where they live, some Tennesseeans pay one of the highest grocery taxes in the nation, according to the state's official website. Although, per Wate 6 News, the state recently lowered it by 20% from 5% to 4%, local taxes can push it up to the 7% that Mississipians paid until recently — or even more. Utah Utah levies a combined 3% sales tax on groceries, per Hands Off Sales Tax (HOST). It's the combination of a 1.75% state sales tax and a 1.25% local tax. More From GOBankingRates 6 Hybrid Vehicles To Stay Away From in Retirement This article originally appeared on 10 States Where You Pay Taxes on Groceries Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
25-07-2025
- Business
- Yahoo
AICPA survey shows US tax relief need post-natural disasters
A recent survey by American Institute of CPAs (AICPA) has highlighted the need for improved tax relief measures for Americans affected by natural disasters. The findings suggest that American populace is in favour of the Internal Revenue Service (IRS) extending its tax relief measures beyond the initial timeframe set following emergency declarations. The survey, conducted by The Harris Poll, revealed that 35% of respondents see value in a prolonged period for filing taxes and payment relief from the IRS after a natural disaster. This viewpoint is underscored by the recently revealed finding that nearly 32% of Americans have not taken measures to secure their financial interests against such calamities. Additionally, the survey suggests a room for improvement in IRS processes, with 29% of participants requesting tax filing extensions in disaster scenarios would be beneficial. Another 21% believe that the IRS could better manage the situation by setting staggered deadlines for tax relief for individuals and businesses after a disaster. The experiences of Americans who have previously faced natural disasters were also examined. Among the 43% who reported being affected by such events, a diverse range of experiences with federal tax relief was noted: 11% received assistance in under a month, 25% within one to six months, 28% in six months to a year, and 14% waited more than a year. Notably, 22% did not receive any tax relief from the federal government. AICPA tax policy & advocacy vice president Melanie Lauridsen said: 'These poll results clearly show that Americans are in need of additional and more immediate relief from the federal government during these challenging times.' Congress has passed a bipartisan law with unanimous support, which is now pending presidential approval. This legislation is intended to address the need for more relief mechanisms following state disaster declarations, potentially offering a framework for those impacted by natural disasters. Lauridsen added: 'This new law is a win for taxpayers nationwide. The timeliness of tax filing and payment relief following a disaster, especially when disasters strike close to filing deadlines, can give taxpayers one less thing to worry about as they begin the process of rebuilding.' "AICPA survey shows US tax relief need post-natural disasters " was originally created and published by The Accountant, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
