Latest news with #taxchanges
Bloomberg
4 days ago
- Business
- Bloomberg
Canada Shares List of Pre-Carney Tax Measures It Plans to Keep
Canada's Department of Finance published a list of tax changes that the government is planning to implement, most of which were already announced during former Prime Minister Justin Trudeau's time in power. Finance Minister Francois-Philippe Champagne released draft legislation of tax measures for consultation on Friday, confirming that many proposals announced before Mark Carney became prime minister in March are still likely to be brought to Parliament when it resumes later this year.
Forbes
5 days ago
- Business
- Forbes
How The New QSBS Rules Affect Founders And Investors
Peyton Carr is a Personal Financial Advisor for pre- and post-exit founders, entrepreneurs, and UHNW families | Keystone Global Partners. On July 4, 2025, the One Big Beautiful Bill Act (OBBBA) ushered in a new era for qualified small business stock (QSBS), introducing the most significant tax changes to this framework in 15 years. For founders and investors, these updates, which include shorter holding periods, increased exclusion limits and broader eligibility criteria, offer exciting opportunities to optimize tax savings and liquidity strategies. Below, I will break down these changes and provide planning considerations to illustrate how founders and investors can effectively use the new rules. Overview Of The New QSBS Rules QSBS has long been a powerful tool for startup founders and early investors. Under the previous rules, holding QSBS for at least five years allowed for up to $10 million in federal capital gains tax to be excluded, or 10 times the investment basis, whichever was higher. However, the five-year holding period acted as an "all-or-nothing" barrier. Selling just one day too early meant losing all QSBS benefits. The OBBBA has modernized QSBS in critical ways, making it more flexible and attractive. Here's an overview of the primary changes: Now, QSBS offers partial tax relief sooner: • 50% exclusion after three years (15.9% effective federal tax rate) • 75% exclusion after four years (7.95% effective federal tax rate) • 100% exclusion after five years (0% federal tax rate, as before) This tiered approach removes the prior rules' rigidity, which enables earlier exits without forfeiting all tax benefits for QSBS acquired after July 4, 2025. The lifetime cap has increased from $10 million to $15 million per taxpayer, per company. Beginning in 2027, this limit will also adjust for inflation, adding even more value over time. The gross asset threshold for companies to qualify as a 'small business' has risen from $50 million to $75 million, allowing more startups, especially larger or capital-intensive ones, to qualify and issue QSBS to investors. This will also adjust for inflation starting in 2027. QSBS issued before July 4, 2025, remains under the old rules, while the new benefits apply to stock issued on or after this date. Managing pre- and post-OBBBA QSBS under these parallel systems will be crucial. For instance, you could have QSBS under the old rules for your Series A, and QSBS under the new rules for your Series B. Planning Considerations For Founders And Investors The new QSBS rules bring valuable opportunities, but they also require strategic planning. Here are some key considerations: The new three- and four-year exclusions provide more flexibility for investors who need early liquidity. Founders considering secondary sales or tender offers now have practical options to de-risk sooner. However, if possible, aim for the full five-year hold to optimize tax benefits. For example, if a founder sells QSBS stock valued at $15 million after three years, previous QSBS rules would have resulted in about $3.57 million in federal capital gains taxes using the 23.8% long-term capital gains rate. With the new system, the 50% exclusion reduces the taxable amount, resulting in an approximate 15.9% effective tax rate and a significant drop in federal taxes to roughly $2.39 million. If held for four years at roughly a 7.95% tax rate, the federal tax due would be approximately $1.19 million. The increased $15 million QSBS cap provides founders with large exits a valuable opportunity to minimize more taxes. Founders can consider strategies such as "QSBS stacking," where shares are gifted to family members or trusts to maximize the QSBS exclusions. Consider an investor with $60 million in anticipated QSBS exit value. If the investor keeps $15 million and gifts $15 million to three separate non-grantor trusts (one for each of their three children), the entire $60 million could potentially be excluded from federal taxes upon exit, provided the five-year holding period is met. If the shares are held for only four years, 75% of the $60 million would be excluded. At three years, 50% would be exempt. The $75 million gross asset threshold allows more startups to raise larger or later-stage rounds that might qualify for QSBS. However, it's important to carefully track compliance with the QSBS requirements during and after fundraising. For instance, a Series B round might qualify for QSBS under the new rules, whereas it might not have under the old rules. Option holders who exercise after July 4, 2025, will benefit from the new rules. Under these changes, the exercise date starts the holding period for tiered exclusions, creating value even on shorter timelines, such as three or four years before an exit. For startup founders who hold both stock and options, like many of our clients at Keystone Global Partners, this presents a significant opportunity to exercise and take advantage of QSBS tax benefits in just three years, when previously they may have thought the capital outlay and holding period of five years was not realistic. Advanced planning is essential to fully unlock QSBS benefits. Whether it's using gifting strategies, exploring Section 1045 rollovers for deferrals or aligning exit dates with key holding-period milestones, founders and investors should work closely with experienced tax and legal professionals. Final Thoughts I believe the 2025 QSBS tax changes will profoundly impact how founders and investors manage liquidity, plan exits and preserve wealth. By offering tiered exclusions, expanded caps and broader company eligibility, these rules encourage startup innovation while delivering significant tax savings. For founders, integrating these strategies into exit planning will help maximize their financial outcomes. The information provided here is not investment, tax or financial advice. You should consult with a licensed professional for advice concerning your specific situation. Forbes Finance Council is an invitation-only organization for executives in successful accounting, financial planning and wealth management firms. Do I qualify?
Daily Mail
5 days ago
- Business
- Daily Mail
Savills blames property sales revenue slump on 'dampening effect' of upcoming Autumn Budget
Savills saw revenue from residential property re-sales fall 8 per cent in the first half of 2025, the estate agent's latest results show. It added that the upcoming Autumn Budget was having a 'dampening effect' on corporate and private investment activity across Britain. Chancellor Rachel Reeves is anticipated to make further tax increases, including potentially changing the rules on inheritance tax. Savills shares fell 5.64 per cent or 55.00p to 920.00p on Thursday, having fallen over 22 per cent in the past year. The estate agency group said the decline in sales across its residential re-sale agency arm, which excludes new build sales, emerged as a result of 'the impact of actual and potential tax changes on sentiment.' Exchange volumes slipped 1 cent, which Savills said was driven by a reduction of 7 per cent in prime London locations. Sales of new developments performed more strongly, rising 13 per cent year-on-year, with average values 'marginally increased.' The company's institutional residential and student housing revenue increased by 32 per cent in the period. Savills said: 'The overall impact of these movements was a reduction of 2 per cent in UK residential revenue for the period.' Chief executive Mark Ridley added that Savills saw a slowdown in transaction volumes across its markets in the second quarter. He said: 'Q2 saw a slowing of transactional activity as occupiers and investors digested the implications of tariffs and geopolitical events.' The business flagged ongoing uncertainty over Britain's economy and fiscal policies. It said: 'In the UK, the impact of actual and potential fiscal change (forthcoming October Budget) had a dampening effect on corporate and private investor activity through Q2 resulting in a 13 per cent reduction in real estate market investment volumes period-on-period.' Across its global operations, Savills posted a 6 per cent rise in group revenue to £1.1billion in the six months to the end of June. Underlying profit increased by 6 per cent to £23.3million up from £21.2million, while reported pre-tax profit rose by 78 per cent to £15.8million. Underlying basic earnings per share fell to 11.7p, reflecting an increase in taxes paid during the period. In the Asia Pacific region, Savills said market transactions fell 26 per cent amid ongoing concerns over the impact of Donald Trump's trade tariffs. The firm's auction arm sold more than £420million worth of commercial and residential property during the period, up 8 per cent year-on-year. The board declared an interim dividend of 7.4p per share, up from 7.1p in the first half of last year. Analysts at Deutsche Numis, said: 'Savills reports that transactional pipelines continue to grow, which should support the market recovery reasserting and the attainment of full-year expectations - although this will clearly be dependant on the pace of recovery. 'We think this caution is merely a timing point, and that Savills earnings should recover strongly overt the next few years.' Analysts at Peel Hunt, said: 'While Savills remains vulnerable to to shorter-term volatility in property transactions in particular, the group's more stable businesses continue to deliver robust results. 'Normalisation of commercial property activity should see profits improve materially in the next few years.' This week housebuilder Persimmon flagged ongoing 'affordability constraints' across the property market. 'While interest and mortgage rates have reduced, they are at levels that still present a barrier to many potential customers', Persimmon said.
Telegraph
11-08-2025
- Business
- Telegraph
The best golden visas
Are you leaving the UK to start a new life abroad? Share your story by emailing money@ The urge to escape the UK remains strong among many families, who are fleeing from punitive tax changes, high inflation and increases in school fees. Better employment opportunities, quality of life, EU access and tax perks are among the pull factors to Europe – or beyond. Golden visa programmes, which came about after the 2008 financial crisis, offer residency in exchange for investment. They provide a permit that can begin the pathway to citizenship after five to 10 years if required, and if certain conditions are met. And for many of them, tax residency is optional. They can be distinguished from so-called 'golden passports' that sell citizenship from the outset, notably offered by Malta and Grenada. Both golden visas and passports are opposed by the European Union, and some national governments have ended or limited their schemes, particularly those that incentivise real estate investment which they have caused property prices to soar. But of those that remain, which are best? It depends whether you want to claw back your EU status, relocate or save tax. The European golden visas offering Schengen access have an edge over those that don't – but note that these visas do not necessarily give the right for holders to live (or work) in other countries across the EU, only the country issuing the visa. Other considerations include level of investment required, convenience of location, pathway to citizenship and the number of days required to stay there per year. But not all golden visas are equal. Here, with input from immigration advisers, we examine the schemes which are among the five most favoured and useful schemes for British people. Best for... a quicker path to citizenship Portugal Portugal's golden visa remains a favourite. Last year, Portugal approved a record-breaking 4,987 golden visa applications from people of all nationalities, 72pc more than the previous year, according to the immigration agency AIMA. Many attribute this increase to the end of the Spanish golden visa, which ceased in April this year. But there are strong lifestyle drivers, too. Patricia Casaburi, of Global Citizen Solutions, says: 'Portugal is the top choice for many wanting to relocate in Europe. Lifestyle, and the huge influx of foreigners over the last few years, have made it increasingly easy to find a community to connect with. English is widely spoken.' The growth of international schools in Portugal is another pull, and you only have to spend seven days a year there to retain your visa. Often it is Schengen access that is the real clincher – the Greek golden visa also offers this, but a key difference is that in Portugal you are allowed to work locally on this visa, unlike golden visa holders in Greece. Schengen access gives the right to visa-free travel within the Schengen area, but not the right to reside or work in those other countries. This is especially sought after by Chinese and Indian applicants who make up a large proportion of golden visa holders. Casaburi adds that there is a straight-forward process to secure citizenship in Portugal, after only five years, although there are possible changes to the timescale in September. To qualify for the golden visa, you must either donate €250,000 (£217,000) to an accredited Portuguese foundation or invest €500,000 in private equity or capital funds, which is the more popular option. After five years you can apply for permanent residency or citizenship – and there's a tax-efficient way to get your money back, says Casaburi. 'Portuguese non-residents are generally exempt from paying taxes on dividends and capital gains from the venture capital fund, so those who maintain their tax residency in their home country pay no Portuguese taxes on fund distributions or capital gains.' If you opt to become a Portuguese tax resident, you'll pay 10pc tax deducted at source on distributions from golden visa-eligible investment funds, which is significantly lower than Portugal's standard capital gains tax rates. Biggest negative? The backlog of applications means waiting times of 18 to 24 months for this visa. However, the Portuguese government has promised to reduce this in 2025. Best for... access to flat-tax regimes Greece Greece's golden visa has been increasing in popularity: last year there were 9,100 applications, according to the Ministry of Migration and Asylum, which is double the amount in 2023. However, this can in part be explained by a rush to beat the changes to the scheme at the end of 2024. The raising of the property price threshold from €250,000 to €800,000 on popular islands such as Crete and in Athens has now put it beyond the means of many British homebuyers. The UK does not feature in the top 10 nationalities applying for it, which is headed by China, Russia and Turkey. Interest from the US has grown, says Eleni Acquarone, of Elxis – a Home in Greece. 'In six months we've already reached the total number of American citizen applications we had for 2024.' She is seeing a broader spread of locations now, shifting across the Greek mainland where the €400,000 threshold applies – to the Ionian Coast and the Peloponnese, especially around Kalamata. The Greek golden visa offers Schengen access and has no stay requirement per year. There are options to get the visa by spending only €250,000 (on either an historic property to restore or the conversion of a commercial building into a residential one). But much of Greece is less easily accessed from the UK than Portugal and the path to citizenship is seven years, not five. While it can be used in tandem with Greece's two flat-tax regimes (€100,000 lump sum per year, or 7pc income tax for retirees), it offers no access to the labour market – you can work for a foreign company remotely in Greece but you cannot get a job in Greece. You are also not allowed to rent out the property for short-term lets. Biggest negative? The new €800,000 threshold has priced out lower and mid-market buyers. Best for... zero income tax United Arab Emirates Despite increases in the cost of living, especially housing costs, the UAE remains the hotspot for British people relocating to the Middle East for tax perks and lifestyle benefits. Those moving are attracted by the UAE's political stability, economic growth, pro-business environment and regulatory certainty as key drivers. Of course, the zero personal income tax on salaries, investments or rental income earned within the country is another. There is no capital gains tax, inheritance tax, wealth tax or annual tax on worldwide assets. Entry points are relatively low, compared to other countries: a 10-year golden visa requires at least AED 2m (£405,000) of investment into a business or property purchase, while the five-year 'silver visa' for those over 55 requires the purchase of a property of AED1m (£202,000) or to invest half that sum in a pension account. Real estate purchases for golden visas are usually required to be unmortgaged, but the UAE scheme was altered this year to make eligible those with a 20pc deposit. Some off-plan properties are eligible, if 50pc of the cost is paid off. A separate work visa is not required. Biggest negative? No Schengen access, though there is the right to live in seven emirates. Best for... EU access at a lower price Latvia Latvia's low entry point of €60,000 (£52,000), and the fact it offers Schengen access, have made this Baltic state's golden visa scheme very popular. You can move around the EU with this golden visa, though it doesn't give you the right to live and work there. Russians dominated applications until they were banned in 2022, but after a drop in popularity the scheme recorded notable growth during 2024, according to relocation adviser Savory & Partners, which reports a shift in demand to Chinese and Turkish buyers. Of the options available, the €50,000 investment into a Latvian fund (plus €10,000 donation to the state) dominated demand, with the real estate investment option (more than €250,000) way behind, showing its appeal as a mobility tool rather than for relocation. It does, however, allow visa holders to work in Latvia. 'Schengen access is the real driver, but the annual in-person renewal requirement is a burden compared to other golden visa programmes,' says Artur Saraiva at Global Citizen permit is for five years, but requires the holder to confirm their status every year by travelling to Latvia to do this. There is also a long 10-year path to citizenship. For those moving there, the tax regime in Latvia is attractive; the top rate of income tax is 31pc. Biggest negative? Northern European climate and the lack of lifestyle appeal. Cyprus You need to invest a relatively low €300,000 to qualify for Cyprus's Residence by Investment visa. This can be into new-build real estate, shares in a Cypriot company employing at least five people, or units in a Cypriot Collective Investment Organisation. But it also requires proof of financial resources: €50,000 per annum, plus €15,000 for a spouse. The scheme is popular with wealthy non-EU citizens from Russia, Israel, Lebanon and increasingly Asia, who are drawn to Cyprus's stability, English-speaking environment and favourable tax regime, according to Global Citizen Solutions. For UK and US nationals, the distance to travel is less convenient than Portugal. Cyprus is not yet part of the Schengen area – it has applied to join – so this is a reason why it is less popular than other countries offering Schengen access. But the tax benefits do attract British people: the non-dom tax regime offers no tax on passive income such as dividends and interest for 17 years, while for retirees there's a 5pc flat tax on pensions. Although it is in a strategic position between Europe, the Middle East and Africa, small-island life is too restrictive for some, and it doesn't offer the right to work. Biggest negative? Lack of Schengen access
Yahoo
10-08-2025
- Business
- Yahoo
New State Tax Changes Took Effect in July: Here's What They Mean for You
A wave of state tax changes took effect on July 1, and depending on where you live, they could impact your monthly finances. From fuel and income tax adjustments to new sales tax exemptions and updates to the SALT deduction, these changes may affect everything from your take-home pay to the price you pay at the pump. Find Out: Read Next: Here's a breakdown of the most important updates — and how they might affect your wallet. Fuel and Excise Tax Changes May Raise Prices Effective July 1, excise changes were implemented across states for individuals and businesses. Overall, the majority of the states increased their gas and transportation taxes, tobacco taxes and cannabis taxes. States like Alabama, Illinois, Minnesota, Missouri and Nebraska increased fuel taxes, whereas California's gas tax rates decreased. In addition, Hawaii implemented a road usage charge for EVs. 'Fuel taxes are directly tied to the price consumers and businesses pay at the pump,' said Lisa Green-Lewis, CPA and tax expert with Intuit TurboTax. 'For freight companies, delivery services and ride-share providers, increases in fuel costs could be passed on to customers in the form of higher prices for goods and services.' That means if you live in one of the states with increased fuel taxes, you may need to budget more for gas, goods and services, while if you live in California, you may get a little extra breathing room. Learn More: Sales Tax Breaks Could Attract New Businesses 'Arkansas and Kansas are two of the states that will expand the sales use tax exemption for data centers, which could provide incentives for more businesses in those states,' Green-Lewis said. While this might not immediately impact your budget, it may be good news for those who live in those states who are looking for a new job. Income Tax Changes Have Wide-Ranging Impacts South Carolina is reducing the top marginal tax rate and many states are expected to make changes to income tax rates in the coming months. Green-Lewis outlined how changes to income taxes can affect you so that you can plan ahead. In states where income taxes are decreased: Take-home pay can increase, allowing consumers to save, invest or spend more. Increased consumer spending may drive local economic growth. States reducing income taxes may attract new residents, particularly from high-tax states. Lower tax revenue may reduce funding for public services like education, infrastructure maintenance or healthcare. In states where income taxes are increased: States may use additional tax revenue to improve infrastructure, invest in schools or expand healthcare access, which benefits consumers in non-monetary ways. Net income can be reduced, particularly for middle- and lower-income earners. Consumers may cut back on discretionary spending, which could impact businesses reliant on consumer demand. High-income individuals may seek lower-tax states, reducing the taxable base. SALT Deduction Cap Increase Can Benefit Certain Taxpayers Under President Donald Trump's recently passed tax bill, one of the key changes was the increase of the cap on the state and local taxes (SALT) deduction. Previously, the Tax Cuts and Jobs Act capped the SALT deduction at $10,000, and it was set to expire in 2025. The new bill increases this cap to $40,000, effective tax year 2025. The cap increases to $40,400 in 2026 and increases by 1% through 2029. The deduction begins to phase out when income is more than $500,000, or $250,000 for married couples filing separately. 'This change may benefit taxpayers in states with high state and property taxes, allowing them to deduct more of their related expenses,' Green-Lewis said. 'Some states have different rules related to property taxes like homestead exemptions, but we will need to closely watch if states will conform to the new federal tax law under the recently passed tax bill.' More From GOBankingRates New Law Could Make Electricity Bills Skyrocket in These 4 States I'm an Economist: Here's When Tariff Price Hikes Will Start Hitting Your Wallet 5 Strategies High-Net-Worth Families Use To Build Generational Wealth 6 Popular SUVs That Aren't Worth the Cost -- and 6 Affordable Alternatives This article originally appeared on New State Tax Changes Took Effect in July: Here's What They Mean for You Sign in to access your portfolio
