Insight – February 2016

Rules Change

What’s Changing?

Accounting Standards Financial instruments (debts and liabilities) of a company.

When?
Mainly accounting periods on or after 1 January 2016 

What’s the Difference?
Various including, where loans have been made at non-market rates (i.e. shareholder interest free), the company is required to fair value the loan assuming that a market rate of interest is being charged.

Anything Else?
Ask your Accountant
@ShesARealGenius ….Hansel and Gretel grow up, become accountants, and leave a paper trail…

What’s Changing?
Stamp Duty Land Tax (SDLT) is to be increased for most purchases of buy to let investments from April 2016.

When?
From 1 April 2016

What’s the Difference?
The rate of SDLT on the purchase of BTL property, or purchase of a second home costing more than £40,000 will be subject to an additional 3% surcharge i.e. the first £125,000 3%, and 5 per cent on the amount between £125,001 and £250,00 etc.

Anything Else?
The policy will be outlined at the 2016 Budget on March 16, exceptions are expected.

What’s Changing?
House Prices

When?
All the time.

What’s the Difference?
How property value is viewed. What is deemed affordable. Lender’s stress testing in reaction to the markets and where their money is derived.

Anything Else?
Property ownership isn’t a passive investment…. Do your research.

What’s Changing?
Nothing yet.
But, Sebastian Vettel has pinpointed two reasons which have led to fans alienating F1 in recent seasons, the recent domination of Mercedes and the over complicated rules in the sport.
He wants to go back to the roots of full-throttle, noisy engine, which driver is the fastest, and racing.

Anything Else?
What he wants makes sense in sport but could be a metaphor for what’s wrong for those of us in business, banking and finance.

Image and Article credit: Copyright SUF © 2016