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ISA Allowance 2006/07
You still have until the 5th April 2007 the use your ISA allowances. Any income or capital gains are tax
free if held within an ISA.
The allowances are:
£3,000 can be invested in a mini cash ISA.
£4,000 can be invested in a mini stocks and shares ISA.
£7,000 can be invested in a maxi ISA. With no more than £3,000 in cash.
Company Vans
Vans made available for personal use to company employees including directors will be taxed diferently from
April 2007.
Any van made available for personal use will be taxed as a benefit in kind similarly to company cars. The
figure for the benefit will be £3000. The tax on this payable by a lower rate taxpayer will be £660. The company will also
have to pay £384 class 1a NIC.
To avoid this tax you will have to demonstrate that the vehicle is not available for personal use and is
not actually used as such. Having the use of an alternative vehicle, a family car for instance, will strengthen your argument.
Purchasing new assets
Are you are contemplating the purchase of new tools, equipment or other fixed assets?
Then think about doing this before your current financial year end.
For example if your financial year ends at the end of March, buy your equipment by the 31st March not the
1st of April. This way you will get the first year capital allowances on the purchased asset against the profits on the year
just finishing. Otherwise you will have to wait another full year to benefit from the tax relief on the purchased asset.
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