Inheritance Tax

Overview

Inheritance Tax is a tax on the estate (the property, money and possessions) of someone who’s died.

There’s normally no Inheritance Tax to pay if either:

the value of your estate is below the £325,000 threshold

you leave everything above the £325,000 threshold to your spouse, civil partner, a charity or a community amateur sports club

If the estate’s (your estate) value (the value of your estate) is below the threshold (the £325,000 threshold) you’ll still need to report it to HMRC.

If you give away your home to your children (including adopted, foster or stepchildren) or grandchildren your threshold (the £325,000 threshold) can increase to £500,000.

If you’re married or in a civil partnership and your estate is worth less than your threshold (the £325,000 threshold), any unused threshold can be added to your partner’s threshold when you die. This means their threshold can be as much as £1 million.

Inheritance Tax rates

The standard Inheritance Tax rate is 40%. It’s only charged on the part of your estate that’s above the threshold (the £325,000 threshold).

The estate (your estate) can pay Inheritance Tax at a reduced rate of 36% on some assets if you leave 10% or more of the ‘net value’ to charity in your will.

Reliefs and exemptions

Some gifts you give while you’re alive may be taxed after your death. Depending on when you gave the gift, ‘taper relief’ might mean the Inheritance Tax charged on the gift is less than 40%.

Other reliefs, such as Business Relief, allow some assets to be passed on free of Inheritance Tax or with a reduced bill.

Contact the Inheritance Tax and probate helpline about Agricultural Relief if your estate includes a farm or woodland.

Who pays the tax to HMRC

Funds from your estate are used to pay Inheritance Tax to HM Revenue and Customs (HMRC) (HMRC). This is done by the person dealing with the estate (called the ‘executor’, if there’s a will).

Your beneficiaries (the people who inherit your estate) do not normally pay tax on things they inherit. They may have related taxes to pay, for example if they get rental income from a house left to them in a will.

People you give gifts to might have to pay Inheritance Tax, but only if you give away more than £325,000 and die within 7 years.

Passing on a home

You can pass a home to your husband, wife or civil partner when you die. There’s no Inheritance Tax to pay if you do this.

If you leave the home (a home) to another person in your will, it (a home) counts towards the value of the estate (your estate).

If you own your home (or a share in it (a home)) your tax-free threshold can increase to £500,000 if:

you leave it (a home) to your children (including adopted, foster or stepchildren) or grandchildren

your estate is worth less than £2 million

Giving away a home before you die

There’s normally no Inheritance Tax to pay if you move out and live for another 7 years.

If you want to continue living in your property (your estate) after giving it (your estate) away, you’ll need to:

pay rent to the new owner at the going rate (for similar local rental properties)

pay your share of the bills

live there for at least 7 years

You do not have to pay rent to the new owners if both the following apply:

you only give away part of your property

the new owners also live at the property (your property)

If you die within 7 years

If you die within 7 years of giving away all or part of your property, your home will be treated as a gift and the 7 year rule applies.

Call the Inheritance Tax and probate helpline if you have questions about giving away a home. They cannot give you advice on how to pay less tax.

Gifts

There’s usually no Inheritance Tax to pay on small gifts you make out of your normal income, such as Christmas or birthday presents. These (Gifts) are known as ‘exempted gifts’.

There’s also no Inheritance Tax to pay on gifts between spouses or civil partners. You can give them as much as you like during your lifetime, as long as they live in the UK permanently.

Other gifts count towards the value of your estate.

People you give gifts to will be charged Inheritance Tax if you give away more than £325,000 in the 7 years before your death.

What counts as a gift

A gift can be:

anything that has a value, such as money, property, possessions

a loss in value when something’s transferred, for example if you sell your house to your child for less than it’s worth, the difference in value counts as a gift

Call the Inheritance Tax and probate helpline if you’re not sure.

Exempted gifts

You can give away £3,000 worth of gifts each tax year (6 April to 5 April) without them being added to the value of your estate. This is known as your ‘annual exemption’.

You can carry any unused annual exemption forward to the next year - but only for one year.

Each tax year, you can also give away:

wedding or civil ceremony gifts of up to £1,000 per person (£2,500 for a grandchild or great-grandchild, £5,000 for a child)

normal gifts out of your income, for example Christmas or birthday presents - you must be able to maintain your standard of living after making the gift

payments to help with another person’s living costs, such as an elderly relative or a child under 18

gifts to charities and political parties

You can use more than one of these exemptions on the same person - for example, you could give your grandchild gifts for her birthday and wedding in the same tax year.

Small gifts up to £250

You can give as many gifts of up to £250 per person as you want during the tax year as long as you have not used another exemption on the same person.

The 7 year rule

If there’s Inheritance Tax to pay, it’s charged at 40% on gifts given in the 3 years before you die.

Gifts made 3 to 7 years before your death are taxed on a sliding scale known as ‘taper relief’.

Years between gift and death | Tax paid

less than 3 | 40%

3 to 4 | 32%

4 to 5 | 24%

5 to 6 | 16%

6 to 7 | 8%

7 or more | 0%

Gifts are not counted towards the value of your estate after 7 years.

When someone living outside the UK dies

If your permanent home (‘domicile’) is abroad, Inheritance Tax is only paid on your UK (the UK) assets, for example property or bank accounts you have in the UK.

It (Inheritance Tax)’s not paid on ‘excluded assets’ like:

foreign currency accounts with a bank or the Post Office

overseas pensions

holdings in authorised unit trusts and open-ended investment companies

There are different rules if you have assets in a trust or government gilts, or you’re a member of visiting armed forces.

Contact the Inheritance Tax and probate helpline if you’re not sure whether your assets are excluded.

When you will not count as living abroad

HMRC will treat you as being domiciled in the UK if you either:

lived in the UK for 15 of the last 20 years

had your permanent home in the UK at any time in the last 3 years of your life

Double-taxation treaties

Your executor might be able to reclaim tax through a double-taxation treaty if Inheritance Tax is charged on the same assets by the UK and the country where you lived.


Become a special guardian

What is a special guardian

You can apply to be a child’s special guardian when they cannot live with their birth parents and adoption is not right for them.

You’ll be responsible for looking after the child (a child’s) until they (a child’s)’re 18 (unless the court takes your responsibility away earlier).

You’ll make all day to day decisions about the child (a child’s), for example schooling and medical treatment. You do not have to discuss these decisions with the birth parents (their birth parents).

You’ll need to get the consent of everyone who has parental responsibility for the child (a child’s) before you make some important decisions, for example:

changing the child’s (a child’s) surname

putting the child (a child’s) up for adoption

taking the child (a child’s) abroad for more than 3 months

the child (a child’s) having surgery for reasons other than improving health, such as circumcision, sterilisation or cosmetic surgery

If you cannot get consent, you can ask the court to decide. Use the form ‘Make an application in existing court proceedings related to children’ (form C2).

Who can apply

You can apply to be a child’s special guardian if you’re not their parent and you’re over 18.

You can make an application with someone else. This is known as a joint claim.

You and anyone you’re applying with can apply if:

you’re already the child’s (a child’s) legal guardian

the child (a child’s) lives with you because of a child arrangements order

the child (a child’s) has lived with you for 3 of the past 5 years

you’re the child’s (a child’s) relative or a foster parent, and the child (a child’s) has been living with you for at least 1 year

you have the agreement of anyone named in a child arrangements order as someone who the child (a child’s) will live with

you have the agreement of all the people with parental responsibility for the child (a child’s)

you have the agreement of the local council, if the child (a child’s) is in care

If you do not fit one of these descriptions, you’ll need to ask the court’s (the court) permission to apply. You’ll need to send the following forms to your local family court:

‘Make an application in existing court proceedings relating to children’ (form C2)

‘Family mediation and assessment meeting’ (form FM1)

Apply

You can use a family mediator to help make arrangements with the child’s (a child’s) family to avoid having to apply to the court.

It costs £215 to apply to the court. You may be able to get help with court fees if you’re on benefits or a low income.

Before you apply

Three months before you apply to become a special guardian you need to tell your local council in writing that you plan to make an application.

You also need to tell anyone named in existing court proceedings or orders about the child (a child’s) that you plan to make an application.

Applying to the court

Fill in these forms and send them to your local family court:

an ‘Application for an order’ (form C1)

a supporting statement (form C13A)

a ‘Family mediation information and assessment meeting’ form (FM1) to show you’ve been through mediation or why you could not go

Make copies of your completed forms before you send your application (an application) to the court. You’ll need to send these copies to each person affected by the application (an application) after you apply.

Find your local family court.

If you want to keep your details private

You can apply to keep your and the child’s (a child’s) contact details private throughout the court proceedings.

Fill in ‘Apply to keep your contact details (the child’s (a child’s) contact details) confidential from other parties in family proceedings’ (form C8) and send it with your application (an application).

After you apply

Within 10 days of receiving your application (an application) the court will send you a case number and a date for a meeting to set out:

a timetable for your case

how it (your case) will be dealt with

This meeting is called a ‘first directions hearing’.

You must go to all hearings you’re told to unless the court excuses you. If you’re not able to go, contact the court office.

Contact people in the child’s (a child’s) life

You must send the date and location of the hearing along with copies of your application to everyone with parental responsibility for the child (a child’s).

If there is a current care order about the child (a child’s), you should also send details of the hearing and copies of your application to:

everyone you believe had parental responsibility before the current court-made care order (a current care order about the child (a child’s))

the court-appointed Cafcass children’s guardian

You must also tell the following people and organisations that you’ve applied:

the children’s services department of your local council or the council local to where the child (a child’s) is staying, if that is different

everyone who cares for the child (a child’s)

the home where the child (a child’s) stays if it is a registered children’s home or a voluntary home and it is a refuge

everyone the child (a child’s) has lived with for at least 3 years before you made the application (an application)

anyone else named in a current court order

anyone involved in any other ongoing proceedings that might be affected by your application (an application)

The final hearing

The court will decide if a special guardianship order is in the best interests of the child (a child’s) after looking at all the evidence, and in some cases, hearing from witnesses.

If the court agrees, they (the court) will send the final order to you and the other people involved in the case, including the birth parents.

Financial help for special guardians

You might be able to get a special guardian allowance from the children’s services department of your local council.


Child employment

Minimum ages children can work

Part-time work

The youngest age a child can work part-time is 13, except children involved in areas like:

television

theatre

modelling

Children working in these areas will need a performance licence.

Full-time work

Children can only start full-time work once they’ve reached the minimum school leaving age - they can then work up to a maximum of 40 hours a week.

Once someone reaches 16, you may need to pay them through PAYE.

Once someone reaches 18, adult employment rights and rules then apply.

In England, a young person must be in part-time education or training until they’re 18.

Paying children and young people

Children under 16

School-aged children are not entitled to the National Minimum Wage.

Children under 16 do not pay National Insurance, so you only need to include them on your payroll if their total income is over their Personal Allowance.

Once someone reaches 16

Young workers aged 16 to 17 are entitled to at least £4.62 per hour.

If you’re a registered employer, you’ll need to record and report their pay as part of running payroll. If they earn more than £120 a week, you’ll also need to do other regular PAYE tasks like making deductions.

Before their next payday, collect information from them for PAYE. If they started work for you in the previous tax year, put their start date as 5 April in your payroll software. Record their pay for the current tax year only.

If you pay any employee over £120 a week you must be registered as an employer and operate PAYE.

Performance licences and supervision for children

A child may need a licence if they’re under school leaving age and taking part in:

films, plays, concerts or other public performances that the audience pays to see, or that take place on licensed premises

any sporting events or modelling assignments where the child (A child) is paid

The person in charge of running the event must apply to the child’s (A child) local council for a child performance licence. Ask the council if you’re not sure you need one.

Supervision for the child

If the child will not be with their parent, school teacher or home tutor, they must be supervised by a chaperone approved by the council (the child’s (A child) local council). Chaperones can apply for approval from the council (the child’s (A child) local council).

The normal rules for paying children and restrictions on employment apply to children in performances.

Restrictions on child employment

There are several restrictions on when and where children are allowed to work.

Children are not allowed to work:

without an employment permit issued by the education department of the local council, if this (work) is required by local bylaws

in places like a factory or industrial site

during school hours

before 7am or after 7pm

for more than one hour before school (unless local bylaws allow it)

for more than 4 hours without taking a break of at least 1 hour

in any work that may be harmful to their health, well-being or education

without having a 2-week break from any work during the school holidays in each calendar year

There are also special rules which only apply during term times and school holiday times.

Term time rules

During term time (term times) children can only work a maximum of 12 hours a week. This includes:

a maximum of 2 hours on school days and Sundays

a maximum of 5 hours on Saturdays for 13 to 14-year-olds, or 8 hours for 15 to 16-year-olds

School holiday rules

During school holidays 13 to 14-year-olds are only allowed to work a maximum of 25 hours a week. This includes:

a maximum of 5 hours on weekdays and Saturdays

a maximum of 2 hours on Sunday

During school holidays 15 to 16-year-olds can only work a maximum of 35 hours a week. This includes:

a maximum of 8 hours on weekdays and Saturdays

a maximum of 2 hours on Sunday

Local rules on the types of work children can do

Local bylaws list the jobs that children cannot do. If a job is on this list, a child under the minimum school leaving age cannot do this work.

Local bylaws may also have other restrictions on working hours, conditions of work and the type of employment.

Contact your local council’s education department or education welfare service for more information.

Local council rules for child employment permits

Most local councils say that businesses intending to employ school-aged children must apply for a child employment permit before they can be employed.

If a child is working without a child employment permit, there’s a risk that the employer will not be insured against accidents involving the child.

Children do not need a work permit for work experience arranged by their school.

Employers should contact their local council’s education department or education welfare service to find out if a child employment permit is needed.


Junior Individual Savings Accounts (ISA)

Overview

Junior Individual Savings Accounts (ISAs) are long-term, tax-free savings accounts for children.

In the 2021 to 2022 tax year, the savings limit for Junior ISAs (Junior Individual Savings Accounts (ISAs)) is £9,000

Who can get a Junior ISA

Your child must be both:

under 18

living in the UK

If your child lives outside the UK

Your child can only get a Junior ISA if both the following apply:

you’re a Crown servant (in the UK’s (the UK) armed forces, diplomatic service or overseas civil service, for example)

they depend on you for care

You cannot have a Junior ISA as well as a Child Trust Fund. If you want to open a Junior ISA ask the provider to transfer the trust fund into it.

How Junior ISAs (Junior Individual Savings Accounts (ISAs)) work

There are 2 types of Junior ISA:

a cash Junior ISA, for example you will not pay tax on interest on the cash you save

a stocks and shares Junior ISA, for example your cash is invested and you will not pay tax on any capital growth or dividends you receive

Your child can have one or both types of Junior ISA.

Parents or guardians with parental responsibility can open a Junior ISA and manage the account, but the money belongs to the child.

The child can take control of the account (a Junior ISA) when they (the child)’re 16, but cannot withdraw the money until they (the child) turn 18.

Open an account

Only parents or a guardian with parental responsibility can open a Junior ISA for under 16s.

To open a Junior ISA you need to:

choose the type of Junior ISA you want for your child - cash or stocks and shares (or both)

choose your account provider

get an application form from them (your account provider)

Your child can only have:

1 cash Junior ISA

1 stocks and shares Junior ISA

Children aged 16 and 17 can open their own Junior ISA as well as an adult cash ISA.

Account providers

You can get a Junior ISA from a range of banks, building societies, credit unions, friendly societies and stock brokers.

Contact any of these (Account providers) directly for more information about how you can open a Junior ISA with them (Account providers).

Add money to an account

Anyone can pay money into a Junior ISA, but the total amount paid in cannot go over £9,000 in the 2021 to 2022 tax year.

You can transfer money between:

your child’s Junior ISAs

a Child Trust Fund (CTF) account and a Junior ISA - contact the Junior ISA provider (your account provider) to arrange this (transfer)

You cannot transfer money between a Junior ISA and an adult ISA.

If your child moves abroad, you can still add cash to their Junior ISA (a Junior ISA).

Who the money belongs to

Money in a Junior ISA belongs to your child (your child’s) and cannot be taken out until they’re 18, though there are exceptions to this.

Manage an account

Your child’s Junior ISA (a Junior ISA) will be in their (your child’s) name, but the parent who opens it (a Junior ISA) is responsible for managing the account (a Junior ISA) and is known as the ‘registered contact’.

The registered contact (the parent who opens it (a Junior ISA)) is the only person who can:

change the account (a Junior ISA), for example from a cash to a stocks and shares Junior ISA

change the account provider

report changes of circumstances, for example change of address

Contact your account provider to do this.

Children older than 16

If your child is 16 or older they (Children older than 16) can:

become the registered contact for their (Children older than 16) Junior ISAs (a Junior ISA)

open an adult cash ISA

When your child turns 18 they (Children older than 16) can take out any money in their (Children older than 16) Junior ISAs (a Junior ISA).

Junior ISAs automatically turn into an adult ISA when the child turns 18.

If your child lacks the mental capacity to manage their account when they turn 18

You, or a close friend or relative, need to apply to the Court of Protection (COP) for a financial deputyship order. This will allow you to manage your child’s adult ISA account or take out money on their (your child) behalf once they (your child) turn 18.

In Scotland, applications need to be made to the Office of the Public Guardian in Scotland.

In Northern Ireland, applications need to be made to the Office of Care and Protection.

If your child is terminally ill or dies

The registered contact (the parent who opens it (a Junior ISA)) can take money out of a Junior ISA early if a child’s terminally ill.

‘Terminally ill’ means that the child (a child) has a disease or illness that is going to get worse and is not expected to live more than 6 months.

How to take money out

Fill in the terminal illness early access form to let HM Revenue & Customs (HMRC) know that:

your child is terminally ill

you want to take money out of their (your child) Junior ISA (a Junior ISA)

HMRC (HM Revenue & Customs (HMRC)) will let you know if you can take money out of your child’s (your child) Junior ISA (a Junior ISA).

If your child dies

If your child dies, any money in their (a child) Junior ISAs (a Junior ISA) will be paid to whoever inherits their (a child) estate.

This is usually one of the child’s (a child) parents, but it could be their (a child) spouse or partner if they (a child) were over 16 and married or in a civil partnership.

What you need to do

You do not need to contact HMRC (HM Revenue & Customs (HMRC)) but you’ll need to tell your account provider so they can close your child’s Junior ISAs (a Junior ISA).

Your account provider may need proof to do this (tell), for example a copy of the death certificate.


Apply to the Mental Health Tribunal

Overview

You can apply to the First-tier Tribunal (Mental Health) if you’re admitted (‘detained’) as a patient in a psychiatric hospital (‘sectioned’) and want to be discharged.

You can apply on a patient’s behalf if you’re their:

legal representative

‘nearest relative’

The tribunal (the First-tier Tribunal (Mental Health)) is independent of government and will listen to both sides of the argument before making a decision.

You can also apply to the tribunal (the First-tier Tribunal (Mental Health)) if you want to change:

a community treatment order

the conditions placed on your ‘conditional discharge’ from hospital

The tribunal (the First-tier Tribunal (Mental Health)) deals with cases in England. There are different rules in Wales and rules in Scotland.

When to apply

When you apply depends on how you were admitted - ask your doctor or lawyer (if you have one) if you’re unsure.

There are deadlines for the first time you apply - you must apply within:

14 days if you’ve been admitted for assessment (‘section 2’)

6 months if you’ve been admitted for treatment (‘section 3’)

Get legal advice if you’re a ‘restricted patient’, for example you’ve received an order from the Crown Court or been transferred from prison- the deadlines depend on your situation.

If you miss the deadline

You cannot apply to be discharged if you miss the deadline but you may be able to apply again later, for example after a year if you’ve been admitted for treatment (‘section 3’).

The tribunal (the First-tier Tribunal (Mental Health)) will automatically look at your case again after a certain period of time. This is sometimes known as a ‘referral’. The period of time depends on your case, for example:

if it’s been 3 years since the tribunal (the First-tier Tribunal (Mental Health)) gave you a hearing

you’ve not had a hearing in the first 6 months of your detention

Help you can get

You can get free legal help if you’re a patient. It does not cost you anything as it’s paid for by legal aid.

Find a legal advisor near you or ask the tribunal (the First-tier Tribunal (Mental Health)) to find one for you when you apply.

You can also get advice from:

Carers Direct

the charity Mind

the charity Rethink

Apply to the tribunal

Download and fill in an application to the First-tier Tribunal (Mental Health). You must include:

what you’re applying for, for example discharge if you’ve been admitted for assessment or treatment

the patient’s first name, surname and date of birth

full details of the care coordinator and hospital

the date of the section or order

contact details for the ‘nearest relative’ (if there is one)

your lawyer’s details (if you have one)

whether you need an interpreter

Send the form

Post or email the form to HM Courts and Tribunals Service. The contact details are on the form.

Contact the tribunal (the First-tier Tribunal (Mental Health)) by phone or email if you have any questions about completing the form. The helpline and email address cannot give you legal advice.

After you apply

You’ll be told when the tribunal (the First-tier Tribunal (Mental Health)) has received your application. You’ll get information on your rights to legal representation if you did not include a lawyer’s details in your application.

Your ‘nearest relative’ (the ‘nearest relative’) will usually be told the date of the hearing - they (the ‘nearest relative’) can attend unless you object. Nearer the time of the hearing you’ll be given copies of reports so that you can check that the information’s correct and work out any questions you want to ask.

The date of the hearing depends on your situation. You’ll usually get a hearing within:

7 days of applying if you’ve been admitted for assessment

2 months if you’ve been admitted for treatment

4 months if you’ve received an order from the Crown Court or been transferred from prison (known as a ‘restricted patient’)

Evidence from the tribunal doctor

You can ask for a pre-hearing examination with the tribunal doctor if you want one.

If you’ve been admitted for assessment, do this (ask) in writing when you send your application to the tribunal (the First-tier Tribunal (Mental Health)).

If you’ve been admitted for treatment or you’re a restricted patient, you must do this (ask) at least 2 weeks before the hearing.

Write to:

Because of coronavirus (COVID-19), your pre-hearing examination may take place by video.

The tribunal (the First-tier Tribunal (Mental Health)) will also ask the hospital for reports from:

your doctor

the social work and nursing teams responsible for your care

the Secretary of State for Justice if you’re a restricted patient (and your social supervisor if you’re living in the community on conditional discharge)

If you do not want to continue with your application

Write to the tribunal (the First-tier Tribunal (Mental Health)) as soon as possible if you do not want to continue with your application. The tribunal (the First-tier Tribunal (Mental Health)) will decide whether to accept your withdrawal.

You cannot withdraw your case if it was automatically referred to the tribunal (the First-tier Tribunal (Mental Health)), but you do not have to go to the hearing if you do not want to.

What happens at the hearing

Because of coronavirus (COVID-19), your hearing (the hearing) may take place by phone, by video or in person. The tribunal (the First-tier Tribunal (Mental Health)) will contact you and tell you how the hearing will take place.

You do not have to attend the hearing if you do not want to. You can bring a legal representative and a relative to the hearing if you do go - your representative can arrange for witnesses or experts to attend.

Hearings are usually held in private and attended by:

a judicial panel, made up of a judge, a doctor and a specialist lay member (for example a mental health social worker)

the patient

their hospital doctor, ward nurse and social worker

your legal representative, if you have one

The doctor, nurse and social worker will give evidence. You can also give evidence, and ask questions.

The tribunal (the First-tier Tribunal (Mental Health)) will also look at:

your pre-hearing examination from the tribunal doctor, if you had one

an independent psychiatric report, if your legal representative asked for one

If you’re a ‘restricted patient’ and have committed a serious offence against a person, they or their family can ask (or make ‘representations’) for certain conditions if the tribunal (the First-tier Tribunal (Mental Health)) thinks you’re ready for discharge.

Claim expenses

You may be able to claim expenses for going to the hearing. This includes money for:

travel costs

loss of earnings

food and drink, if you’re away for more than 5 hours

Read the guidance on claiming expenses.

The tribunal (the First-tier Tribunal (Mental Health)) usually decides at the end of the hearing on whether you should be discharged - you’ll get the decision (The tribunal's (the First-tier Tribunal (Mental Health)) decision) on the day, and you’ll usually get full written reasons with 7 days of the hearing.

The tribunal (the First-tier Tribunal (Mental Health)) can:

order your release (on the same day or at a future date)

recommend that you’re transferred to a different hospital

recommend that your doctor considers you for treatment in the community

recommend that you’re allowed to leave the hospital for periods of time, to see if you’re ready for life in the community

The tribunal (the First-tier Tribunal (Mental Health)) cannot change your treatment, for example medication.

Appeal

If you lose your case, you can ask the tribunal (the First-tier Tribunal (Mental Health)):

to cancel the decision - you must do this (ask) within 28 days of getting the written decision (The tribunal's (the First-tier Tribunal (Mental Health)) decision)

for permission to appeal to a higher tribunal (the ‘Upper Tribunal’)

Ask the tribunal (the First-tier Tribunal (Mental Health)) to cancel the decision

You’ll be told how to get a decision ‘set aside’ (cancelled) if you think there’s been a mistake in the process, for example you were not told about the hearing so did not go.

If the tribunal (the First-tier Tribunal (Mental Health)) cancels the decision, you may be able to get a new hearing.

Contact Citizens Advice if you need help.

Appeal to the Upper Tribunal (a higher tribunal (the ‘Upper Tribunal’)

You can ask for permission to appeal to the Upper Tribunal (a higher tribunal (the ‘Upper Tribunal’) if you think there was a legal mistake, for example if they (the First-tier Tribunal (Mental Health)):

did not apply the correct law or wrongly interpreted the law

did not follow the correct procedures

had no evidence or not enough evidence to support its (the First-tier Tribunal (Mental Health)) decision

Fill in the application for permission to appeal - the address is on the form.

Another judge will look to see if there’s a legal problem with your case and if it (your case) needs to be heard again.

Complain

You cannot complain about the decision - you can only complain about the tribunal staff and the way the hearing took place.

Legislation

The tribunal (the First-tier Tribunal (Mental Health)) will make a decision based on:

Mental Health Act 1983 (as amended by the Mental Health Act 2007)

Mental Health Act 2007 (the Mental Health Act 2007)

Human Rights Act 1998 if the case is about human rights

The tribunal (the First-tier Tribunal (Mental Health)) must follow the Tribunal Procedure (First-Tier Tribunal) (Health, Education And Social Care Chamber) Rules 2008.

Doctors’ statements and reports must be written in line with the practice directions.


Deputies: manage a Court Funds Office account

Overview

You may need to manage a Court Funds Office account for someone if you’re their property and affairs deputy and you’re authorised by the Court of Protection to look after money on their behalf.

Check the court order that appointed you as deputy - it tells you what you’re authorised to do.

You’ll need to apply on behalf of the person you’re deputy for (someone) to:

manage an account that was opened for them (someone) by court order, for example for money they (someone) received from a court case

open an account for them (someone)

They (someone)’ll get a special account with the Court Funds Office (Court Funds Office).

Your responsibilities

The account (an account that was opened for them (someone) by court order) belongs to the person you’re deputy for (someone). You’re the only person who can manage it (an account that was opened for them (someone) by court order) on their (someone) behalf.

You must keep to your responsibilities as a deputy when you’re managing the account (an account that was opened for them (someone) by court order).

Check the court order that appointed you as deputy - it (the court order that appointed you as deputy) tells you the limits on what you can and cannot do with the account (an account that was opened for them (someone) by court order).

Apply

You need to apply to:

open an account for someone

manage an account for someone

You must be appointed by the Court of Protection as the person’s (someone) property and affairs deputy.

If your application is successful, you’ll be able to make withdrawals from the bank account that you run on behalf of the person whose affairs you manage (someone).

Check the details on the court order that appointed you as deputy - you’ll need the date of the order (the court order that appointed you as deputy) and the case number.

Fill in form CFO A to apply for authority to make withdrawals - give your bank account details and tick the ‘New details’ box.

Attach a copy of your bank statement (less than 3 months old) or a letter from your bank to confirm your bank account details.

Fill in form CFO L to pay money in to the account at the same time as applying - attach a cheque made payable to the ‘Accountant General of the Senior Courts’.

Send forms and attachments together with a copy of the original court order that appointed you as deputy (the court order that appointed you as deputy) - it (the court order that appointed you as deputy) must have a seal.  The address is on the forms.

You’ll get a letter from the Court Funds Office within 5 working days to confirm that you’re set up to manage the account (an account that was opened for them (someone) by court order).

Your form will be returned if your application cannot be processed - you’ll be told what you can do to fix this.

Manage an account

A Court Funds Office (the Court Funds Office) account is called a ‘special account’ if the account holder has a deputy.

Statements

As the deputy, you’ll get statements in April or May and in October or November each year.

You can also ask for a statement at any time by contacting the Court Funds Office.

Interest and tax

Special accounts currently pay 0.1% interest. The rate is not fixed - it is set by the Lord Chancellor.

Tax is not deducted from special accounts. The person you’re deputy for must pay income tax if the interest is more than their tax allowance.

You’ll also get tax vouchers (for tax returns) with your April statement.

Change of address

Write a letter to the Court Funds Office to tell them (the Court Funds Office) if your address changes so you can keep getting statements and tax vouchers.

Investments

You can invest in the stock market using money from the Court Funds Office (the Court Funds Office) account you manage if it:

holds £10,000 or more for the person you’re deputy for

is likely to hold the money (£10,000 or more) for 5 or more years

The Court Funds Office makes stock market investments in companies using the Equity Tracker Index Fund (ETIF).

Write to the Court Funds Office asking them (the Court Funds Office) to invest the sum you require in the ETIF (the Equity Tracker Index Fund (ETIF)).

Check the value of the ETIF (the Equity Tracker Index Fund (ETIF)) on the Financial Times website.

Tax

Tax is deducted from dividends on investments. However, if the person you’re deputy for has a high income, they (The person you’re deputy for) may need to pay more income tax on interest or dividends from the investments.

They (The person you’re deputy for) must also pay Capital Gains Tax if their (The person you’re deputy for) investments (the investments) are sold for a difference in value that’s more than their (The person you’re deputy for) allowance.

Deposits

You can pay money in to an account after you apply to manage the account.

Check the details on the court order that appointed you as deputy - you’ll need the date of the order and the case number.

Fill in form CFO L. You must physically sign the form - this is also known as a ‘wet signature’. Electronic signatures will not be accepted.

Write a cheque for the amount you’re paying in, payable to the ‘Accountant General of the Senior Courts’.

Attach a copy of the original court order that appointed you as deputy (the court order that appointed you as deputy) (it (the court order that appointed you as deputy) must have a seal) and send it (the court order that appointed you as deputy) with the form and cheque to the address on the form.

You’ll get a letter from the Court Funds Office within 5 working days to confirm that it (the Court Funds Office)’s processed your deposit.

Your form (the form) will be returned if your deposit cannot be processed - you’ll be told what you can do to fix this.

Withdrawals

You can set up one-off withdrawals or regular withdrawals into the bank account that you run on behalf of the person whose affairs you manage after you apply to manage the account (an account).

You can only make a payment to another bank account (for example to a solicitor’s account to pay fees) if you have a court order from the Court of Protection saying you can do this.

You can only make withdrawals within limits set by the Court of Protection - check the court order that appointed you as deputy.

Set up payments

Check the court order that appointed you as deputy - you’ll need the date of the order (the court order that appointed you as deputy) and the case number to fill in payment forms.

Fill in:

form CFO P to make a one-off payment to your bank account

form CFO R to set up or change a regular payment to your bank account

form CFO 205 to make a one-off payment to another bank account

You must also fill in form CFO A if your bank account details have changed – tick the ‘amending details’ box and attach either:

a copy of a bank statement (less than 3 months old)

letter from your bank confirming your new bank account details

Send forms by post. The address is on the forms. You’ll get a confirmation letter from the Court Funds Office within 5 working days.

One-off payment to your bank account

A cheque will be paid into your bank account within 5 days. The money will take 3 working days to clear.

If you’re withdrawing money for a gift or charitable donation, fill in form CFO PG and send it with form CFO P.

Regular payment to your bank account

Use form CFO R to set up, amend, renew or stop a regular payment - tick the box on the form that applies.

Specify the number of months you want a regular payment to continue (up to 23 months).

The Court Funds Office automatically renews regular payments that are set up to continue for 23 months - you’ll get a letter to remind you 1 month before renewal.

Payment to another bank account

Ask the person or company the payment (Payment to another bank account) is for to sign form CFO 205. You must get a copy of a a bank statement (less than 3 months old) if you’re paying a person rather than a company.

Send it (form CFO PG) with an original copy of the court order authorising the payment – it must have a seal.

Stop managing or close an account

A new deputy can take over management of the account (an account) if you stop being a deputy or die.

You cannot hand over management of the account (an account) - only the Court of Protection can appoint a new deputy. The new deputy will then need to apply to manage the account (an account).

You stop being a deputy

Tell the Court Funds Office in writing if you stop being a deputy - send a copy of the letter to the Office of the Public Guardian and Court of Protection.

Close an account

You cannot close a Court Funds Office yourself (for example by moving all the money into another account) unless you have a court order that authorises you to do this.

If the person you’re deputy for dies the person dealing with the estate can apply for the money in the account (an account) to be paid out. The account (an account) will be closed.

The person you're deputy for dies (the person you’re deputy for)

Write to the Court Funds Office to tell them (the Court Funds Office) if the person you’re deputy for has died. Send a certified copy of the death certificate if you can get one.

You’ll need to include certain information depending on

who’s dealing with the estate

whether there’s a will

If you’re dealing with the estate

Ask for a Certificate of Funds when you write to the Court Funds Office about the death. This shows how much money is in the account and investments.

You’ll need this information to deal with the person’s (the person you’re deputy for) tax and estate (their (the person you’re deputy for) money, property and possessions)

If you’re not dealing with the estate

Tell the Court Funds Office who is dealing with the estate (the personal representative) and provide their (the person dealing with the estate) contact details.

The Court Funds Office will provide the personal representative (the person dealing with the estate) with information and the forms required to close the account (an account).

If the person (the person you’re deputy for) did not leave a will

If the person (the person you’re deputy for) died without making a will and has no living relatives, the Court Funds Office will contact the Treasury Solicitor or Solicitor for the Duchy of Cornwall or Lancaster. They will deal with the person’s (the person you’re deputy for) money, property and possessions (their (the person you’re deputy for) money, property and possessions) as an unclaimed estate.

Payments for funeral expenses

The personal representative (the person dealing with the estate) or the person who arranged the funeral can apply for funeral expenses to be paid to the funeral provider out of the account.

Fill in form CFO FE1.

Send it (form CFO FE1) to the address on the form (form CFO FE1) with the funeral provider’s (the funeral provider) invoice and a certified copy of the death certificate.

Funeral expenses must be in keeping with the value of the person’s (the person you’re deputy for) estate - they cannot include payments for:

headstones

refreshments at the funeral service

Payments for inheritance tax

The personal representative (the person dealing with the estate) can apply for inheritance tax to be paid to HM Revenue & Customs (HMRC) out of the account.

Fill in form CFO IHT1.

Send it to the address on the form (form CFO FE1) with the completed form IHT423 and certified copies of the death certificate and any will.


Make, register or end a lasting power of attorney

Overview

A lasting power of attorney (LPA) is a legal document that lets you (the ‘donor’) appoint one or more people (known as ‘attorneys’) to help you make decisions or to make decisions on your behalf.

This (appoint) gives you more control over what happens to you if you have an accident or an illness and cannot make your own decisions (you ‘lack mental capacity’).

You must be 18 or over and have mental capacity (the ability to make your own decisions) when you make your LPA (A lasting power of attorney (LPA)).

You do not need to live in the UK or be a British citizen.

This guide is also available in Welsh (Cymraeg).

There are 2 types of LPA:

health and welfare

property and financial affairs

You can choose to make one type or both.

There’s a different process in Scotland and Northern Ireland.

How to make a lasting power of attorney

Choose your attorney (you can have more than one).

Fill in the forms to appoint them as an attorney.

Register your LPA with the Office of the Public Guardian (this can take up to 10 weeks).

It costs £82 to register an LPA unless you get a reduction or exemption.

You can cancel your LPA if you no longer need it (your LPA) or want to make a new one.

Health and welfare lasting power of attorney

Use this LPA (Health and welfare lasting power of attorney) to give an attorney the power to make decisions about things like:

your daily routine, for example washing, dressing, eating

medical care

moving into a care home

life-sustaining treatment

It (Health and welfare lasting power of attorney) can only be used when you’re unable to make your own decisions.

Property and financial affairs lasting power of attorney

Use this LPA (Property and financial affairs lasting power of attorney) to give an attorney the power to make decisions about money and property for you, for example:

managing a bank or building society account

paying bills

collecting benefits or a pension

selling your home

It (Property and financial affairs lasting power of attorney) can be used as soon as it (Property and financial affairs lasting power of attorney)’s registered, with your permission.

Help deciding if you should make a lasting power of attorney

Contact the Office of the Public Guardian if you need help.

Choose your attorney

You can choose one or more people to be your attorney. If you appoint more than one, you must decide whether they’ll make decisions separately or together.

Who can be your attorney

Your attorney needs to be 18 or over. They could be:

a relative

a friend

a professional, for example a solicitor

your husband, wife or partner

You must appoint someone who has the mental capacity to make their own decisions.

Your attorney does not need to live in the UK or be a British citizen.

When choosing an attorney, think about:

how well they (an attorney) look after their (an attorney) own affairs, for example their (an attorney) finances

how well you know them (an attorney)

if you trust them (an attorney) to make decisions in your best interests

how happy they (an attorney) will be to make decisions for you

Read about an attorney’s responsibilities to help you with your decision.

You cannot choose someone who is subject to a Debt Relief Order or is bankrupt if you’re making a lasting power of attorney (LPA) for property and financial affairs.

If there’s more than one attorney

If you’re appointing more than one person, you must decide if they (more than one attorney)’ll make decisions:

separately or together - sometimes called ‘jointly and severally’ - which means attorneys can make decisions on their own or with other attorneys

together - sometimes called ‘jointly’ - which means all the attorneys have to agree on the decision

You can also choose to let them (all the attorneys) make some decisions ‘jointly’, and others ‘jointly and severally’.

Attorneys who are appointed jointly must all agree or they cannot make the decision.

Replacement attorneys

When you make your LPA you can nominate other people to replace your attorney or attorneys if at some point they cannot act on your behalf anymore.

Make a lasting power of attorney

You can make a lasting power of attorney (LPA) (a lasting power of attorney) online or using paper forms.

Either way, you need to get other people to sign the forms (paper forms), including the attorneys and witnesses.

You can get someone else to use the online service or fill in the paper forms (paper forms) for you, for example a family member, friend or solicitor.

You must register your LPA (a lasting power of attorney) or your attorney will not be able to make decisions for you.

It might take longer to make and register an LPA because of coronavirus (COVID-19). It will be quicker if you make it (a lasting power of attorney) and pay online.

Make an LPA online

Create an account to start your LPA.

You can:

get help and guidance at each step

save your forms and complete them later

review your answers and fix any mistakes

You need to print out the forms (your forms) and sign them (your forms) when you’ve finished.

Sign in to your account

Sign in to continue making your LPA (a lasting power of attorney).

Use the paper forms (paper forms)

Download the forms (paper forms) and print them (paper forms) out.

Signing the forms (paper forms)

You need to sign the forms (paper forms) before you send them (paper forms) off. They (paper forms) also need to be signed by:

the attorneys

witnesses

a ‘certificate provider’, who confirms you’re making the LPA (a lasting power of attorney) by choice and you understand what you’re doing

Everyone must sign the same original document. They cannot sign copies or use digital signatures.

Who can be a witness or certificate provider

Witnesses and certificate providers must be 18 or over.

Attorneys can witness each other sign, but they cannot:

witness you sign

sign as the certificate provider

You cannot be a witness if you’re the person appointing an attorney.

Get help

Ask the Office of the Public Guardian about help you can get if you:

do not have a computer or printer

want to use the online service but need some help

Register a lasting power of attorney

When you’ve made your lasting power of attorney (LPA), you need to register it (a lasting power of attorney) with the Office of the Public Guardian (OPG) (the Office of the Public Guardian).

It takes up to 15 weeks to register an LPA if there are no mistakes in the application.

You can apply to register your LPA (a lasting power of attorney) yourself if you’re able to make your own decisions.

Your attorney can also register it (a lasting power of attorney) for you. You’ll be told if they do and you can object to the registration.

Notify people

Before you register, send a form to notify people (LP3) to all the ‘people to notify’ (also called ‘people to be told’) you listed in the LPA (a lasting power of attorney).

They (people)’ll have 3 weeks to raise any concerns with OPG (the Office of the Public Guardian).

If you’re using the online service to make an LPA, it (the online service) will create and fill in the LP3 forms for you.

How to register

Apply to register as soon as you’ve sent forms to notify people.

To register, you need to sign your completed LPA form and send it to OPG (the Office of the Public Guardian).

If you create your LPA form using the online service, you will need to print it out to do this.

The address is also on the form (your LPA form). Make sure you include the original LPA form and the fee.

You can send a certified copy if you do not have the original form (the original LPA form). Write a covering letter to explain why you do not have the original (the original LPA form).

If you made your LPA (an LPA) with an older paper form

You can register by filling in form LP2 if you made your LPA (an LPA):

on forms LPA114 or LPA117 before 1 January 2016

on forms LP PA or LP PW before 1 April 2011

Otherwise you’ll need to make a new LPA.

How much it costs

It costs £82 to register each LPA unless you get a reduction or exemption.

This (costs) means it (register) costs £164 to register both a property and financial affairs LPA and a health and welfare LPA.

You can pay by:

credit or debit card

cheque

Make your cheque payable to ‘Office of the Public Guardian’ (the Office of the Public Guardian) and write your name on the back. Send it to OPG (the Office of the Public Guardian) with your forms.

If you make a mistake on your form

Depending on the type of mistake, OPG (the Office of the Public Guardian) may let you correct it and apply again within 3 months for £41.

Get a reduction or exemption

You can apply for a reduction if you earn less than £12,000. You might also be able to apply for an exemption if you’re on certain benefits, such as Income Support.

Download and fill in the application form. The form has more information about eligibility.

Certify a copy of a lasting power of attorney

You can confirm that a copy of your lasting power of attorney (LPA) (a lasting power of attorney) is genuine by ‘certifying’ it (a copy of a lasting power of attorney) if you’re still able to make your own decisions.

You or your attorney can use a certified copy to register your LPA (a lasting power of attorney) if you do not have the original form.

Your attorney can also use the certified copy (a certified copy) to prove they have permission to make decisions on your behalf, for example to manage your bank account.

How to certify a copy

Write the following text on the bottom of every page of the copy (a copy):

“I certify this (a copy) is a true and complete copy of the corresponding page of the original lasting power of attorney (a lasting power of attorney).”

On the final page of the copy (a copy of a lasting power of attorney), you must also write:

“I certify this (a copy of a lasting power of attorney) is a true and complete copy of the lasting power of attorney (a lasting power of attorney).”

You need to sign and date every page.

Other ways to certify a copy

Copies of your LPA (a lasting power of attorney) can also be certified by:

a solicitor

a person authorised to carry out notarial activities

Change your lasting power of attorney

You can ask the Office of the Public Guardian (OPG) to change your lasting power of attorney (LPA) (a lasting power of attorney) if it (a lasting power of attorney)’s been registered and you still have mental capacity to make decisions.

If you want to remove one of your attorneys

You will need to send OPG (the Office of the Public Guardian (OPG)) a written statement called a ‘partial deed of revocation’.

If you want to add another attorney you need to end your LPA (a lasting power of attorney) and make a new one.

Use the following wording. Replace the words in the square brackets with the relevant details.

Partial deed of revocation

“This partial deed of revocation (Partial deed of revocation) is made by [donor’s name] of [donor’s address].

1: I granted a lasting power of attorney for property and financial affairs/health and welfare [delete as appropriate] on [date donor (donor’s) signed the lasting power of attorney] appointing [name of first attorney] of [address of first attorney] and [name of second attorney] of [address of second attorney] to act as my attorney(s).

2: I hereby revoke [attorney’s name that you are revoking] ONLY from the lasting power of attorney and the authority granted to him/her.

Signed and delivered as a deed [donor’s signature]
Date signed [date]
Witnessed by [signature of witness]
Full name of witness [name of witness]
Address of witness [address of witness]”

Where to send a partial deed of revocation

Send the partial deed of revocation (a partial deed of revocation) to the Office of the Public Guardian (OPG) with the original LPA document. You must also tell your attorney or attorneys that you’re ending your LPA.

If your attorney’s details change

You must write to OPG (the Office of the Public Guardian (OPG)) if one of your attorneys has changed their:

name - by marriage or deed poll

address

You need to provide supporting documents, such as the original marriage certificate, with their (one of your attorneys) new name and address.

Do not make changes to your LPA document itself (the original LPA document), as it (the original LPA document) might become invalid. You must contact OPG (the Office of the Public Guardian (OPG)) to make changes to your LPA (LPA).

If one of your attorneys dies

You must tell OPG (the Office of the Public Guardian (OPG)) and send them (one of your attorneys):

a copy of their (one of your attorneys) death certificate

the original LPA

all certified copies of the LPA (LPA)

a return address where your documents can be sent back to

End your lasting power of attorney

You can end your lasting power of attorney (LPA) (LPA) yourself - if you have mental capacity to make that decision.

You need to send the Office of the Public Guardian (OPG) both:

the original LPA (the original LPA document)

a written statement called a ‘deed of revocation’

Use the following wording for the deed of revocation (a partial deed of revocation). Replace the words in the square brackets with the relevant details.

Deed of revocation

“This deed of revocation (a partial deed of revocation) is made by  [your name]  of  [your address].

1: I granted a lasting power of attorney for property and financial affairs/health and welfare (delete as appropriate) on  [date you signed the lasting power of attorney] appointing  [name of first attorney]  of  [address of first attorney]  and  [name of second attorney]  of  [address of second attorney]  to act as my attorney(s).

2: I revoke the lasting power of attorney and the authority granted by it.

Signed and delivered as a deed  [your signature]
Date signed  [date]
Witnessed by  [signature of witness]
Full name of witness  [name of witness]
Address of witness  [address of witness]”

You must be able to make your own decisions when you end your LPA.

You can also complain if you have concerns about your attorney, for example if they’re not carrying out their responsibilities properly.

Other ways a lasting power of attorney can end

Your LPA may end if your attorney:

loses the ability to make decisions - ‘loses mental capacity’

divorces you or ends your civil partnership if they’re your husband, wife or partner

becomes bankrupt or they’re subject to a Debt Relief Order (DRO) - if they’re a property and financial affairs attorney

is removed by the Court of Protection

dies

If your only attorney dies

Your LPA will end if your attorney dies and you have no replacement attorneys. You must tell OPG and send them:

a copy of their death certificate

the original LPA

all certified copies of the LPA (your LPA)

a return address where your documents can be sent back to

Your LPA can continue if:

there are other attorneys who can act ‘jointly and severally’ - but not if they are only allowed to act ‘jointly’

there are replacement attorneys

If you die

Your LPA will end automatically when you die. Your affairs will be looked after by your executors or personal representatives from that point, not your attorney.


Get a divorce

Check you can get a divorce

You can get divorced in England or Wales if all of the following are true:

you’ve been married for over a year

your relationship has permanently broken down

your marriage is legally recognised in the UK (including same-sex marriage)

the UK is your permanent home, or the permanent home of your husband or wife

If you do not want a divorce, you can get a legal separation so you can live apart without ending the marriage (your marriage). You might also be able to annul the marriage (your marriage). You can apply for separation or annulment during your first year of marriage.

This guide is also available in Welsh (Cymraeg).

Getting a divorce is different in Scotland and Northern Ireland.

Grounds for divorce

When you apply for a divorce you’ll need to prove that your marriage has broken down and cannot be saved. You’ll need to give one or more of the following 5 reasons (also known as ‘facts’).

Adultery

Your husband or wife had sexual intercourse with someone else of the opposite sex (committed adultery).

You cannot give adultery as a reason if you lived together as a couple for more than 6 months after you found out about it.

Unreasonable behaviour

Your husband or wife has behaved in such a way that you cannot reasonably be expected to live with them.

This could include:

physical violence

verbal abuse, such as insults or threats

drunkenness or drug-taking

refusing to pay towards shared living expenses

Desertion

Your husband or wife has left you for at least 2 years before you apply for divorce.

You can still claim desertion if you have lived together for up to a total of 6 months in this period (at least 2 years), but that will not count towards the 2 years (at least 2 years).

You’ve been separated for at least 2 years

You can apply for a divorce if you’ve been separated for at least 2 years before applying for divorce and you both agree to it.

Your husband or wife must agree in writing.

It may be possible for you to show that you’ve been separated while living in the same home as your wife or husband as long as you’re not living together as a couple (for example you sleep and eat apart).

You’ve been separated for at least 5 years

You can apply for a divorce if you’ve been separated for at least 5 years before applying, even if your husband or wife disagrees.

Before you apply

Before you send in your application, you and your husband or wife can choose to work out:

arrangements for looking after any children

child maintenance payments for any children

You can also divide your money and property. There’s a deadline if you want to make this legally binding.

You can usually avoid going to court hearings if you (you and your husband or wife) agree about children, money and property and the reasons for ending your marriage.

Get help agreeing on issues

You can use a mediator. Check if you can get legal aid to help pay for mediation.

You can also get advice on making agreements from:

organisations near you

Citizens Advice

If you’re married to more than one person

Contact your regional divorce centre if you’re married to more than one person (polygamy).

How to apply

To apply for a divorce you’ll need:

your husband or wife’s full name and address

your original marriage certificate or a certified copy (and a certified translation if it’s not in English)

proof of your name change if you’ve changed it since you got married - for example your marriage certificate (your original marriage certificate) or a deed poll

You must try to find your husband or wife’s current address if you do not know it. The court will need it to send them (your husband or wife’s) a copy of the divorce petition.

If you name the person your husband or wife committed adultery with, they (The court)’ll get copies of the paperwork.

Fee

You must pay a £550 fee to apply for a divorce. The way you pay depends on how you apply. Your fee will not be refunded after you are sent the notice that your application has been issued.

You may be able to get help with fees if you get benefits or are on a low income.

Apply online

You can apply for a divorce online.

You’ll need a debit or credit card to apply online.

Apply by post or in Welsh

Fill in a divorce application form D8 (‘divorce petition’) to start a divorce.

You can get help filling in the form at a Citizens Advice office.

Send 3 copies of the form to your nearest divorce centre. They’ll send one copy to your husband or wife.

You need to send 4 copies if you named someone your husband or wife committed adultery with.

Keep your own copy of the forms.

How to pay

You can either pay by:

debit or credit card - the divorce centre will call you to take payment

cheque - made payable to ‘HM Courts and Tribunals Service’

What happens after you apply

Your application will be checked. If it’s correct, you’ll be sent:

a notice that your application has been issued (sent out)

a copy of your application stamped by the divorce centre

a case number

This may take up to 10 days if you applied online or 1 month if you applied by post.

The court will send your husband or wife the divorce application (Your application) and an ‘acknowledgement of service’ form. Your husband or wife will need to respond to your divorce application (Your application).

If you named someone your husband or wife committed adultery with, they (Your husband or wife)’ll also be sent a copy of the application (Your application) and be asked to respond.

Your husband or wife responds

The acknowledgement of service form (an ‘acknowledgement of service’ form) asks your husband or wife if they:

agree with the divorce

intend to try to prevent the divorce (defend it (the divorce))

object to paying the costs (if you’ve claimed them)

Your husband or wife must respond within 8 days.

If they (your husband or wife) agree with the divorce

You can continue with the divorce by applying for a decree nisi.

If they (your husband or wife) defend the divorce

Your husband or wife will have to complete an ‘answer to divorce’ form to say why they (your husband or wife) disagree with the divorce. They (your husband or wife) must do this within 28 days of getting the divorce application (Your application).

If they (your husband or wife) do not submit an ‘answer to divorce’ form, you can continue the divorce by applying for a decree nisi.

If they (your husband or wife) do submit an answer to divorce in time, you may have to go to court to discuss the case.

Apply for decree nisi

You can apply for a decree nisi if your husband or wife does not defend your divorce petition.

A decree nisi is a document that says that the court does not see any reason why you cannot divorce.

If your husband or wife does not agree to the divorce, you can still apply for a decree nisi. However, you’ll have to go to a court hearing to discuss the case, where a judge will decide whether to grant you a decree nisi.

If you already have a hearing date, the court (court) will contact you and tell you how the hearing will take place.

How to apply

To get a decree nisi, read the guidance and then fill in the application for a decree nisi.

You must also fill in a statement confirming that what you said in your divorce petition is true.

There are 5 statement forms - use the one that covers the reason you’ve given for your divorce:

adultery statement

unreasonable behaviour statement

desertion statement

2 years’ separation statement

5 years’ separation statement

Attach a copy of your husband’s or wife’s response to the divorce petition (your divorce petition).

Getting a decree nisi

If the judge agrees, the court (court) will send you and your husband or wife a certificate. This may take several weeks.

The certificate will tell you (you and your husband or wife) the time and date you (you and your husband or wife)’ll be granted a decree nisi.

You (you and your husband or wife)’ll still be married after the decree nisi (a decree nisi) has been granted. You’ll have to wait 43 days (6 weeks and 1 day) before you (you and your husband or wife) can apply for a ‘decree absolute’ to actually end the marriage.

Your application is rejected

You (you and your husband or wife) may be sent a ‘notice of refusal of judge’s certificate’ form, saying why you cannot divorce.

The form will tell you what to do next. The judge may want more information in writing, or you may have to go to a court hearing.

You can get legal advice if there’s going to be a court hearing.

Apply for a decree absolute

The decree absolute (a decree absolute) is the legal document that ends your marriage.

You need to wait at least 43 days (6 weeks and 1 day) after the date of the decree nisi (a decree nisi) before you can apply for a decree absolute.

Apply within 12 months of getting the decree nisi (a decree nisi) - otherwise you will have to explain the delay to the court (court).

How to apply

To apply for a decree absolute, fill in the notice of application for decree nisi (a decree nisi) to be made absolute form.

If you want a legally binding arrangement for dividing money and property you must apply to the court (court) for this before you apply for a decree absolute.

Getting the decree absolute (a decree absolute)

The court (court) will check that:

time limits have been met

there are no other reasons not to grant the divorce

The court (court) will then send you both a decree absolute.

You’ll get your decree absolute (a decree absolute) within:

24 hours (Monday to Friday) if you applied online

10 days if you applied by post

If a solicitor is acting for you, the decree absolute (a decree absolute) will be sent to them. You’ll need to ask them for a copy.

Once you get the decree absolute (a decree absolute), you are divorced, no longer married and free to marry again if you wish.

Keep the decree absolute (a decree absolute) safe - you will need to show it (a decree absolute) if you remarry or to prove your marital status.

If you lose your decree absolute (a decree absolute), you can apply to the court (court) for a copy.

If you do not apply for the decree absolute (a decree absolute)

Your husband or wife can apply for the decree absolute (a decree absolute) if you do not. They’ll have to wait an extra 3 months to do this, on top of the standard 43 days.

If your husband or wife lacks mental capacity

You can apply for a divorce if your husband or wife ‘lacks mental capacity’ and cannot agree to a divorce or take part in the divorce case.

Your husband or wife will need someone to make decisions for them during the divorce (a divorce). The person who acts on their behalf is called a ‘litigation friend’. It can be a family member, close friend or someone else who can represent them.

Your husband or wife does not have a litigation friend

If there’s no one suitable and willing to be their (Your husband or wife) litigation friend, you can apply to the court (court) to appoint a litigation friend.

The Official Solicitor may agree to act as your husband or wife’s (Your husband or wife) litigation friend when there’s no one else to do this (‘litigation friend of last resort’).

How to apply

Check there’s nobody else suitable or willing to act as your husband or wife’s (Your husband or wife) litigation friend.

Check that there’s money available for any costs the Official Solicitor has to pay. Your husband or wife may be able to get legal aid.

Give the details of your husband or wife’s (Your husband or wife) doctor or other medical professional to the court (court) so it (court) can ask for a certificate of capacity.

If the Official Solicitor agrees to act as litigation friend for your husband or wife, you’ll be able to file for divorce.

Contact the Official Solicitor’s (The Official Solicitor) staff

Email or call the private family law team if you have an enquiry about divorcing someone who lacks mental capacity. They cannot answer general questions about divorce.


Accounts and tax returns for private limited companies

Overview

After the end of its financial year, your private limited company must prepare:

full (‘statutory’) annual accounts

a Company Tax Return

You need your accounts and tax return to meet deadlines for filing with Companies House and HM Revenue and Customs (HMRC).

You can also use them to work out how much Corporation Tax to pay.

Action | Deadline

File first accounts with Companies House | 21 months after the date you registered with Companies House

File annual accounts with Companies House | 9 months after your company’s financial year ends

Pay Corporation Tax or tell HMRC (HM Revenue and Customs (HMRC)) that your limited company does not owe any | 9 months and 1 day after your ‘accounting period’ for Corporation Tax ends

File a Company Tax Return | 12 months after your accounting period for Corporation Tax ends

Your accounting period for Corporation Tax (your ‘accounting period’ for Corporation Tax) is the time covered by your Company Tax Return. It (your ‘accounting period’ for Corporation Tax)’s normally the same 12 months as the company financial year covered by your annual accounts.

Filing your accounts and tax return

You can file with Companies House and HMRC (HM Revenue and Customs (HMRC)) together or separately.

You must take additional steps:

at the end of your company’s first year

if you restart a dormant company

There are penalties for filing late with Companies House and HMRC (HM Revenue and Customs (HMRC)).

Filing accounts and tax returns

You file your accounts with Companies House and your Company Tax Return with HM Revenue and Customs (HMRC).

You may be able to file them (your accounts and tax return) together if you have a private limited company that does not need an auditor.

What you want to do | How you can do it

File accounts and tax return together | Use HMRC’s (HM Revenue and Customs (HMRC)) online service or accounting software

File accounts with Companies House separately | Send your accounts to Companies House online

File tax return with HMRC (HM Revenue and Customs (HMRC)) separately | Use HMRC’s (HM Revenue and Customs (HMRC)) online service or accounting software

You’ll need your:

HMRC (HM Revenue and Customs (HMRC)) online account details

company registration number

Companies House online account details

Corrections and amendments

Check what you must do to correct or amend your:

accounts

tax return

Using accountants or tax advisers to file for you

You can:

give your accountant or tax adviser your Companies House authentication code so they can file your accounts

appoint an agent to file your Company Tax Return

Apply to extend your accounts filing deadline

You can apply to extend your accounts filing deadline with Companies House if you cannot send your accounts because of an event outside your control - for example, if a fire destroyed company records before your filing deadline (your accounts filing deadline).

You must apply for the extension before your filing deadline (your accounts filing deadline).

Apply for an extension due to coronavirus (COVID-19)

You can apply for an immediate 3 month extension if your company is affected by coronavirus. You must apply before your filing deadline (your accounts filing deadline).

You may not be eligible if you’ve already extended your filing deadline (your accounts filing deadline), or shortened your accounting period.

How to apply

You can apply online or by post.

Apply online

To apply online you’ll need:

your company number

information about why you need more time

any documents you have that support your application

Apply by post

You can write to Companies House to apply for an extension. It is taking longer than usual to process applications because of coronavirus.

You should explain what’s happened and how much more time you’ll need to file your accounts.

You must apply to the correct office where your company is registered.


Cash basis

Overview

‘Cash basis’ is a way to work out your income and expenses for your Self Assessment tax return, if you’re a sole trader or partner.

Why use cash basis (‘Cash basis’)

If you run a small business, cash basis accounting (‘Cash basis’) may suit you better than traditional accounting.

This (suit) is because you only need to declare money when it comes in and out of your business. At the end of the tax year, you won’t have to pay Income Tax on money you didn’t receive in your accounting period.

When cash basis (‘Cash basis’) might not suit your business

Cash basis (‘Cash basis’) probably won’t suit you if you:

want to claim interest or bank charges of more than £500 as an expense

run a business that’s more complex, for example you have high levels of stock

need to get finance for your business - a bank could ask to see accounts drawn up using traditional accounting to see what you owe and are due before agreeing a loan

have losses that you want to offset against other taxable income (‘sideways loss relief’)

Talk to a tax professional (such as an accountant) or legal adviser if you need help.

Find out if you’re eligible to use cash basis (‘Cash basis’).

Who can use cash basis (‘Cash basis’)

You can use cash basis (‘Cash basis’) if you:

run a small self-employed business, for example sole trader or partnership

have a turnover of £150,000 or less a year

If you have more than one business, you must use cash basis (‘Cash basis’) for all your businesses. The combined turnover from your businesses must be less than £150,000.

If you use cash basis and your business grows during the tax year

You can stay in the scheme up to a total business turnover of £300,000 per year. Above that, you’ll need to use traditional accounting for your next tax return.

Who can’t use the scheme

Limited companies and limited liability partnerships can’t use cash basis.

There are also some specific types of businesses that can’t use the scheme:

Lloyd’s underwriters

farming businesses with a current herd basis election

farming and creative businesses with a section 221 ITTOIA profit averaging election

businesses that have claimed business premises renovation allowance

businesses that carry on a mineral extraction trade

businesses that have claimed research and development allowance

dealers in securities

relief for mineral royalties

lease premiums

ministers of religion

pool betting duty

intermediaries treated as making employment payments

managed service companies

waste disposal

cemeteries and crematoria

If you can’t use cash basis, you’ll need to use traditional accounting to work out your taxable profits.

Getting started

At the end of the tax year, work out your taxable profit from your cash basis income and expenses records.

Tick the cash basis box on the form when you send your return.

You can use cash basis for the 2013 to 2014 tax year onwards. If you’re sending a late tax return for tax years before this, you’ll need to use traditional accounting when working out your accounts.

Changing from traditional accounting to cash basis

Existing businesses using traditional accounting might have to make some adjustments when they switch to cash basis.

How to record income and expenses

You must keep records of all business income and expenses to work out your profit for your tax return.

Income

With cash basis, only record income you actually received in a tax year. Don’t count any money you’re owed but haven’t yet received.

You can choose how you record when money is received or paid (for example the date the money enters your account or the date a cheque is written) but you must use the same method each tax year.

All payments count - cash, card, cheque, payment in kind or any other method.

Expenses

Expenses are business costs you can deduct from your income to calculate your taxable profit.  In practice, this means your allowable expenses reduce your Income Tax.

Only count the expenses you’ve actually paid. Money you owe isn’t counted until you pay it.

Examples of allowable business expenses if you’re using cash basis are:

day to day running costs, such as electricity, fuel

admin costs, for example stationery

things you use in your business, such as machinery, computers, vans

interest and charges up to £500, for example interest on bank overdrafts

buying goods for resale

You can check what else counts as an allowable expense.

For the 2013 to 2014 tax year onwards you can also choose to use the simplified expenses scheme instead of calculating expenses for:

running a vehicle

working from home

making adjustments for living on your business premises

Cars and other equipment

If you buy a car for your business, you can claim the purchase as a capital allowance (but only if you’re not using simplified expenses to work out your business expenses for that vehicle).

Unlike traditional accounting, you claim other equipment you buy to keep and use in your business as a normal allowable business expense rather than as a capital allowance.

If you’re currently claiming capital allowances and want to switch to cash basis, HM Revenue and Customs (HMRC) have guidance on the changes you need to make.

Keep your records

You don’t need to send your records to HM Revenue and Customs (HMRC) when you send in your tax return but you need to keep them (your records) in case they (HM Revenue and Customs (HMRC)) ask to check them (your records).

VAT registered businesses

You can start to use cash basis if you’re VAT registered as long as your income is £150,000 or less during the tax year.

You can record your business income and expenses either excluding or including VAT. However, you must treat income and expenses the same way.

If you choose to include VAT, you have to record:

VAT payments you make to HM Revenue and Customs (HMRC)  as expenses

VAT repayments you receive from HMRC (HM Revenue and Customs (HMRC)) as income


Corporation Tax when you sell business assets

Overview

Your limited company usually pays Corporation Tax on the profit (‘chargeable gain’) from selling or disposing of an asset.

Company assets

Assets are things your company owns, such as:

land and property

equipment and machinery

shares

Who pays Corporation Tax

Corporation Tax on chargeable gains is paid by:

limited companies

most unincorporated associations, for example clubs and co-operatives

foreign companies with a UK branch or office

You pay Capital Gains Tax instead if you’re a self-employed sole trader or business partner.

Work out and report your gain

You’ll need to work out your gain to find out whether you need to pay tax.

Report your gains to HM Revenue and Customs (HMRC) when you file your Company Tax Return. How much tax you pay depends on any allowances and reliefs you claim.

There are different rules for intangible assets, for example intellectual property and business reputation (‘goodwill’).

Work out a chargeable gain

The gain (a chargeable gain) is usually the difference between what you paid for the asset (an asset) and what you sold it (an asset) for.

You’ll need to use the asset’s (an asset) market value if your business gave it (an asset) away, or sold it (an asset) for less than it was worth to help the buyer.

You can deduct any costs, for example solicitors’ fees or Stamp Duty.

Before you work out your gain you need to work out how much you would have paid for the asset (an asset) in today’s money using the HM Revenue and Customs (HMRC) Indexation Allowance.

This (paid) will make your gain smaller and mean you pay less tax.

How to work out the gain (your gain)

Work out the asset’s (an asset) value when it (an asset) was sold - this is usually the amount your company received.

Deduct the amount your company paid for the asset (an asset). If it (an asset) was not acquired in a normal commercial transaction you need to use the market value at the time.

Deduct any money your company spent buying, selling or improving the asset (an asset), for example solicitors’ fees and Stamp Duty. (You cannot deduct maintenance costs.)

If you had the asset (an asset) before December 2017, use HMRC’s (HM Revenue and Customs (HMRC)) Indexation Allowance December 2017 guide for the month when your company sold the asset (an asset). Then find the figure (‘inflation factor’) for the year and month when your company bought the asset (an asset). Multiply this by the amount you paid for the asset (an asset). Deduct the total from your profit.

If you made improvements to the asset (an asset), work out the effects of inflation in the same way. Deduct the total from your profit.

You now have your chargeable gain. You can ask HMRC (HM Revenue and Customs (HMRC)) to check your valuation by filling in a post-transaction valuation check form. Return it to the address on the form and allow at least 3 months for HMRC’s (HM Revenue and Customs (HMRC)) response.

If you make a loss when you sell an asset

You can reduce your total chargeable gains by deducting any capital losses.

You can only deduct capital losses from your chargeable gains - not from trading income or other profits.

The loss you can claim is reduced by any amount you’ve claimed as capital allowances.

Intangible assets

‘Intangible assets’ include intellectual property and business reputation (‘goodwill’).

How you’re taxed on gains from intangible assets depends on when your limited company first owned them.

After 31 March 2002

Include gains on intangible assets in your company’s business income (‘trading profits’) if your company acquired or created them after 31 March 2002. You pay Corporation Tax on trading profits.

Before 1 April 2002

Use the detailed guidance to work out gains on intangible assets or get help from a professional, like an accountant.

If your company’s intangible assets came from a change in business structure (for example from a business partnership or self-employed sole trader), use the date the assets were acquired or created before the structure change.


Pay Machine Games Duty

Overview

You must file your Machine Games Duty (MGD) return and make your payment within 30 days of the end of your accounting period. An accounting period is 3 months unless you’ve arranged with HM Revenue and Customs (HMRC) to use a different accounting period.

This guide is also available in Welsh (Cymraeg).

If the deadline falls on a weekend or bank holiday, make sure you file your return (your Machine Games Duty (MGD) return) and your payment reaches HMRC (HM Revenue and Customs (HMRC)) on the last working day before it (unless you’re paying by Faster Payments, debit card or credit card).

Pay now

Ways to pay

Make sure you pay HMRC (HM Revenue and Customs (HMRC)) by the deadline. You may have to pay a penalty and interest if you pay late.

The time you need to allow depends on how you pay.

You can no longer pay at the Post Office.

Same day or next day

online or telephone banking (Faster Payments)

By debit or corporate credit card online

CHAPS

At your bank or building society

3 working days

Bacs

By cheque through the post

Direct Debit - if you’re making a single payment and you’ve set up one for HMRC (HM Revenue and Customs (HMRC)) before

5 working days

Direct Debit - if you’re making a single payment and you have not set up one for HMRC (HM Revenue and Customs (HMRC)) before

10 working days before you file your first return

Direct Debit - if you’re setting up an automatic payment (known as a ‘variable payment plan’)

Penalties for late returns

You’ll get a penalty if you miss the deadline for filing returns.

When the penalty (a penalty) is applied | Penalty

1 day after deadline (the deadline) | Between £100 and £400, depending on how many late returns you’ve previously filed

6 months after deadline (the deadline) | £300 or 5% of the MGD due (whichever is higher)

12 months after deadline (the deadline) | £300 or 5% of the MGD due (whichever is higher)

If you disagree with a penalty

If you’ve been given a penalty and you think it’s wrong, you can appeal to HMRC (HM Revenue and Customs (HMRC)).

Bank details for online or telephone banking, CHAPS, Bacs

Make your payment to HM Revenue and Customs’ (HM Revenue and Customs (HMRC)) account.

Account name | Sort code | Account number

HMRC Shipley | 08 32 10 | 12001020

Use your reference number

Your payment reference is your 14-character Machine Games Duty (MGD) registration number.

You’ll find it (your reference number) on:

the MGD Registration Certificate HMRC (HM Revenue and Customs (HMRC)) sent you

How long it takes

Payments made by Faster Payments (online or telephone banking) will usually reach HMRC (HM Revenue and Customs (HMRC)) on the same or next day, including weekends and bank holidays.

CHAPS payments usually reach HMRC (HM Revenue and Customs (HMRC)) the same working day if you pay within your bank’s processing times.

Bacs payments usually take 3 working days.

Check your bank’s transaction limits and processing times before making a payment.

Overseas payments

Use these details to pay from an overseas account.

Account number (IBAN) | Bank identifier code (BIC) | Account name

GB03BARC20114783977692 | BARCGB22 | HMRC Shipley

HMRC’s banking address is:

Direct Debit

You can only pay by Direct Debit if you’ve registered for Machine Games Duty (MGD) online.

Use your HM Revenue and Customs (HMRC) online account (account) to set up a Direct Debit.

You can set up:

a single payment each time you file your return

automatic payment of the duty shown on your return (known as a ‘variable payment plan’)

Single payment

You can make a single one-off payment by Direct Debit online.

It takes 5 working days to process a Direct Debit payment the first time you set one up. It should take 3 working days next time if you’re using the same bank details.

Variable payment plan

You can set up regular automatic Direct Debit payments online only. Choose a ‘variable payment plan’ when setting up your Direct Debit.

It takes at least 10 working days to process a payment when you first set it up. Make sure your payment will reach HMRC before the deadline.

Your payment will then be taken automatically every time it (a payment)’s due.

You’ll need to cancel your Direct Debit if you want to change to a different payment method.

By debit or corporate credit card online

You can pay online.

There’s a fee if you pay by corporate credit card or corporate debit card. The fee is not refundable.

There’s no fee if you pay by personal debit card.

You cannot pay by personal credit card.

Use your 14-character Machine Games Duty (MGD) registration number as your ‘charge reference’.

You’ll find it on:

the MGD Registration Certificate HMRC sent you

HMRC will accept your payment on the date you make it (even on bank holidays and weekends) - not the date it reaches HMRC’s (HMRC) account.

If you’re unable to pay your Machine Games Duty bill in full by card, you should use another payment method like a bank transfer.

At your bank or building society

You can only pay Machine Games Duty (MGD) at your bank or building society if you file a paper MGD return.

Use the payslip HM Revenue and Customs (HMRC) (HMRC) sent you.

Make your cheque payable to ‘HM Revenue and Customs only’.

Write your MGD reference number on the back of your cheque. You’ll find the reference number on the payslip.

HMRC will accept your payment on the date you make it (if you pay it from Monday to Friday) and not the date it reaches HMRC’s (HMRC) account.

Pay online if you want to pay by debit or credit card.

By cheque through the post

You can send a cheque by post to HM Revenue and Customs (HMRC) (HMRC).

You do not need to include a street name, city name or PO box with this address.

Allow 3 working days for your payment to reach HMRC.

What to include

Write your Machine Games Duty (MGD) reference number on the back of the cheque (your cheque).

You’ll find your MGD reference number (your Machine Games Duty (MGD) reference number) on either:

the payslip HMRC sent you (the payslip) if you file a paper return

your HMRC online account if you file your return online

Your payment may be delayed if you do not fill in your cheque properly.

If you file a paper return, send your payslip (the payslip) with your cheque.

If you file online, send a letter including:

your name, address and telephone number

your MGD registration number

the amount you’re paying

Do not fold or staple your cheque.

Check your payment has been received

View your HMRC online account to see if your payment has been received - it (your HMRC online account) should update within 6 working days.

Tell HMRC no duty is due

You must still file your return even if you calculate that you do not owe any Machine Games Duty (MGD). You may have to pay a penalty if you do not.

If you owe a negative amount (you’ve paid out more in winnings than you’ve taken in playing charges), it (your return)’ll be carried over to your next return and subtracted from the amount of MGD due.


Reclaiming VAT

What you can and cannot reclaim

You can usually reclaim the VAT paid on goods and services purchased for use in your business.

If a purchase is also for personal or private use, you can only reclaim the business proportion of the VAT.

You must keep records to support your claim and show how you arrived at the business proportion for a purchase. You must also have valid VAT invoices.

From 1 April 2019, most businesses will need to keep digital VAT records and use software to submit VAT Returns.

What you cannot reclaim

You cannot reclaim VAT for:

anything that’s only for private use

goods and services your business uses to make VAT-exempt supplies

business entertainment costs

goods sold to you under one of the VAT second-hand margin schemes

business assets that are transferred to you as a going concern

Purchases before registration

You may be able to reclaim VAT paid on goods or services bought before you registered for VAT if the purchases were made within certain time limits.

Partly exempt businesses

You need to make separate calculations for purchases that relate to both VAT-exempt and taxable supplies, such as phone bills or accountancy fees.

Business assets of £50,000 and more

There are special rules for reclaiming VAT for:

individual computers and single pieces of computer equipment costing £50,000 or more before VAT

aircraft, ships and boats costing £50,000 or more before VAT

land and buildings costing £250,000 or more before VAT

You may need to adjust the amount of VAT you reclaim over several years using the Capital Goods Scheme.

How your VAT refund is repaid

Claim your refund (your VAT refund) by submitting a VAT Return.

You need to give your account details to HM Revenue and Customs (HMRC) - even if you’ve already set up a Direct Debit for VAT Returns. Add or change them by going to the registration details in your VAT online account.

You can also use your online account (your VAT online account) to view any refund you’re owed, unless you’ve signed up for ‘Making Tax Digital for VAT’.

You will usually get your refund (your VAT refund) within 10 days of HMRC (HM Revenue and Customs (HMRC)) receiving your return but it (your VAT refund) may take longer. Only contact HMRC (HM Revenue and Customs (HMRC)) if you have not heard anything after 30 days.

Vehicles and fuel costs

Buying a new car

You may be able to reclaim all the VAT on a new car if you use it only for business.

The car (a new car) must not be available for private use, and you must be able to show that it (a new car) is not, for example it’s specified in your employee’s contract.

‘Private use’ includes travelling between home and work, unless it (a new car)’s a temporary place of work.

You may also be able to claim all the VAT on a new car if it (a new car)’s mainly used:

as a taxi

for driving instruction

for self-drive hire

Leasing a car

If you lease a car, you can usually claim 50% of the VAT. You may be able to reclaim all the VAT if the car is used only for business and is not available for private use, or is mainly used:

as a taxi

for driving instruction

Self-drive hire cars

If you hire a car to replace a company car that’s off the road, you can usually claim 50% of the VAT on the hire charge.

If you hire a car for another reason (for example you do not have a company car), you can reclaim all the VAT if all the following apply:

you hire it (a car) for no more than 10 days

it (a car)’s used only for business

it (a car)’s not available for private use

Commercial vehicles

You can usually reclaim the VAT for buying a commercial vehicle (like a van, lorry or tractor) if you only use it for business.

If they’re used only for business, you can also reclaim VAT on:

motorcycles

motorhomes and motor caravans

vans with rear seats (combi vans)

car-derived vans

Fuel costs

There are different ways of reclaiming VAT on fuel, if you do not pay a fixed rate under the Flat Rate Scheme.

You can reclaim all the VAT on fuel if your vehicle is used only for business. There are 3 ways of handling VAT if you use the vehicle for both business and private purposes. You can:

reclaim all the VAT and pay the right fuel scale charge for your vehicle

only reclaim the VAT on fuel you use for business trips - you’ll have to keep detailed mileage records

choose not to reclaim any VAT, eg if your business mileage is so low that the fuel scale charge would be higher than the VAT you can reclaim

If you choose not to reclaim VAT on fuel for one vehicle you cannot reclaim VAT on any fuel for vehicles used by your business.

Additional costs

You can usually reclaim the VAT for:

all business-related running and maintenance costs, such as repairs or off-street parking

any accessories you’ve fitted for business use

You can do this (reclaim) even if you cannot reclaim VAT on the vehicle itself.

Used vehicles

The sales invoice for your used vehicle must show the VAT. You cannot reclaim if it does not, for example if the seller uses the VAT margin scheme.

Staff travel

You can reclaim VAT on employee travel expenses for business trips, including meals and accommodation that you pay for.

You cannot reclaim VAT if you pay your employees a flat rate for expenses.

There are special rules for motoring expenses.

You cannot reclaim VAT on entertainment costs.

Who counts as an employee

The following people count as employees for VAT reclaims:

someone directly employed by you (not through an agency)

directors, partners, any other managers

self-employed people who are treated as employees (you cannot reclaim on travel expenses for this group)

helpers or stewards who help run events

The following people do not count as employees for VAT reclaims:

shareholders who are not employed by the business

pensioners and former employees

someone applying for a job, for example interviewees