Island Life Magazine Ltd August/September 2010 | Page 158

island business

Island Life - August/September 2010
By Esme Shakeshaft
Moore Stephens Accountants

Tel: 01983

824812

More tax changes on
the horizon
Moore Stephens recently hosted
a breakfast seminar, at which our
Newport-based partner Peter Warren
presented the changes announced
by George Osborne in his Emergency
Budget, 22 June 2010. This article
highlights two significant tax changes:
Capital Gains Tax
The following changes affect
chargeable gains on or after 23 June
2010.
1. Capital gains tax will be charged at
28% to the extent that the gain and
your income exceed the basic rate band
of £37,400. Other than for small gains,
the capital gains tax has in effect been
increased from 18% to 28%.
2. If you dispose of qualifying assets
on or after 23 June 2010 two aspects
of CGT Entrepreneurs' Relief have

changed:
• There is a technical change to the
way in which the relief is calculated,
although effectively a flat rate of 10%
will continue to apply.
• The lifetime gains that can benefit
from the relief are increased from £2m
to £5m.
Furnished Holiday Lettings
It would appear that the threatened
withdrawal of the tax benefits for
owners of Furnished Holiday Lettings
has been cancelled!
For the tax year 2010-11 it is back to
business as usual - letting activity is
treated as a trade, CGT rollover and
Entrepreneurs' Relief is available, rental
losses can be set off against other
income and so on.
However, later this Summer the

Government will be publishing a public
consultation with a view to changing
the tax treatment of Furnished Holiday
Let property from 6 April 2011.
Changes may include:
• An increase in the number of days
qualifying properties have to be made
available for letting and actually let.
• A change in the way loss relief is
given.
If you wish to view the full extent of
the budget changes announced, please
visit our website www.moorestephens.
co.uk. or alternatively contact Peter
Warren on 82500 for further advice.

Stoneshop plans
to hit new heights
Stoneshop, established in Cowes five
years ago, has enjoyed such a high
degree of success that plans are now
in hand to reinvest in new machinery
and extra staff.
The large factory space and show
area stands in the old boatyards along
the Medina, now known as Medina
Village.
Stoneshop make bespoke stone
products, including kitchen worktops,
bathroom vanity tops, shower trays,
wall cladding and wetrooms, as well as
fireplaces, hearths, steps and flooring
for both internal and external use.
Their vast range of stones include
granite, limestone, marble, slate and
quartzstone, the latter being the only
man-made product they handle. It is an
engineered stone made from natural
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stone pieces,
resins and
dyes.
The
company
has a total
of nine staff
of skilled and semi-skilled workers, all
from the Island, who have been trained
and continue to train, in stonemasonry.
Ruth Clarke, co-director of
Stoneshop, said: "People want a very
high quality product but also want
to bring individuality to their home.
Our customers love the fact they
can choose their slab of stone in our
factory and have their own bespoke
pieces made, whether that is granite
worktops or a limestone fire surround
and hearth.

“Of course, our service is individual
to each customer, we can source pretty
much any type of stone required.
By working closely within the Island
community, manufacturing businesses
really can offer great services.
“We have a show area at our
factory. People are very welcome to
visit, but it is always best to make an
appointment, as we are a working
factory.”
10C Samuel White Est, Bridge Rd,
Cowes. Tel: [phone]

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