Debt Arrangment Scheme

Debt Arrangement Scheme – What is it?

We have been asked by a few people the options when faced with large amount of debts and the prospect of bankruptcy and what options are still available to them at this bleak time. So in the blog post, we will discuss one option in particular called the Debt Arrangement Scheme. It is good to stress that this option is not bankruptcy, but a scheme for businesses or debtors to pay off their debts over a longer period of time that previously agreed, but giving them the safeguard that their assets are covered if they continue with their payments. For example, their homes or precious items will not be taken during the process, giving them some security and rest bite over their assets. The Debt Arrangement Scheme means you pay one monthly fee that is easy to understand, with interest and charges frozen when you agree to enter the plan.

Another big advantage of the DAS is that the creditors cannot take legal action against you once you agree to the deal. You then deal with another person all together and do not need to speak to your creditors at this time. Given the freedom just to pay that one payment each month gives the debtors a bit of breathing space in this difficult time and lets them focus on the important facts of the time, without worrying if they will lose their home, car or other valuable property.

There are of course some drawbacks to these types of schemes. Your credit rating will most likely be affected during the process  and if the majority of your creditors do not agree to you being a part of the DAS, your application to the scheme may be rejected.  Individuals cannot register to the scheme and only Scottish residents are able to apply and the scheme is not available to the rest of the UK.

After the payment is completed, all of your debts are wiped clean and the debtor will have a fresh start in life once more. Hopefully this overview of the Debt Arrangement Scheme has been helpful for any concerned on the matter.

brick avoid-capital-gains-tax

UK Capital Gains Tax Loopholes

Capital Gains Tax

Capital gains are the profits that are made from ‘disposing of’ business assets. Common assets often include buildings, registered trademarks and your business’s reputation. Capital gains tax must often be paid when your business makes a capital gain.

Occasions in which you will not pay capital gains tax include gifts to your wife or husband as well as donations to charity. And obviously tax must not be paid on capital losses. This post highlights the workings of capital gains tax to better understand UK tax loopholes.

tax man Minimising-Capital-Gains-Tax

Asset Disposal

As mentioned above there are several ways to dispose of assets. By giving a gift to your civil partner or charity, for instance, your company would not be liable to pay any capital gains tax.

However, businesses often dispose of assets by selling their product or service or by swapping one asset for another. In such cases, businesses must pay capital gains tax.

Cost Deduction

Deductions can be made to your capital gains tax rates in several ways. Fees can be deducted in valuing or advertising an asset, or improving the asset outwith normal repairs. Finally, Stamp Tax Land Duty and VAT can be deducted, unless you can reclaim your VAT.

Capital Gains Tax Relief

There are six types of capital gains tax relief in the UK.

pushing capital-gains-tax

Entrepreneur’s Relief

Entrepreneur’s Relief applies to any soletrader, business partner and anyone with at least 5% shares in a ‘personal company’ in which he works or is a member of the board. This relief classification involves a flat 10% corporate gains tax on qualifying profits when selling business assets. Under this classification, inheriting a business will not require paying tax.

Business Asset Rollover Relief

Business Asset Rollover Relief involves a delayed payment of capital gains tax when you dispose of an asset and replace it within 3 years. You must have used the old and new assets in your business.

Incorporation Relief

Incorporation Relief involves delayed payment of capital gains tax when transferring all your business and its assets to another company in return for shares.

Disincorporation Relief

Disincorporation Relief might even be possible for businesses becoming sole traders or partnerships after having been a limited company. If you acquire business assets in the disincorporation process you must pay capital gains tax if you decide to sell them later.

Gift Hold-over Relief

Gift Hold-over Relief implies that you will pay no capital gains tax when giving away a business asset but that the person who receives it must pay capital gains tax on it when they wish to sell it. Gift Hold-over Relief only applies to assets that were used in the business of sole traders and partnerships.

Home-selling Relief

Additionally Tax relief can be designated to people that sell their homes unless they’ve used any part of the home just for business, in which case capital gains tax must be paid for those parts.

Knowledge makes the loophole

Now that you know which programmes exist for capital gains tax relief, you may have realised that you are eligible for VAT savings in one of the firms mentioned above.

Tax relief programmes exist for a reason, and if you aren’t already, consider taking what is rightfully yours. There are several forms of relief available for businesses to sharpen their competitive edge.

Business Advisory Services are often utilised in Scotland as they prove themselves an invaluable resource for SMEs and consumers alike in reducing their capital gains tax rate. These business consultants are highly experienced in such matters and will gladly check to ensure you are spending your money as efficiently as possible.



The UK government website was used to verify this article.


The Beginner’s Guide to Investing

To the beginner trader, investing in the stock market can seem like learning to swim in the middle of the ocean. Luckily with help from the Internet, anyone can learn to trade and do so at the click of a button. This article will give you a background as well as the necessary steps to begin your new career in investing.


2 Ways to Invest

There exist two routes for investors to access the stock market. Direct investing, though investing is always performed by a third party broker, indicates investing in a single company in the form of shares. When just starting out, consider investing in blue-chip company shares as they are often the most reputable and profitable companies.

Indirect investing is much more common than direct investing, as it spreads the risk over several companies and it is highly unlikely for all of these to report simultaneous losses.

Get Started Investing

Investing has never been easier. Here’s a 5 step approach to tackling the stock market.

  1. First things first: Set aside the money you plan to invest, so you know how much you’re working with. Preferably you should start with at least £50. Keep saving so you can keep adding to this fund. The larger the investment, the greater the reward.
  2. Next, read up on investing terms so you understand how it works.
  3. Many stock trading services offer free practice investing with fake investments within the real market; take advantage of this service to hone your investing abilities.
  4. Decide on an online brokerage firm. These people will be your link to the actual stock market and any activity you wish to undertake will be performed by them. Make sure they are knowledgable about the industries you plan on investing in.
  5. Finally to succeed in investing, you must study the market. Investing is much more than knowing how to do it; it’s a consciously critical thought process that evaluates the likelihood of success and failure at the speed of 3,000 Lehman Brothers.


Hopefully this article has helped shine light on investing and demystified the entire process. Firstly decide on the type of investing you will be performing, whether direct with stocks or indirect in funds. Then, by following the simple 5 step process, you can become your own personal boss or even pension-granter.

Subscribe to Short on Value for future tips and advice about investments.


Short on Value is a Scotland-based financial advisory website that offers weekly tips to global investors.

golden 2016,investor concept

Hottest Investments of 2016

It’s been one year since the FTSE 100’s all time high, and its value has plummeted 12% since.

To take your mind off it, Short on Value has produced a list of stocks and equity with great potential for strong growth in the coming fiscal year.

Apple Inc. & Tesla

Apple Inc. recently posted its first quarter with a net loss in 13 years, which caused quite a commotion. Shares lost 7% of their value within 15 minutes after the reporting. Since Apple isn’t set to decompose just yet, we recommend this as a potential investment.

Last month, the electric car manufacturer Tesla unveiled its Model 3. Tesla is known for producing luxurious electric cars with the industry’s most efficient engines. The Model S and the Model X, though both successful beyond the company’s plans, cater exclusively to the rich with their £80,000 price tags. The Model 3 will be priced at an affordable £30,000 in the UK. To meet demand, Tesla has recently been investing in their production capacity with innovations such as the Gigafactory and a fully-automated assembly line. For this reason, Tesla will soon be ubiquitous.

Tesla 3


Property and real estate, though prices fluctuate in the short-term, are incredibly reliable investments in the long-term. People will always need a home. Coastal regions and urban areas are among the most demanded investments. London is clearly the largest urban area in the UK, but who told you to limit yourself to this island? Why not invest in a summer apartment in Rome or a holiday house in Nice? These cities offer great opportunities for sub-letting during the work season as the demand will only ever go up. 2016 poses to bring great value to home owners.


Energy is among the most volatile sectors of the economy as petrol crises and renewable energy sources emerge unpredictably to stir up the market. However, nothing is more attractive than a diverse energy portfolio. Owning a share of  the declining fossil fuels industry as well as managing a stake of the up-and-coming renewable market will prepare you for the future of this highly unpredictable sector. It will also help bulk up your trading portfolio.

Ren En

2016 offers a variety of new options for the investor-prone among us. Apple, Tesla, Property and Energy are Short on Value’s #1 recommendations for investment in this fiscal year.

Subscribe to Short on Value for future tips and advice about investments.


Short on Value is a Scotland-based financial advisory website that offers weekly tips to global investors.