Tax Plus Blog -
Nothing for nil rate band on death?
Date: 25th June, 2007 | Author: Lisa Spearman | Comments: 0
Our new edition of Tax Plus is now online for your reading pleasure. Current articles include:- The tale of Mrs. Phizackerley Limit loss relief A&M trusts Double your pension money! and much more can be located...
Pre-owned assets: Late elections
Date: 15th June, 2007 | Author: Lisa Spearman | Comments: 0
Where an individual is subject to an income tax charge under the pre-owned assets tax (POAT) rules it is possible to elect for the assets from which the benefits derive to be treated as forming part of their estate for inheritance tax purposes. The time limit for such elections is currently 31 January following the year of assessment in which the POAT charge first arises. For those individuals who first became liable to the charge in 2005/2006 the deadline came and went on 31 January this year. ...
Venture capital schemes
Date: 14th June, 2007 | Author: Julian Dobbin | Comments: 0
There have been several recent changes to investments qualifying under Enterprise Investment Schemes (EIS), Corporate Venture Schemes (CVS) and Venture Capital Trusts (VCTs). A number of our clients are involved in raising finance under these schemes. The 2007 Finance Bill has imposed additional qualification limits. The main changes are (although not confined to ) : ...
Offshore Accounts - Not Enough Disclosures!
Date: 13th June, 2007 | Author: Barry Hallam | Comments: 0
With less than 10 days to go to the first deadline of the Offshore Disclosure Facility of 22 June HM Revenue & Customs clearly think that not enough people are taking advantage of the so-called “amnesty”. HMRC are taking the unprecedented step of writing to and estimated 200,000 people suggesting that they might want to make a disclosure. The letter will be posted tomorrow and should dispel any reservations people may have had about whether HMRC already know about their accounts. Further details can be found on the BBC News website. If you receive one of these letters – speak...
Artic Systems - The Final Chapter?
Date: 5th June, 2007 | Author: Lisa Spearman | Comments: 0
The long running tax case of Jones v, Garnett has reached the House of Lords today. The story so far is summarised in the Times and a more technical summary can be found on accountingweb. I will keep you informed of developments in what is sure to be a landmark judgement either way. ...
Clampdown on Landlords
Date: 4th June, 2007 | Author: Barry Hallam | Comments: 0
There has been much press coverage recently about HM Revenue & Customs targeting residential landlords particularly those in the Buy-to-let market. This originated from a piece in The Times which was picked up by several other papers. There is nothing new in this which serves to highlight the need for landlords to seek professional advice to establish their tax liabilities. The Chartered Institute of Taxation have received a “message” from the Revenue stating that there was no intention of having a “crackdown” on landlords as implied by The Times. The message stated: '...
Time is running out for disclosure facility
Date: 4th June, 2007 | Author: Barry Hallam | Comments: 0
On 17 April HM Revenue and Customs announced the launch of the Offshore Disclosure Facility which enables those with undeclared tax liabilities to come clean and tell the Revenue all about it. You neec to calculate the tax, interest and a fixed 10% penalty and pay it over to the Revenue. This has been labelled a “Tax Amnesty” but it is nothing of the sort. The incentive for using this facility is the fixed 10% penalty. HMRC have made it known that outside this facility they will be looking for a minimum 30% penalty and possibly the...
Avoidance Rule back on Target
Date: 31st May, 2007 | Author: Barry Hallam | Comments: 0
In the Pre-Budget report of December last year the Government announced a “targeted anti-avoidance rule” (TAAR) aimed at the use of losses for capital gains tax that have been realised as a result of any “arrangements” the main purpose (or one of the main purposes) of which is to secure a tax advantage. A similar rule was introduced for corporation tax purposes a year earlier and the new rule extended this to individuals, trustees and personal representatives. The intention of the rule is to stop the use of contrived capital losses to set against capital gains....
Interesting times
Date: 10th May, 2007 | Author: Roger Bell | Comments: 0
Should HMRC pay you compound interest on VAT repayments? The House of Lords is due to hear the case of Sempra Metals Ltd v HM Commissioners of Inland Revenue on 16 May which although concerned with advance corporation tax will, it is thought, also have implications for VAT repayments. HMRC have always paid simple interest on tax repayments but “Community law requires full compensation for the loss of the use of money; and full compensation for the loss of the use of money requires that interest is compounded…”. Not my words but those of Chadwick LJ...
A Weighty Matter
Date: 30th April, 2007 | Author: Roger Bell | Comments: 0
Those of you who are overweight may have considered joining the Weight Watchers programme but have probably not thought about the VAT implications! Customers are asked to attend weekly meetings at which they are weighed. They are given an initial handbook, a monthly magazine and weekly leaflets. In 2004 Customs issued a ruling to Weight Watchers UK Ltd that part of the consideration paid by customers could be attributed to this zero rated printed material. In 2005 they withdrew this advice and ruled that the company was making a single supply of a standard rated weight loss programme and that it...
