HOW TO AVOID INHERITANCE TAX ON OVERSEAS PROPERTYInheritance Tax (IHT) reaches far and wide, but there is a possible exception...The UK’s tax system is a worldwide based system and thus whether income arises in the UK or elsewhere, and whether assets are located within the UK or elsewhere, is immaterial; all is brought within the charge to UK tax. This...

: Tue, 31 Aug 2010 05:18:00 +0000

Peter Arrowsmith FCA comments on the NIC Holiday Scheme announced in the Budget on 22 June 2010.IntroductionAt lunchtime of 27 August 2010, HM Revenue and Customs made available more details of the NIC Holiday scheme announced on 22 June. In particular it WILL commence on 6 September (that's a week on Monday). Please accept my apologies for any...

: Sat, 28 Aug 2010 22:00:00 +0000

Are you a property investor or a developer? It can sometimes be a fine line that distinguishes the two but getting it wrong has important tax implications! Sarah Bradford explains, in her article for Tax Insider Lite.IntroductionAs programmes like Property Ladder attest, many people are keen to invest in property and are confident that they can make a sizeable...

: Fri, 27 Aug 2010 22:00:00 +0000

Mark McLaughlin outlines the Finance Act 2010 provisions which provide for potential penalties of 200%  IntroductionThe first Finance Act of 2010 introduced a new penalty regime in respect of undisclosed offshore accounts, from a date to be appointed by Treasury Order. The publicity generated by this legislation resulted from a 'headline' maximum penalty rate of 200%. Many individuals,...

: Fri, 27 Aug 2010 22:00:00 +0000

The taxation of trusts is complex. However, Malcolm Finney points out that trusts do offer an attractive vehicle which can be used for family tax planning purposes.BackgroundPerhaps one of their main attractions (the Discretionary Trust in particular) is that future unforeseen changes, be they financial or not, can be taken into account at that time by the trustees....

: Fri, 27 Aug 2010 22:00:00 +0000

LITRG reports on HMRC’s response to the recent consultation on the impact on minority groups of changing their Enquiry Centre service, published yesterday and the further mitigating actions promised. IntroductionIn times of such austerity, it comes as no surprise that HMRC are going ahead with reductions to their Enquiry Centre opening hours. Our response to HMRC’s impact...

: Fri, 27 Aug 2010 06:34:00 +0000

From the 6 April after they turn 16, children have to re-register R85s otherwise (often without any warning from the bank or building society) their savings will start being taxed. IntroductionIf you have savings and your total income does not exceed your annual personal allowance (the basic allowance being £6,475 for the 2010/11 tax year), you can...

: Wed, 25 Aug 2010 10:20:00 +0000

HM Revenue & Customs has warned that there is currently a delay of between six and eight weeks, when they are notified of an error in a VAT Return by a business, and have to correct the mistake.HM Revenue & Customs has pointed out that, in some cases, (generally for 'smaller' errors), the business is able itself to...

: Mon, 23 Aug 2010 22:00:00 +0000

Following its loss on Appeal of the InsuranceWide and Trader Media VAT cases, the UK tax authorities have declared last week that they will not appeal against the judgement.  This means insurance introductory and comparison websites will be treated as a VAT exempt service, opening up the opportunity to reclaim overpaid VAT.  However, it may lead to an unexpected VAT...

: Mon, 23 Aug 2010 16:37:00 +0000

HM Revenue & Customs has announced that it has had to redeploy some of its staff at the Central Agent Authorisation Team in Longbenton, so that the turnaround time for paper Forms 64-8 and Self Assessment Registrations will significantly increase. This has proved necessary in light of other, 'higher priority' work and is expected to last until 31...

: Sun, 22 Aug 2010 22:00:00 +0000

Working from home is increasingly popular, but could it affect your Capital Gains Tax (CGT) Private Residence Relief when you come to sell?IntroductionPrivate Residence Relief is perhaps one of the best well-known tax reliefs, allowing a person to sell his or her (main) home without triggering a liability to CGT. As with most reliefs, its availability is contingent...

: Fri, 20 Aug 2010 22:00:00 +0000

Julie Butler comments on a recent 'spotlight' on arrangements considered by HMRC to be unacceptable tax planning subject to possible challenge, and their application to farming businesses. IntroductionHMRC have published “Spotlight 8”, which concerns investments made by taxpayers to obtain trade loss reliefs. This tax relief is also known as “sideways Income Tax loss relief". Typically, the arrangements/schemes...

: Fri, 20 Aug 2010 22:00:00 +0000

Steve Allen of VAT Advisers Ltd offers some useful tips for director shareholders who are considering transferring their company's trading property into a pension fund.IntroductionIt is common practice for trading companies to transfer their commercial property into a pension fund for the shareholder directors. In most cases, the property is rented back to the trading company to generate...

: Fri, 20 Aug 2010 22:00:00 +0000

For the 3rd year running, TaxationWeb.co.uk, the UK's leading independent tax website, was ranked as one of the Top 10 UK accountancy websites, by Experian Hitwise.Twice a year, Hitwise awards the 10 most popular websites across over 160 categories. From January - June, 2010, www.taxationweb.co.uk was ranked #7 in the Hitwise United Kingdom 'Business and Finance - Accountancy'...

: Fri, 20 Aug 2010 22:00:00 +0000

Mark McLaughlin comments on a recent tax case where the early filing of a tax return caused problems for the taxpayer, when carrying back charitable payments under Gift Aid. IntroductionThe reduction in personal allowances for those with income exceeding £100,000 was introduced from 6 April 2010 for 2010-11 and later years. The effect of legislation introduced in Finance...

: Sat, 14 Aug 2010 22:00:00 +0000