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TaxationWeb.co.uk, UK's dedicated tax website, is celebrating the 30th anniversary of the introduction of VAT by launching a new, dedicated VAT section (www.taxationweb.co.uk/vat), in association with VATEase, a VAT consultancy company. The VAT section promises to feature news updates on the VAT world, articles, training, software, jobs and other VAT-related information and services.

All those years ago, when VAT was introduced, the Labour Chancellor Tony Barber promised us VAT would be a simple tax! No doubt he has since been made to eat those words - after all VAT is the tax, which the Lord Justice Sedgley denounced as being "a fiscal theme park, in which relatively uncomplicated solutions are a snare and diversion". Anybody who deals with the tax regularly will know just what a gem and how true this quote was!

VAT has seen many many changes in it's 30 years including rate changes, introduction of new rates, the embarrassing gaff made by policy which was called the "toothbrush scheme" and the subsequent abolishment of it, changes in retail schemes, the introduction of compulsory vat bad debt notifications that had to be sent to customers to effectively tell them you were writing their debt off, (now no longer required) and finally how about the change in the interpretation on the law in relation to opticians which meant millions of pounds being paid out by the Treasury which then resulted in the introduction of the "unjust enrichment" clauses.

This is the tax that over its' 30 years has seen VAT Tribunal Chairmen discuss whether a "Jaffa cake" is a biscuit or cake, whether the eating of ornamental carp is eccentric and the question 'when is a car not a car?' (The answer was when you can only get 7 people in the back of it with their bodies bent doubled with their heads on their knees!)

It has grown to be a tax that knows no geographical boundary - so businesses dealing with other countries (not always just the EU!) have an obligation to know about the worldwide VAT systems that exist and what the implications are for them. (It was, of course, too simple to ensure that the VAT systems were the same, at least in the EU).

So Happy Birthday VAT - no doubt we will continue to ride in your fiscal theme park, being scared by your ghost trains, feeling the lurch in our stomachs your big dipper provides and taking a gamble in your fruit machines that the interpretation and ever-changing legislation provides.

£800 million capital gains tax liability

JoJaffa Ltd, publishers of Property Tax Secrets, estimate that if everybody who purchased an investment property three years ago sold it today, the Inland Revenue would be richer by about £800 million in Capital Gains Tax liability. It comes as no surprise then that TaxationWeb, UK online tax information directory, reports that three quarters of all queries on their Tax Tips Forum are with regards to CGT on property?

"The recent boom in the property market and low mortgage rates encouraged many ordinary people to start thinking about investing into a second property, either to renovate and sell, or buy-to-let," says Martino Matijevic of TaxationWeb. "We are becoming inundated with questions from people thinking of selling their properties and have suddenly became aware of the tax implications of their investment. CGT questions have now become the single most common topic on our Tax Tips Forum."

From the tax point of view, there are many issues to be considered when buying or selling a property. Amer Sadiq, the author of Property Tax Secrets, outlines 7 key steps to help investors and developers cut property tax bills.

Firstly, consider buying property jointly with your partner to potentially use both your Capital Gains and Income tax allowances. Even better, renting out your existing property might help you to benefit from a whole raft of capital gains allowances.

If you buy property to 'renovate and sell', then you will be taxed differently than if you only 'buy and let' property. For instance, if you buy and sell property, your gains may be taxed as Income rather then Capital Gains. This means that you need to establish how and which taxes (Income Tax and/or Capital Gains Tax) will be applied to your property investments. Once you know how tax will be assessed on your investments, then - and only then - can you establish a tax minimising strategy.

Offset as many costs against your rental income as possible, to genuinely reduce your bill. Many people are not aware of the numerous costs that can be offset against your property income. For instance maintenance insurance policies on white goods, gas boilers and plumbing cover, which insure your property against any leaks or problems, can all be offset against rental income.

In 2020, the average house is predicted to cost £330,643. This will create an Inheritance Tax bill of £32,257.20 for the property alone, if allowances continue to stand still. It also means that the inheritor may be forced to sell the family home in order to pay the tax! Many people are using trusts and gifting options to reduce their potential liabilities to this tax.

Poor tax planning and accounts management means bigger accountancy bills - sooner or later. By learning about Property Tax early on in your investment career, you can not only reduce your tax bill, but also by presenting better accounts, you will cut your accountancy bill too. What is more, the better informed you are about tax - the better questions you can put to your accountant, and the better answers you'll receive.

Make sure you tell the taxman that you are receiving income from property. If you don't tell him now, then when he catches up with you, you probably won't be able to afford to pay him, after he fines you!

And finally, many tax benefits require the investor to plan for tax ahead of investing. Hence, the sooner you tackle the issue of Property Tax, the more you'll be able to cut your tax bills and liabilities.

If you have any questions on property tax, visit www.taxationweb.co.uk, where you will find a host of articles, news updates, and you can participate in the Tax Tips Forum, where taxpayers and tax professionals exchange questions and answers. For the Property Tax Secrets book, visit www.taxationweb.co.uk/propertytax.