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In the third of a series of articles, Malcolm Finney, author of 'Personal Tax Planning: Principles and Practice', looks at 'deemed' periods of occupation of the residence. Deemed Periods of Residence In ascertaining the capital gain subject to CGT (if any) on the sale of an interest in a sole or main residence any part of the capital gain attributable to periods of non-occupation (when the property is not used as a residence) would not on normal principles qualify for exemption. However, ... Continue Reading

Danny Alexander has advised the BBC that he will be announcing, to the Liberal Democrat Party Conference, the recruitment of 2,000 more tax inspectors. Their role will apparently be to 'challenge' wealthy taxpayers who use accountants to avoid paying "their fair share". He cited recent successes in specific campaigns such as the Tax Health Plan [ Recent? It closed in June 2010! - Ed ] as evidence that more resources allocated to this area would produce more tax yield, and there was an emphasis ... Continue Reading

HM Revenue & Customs launched its "Mortgage Verification Scheme" on 1 September. This follows on from an announcement in the March 2010 Budget - Budget 2010 (see 3.86) HMRC hasn't publicised the launch of the Scheme through the normal channels - here at TW, we haven't seen any Press Releases issued, or any announcements on its website.  In fact the only useful  reference to the "Income Verification Scheme" we could find was one paragraph under their 2010 Budget Announcement Tax Gap, Evasion ... Continue Reading

LITRG explains a new HMRC initiative to work in co-operation with professional bodies and charities with the aim of improving the Department’s service standards. Introduction Over the last dozen years, the Low Incomes Tax Reform Group (LITRG) has criticised HMRC (and the Inland Revenue before them) about how  inadequately they have recognised and measured what is important to the ordinary citizen in the delivery of their service. For the first time HMRC have openly acknowledged, ... Continue Reading

To follow up on our news item HMRC Delays Issuing SA Statements - Update just a quick reminder that those who received their July Self Assessment Statements of Account late, must make sure that HM Revenue & Customs has cleared funds by 27 September, to ensure that no interest is charged. (As the normal payment date is 31 July, any balance outstanding after that date will otherwise be subject to interest). Continue Reading

Peter Arrowsmith FCA highlights a selection of NIC matters, and provides a helpful tip for certain self-employed individuals. Pensions Bill For the record, the Bill is now being considered line by line by the Commons' Public Bill Committee. This is the Bill that amongst many other things is going to accelerate the date from which we all retire. More Electronics from HM Revenue and Customs A consultation document issued on 8 August notes that from April 2012 there will be a Registration ... Continue Reading

Brian Redford speaks to TaxationWeb about the future relationship between HMRC and tax agents. Introduction HM Revenue & Customs has set itself the task of speaking directly to and hearing the views of 1,000 agents about the consultation issued on 31 May: Establishing the Future Relationship between the Tax Agent Community and HMRC. TW recently attended a workshop hosted by HM Revenue & Customs in Manchester and caught up with Brian Redford afterwards to discuss what the future holds. Is ... Continue Reading

Mark McLaughlin highlights HMRC’s current debt collection policy and a helpful method of discharging relatively small tax debts. Introduction The tax world never stands still. It is hard enough for tax professionals to keep up-to-date with new developments, but for taxpayers it must seem virtually impossible at times. To make matters worse, HM Revenue & Customs (HMRC) seems to be in a constant state of change, in respect of its systems, organisation and policies. For example, ... Continue Reading

The Chartered Institute of Taxation (CIOT) has criticised government plans announced in the 2011 Budget to reduce a person's Inheritance Tax (IHT) bill where they give some of their estate to good causes. On 23 March 2011 the government set out proposals to encourage people to leave more to charities by reducing the rate of IHT to 36% when they leave 10% or more of the taxable value of their estate to charity. This was followed by a consultation issued by HM Revenue & Customs on 10 June ... Continue Reading

Mark McLaughlin asks about the benefit to taxpayers of coming clean to HMRC before a tax campaign starts. I hope that you read last week's Editorial by Mike Wells, HMRC's director of Risk and Intelligence, about HMRC's campaigns aimed at 'customers' in specific risk areas of tax loss. If you missed it, you can read Mike Wells' article here. In addition, you can find out more about the campaigns by visiting HMRC's website. On the face of it, the concept of campaigns aimed at particular ... Continue Reading