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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

Julie Butler highlights a recent tax case with potential Capital Gains Tax implications for landowners. Introduction A recent case Deborah Evelyn (TC997) can be seen to emphasise the need for the activity of “active farming” in order to secure the establishment of a trading activity/business to achieve tax relief. The Evelyn case features the “conacre” lettings – they are short term lets for the purpose of growing grass for silage. The conacre was featured ... Continue Reading

In the second of a series of articles, Malcolm Finney, author of 'Personal Tax Planning: Principles and Practice', looks at inter-spouse transfers of a married couple's only or main residence. Transfers between Spouses Inter-spouse transfers are generally not subject to Inheritance Tax (IHT) or Capital Gains Tax (CGT). However, inter-spouse transfers of interests are subject to special provisions (TCGA 1992 s 222). The basic rule for CGT purposes is that inter-spouse transfers (assuming ... Continue Reading

LITRG looks at tax, tax credits and related issues to think about in September. Introduction In this month’s reminder article, LITRG looks at some topical issues under these headings: Tax and Self-Assessment Tax credits State benefits (including National Minimum Wage) 1. Tax and Self-Assessment Get to work on your 2010/11 tax return – paper filers only have two months left! Those sending in a 2010/11 paper Self-Assessment return have to do ... Continue Reading

Julie Butler considers the importance of business commerciality for loss relief purposes, and highlights a recent tax case. Is a Business Being Conducted on a Commercial Basis? The question regarding evidence of commerciality and the allowability of Income Tax losses to offset against total income (ITA 2007 s 64) is constantly being raised by HMRC with regard to farming, land diversification and equine pursuits. The Tax Office arguments presented regarding ITA 2007 s 64 are reiterated ... Continue Reading

Mark McLaughlin highlights the intangible fixed assets rules for companies, following business incorporations. Introduction - Corporate Intangibles An important potential advantage of trading through a limited company (as opposed to a partnership or sole trader) is the availability of tax relief for the amortisation of goodwill under the intangible fixed asset legislation (CTA 2009 Part 8), where certain conditions are satisfied. The intangible fixed asset rules were originally introduced ... Continue Reading

Mike Wells, HMRC’s director of Risk and Intelligence, discusses how HMRC campaigns aim to help customers pay what they owe and reduce the tax gap. We all have to pay our fair share of taxes, especially now when times are tough and every penny is needed for vital public services. At HMRC we are committed to collecting the full amount of tax due from individuals and businesses alike. If everyone pays what they owe, it helps create a level playing field and reduces the tax gap. Campaigns ... Continue Reading

Malcolm Finney, author of 'Personal Tax Planning: Principles and Practice', looks at the UK tax implications for an individual's only or main residence. Background For many individuals the family home or main residence constitutes their most valuable asset. It is an asset in respect of which any capital gain arising on a disposal is in principle exempt from Capital Gains Tax (CGT) (TCGA 1992 ss 222 and 223). There are, however, no corresponding tax reliefs/exemptions with respect to ... Continue Reading

HM Treasury has confirmed that a deal between the UK and Swiss governments has now been reached, regarding UK taxpayers' accounts held in Switzerland and the main points are: For Swiss accounts that were open on 31 December 2010 and remain open at 31 May 2013, a 'one-off' charge of between 19 and 34% on the value of the funds held. The one-off deduction will be deemed to settle Income Tax, Capital Gains Tax, Inheritance Tax and VAT due on those funds. From 2013, the Swiss ... Continue Reading

Further to our previous article, (see Plumbing Profession Told to Tighten Up Tax Affairs) the deadline for making full disclosure and making payment - or at least arranging payment with HMRC - is the 31st of August. Originally, HMRC set the deadline for notifying them of an intention to disclose as 31 May but we understand that the disclosure facility remains open even now, for those who wish to get their affairs in order, to notify and disclose, before the end of the month. (Although they ... Continue Reading