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Steve Allen of VAT Advisers Ltd looks at the reduced rate of VAT for certain types of building works relating to residential property. Introduction My, how time passes - 1 April 2011 will mark the 10th anniversary of the introduction of the 5% reduced rate of VAT for certain types of building works relating to residential property. The 5% rate was part of the Government’s 2001 ‘Urban Regeneration Scheme’, which encouraged redevelopment of brownfield sites rather than ... Continue Reading

Mark McLaughlin asks whether HMRC’s misgivings about giving legislative effect to Extra-Statutory Concession C16 are justified. Introduction Some Extra-Statutory Concessions (ESCs) are used more frequently than others, but I expect that ESC C16 is among the most common. The text of ESC C16 broadly allows distributions to shareholders, by a company that has ceased business and is awaiting dissolution, to be treated as made in a formal winding up, if certain conditions are satisfied ... Continue Reading

The calendar year end is not of obvious significance, given the UK tax year ends in April. But LITRG warns not to dismiss it altogether, and gives some important reminders. Introduction This article aims to give some tips and hints of tax and tax credits matters to consider whilst contemplating the Christmas leftovers, and is the final instalment in LITRG’s 2010 monthly series. Recent developments Contacting HMRC HMRC consulted earlier this year about changing their ... Continue Reading

The Advisory Fuel Rates are a guide to the mileage rates at which employees can reimburse their employers for private mileage and thereby avoid a fuel 'benefit in kind' charge, for a company car. (They also apply to payments made by employers to employees, in respect of business journeys undertaken: payments for fuel at or below the relevant rates will not attract an Income Tax or NI charge).It is worth bearing in mind that these are advisory rates and it may be appropriate to agree different rates ... Continue Reading

LITRG reports on a recent consultation proposing further changes to the circumstances under which you can get a credit towards state benefits without paying a national insurance contribution. National Insurance credits The National Insurance system was originally intended as a means of citizens contributing to various benefits they obtain from the state, but lately has been accused of being nothing more than an extra ‘tax’ – the rate of contribution bearing little reflection ... Continue Reading

In the next of a series of extracts adapted from his eBook 'Hutton on Estate Planning' (3rd Edition), Matthew Hutton looks at other tax considerations in the context of Inheritance Tax (IHT) mitigation. Possibility of Conflicting IHT & CGT Considerations IHT, and its mitigation, cannot be viewed as a subject in isolation. Applying the maxim ‘one man’s meat is another man’s poison’, what is absolutely the right thing to do in the interests of mitigating IHT might ... Continue Reading

Julie Butler FCA of Butler & Co provides an update and a planning point regarding Furnished Holiday Lettings   Introduction The tax position concerning Furnished Holiday Lettings (FHLs) has been much in debate since 22 April 2009 when proposed tax changes were introduced and were then thrown out again in a Budget earlier this year. It can be argued that the Coalition Budget, together with the much awaited Consultation Document, now give much more clarity. The old FHL tax rules ... Continue Reading

Steve Allen of VAT Advisers Ltd highlights an important recent announcement by HM Revenue & Customs (HMRC) on the VAT treatment of business entertainment provided to business customers. Introduction On 2 November 2010, HMRC released Revenue & Customs Brief 44/10 announcing an important policy change on the treatment of business entertainment provided to overseas customers. Back in March 2009, in the run up to the Fleming deadline, HMRC had said that it was reviewing its policy on business ... Continue Reading

The government has announced that small businesses will no longer have to make a special claim for Small Business Rate Relief, but will soon see it included automatically in their business rates calculation, where eligible.This will be well received by businesses - many of which have either been unaware of the relief, or that it was (up to now) necessary to apply for it every financial year.Eligible small businesses are those with properties which have rateable values below £6,000 for 'full relief' ... Continue Reading

HM Revenue & Customs has announced that the reporting thresholds for the 2011 calendar year will remain as for 2010, i.e.,Dispatches from the UK £250,000Arrivals to the UK £600,000Businesses are not required to make Supplementary Declarations if the value of their goods entering or leaving the UK falls below the above limits.The threshold at which the more detailed Delivery Terms information must be provided, also remains at £16,000,000.For further information, see Intrastat - Thresholds from ... Continue Reading