02/10/2010, by Mark McLaughlin CTA (Fellow) ATT TEP, Tax article - General
Mark McLaughlin looks at two Income Tax anti-avoidance rules potentially affecting receipts of capital. IntroductionThe introduction of a higher Capital Gains Tax rate of 28% in respect of gains accruing from 23 June 2010 has gone some way to bridging the gap between Capital Gains Tax rates and the 50% top rate of Income Tax for individuals.However, this 10% increase in Capital Gains Tax for higher rate taxpayers fell some way short of many commentators’ predictions, and means that there is still ... Continue Reading
01/10/2010, by Low Incomes Tax Reform Group, Tax article - Income Tax
The practicalities of dealing with PAYE tax calculations are beginning to unfold for HMRC as taxpayers react to the first batch of underpayment estimates – LITRG gives an update. Trial… and errorWhen HMRC sent out their first 45,000 tax calculations, the full range of circumstances giving rise to underpayment calculations and the types of taxpayers who would be hit were not immediately apparent. Taxpayers are now reacting to the first batch of underpayment estimates and their experiences vary.However, ... Continue Reading
27/09/2010, by Low Incomes Tax Reform Group, Tax article - Income Tax
LITRG welcomes the opening of discussions on PAYE reform, but suggests HMRC exercise caution by ensuring that the detail is carefully thought through before moving forward. Bringing PAYE up to date – the story so farThe PAYE computer system has been upgraded in recent years so that it should now be capable of increased automation to reconcile individual taxpayers’ various records together and calculate their overall tax liability for a year. This has resulted, as widely reported in recent weeks, ... Continue Reading
27/09/2010, by Lee Sharpe, Tax news - Income Tax
In her latest Annual Report, the Adjudicator took HMRC to task over its treatment of vulnerable taxpayers - and there are forecasts of trouble ahead... Judy Clements OBE is the Adjudicator - her office is in many respects 'the last resort' for taxpayers who are dissatisfied with their treatment by HMRC. Within the last few days, her office has released its Annual Report for 2009-10 and in it she voiced her concerns that there had been a growth in cases where HMRC's decisions had adversely affected ... Continue Reading
25/09/2010, by Matthew Hutton MA, CTA (fellow), AIIT, TEP, Tax article - Inheritance Tax, IHT, Trusts & Estates, Capital Taxes
In the third of a series of extracts adapted from his eBook 'Hutton on Estate Planning' (3rd Edition), Matthew Hutton outlines the various types of trust and their Inheritance Tax (IHT) implications. A Convenient Recipient of Lifetime GiftsWhere a gift is to be made but either the donor wishes to ensure some protection and/or a suitable donee does not present himself, a trust can be a useful mechanism. Even if death follows within seven years, the value charged to IHT will be that prevailing at the ... Continue Reading
25/09/2010, by Tax Insider, Tax article - Inheritance Tax, IHT, Trusts & Estates, Capital Taxes
Inheritance Tax (IHT) reaches far and wide, but Malcolm Finney points out for Tax Insider Lite, that there is a possible exception.IntroductionThe 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 is true whether the tax is Income Tax, Capital Gains Tax or Inheritance Tax (IHT).However, overseas located property does not fall ... Continue Reading
24/09/2010, by Low Incomes Tax Reform Group, Tax article - General
HMRC are proposing to use a fixed costs scale in debt cases successfully pursued via the courts in England and Wales. LITRG suggests safeguards are needed to protect the vulnerable.Debts and court actionInevitably debts to HMRC can arise which, even if correct and owed in law, are not paid. Sometimes this is because of a refusal to pay but in others, there is genuine financial hardship. Whilst we understand that HMRC’s processes aim to keep the latter type of case out of the courts so far as possible, ... Continue Reading
21/09/2010, by Low Incomes Tax Reform Group, Tax article - General
LITRG’s response to the recent ‘tax policy making’ consultation suggests how individuals can be involved and encourages government to concentrate more on those who currently struggle to be heard.Making tax policyWhen it comes to making tax legislation, even if the government does consult early on its proposals, what do lay people know of the consultation process, what the proposals might mean to them and how they can contribute to the debate? With recent media reports highlighting PAYE taxpayers’ ... Continue Reading
20/09/2010, by Low Incomes Tax Reform Group, Tax article - General
Today’s Adjudicator’s report includes an encouraging commitment to work with HMRC and others to improve complaints procedures. But what will she be saying when 6 million tax calculations are sent out? What does the Adjudicator do? The Adjudicator’s Office deals with complaints about poor service from HMRC. The current Adjudicator, Judy Clements OBE, has published her latest report for the year to 31 March 2010. The majority of cases involving HMRC still concern tax credits – ... Continue Reading
19/09/2010, by Lee Sharpe, Tax news - Income Tax
Mr. Hartnett Now ApologisesAfter originally saying, “I am not sure I see a reason to apologise”, David Hartnett has now apologised for the tax underpayments fiasco. But it appears that this change of heart was prompted by ministers, rather than soul-searching. Further Admissions Before Treasury Select CommitteeThe heads of HMRC were brought before the Treasury Select Committee on Wednesday morning, to account for the problems with administration of Pay As You Earn (PAYE).Further admissions ... Continue Reading
