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Mark McLaughlin highlights a recent Inheritance Tax case concerning pension rights.IntroductionFor Inheritance Tax (IHT) purposes, the general rule is that a transfer of value requires positive action by the person making it, such as the gift of an asset. However, in certain circumstances a failure to take positive action is treated as a disposition as well. In particular, the deliberate omission to exercise a right can be treated in this way. (IHTA 1984 s 3(3)). Deferring Retirement BenefitsA recent ... Continue Reading

Sarah Bradford outlines some important Capital Gains Tax changes from 23 June 2010 for Tax Insider Lite.IntroductionA rise in the rate of Capital Gains Tax (CGT) was something of a Budget certainty. However, with predictions of alignment with Income Tax rates and a possible rate of 50%, when it came the rise was not as painful as anticipated.In relation to gains made on or after 23 June 2010, there will be two rates of Capital Gains Tax for individuals – a standard rate of 18% and a higher rate ... Continue Reading

HM Revenue & Customs (HMRC) is urging Tax Credits claimants to renew their claims by the 31 July deadline, or their payments will stop.Tax Credits Renewal - The Process is SimpleRenewing is simple – you need to check the accuracy of the information in the renewals pack you’ve been sent, and let HMRC know of any changes in your circumstances that you haven’t already reported during the year, such as in your working hours, childcare costs or pay. You must also provide details of your previous ... Continue Reading

LITRG explains that by 31 July most people who receive tax credits must complete the renewals process - even if you no longer want to claim, or think you are no longer entitled. IntroductionIn this short article we try to explain what tax credit renewals are, what you need to do by 31 July, and what happens if you are late.Why renew?Tax credit claims generally only last for one tax year. At the end of each tax year, you need to make a new claim in order to keep on getting tax credits. So that payments ... Continue Reading

Mark McLaughlin looks at the recent HM Revenue & Customs powers concerning taxpayer record-keeping requirements.Introduction 'New HMRC powers' is a phrase we have all become accustomed to hearing over the last few years. Among those powers is the facility for HMRC to make regulations specifying the records and supporting documents which must be kept, and the period for which they must be retained.HMRC’s record-keeping powers were introduced for Income and Corporation Tax purposes in Finance Act ... Continue Reading

Julie Butler comments on the lack of certainty in determining the market value of land and buildings for Inheritance Tax purposes.The Difficulty of Estimating the Hope Value of Development LandIn order to understand the Inheritance Tax (IHT) on development land values, perhaps the starting point is how is ‘hope value’ calculated at the date of death? The consideration is how is ‘hope value’ defined? Hope value is the difference between market value and agricultural value.What is the Market ... Continue Reading

Steve Allen of VAT Advisers Ltd reports on a recent VAT case.Introduction - Insurance Intermediary ExemptionOn 22 April 2010, the Court of Appeal (CoA) released its decision in the joined cases of InsuranceWide.com Services Ltd and Trader Media Group Ltd, which concerned the scope of the insurance intermediary exemption. The Court found unanimously for the taxpayers.Both companies provided online introductory services between people seeking insurance and a panel of insurers. Customers were attracted ... Continue Reading

LITRG looks at the tax credits changes due to come in from April 2011, anticipating what they may mean for claimants.IntroductionThe emergency budget on 22 June set out several substantial changes to the tax credit system. Some are straightforward; others less so.Below, we summarise those changes coming in from April 2011 under the following headings, explaining what each means and who might be affected:Increases in rates and thresholdsWithdrawal ratesFamily element withdrawal rateThe baby elementOlder ... Continue Reading

LITRG takes a timely look at how tax credits entitlement might be affected over the summer holidays by changes in childcare arrangements or when children leave school.It’s that time of year again…The academic year is coming to an end and this article covers two key issues where your tax credits claim could be affected:Childcare costs in the school holidays; andWhat happens when your children leave school.Make sure you read through so that you claim all you are entitled to, or avoid being paid ... Continue Reading

Julie Butler of Butler & Co looks at potential tax implications of land and property transactions.Introduction - Income Tax or Capital Gains Tax on Sale of LandThe last few years have seen changes and shifts in the interaction of Income Tax and Capital Gains Tax (CGT).Prior to the reform effective from 6 April 2008, Business Asset Taper Relief (BATR) allowed business capital disposals to be taxed at an effective 10% rate of tax where the land sold had previously been part of a farm, or other business ... Continue Reading