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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

Tax Insider Lite asks, what happens when mistakes are made by the professionals hired to help prepare your tax return?IntroductionOur tax system is based on “Self Assessment”. In other words, it is the responsibility of the taxpayer to make a correct return of his or her (or its) income and gains, and to pay the tax on them.The system is insanely complicated, so that for anyone who runs their own business or company, it is virtually impossible to produce a correct tax return without professional ... Continue Reading

LITRG summarises some key tax and tax credits deadlines for July. IntroductionThe 22 June Budget has brought into sharp focus the hard times that are upon us. It is therefore more vital than ever to make sure that you check your tax, tax credits and benefits to make sure you are getting the paperwork right, dealt with on time and not missing out on any entitlements.Here we provide the latest in our series of monthly reminder articles to help you on your way.Tax – Self Assessment returns and tax ... Continue Reading

In the second article of the series, a partner in a provincial firm of accountants explains how poor punctuation by HMRC can cause problems with tax refunds.Eats, Shoots and LeavesLyn Truss’s best selling book, Eats, Shoots and Leaves, extolled the importance of correct punctuation, but as far as HMRC is concerned it seems to matter not one jot; particularly when they send confirmation that a tax repayment is being made to our ‘client’s account’. Wonderful news for the client: a long awaited ... Continue Reading

Matthew Hutton MA, CTA (fellow), AIIT, TEP reports from a recent tax conference on a trap in relation to non-UK resident trusts.  IntroductionThe determining factor for a CGT liability to arise is UK residence, with the well-known protection of the remittance basis where the taxpayer is non-UK domiciled and claims the remittance basis. So, while the loss of a non-UK domicile will cause a forfeiture of the remittance basis for the future, the following trap in relation to non-UK resident trusts can ... Continue Reading

Julie Butler advocates a more proactive approach to Inheritance Tax (IHT) planning by 'IHT-vulnerable' landowners.IntroductionIt can be argued that all land and most buildings have a degree of potential development or “hope” value. There will always be some opportunity to “grow” more houses, improve buildings and convert barns. The problem to consider is how might this value be protected to ensure Inheritance Tax (IHT relief) is achieved on either the potential or the development proceeds?Risks ... Continue Reading

Steve Allen of VAT Advisers Ltd highlights a further selection of recent VAT cases.ECJ Says Dutch Input Tax Block On Entertainment And Cars IS Compatible With EU LawThis case involves two joined Dutch appeals, with both cases concerning exclusions from the right to deduct input tax which the Netherlands had maintained upon adopting the Sixth VAT Directive. The first case concerned input tax recovery on cars, where the Dutch authorities disallowed the VAT on the basis that they had not been used wholly ... Continue Reading

As pressure mounts across government to save costs, LITRG examines the impact of HMRC proposals to shorten helpline opening hours.IntroductionWe recently highlighted the importance of face-to-face help for the most vulnerable in response to HMRC’s proposals to scale back Enquiry Centre services.  A further HMRC consultation reviews the impact on those same customers of changing helpline opening hours, including closing all lines on Sundays.  Cost cutting and HMRC’s equality dutiesWe are, of ... Continue Reading

Mark McLaughlin comments on the amended income tax anti-avoidance rules on transactions in securities.BackgroundWhen dealing with company reorganisations and some business sales, it is generally good practice to apply to HMRC for clearance (under ITA 2007 s 701) that the anti-avoidance rules regarding 'transactions in securities' will not apply to treat a capital transaction as giving rise to a potential income tax liability. The rules were originally introduced in the 1960s, and their complexity ... Continue Reading

Steve Allen of VAT Advisers Ltd highlights a selection of recent VAT cases.Tribunal says Online Seller of Overseas Hotel Rooms was Acting As a PrincipalThe Appellant operates a website through which it markets hotel accommodation located in the Mediterranean and Caribbean. A traveller or travel agent would book accommodation through the website and pay the deposit and balance to the Appellant, who also kept the bank interest on this money. The relevant hotel would be paid a lesser amount by the Appellant, ... Continue Reading