22/08/2009, by Matthew Hutton MA, CTA (fellow), AIIT, TEP, Tax article - Inheritance Tax, IHT, Trusts & Estates, Capital Taxes
Matthew Hutton MA, CTA (fellow), AIIT, TEP, highlights a question on the tax treatment of certain types of income from an offshore trust.Context: the question (from the Trusts Discussion Forum)The recent thread on settlor-interested offshore trusts has got me thinking about another related situation for which I would be grateful for members’ views (and in particular the impact of ITA 2007 s 734 on the situation). An offshore trust was settled a number of years ago by a non-dom settlor. The offshore ... Continue Reading
21/08/2009, by Low Incomes Tax Reform Group, Tax article - VAT & Excise Duties
Kelly Sizer of the Low Incomes Tax Reform Group outlines some special VAT reliefs for people who are disabled or over 60.Claim it or lose it!VAT (‘Value Added Tax’) is charged at the standard rate (usually 17.5% but reduced to 15% until 31 December 2009) on sales or other supplies of most goods and services. Some items - such as most foods bought in groceries - do not have VAT charged on them; so everyone who buys food automatically benefits. Certain goods and services can sometimes be bought ... Continue Reading
20/08/2009, by Low Incomes Tax Reform Group, Tax article - Income Tax
In this article, Kelly Sizer of the Low Incomes Tax Reform Group looks at some recent and planned changes to how we pay our tax, outlining some of the pros and cons. IntroductionAs the name suggests, HM Revenue and Customs (‘HMRC’) was formed in 2005 by merging two former government departments – the Inland Revenue (the ‘tax man’) and HM Customs and Excise (the ‘VAT man’). The existence of HMRC can still come as a surprise to many as in general parlance; we still often hear the two ... Continue Reading
15/08/2009, by Matthew Hutton MA, CTA (fellow), AIIT, TEP, Tax article - Inheritance Tax, IHT, Trusts & Estates, Capital Taxes
Matthew Hutton MA, CTA (fellow), AIIT, TEP, comments on HMRC's practice in relation to the collection of Inheritance Tax on failed Potentially Exempt Transfers (PETs) from the Personal Representatives of a deceased individual's estate. ContextIt is worth being reminded that there is some limitation on HMRC’s ability (albeit self-imposed) to collect IHT on failed PETs from PRs. This goes back to (so far as I recall) around 1991 and is now included in the Manual as set out below:‘IHTM30044 ... Continue Reading
15/08/2009, by Julie Butler, FCA, Tax article - Inheritance Tax, IHT, Trusts & Estates, Capital Taxes
Julie Butler FCA examines the effect of the recession on the ‘hope value’ of land for Inheritance Tax purposes. IntroductionAt the date of death the “hope value” of land has to be valued and subject to Inheritance Tax (IHT) like any other asset in the Estate of the deceased.Prior to the current credit crunch it was argued that all land had some “hope value” but what now the crash of development land values?Valuation of “Hope Value”How is hope value ascertained? It must be valued ... Continue Reading
15/08/2009, by Andrew Needham, Tax article - VAT & Excise Duties
Andrew Needham of VAT Specialists Ltd looks at the possible benefits of the VAT Flat Rate Scheme.IntroductionThe Flat Rate Scheme was introduced in Budget 2002, and is available to all small businesses. This article explains the scheme and shows how to determine whether it is advantageous to join. What is the Flat Rate Scheme?The scheme provides an alternative to the normal method of VAT accounting. The normal method is based on a declaration of output VAT on goods and services provided, less the ... Continue Reading
12/08/2009, by Sarah Laing, Tax news - HMRC Administration, Practice and Methods
Two ground breaking tax agreements between the Government of Liechtenstein and the UK have been signed, which will result in off shore investments in Liechtenstein made by UK residents being properly taxed and represent the commitment of Liechtenstein to increased tax transparency.A new Tax Information Exchange Agreement (TIEA) will enable the UK and Liechtenstein to exchange information to ensure the right tax is paid in each country in future. A tax disclosure programme will clear up the tax ... Continue Reading
10/08/2009, by Sarah Laing, Tax news - Income Tax
Regulations have been laid to bring into effect the pension contributions anti-forestalling provisions contained in Finance Act 2009.The Government has announced its intention to restrict, to the basic rate of income tax, tax relief on pensions savings with effect from 6 April 2011, for people with a taxable income of £150,000 or more.Finance Act 2009 introduced a Special Annual Allowance Charge (SAAC) which is an anti-forestalling provision which seeks to restrict pensions tax relief for those ... Continue Reading
10/08/2009, by Sarah Laing, Tax news - Business Tax
HMRC have published a Technical Note setting out various issues and potential approaches concerning overhedging and underhedging arrangements.In the 2009 Budget, the government announced that it is aware of certain structured arrangements (often described as overhedging or underhedging) which, although not normally undertaken for tax avoidance, involve fragmenting transactions across group companies to ensure the Exchequer bears the full economic risk to the group. The Government believes that ... Continue Reading
10/08/2009, by Sarah Laing, Tax news - HMRC Administration, Practice and Methods
HMRC have announced details of a Business Advice Open Day (BAOD) at Aston Villa Football Club, Birmingham on Wednesday, 16 September 2009.Whether you’re new to business or well established, finding customers, meeting your liabilities and getting to grips with tax and cash flow can be a real challenge. The HMRC BAOD brings together the expertise of a wide range of organisations eager to provide practical, free advice under one roof.HMRC will be offering businesses practical advice and offering ... Continue Reading
