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Anthony Nixon MA, CTA, TEP, ATT, Solicitor, provides an overview of planning issues involving IHT and Trusts.The TaxInheritance tax (“IHT”) is basically a charge on the value of the assets of anyone who dies.  IHT is also payable on gifts made in the seven years before death and on certain interests in possession in trusts (see "Trusts" below).  Lifetime gifts to relevant property trusts (see "Trusts" below) are liable to immediate IHT. These gifts may suffer additional IHT if the donor dies ... Continue Reading

Mark McLaughlin and Toby Harris highlight practical issues following the introduction of the Inheritance Tax transferable nil rate band.How should practitioners advise?Inheritance Tax (IHT) planning for many married couples and civil partnerships was simplified by provisions introduced in Finance Act 2008 (see IHTA 1984, ss 8A–8C), which allow a claim for all or part of an unused nil rate band on the death of a spouse or civil partner to be transferred to a surviving spouse or civil partner who ... Continue Reading

The Liechtenstein Government has confirmed that it intends to sign up to the Organisation for Economic Co-operation & Development (OECD) standards of transparency and exchange of information.The announcement is the culmination of many years of internationally co-ordinated work on the part of the UK tax authorities working in partnership with colleagues in the OECD and recent collaboration between HMRC, the UK embassy in Berne and the Liechtenstein Government. The Right Honourable Stephen Timms MP, ... Continue Reading

HMRC have appointed Judy Clements as the Adjudicator. She takes over from Dame Barbara Mills.Mike Clasper, Chairman of HMRC, has announced that Judy Clements OBE has been appointed to the role, after an external recruitment process. Judy Clements is currently Director of the Independent Police Complaints Commission's Customer Services and Communication Directorate, and will take up her new role as Adjudicator on 20 April 2009. Mike Clasper said: "I am very pleased that Judy Clements has agreed to ... Continue Reading

HMRC have announced their latest interest rates charged on late payments and paid on overpayments. The reduced rates that cover quarterly instalment payments and early payments of corporation tax not due by instalments (for accounting periods ending on or after 1 July 1999) take effect from 16 March 2009. The reduced rates that cover all other direct and indirect taxes and National Insurance contributions paid late and overpaid take effect from 24 March 2009. The rate changes are as follows:Income ... Continue Reading

Prime Minister Gordon Brown has called for heavier regulation for offshore tax havens as part of global plans to tackle the banking crisis.Last week, the prime minister told the Scottish Labour conference there must also be internationally agreed standards to end the "short-term banking bonus culture". He also said that there should be assistance for countries unable to restructure their own banking systems. Proposals for reform will be put to the forthcoming G20 summit of the world's leading nations ... Continue Reading

Matthew Peppitt outlines the importance of the due diligence process in business transactions, and some important factors to consider in determining the scope of a review.IntroductionIn many ways, tax due diligence is the most important of all the tax workstreams for any transaction. It informs all the crucial tax decisions which arise between the origination of a deal and its completion; and it provides the framework and support for:tax-efficient structuring and funding of the transaction;tax aspects ... Continue Reading

Mark McLaughlin CTA (Fellow), ATT, TEP looks at HMRC’s plan to give Extra-Statutory Concession C16 legislative effectBackgroundIt is human nature to treat change with some apprehension. This can sometimes be the case even if it is for the better. However, any change that clearly makes life simpler is more readily accepted, although this does seem to be particularly rare these days as far as tax is concerned.HMRC recently issued Extra-Statutory Concessions (ESCs): Technical Consultation on Draft ... Continue Reading

Steve Allen, Director of VAT Advisers Ltd, provides a VAT tip for owners of residential care homes.IntroductionHistorically, care services supplied in residential care homes were always treated as being exempt from VAT.  However, several years ago, this treatment was challenged by the Kingscrest Care Group, who wanted to register for VAT in order to reclaim substantial amounts of VAT incurred on capital expenditure costs. The challenge ended up in the European Court , which ruled in Kingcrest’s ... Continue Reading

HMRC are reminding employers that they must use the new A4 version of form P45 from 6 April 2009.The new version was introduced in October 2008 and now includes an employee's date of birth and gender. Any stocks of old A5 versions of the P45 should be destroyed by 6 April. HMRC's Mel McDonald, said: "The new P45 has real benefits for employers. It will help HMRC match employees' information to their records and will reduce the number of queries we send employers. "It is also important to remember ... Continue Reading