21/12/2008, by Mark McLaughlin CTA (Fellow) ATT TEP, Tax article - General
Mark McLaughlin CTA (Fellow) ATT TEP provides an overview of the forthcoming Tax Tribunals, and HM Revenue & Customs' internal review process.All changeA major reform of the tax appeals system is fast approaching. The new Tax Tribunals are expected to ‘go live’ from 1 April 2009, replacing the existing General and Special Commissioners, VAT & Duties and Section 706 Tribunals (the latter dealing with appeals in respect of the income tax anti-avoidance rules in respect of transactions in securities). ... Continue Reading
21/12/2008, by Matthew Hutton MA, CTA (fellow), AIIT, TEP, Tax article - General
Matthew Hutton MA, CTA (fellow), AIIT, TEP, highlights a potential problem and possible solution for those wishing to use the remittance basis following the changes introduced by Finance Act 2008. IntroductionA very important point was made at a recent STEP Non-Dom Conference re: nomination for the £30,000 tax. First, a nomination has to be made if electing, even if it is only £1 but then, if any income that is nominated is remitted, all future remittances thereafter (not just for that tax year) ... Continue Reading
21/12/2008, by Malcolm Finney, Tax article - General
Malcolm Finney considers how the Finance Act 2008 provisions on the remittance basis affect non-UK domiciled individuals. BackgroundBefore Finance Act 2008, (FA 2008), the options available to the non-UK domiciled but UK resident individual (hereafter simply referred to as “the individual”) to “enjoy” the fruits of offshore income and gains tax free in the UK were much greater. FA 2008 has, however, severely tightened up the position post 6th April 2008 although transitional provisions to ... Continue Reading
16/12/2008, by Sarah Laing, Tax news - Business Tax
HMRC have announced the proposed rates for certain statutory payments for 2009-10, although at they are still subject to Parliamentary approval in the New Year.Lower Earnings LimitThe Lower Earnings limit for 2009-2010 is: Weekly £95 and Monthly £412Statutory Sick Pay (SSP)The weekly rate for days of sick absence commencing on or after, 6 April 2009 is £79.15.SSP recovery under the Percentage Threshold Scheme (PTS)There has been no change to the Percentage Threshold Scheme if you qualify under ... Continue Reading
13/12/2008, by Malcolm Finney, Tax article - General
Malcolm Finney outlines the concept of domicile, and explains the meaning - and potential tax implications of - ‘domicile of origin’. BackgroundDomicile is absolutely critical in determining an individual’s potential liability to the various UK taxes. The Finance Act 2008 has made significant changes to those individuals who are non-UK domiciled but UK resident. The concept of domicile as understood for UK purposes is very different from that understood by those individuals from civil law jurisdictions. ... Continue Reading
13/12/2008, by Andrew Needham, Tax article - VAT & Excise Duties
Andrew Needham, Director of VAT Solutions (UK) Ltd, presents a further selection of recent VAT decisions.Tribunal says work done on village hall did not qualify for charitable zero-ratingThis was an appeal against HMRC's decision that building works undertaken at a village hall were zero-rated under the ‘relevant charitable purpose’ building provisions of Item 2 Sch 8 Group 5 VATA 1994. The case considered whether the new works to the village hall constituted an annexe or an extension. Whilst ... Continue Reading
10/12/2008, by Sarah Laing, Tax news - HMRC Administration, Practice and Methods
The Financial Secretary to the Treasury, the Rt Hon Stephen Timms MP, has introduced The Corporation Tax Bill into Parliament. The Bill is the fifth produced by the Tax Law Rewrite project which rewrites UK direct tax law to modernise it so that it is clearer and easier to use. In a written statement Stephen Timms said: "This is the Tax Law Rewrite project's fifth Bill and is the first of two which will rewrite substantially the whole of the legislation relating to corporation tax. This Bill maintains ... Continue Reading
10/12/2008, by Sarah Laing, Tax news - PAYE and Payroll Taxes, National Insurance, NICs
HMRC have published new regulations relating to the payment of Class 2 and voluntary Class 3 national insurance contributions (NICs) for past years.Class 3 contributions for the 2006-07 tax year which are paid after 5 April 2009 and voluntary Class 2 contributions for the 2006-07 tax year which are paid after 5 April 2008 generally have to be paid at the highest rate in force between the 2006-07 tax year and the date of payment. This means that such late paid contributions are charged at a higher ... Continue Reading
07/12/2008, by Peter Arrowsmith FCA, Tax article - PAYE and Payroll Taxes, National Insurance, NICs
Peter Arrowsmith FCA highlights a selection of NIC matters, and warns of a possible NIC charge in respect of overseas holiday homes in certain circumstances. Earnings periodsA question of earnings periods was considered in John Alexander Lithgow Mason v HMRC Commissioners (SpC 712). Mr Mason worked on North Sea oilrigs and had a two-weekly earnings period. Working two weeks on, two weeks off he received substantial earnings in alternate pay periods and only what was described as a retainer of £69 ... Continue Reading
06/12/2008, by Arnold Aaron, Tax article - Inheritance Tax, IHT, Trusts & Estates, Capital Taxes
Arnold Aaron, Financial Planning Consultant, offers an insight into a popular IHT planning tool, and explains how the arrangements work. Please note that this article has been updated - please see Arnold Aaron's new article here - Discounted Gift TrustsIntroduction There has been a lot of publicity around Inheritance Tax (IHT) recently, and in this article, we focus on the Discounted Gift Trust (DGT) offered by life assurance companies through Investment Bonds. This remains a unique and invaluable ... Continue Reading
