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Julie Butler FCA, of Butler & Co, has a timely look at the property lettings market, and highlights potential tax advantages of property lettings.   Introduction With the property market facing falling prices and slow sales, it is timely to look at the letting market and the tax advantages of Furnished Holiday Lets (FHLs). With the collapse of the odd airline, the UK-based tourist industry could currently be very attractive.In the UK, an FHL “business” can have distinct tax advantages - e.g. ... Continue Reading

Matthew Hutton MA, CTA (fellow), AIIT, TEP comments on a Government relaxation of the rules originally proposed in relation to claims for Entrepreneurs' Relief and the payment of rent.    ContextThe new TCGA 1992 s 169P limits relief available on an associated disposal where (in particular),'for the whole or any part of the period for which the assets which (or interests in which) are disposed of are in use for the purposes of the business, their availability is dependent on the payment of ... Continue Reading

Two new podcasts have been put on the Chartered Institute of Taxation (CIOT) website.In these podcasts John Whiting talks to Lakshmi Narain, Chairman of the CIOT’s Property Taxes Sub-Committee, about property taxes, capital allowances and stamp duty land taxes.The podcasts can be found at the following addresses:Property taxes (capital allowances) http://www.tax.org.uk/showarticle.pl?id=7468;n=3641Property taxes (stamp duty land taxes) http://www.tax.org.uk/showarticle.pl?id=7469;n=3641LinkChartered ... Continue Reading

It is estimated that there are over 3 million small businesses operating in the UK.  These owner-managed businesses (OMBs) face many challenges in the next 12 months. But tax doesn’t have to be taxing for small businesses, says the Chartered Institute of Taxation (CIOT). The consequences of the credit crunch are bound to impact on OMBs.  The CIOT believes that small businesses that would not have had financial difficulties in normal circumstances should be allowed a breathing space to pay the ... Continue Reading

HMRC have published Brief 55/08, which covers a change of interpretation where an SME's status changes for R&D or VRR purposes.HMRC have announced a change of their interpretation, which will apply where a company's SME (Small and Medium Enterprises) status alters, due to its being taken over by, or merging or becoming associated or linked with, any other enterprise on or after 1 December 2008. The change will affect companies making tax relief claims under the Research & Development (R&D) and Vaccine ... Continue Reading

From next month, internet shoppers will no longer have to pay customs duty on non-EU purchases worth up to £105. Customs duty is currently payable on goods bought online from non-EU countries worth £18 or more. But from 1 December, a new £105 limit will apply. VAT will still be charged on goods over £18, and is not affected by the changes.HMRC have launched a new podcast covering internet shopping, which explains the changes in more detail. As well as duty and VAT, the podcast discusses handling ... Continue Reading

Peter Arrowsmith FCA highlights a selection of NIC matters, and explains why the period of time before the Pre-Budget Report 2008 may be a good time for company owners to consider paying dividends.  Advisory fuel ratesDespite the recent reduction in fuel prices, HM Revenue and Customs has not - as it would have been entitled to - reduced the fuel rate for company cars with effect from 1 December. The next change will therefore be with effect from 1 January (as per the current standard schedule). Pensions ... Continue Reading

Matthew Hutton MA, CTA (fellow), AIIT, TEP points out some potential uses and practical points arising from 'Immediate Post Death Interest' (IPDI) Trusts.  ContextIn my recently-concluded series of Estate Planning Conferences this Autumn I asked delegates to consider, as the second problem question, why an IPDI structure might be adopted as against an outright gift – especially for a surviving spouse/civil partner.  The following suggestions might prove useful.Some considerationsThe most obvious ... Continue Reading

Ian Wright of Butler & Co. looks at some potential tax issues arising out of land sales.  Introduction - the New Entrepreneurs' ReliefOver the past few months we have heard that the house prices have been falling yet agricultural land values have rocketed.  Land owners naturally like to buy land rather than sell it but with agricultural values increasing , the temptation is mounting to sell off those golden nuggets or even possibly sell everything.One of the main problems with selling, say, a ... Continue Reading

The rush to deal with the economic downturn could have unintended consequences warns The Chartered Institute of Taxation (CIOT).The CIOT recognises that policy-makers wish to help businesses and individuals through the economic downturn.  But the CIOT believes it is vital that any tax proposals are carefully thought through.Andrew Hubbard, CIOT Deputy President, says: “Although there may be a need for short term fiscal measures, the Government needs to ensure that any changes make sense in the ... Continue Reading