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Mark McLaughlin CTA(Fellow) ATT TEP highlights two recent cases concerning the application of an important Inheritance Tax relief. {mosimage}IntroductionRecent cases before the Special Commissioners have dealt with two issues of uncertainty on Business Property Relief (BPR) claims for IHT purposes. BackgroundBusiness property does not qualify for BPR if the business consists wholly or mainly of dealing in securities, stocks or shares, or land or buildings, or in making or holding investments (although ... Continue Reading

Steve Allen, Director of VAT Solutions (UK) Ltd, highlights a further selection of recent VAT decisions.{mosimage}Tribunal says construction work done for a community football club qualified for chartitable zero-ratingThis was a dispute about whether construction work carried out by a small, community-based football club qualified as a ‘charitable pursuit’ and, as such, was eligible for zero-rating. The Appellant received a meagre income (allowing it barely to break-even) from its basic ... Continue Reading

The latest TMF EU VAT Tracker highlights the impact of the credit crunch and increasing inflationary worries on plans for VAT rate increases.In a bid to stay competitive for global business investment, EU states have been looking in recent years to shift the burden of tax from business-related taxes (e.g. corporate and labour taxes) to consumption taxes, such as VAT.  The most dramatic example of this was Germany’s 2007 3% VAT increase to 19%.However, the recent financial market turmoil ... Continue Reading

The Chancellor of the Exchequer has announced that from 3 September a temporary exemption from Stamp Duty Land Tax (SDLT) will be introduced for acquisitions of residential property worth not more than £175,000.The exemption will be available where the effective date of the land transaction (normally the date of completion) is on or after 3 September 2008 and before 3 September 2009. There are no circumstances in which this exemption will be available for any land transactions either before ... Continue Reading

HMRC have launched a new podcast for agents, which covers the new penalty regime and HMRC's services for agents.In the podcast, Brian Redford, Director of HMRC's Agents & Employers Service Improvement Programme (AESIP) discusses 'reasonable care' and what practical help is available for agents on the new penalty regime for incorrect returns. He also talks honestly about HMRC's services for agents, and how his team are working to improve them.The new penalties, which will apply ... Continue Reading

Matthew Hutton MA, CTA (fellow), AIIT, TEP, presenter of Monthly Tax Review (MTR), reports on some topical Stamp Duty Land Tax (SDLT) issues discussed at an IBC Conference on 21 May 2008.{mosimage}ContextThe following points were reported by me in an article in Indirect Tax Voice taken from IBC’s Conference on SDLT in London on 21 May. [Clearly, the Finance Bill 2008 has now become the Finance Act 2008 - with changes].The Speakers: Andrew Campbell of Clarke Willmott (in the Chair); John Watson ... Continue Reading

Andrew Needham, Director of VAT Solutions (UK) Ltd, highlights a selection of recent VAT decisions.High Court allows taxpayer's appeal against refusal of monthly VAT returns by HMRC The Appellant is a German car manufacturer which was allowed to adopt monthly VAT returns with effect from 1 December 2002 (further enquiries were not made by HMRC at the time).  The Appellant buys all of the cars (Minis) made by its UK subsidiary, with the level of cars exported being such that it is permanently in ... Continue Reading

HMRC have published some guidance on the effects of FA 2008, s. 45 on holiday homes purchased through a limited company.Finance Act 2008, s. 45 inserts new ITEPA 2003, ss. 100A and 100B.The new sections enable UK resident individuals who were advised to acquire a holiday home abroad through a company because of the laws of the country where the property is located (and who then paid income tax before 2008-09 on the benefit of that living accommodation when they have not used the company other than ... Continue Reading

Voluntary and community sector organisations will receive £6 million in funding for the next three years from HM Revenue & Customs to help people get the right benefits and tax.Fifty-seven organisations have received awards for 2008/2009, 21 of which received a boost for multi-year funded projects.Head of HMRCs Third Sector Team, Derek Tilstone said: "This money will fund organisations that work with the vulnerable in society, helping them claim the right benefits, like tax credits ... Continue Reading

Mark McLaughlin CTA (Fellow) ATT TEP contrasts how penalties for inaccuracies can be reduced following HMRC enquiries into tax returns, under the old and new penalty regimes.  Coming soon... Tax practitioners will be aware that a new penalty regime was introduced in Finance Act 2007 (FA 2007, s 97 and Sch 24), which is being extended in Finance Act 2008 [FA 2008 was awaiting Royal Assent at the time of writing]. It is broadly expected to apply to inaccuracies in returns (or other documents) due ... Continue Reading