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Matthew Hutton MA, CTA (fellow), AIIT, TEP, presenter of Monthly Tax Review, reports a recent decision of the Special Commissioner in respect of a claim for business property relief for inheritance tax purposes. Matthew HuttonContext: the issueIt is well known that under IHTA 1984, s 105(3) a business which consists wholly or mainly of making or holding investments does not attract BPR.  The issues in this case were: whether the letting arrangements did constitute a business; whether it belonged ... Continue Reading

Peter Arrowsmith FCA highlights a selection of NIC matters, and explains why a previous NIC planning strategy may no longer be a good idea for capital gains tax purposes.P9Ds live on!Following the consultation that commenced just before Christmas concerning payrolling of benefits in kind, HM Revenue and Customs has recently announced after discussion with Ministers that the current £8,500 limit will not be abolished.The responses to the main thrust of the consultation are still being considered.HomeworkersThe ... Continue Reading

The Chancellor, Alastair Darling has announced a £600 increase in the personal tax allowance for 2008-09 as a “compensation package” for lower earners affected by the abolition of the 10% band for earned and pension income.In announcing this measure, the Chancellor told the House of Commons that, “as the £600 increased personal allowance applies not just to basic rate taxpayers but also to those paying tax at a higher rate, I am therefore reducing the threshold at which ... Continue Reading

The Low Incomes Tax Reform Group (LITRG) has commented on the proposals in the Finance Bill that will impact on students who are non-domicile.LITRG says "The Finance Bill contains proposals which threaten to make the life of an overseas student a nightmare and cost HMRC a fortune in trying to explain the impossible. This is all part of the collateral damage as the government tries to attack the non-domiciles with new tax rules." LITRG explained in an earlier article (Temporary visitors ... Continue Reading

John Andrews of the Low Incomes Tax Reform Group ( http://www.litrg.org.uk/ ) highlights more tax issues potentially affecting the elderly.Self Assessment Returns sent 'out of the blue'The majority of people do not have to complete a self assessment tax return.  This is because employed earnings and pensions are generally taxed under Pay As You Earn (PAYE).     Let us consider why it is that some receive a full self assessment tax return after many years of no ... Continue Reading

Julie Butler, FCA, highlights an area of VAT for which clarification by HM Revenue & Customs would be welcomed, and considers related business and tax implications.Julie ButlerIntroductionThe recent case ‘Polo Farm Sports Club’ (20105) has highlighted the fact that the whole area of VAT on sports facilities and indeed a lot of horse activities could benefit from clarification by HMRC.Access to Recreational and Sports FacilitiesThe letting of land is an exempt supply for VAT purposes.  ... Continue Reading

The Corporate Finance Network has announced several new members of its Executive Team, thereby strengthening its core specialist offering and contacts in many areas where SMEs struggle to find credible experts. Mark McLaughlin has been appointed as the team member responsible for Technical Tax Support.  Besides writing many of the reference books in taxation subjects (Lexis Nexis, Tottel etc), he is also founder member of Taxation Web, and provides a knowledge of tax planning particuarly ... Continue Reading

HMRC have published updated guidance for companies who need to submit their company tax return form (CT 600) before 1 June 2008 for a period that ends after 31 March 2008, where the return includes calculations based on the new rates announced in the Chancellor's Budget in March 2008.Announcements in the Chancellor's Budget in March 2008 mean that the company tax return form (CT600) needs updating. The CT600 Budget REPLACE (April 2008) gives advice and lists the main changes including ... Continue Reading

HMRC have published a revised version of their booklet IR20, which covers liability to tax in the UK for residents and non-residents.The April 2008 version of booklet IR20 will act as interim guidance. Amendments have been made to reflect developments since the original version was published in December 1999, changes to cross referenced material, and changes to contact points arising from the merger of HMRC.HMRC expect to publish full replacement guidance to cover any changes to the residence and ... Continue Reading

As the issue of the abolition of the 10% tax rate 'grumbles' on, the Low Incomes Tax Reform Group ( http://www.litrg.org.uk )has more to say on the subject - and on HM Revenue & Customs' systems for reviewing PAYE taxpayers' affairs...  Introduction Many people on low incomes will be paying more tax from 6 April 2008. This is because the 10% tax rate will no longer exist for most kinds of income.Reports in the press have suggested that most people will be able to ... Continue Reading