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Mark McLaughlin CTA (Fellow) ATT TEP considers reason behind HM Revenue & Customs’ seemingly tougher approach in recent years in dealing with taxpayers and their advisers.Mark McLaughlinIntroductionThe well-known saying that ‘there are lies, damn lies and statistics’ is one reason why I do not normally take very much notice of statistical information. However, when it comes to HM Revenue & Customs’ accounts for 2006-07 (http://www.hmrc.gov.uk/about/hmrc-06-07-acc.pdf), ... Continue Reading

Matthew Hutton MA, CTA (fellow), AIIT, TEP presenter of Monthly Tax Review (MTR) comments on the Pre-Budget Report 2007 announcement affecting spouses and civil partners. Matthew HuttonIntroduction Legislation will be introduced in Finance Bill 2008 to allow a claim to be made to transfer any unused IHT nil-rate band on a person's death to the estate of their surviving spouse or civil partner who dies on or after 9 October 2007. This will apply where the IHT nil-rate band of the first ... Continue Reading

Julie Butler FCA considers tax aspects of Agricultural Tenancies, recent relevant cases and the reasoning and motivations behind them.Julie ButlerIntroductionLand values, potential development value and the current tax regime are having a major impact on the choice of agricultural tenancy.There has been a flurry of legal cases which emphasise the enthusiasm for landowners/landlords to escape from Agricultural Holdings Act 1986 tenancies.  The objective of this Act was to give tenants security ... Continue Reading

HMRC have published details of the changes being made to the Individual Savings Accounts (ISA) rules, which take effect from 6 April 2008.From 6 April 2008 the annual ISA investment allowance will be raised to £7,200. Up to £3,600 of that allowance can be saved in cash with one provider. The remainder of the £7,200 can be invested in stocks and shares with either the same or a different provider. In addition ISA savers will be able to invest in two separate ISAs each tax year ... Continue Reading

Further to an announcement made in the 2006 Pre-Budget Report, the Government has announced further details of a new payment of £190 to be made to expectant mothers to help them during the last weeks of pregnancy.In the 2006 Pre-Budget Report, the Chancellor of the Exchequer announced that, in recognition of the importance of a healthy diet during pregnancy, from April 2009 every mother-to-be would be eligible for Child Benefit from the 29th week of her pregnancy. Treasury Ministers subsequently ... Continue Reading

A quick guide to recent additions to the HM Revenue & Customs website.Week ending 16 NovemberWhat’s new?The new claim form IHT216 to claim a transfer of unused Inheritance tax nil rate band has been amended and is now available to download;SDLT Practitioners' Newsletter, issue 19;Revised leaflet COP26 - What happens if we have paid you too much tax credit?;Updated list of workshops and presentations for employers requiring help and advice with online filing;Information regarding changes ... Continue Reading

A quick guide to recent additions to the HM Revenue & Customs website.Week ending 9 NovemberWhat’s new?Information on planned Statutory Payment changes - This update provides information about action being planned following the Judgement in Thorn Baker, an update on the implementation of APL&P and the extension of SMP & SAP to 52 weeks and other forthcoming SP changes;Pensions Tax Simplification Newsletter 31;Tax Law Rewrite - rewrite of Corporation tax: Draft clauses and explanatory ... Continue Reading

Peter Arrowsmith FCA highlights a seclection of NIC matters and provides a tip on the annual earnings period for company directors.   Medical Check-UpsHMRC has found that there are unintended difficulties with the change to the tax/NIC reliefs in respect of health screening and medical check ups made in August. HMRC has announced that, pending consultations, it will not seek to collect tax/NIC on these items for 2007/08 where they would not have been payable on the basis of the previous ... Continue Reading

Karl Vernum of Chiltern asks why an employee might give up part of their salary or bonus, and why the sacrifice might be worth it.  IntroductionSalary sacrifice is an arrangement between employee and employer that allows part of a salary, or bonus, to be given up in exchange for a non-cash benefit. This is not a new concept; it has been around for some time. Salary sacrifice has grown in popularity as employers strive to provide, restructure or establish the best pension provision for staff ... Continue Reading

Matthew Hutton MA, CTA (fellow), AIIT, TEP, author and presenter of Monthly Tax Review (MTR), highlights a potentially unpleasant tax trap for trust settlors, and its application in relation to trust dividends.  Matthew HuttonContext A potentially nasty anti-avoidance provision deriving from TA 1988, ss 677-678 is to be found in ITTOIA 2005, ss 633-643.  In broad terms, if the trustees of a discretionary or accumulation trust pay a ‘capital sum’ to the settlor or his spouse ... Continue Reading