01/09/2007, by Mark McLaughlin CTA (Fellow) ATT TEP, Tax article - Inheritance Tax, IHT, Trusts & Estates, Capital Taxes
Mark McLaughlin CTA (Fellow) ATT TEP looks at the inheritance tax 'gifts with reservation' rules and their interaction with 'pre-owned assets'Mark McLaughlinInheritance tax (IHT) has not been with us for very long compared with the other direct taxes, having been introduced in Finance Act 1986 to replace capital transfer tax. Anti-avoidance legislation dealing with 'gifts with reservation' (GWR) was also introduced in FA 1986, to prevent taxpayers from 'having their cake ... Continue Reading
01/09/2007, by Steve Allen, Tax article - VAT & Excise Duties
Steve Allen, Director of VAT Solutions (UK) Ltd, reports a selection of recent VAT cases.Steve ALlenTribunal says legal services supplied to the shareholders rather than the companyA useful case on the often asked question of whether VAT can be claimed on legal costs. The Appellant is one of three associated companies engaged in the wholesaling and retailing of alcoholic drinks. In February 2000, a minority shareholder commenced legal action to wind-up the companies on the grounds that the three ... Continue Reading
01/09/2007, by Michael Thomas, Tax article - Stamp Duty, Stamp Duty Land Tax, SDLT
Michael Thomas, Barrister, explains the scope and potential implications of the new Stamp Duty Land Tax anti-avoidance rule. Section 75A, the new general anti-avoidance rule for SDLT, was first introduced by the SDLT (Variation of the FA 2003) Regulations 2006 (SI No. 3237) with effect from 6 December 2006. A slightly revised version (which will have retrospective effect to 6 December 2006) is being enacted as clause 70 of the 2007 Finance Bill and it is that version which forms the basis of ... Continue Reading
01/09/2007, by Julie Butler, FCA, Tax article - Inheritance Tax, IHT, Trusts & Estates, Capital Taxes
Julie Butler FCA points out the importance of property valuations for capital taxes purposes, and the role of valuers. Julie ButlerIntroductionThe recent publicity surrounding Antrobus 2 (Lloyds TSB Private Banking (Personal Representative of Rosemary Antrobus Dec’d) v CIR DET/47/2004) has highlighted the need for accurate valuations and the importance of the role of the professional valuer, the District Valuer and the Lands Tribunal.It has been said that tax planning is based on fact and the ... Continue Reading
01/09/2007, by Mark McLaughlin CTA (Fellow) ATT TEP, Tax article - Inheritance Tax, IHT, Trusts & Estates, Capital Taxes
Mark McLaughlin CTA (Fellow), ATT TEP, outlines the HM Revenue & Customs consultation on the proposed relaxation of reporting requirements for lifetime gifts, terminations and settlements.Mark McLaughlinProposed changes An effect of the Finance Act 2006 changes to inheritance tax (IHT) and trusts is that a significantly greater number of returns must be submitted to HM Revenue & Customs (HMRC) than before. With HMRC resources already stretched, the additional paperwork has been an unwelcome ... Continue Reading
01/09/2007, by Matthew Hutton MA, CTA (fellow), AIIT, TEP, Tax article - Inheritance Tax, IHT, Trusts & Estates, Capital Taxes
Matthew Hutton MA, CTA (fellow), AIIT, TEP, author of Capital Tax Review, comments on the targetted Anti-avoidance rule for capital losses introduced in Finance Act 2007.Matthew HuttonContextA letter to Taxation from John Barnett gives a useful commentary on some aspects of the new regime. He comments that the draft legislation not only matches the policy objective, but enacts an entirely different set of rules. ‘Tax advantage’ not ‘tax avoidance’Crucial to this ... Continue Reading
01/09/2007, by Steve Allen, Tax article - VAT & Excise Duties
Steve Allen, Director of VAT Solutions (UK) Ltd, outlines the forthcoming penalty regime for errors, and comments on its effect for VAT purposes.Steve AllenIncorrect returnsA single new penalty regime for incorrect returns for income tax, corporation tax, PAYE, NIC and VAT will take effect in 2009. This measure is part of an initiative to standardise and simplify the existing penalty regime right across the taxes, following the 2005 amalgamation of the Inland Revenue and Customs & Excise. The ... Continue Reading
01/09/2007, by Andrew Needham, Tax article - VAT & Excise Duties
Andrew Needham, Director of VAT Solutions (UK) Ltd, comments on a recent HMRC Departmental Report. Andrew NeedhamHMRC Say The Computer Systems Of The Two Former Departments Are Quickly Being Unified To Reduce Running CostsHMRC announced in a May 2007 Departmental Report that the joining up of its IT systems has contributed to falling costs in the merged departments. However, the annual report also said losses to missing trader VAT frauds had been creeping up above one of its key targets.HMRC’s ... Continue Reading
31/08/2007, by Sarah Laing, Tax news - HMRC Administration, Practice and Methods
A quick guide to recent additions to the HM Revenue & Customs website.Week ending 31 AugustWhat’s new?A guide to help contractors complete and submit their monthly return is now available;A draft of a new Business Leasing Manual has been published for comment;Pensions Tax Simplification Newsletter No 29;Working Together - Issue 28;The Commissioners Directions, which set the quality standard for 2008/09 employers' returns and the date on which an employer's size will be determined ... Continue Reading
28/08/2007, by Sarah Laing, Tax news - Business Tax
Following the introduction of the Construction Industry Scheme (CIS) reform measures in April 2007, HMRC have reviewed the helplines which supported the old scheme.The following helplines are being closed in a staged process:the CIS Orderline;the Subcontractors Helpline; andthe Contractors Helpline. The first of these to close was the Subcontractors helpline (0845 300 0581) on Tuesday 21 August 2007.Callers ringing this number after that date hear a message advising them to call: the new CIS helpline ... Continue Reading
