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Capital Gains Tax (CGT) is charged in the following situations, the exact circumstances of which determine who is liable for the CGT, if due. On creation of the trust and/or transfer of assets into the trust – the settlor is treated as having disposed of the asset to the trust as a gift and be liable for any tax that may be charged. The asset is transferred at the ‘market value’ at the date of transfer. The ‘market value’ rule applies because the settlor and trust ... Continue Reading

When it comes to late filing penalties, the facts on the ground amply illustrate HMRC’s success at failing to live up to its own policy goals. Enough is enough. Key Points The current approach to late filing penalties is really rather good at making money for the government, and it is more than a little difficult to square this with assertions that penalties are meant only to encourage compliance. HMRC’s job is to collect tax but HMRC makes an awful lot of money by insisting ... Continue Reading

The Tax Profession’s Safety Net It is well known that the legal profession provides a safety net for people who critically need legal advice but can’t afford to pay for it. Less well known, a similar facility exists for vulnerable people who need tax advice. It is provided by the two Tax Advice charities and the demand for their services is rising. Advice Changes Lives Not only businesses and the better off need tax advice. Some people on low incomes desperately need tax help and without ... Continue Reading

An introduction to the key benefits of the Enterprise Investment Scheme and Seed Enterprise Investment Scheme, by Kris Bolton of Current Capital. Introduction A tax bill arrives at everyone’s door - employed and self-employed alike. If you’re self-employed, you probably feel the weight of this tax bill every year, as you handwrite that cheque to the taxman (or send them the payment electronically!). Non-business owners, who are usually paid via the PAYE system, receive their salaries ... Continue Reading

Peter Vaines mulls over the implications of the General Election for the Finance Act(s) and points out that, while the taxpayer had a good result in a recent PPR case, the implications may not always be beneficial.   General Election The General Election on 8th June does not leave a lot of time for Parliament to give consideration to the longest Finance Bill in history – and one which contains such profound changes. In fact, I understand that Parliament will be prorogued on 3 May.   I ... Continue Reading

BOOK REVIEW: McCutcheon on Inheritance Tax (Seventh Edition) Authors: Withers LLP, Aparna Nathan and Marika Lemos Published by Sweet & Maxwell   Inheritance tax (IHT) has probably not been the fastest-moving UK tax in terms of legislative changes in years gone by, but it certainly seems to have been catching up in more recent times. ‘McCutcheon on Inheritance Tax’ is a long-established and recognised authority on IHT. The first edition was published back in in 1980. Thirty-seven ... Continue Reading

Peter Vaines considers recent tax developments - and makes a pessimistic prediction.   New Non Dom Rules The Finance Bill was published on 20th March and, would you believe it, the proposed rules relating to the non doms have been changed yet again. They have fiddled around with the wording of the provisions quite a lot and although the main thrust of the proposals continues, some have been substantively changed and others have been removed altogether. These will be included in a future Finance ... Continue Reading

BOOK REVIEW: Taxation of Companies and Company Reconstructions (Ninth Edition) Authors: Richard Bramwell QC, John Lindsay, Alun James, Julian Hickey, Michael CollinsPublished by Sweet & Maxwell   The pace of change of new and amended tax legislation is alarming at times (well, to me at least!). It is therefore reassuring to know there are publications available that not only report important changes, but give expert commentary and analysis on them, to help busy practitioners provide up-to-date ... Continue Reading

Despite the Chancellor's comments in the 2017 Spring Budget, a Select Committee has warned the government that it risks breaking the rules by trying to introduce a new Death Tax without Parliament's consent. Many readers will recall that the Chancellor said in his hit 2017 Spring Budget Speech that he would not be “exhuming Labour’s hated Death Tax”. This is not accurately recorded in the copy of the Chancellor’s speech on the government’s website. But it is in Hansard, ... Continue Reading

On 1 April, National Minimum Wage rates changed, and on 6 April, the new tax year starts: a good time to check your tax situation, suggests LITRG. Introduction There is no better time to make sure that you are clear on what should be in your pay packet and whether you are paying the right amount of tax. You should also keep a check on other entitlements, such as paid holidays and whether you qualify for state benefits. This article by the Low Incomes Tax Reform Group (LITRG) covers: Pay ... Continue Reading