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Barrie Akin, Barrister, considers an important form of capital gains tax rollover relief, which is probably not very well known but has potentially wider application than many people think.CGT (throughout this article, I use “CGT” to denote both capital gains tax and corporation tax on chargeable gains) rollover relief under the convoluted provisions of ss 152 to 159 TCGA 1992 (all statutory references are to TCGA 1992 unless otherwise stated) does not distinguish between voluntary and ... Continue Reading

Steve Allen, Director of VAT Solutions (UK) Ltd, highlights a potentially serious problem for businesses registering for VAT.Steve AllenWorsening delaysDelays in VAT registrations continue to get worse, and can now take as long as three or four months for a seemingly straight-forward case.  This compares with two months in 2006, and around two weeks a few years ago. Delays of up to six months are common when anti-fraud checks are carried out as part of the clampdown on carousel fraud. According ... Continue Reading

Matthew Hutton MA, CTA (fellow), AIIT, TEP, author of Monthly Tax Review, highlights a planning point on Business Property Relief for Inheritance Tax Purposes, and some bizarre effects of the rules.  Matthew HuttonKey FeaturesAs directed by IHTA 1984, s 103(2), The meanings of ‘holding company’ and ‘subsidiary’ are found in CA 1985, s 736 (IHTA 1984, s 103(2), now in CA 2006, ss 1159 & 1160 and Sch 6).Relief for value of shares in a holding company:  - not precluded ... Continue Reading

The Treasury has announced that legislation will be introduced to reverse the effect of the House of Lords decision given in Jones v Garnett ("Arctic Systems") earlier this week.The decision given in Arctic Systems confirms that the exemption from the settlements legislation for outright gifts between spouses is effective in cases where a couple start up a business together, but the exemption also applies where one spouse only subscribes for ordinary shares but does not work. The decision ... Continue Reading

The Chancellor of the Exchequer, Alistair Darling, has announced that HMRC are to introduce a series of measures for individuals and businesses affected by the recent severe flooding.Under the new proposals, the Government will include legislation in next year's Finance Bill which will allow HMRC to waive interest and surcharges on tax paid late due to the floods. Commenting on the proposals, Financial Secretary to the Treasury and Minister for HMRC, Jane Kennedy said, "I ... Continue Reading

The House of Lords has ruled in favour of the taxpayer, Mr Geoff Jones, in the landmark tax case Jones v. Garnett (also knows as “Arctic Systems”).The law lords rejected HMRC's appeal to tax Mr Jones on dividends paid to his wife, Diana. The judgment marks the end of the long and well-covered tax case that has kept accountants and small business owners enthralled for the last four years and dominated all recent SME tax planning. No further appeals are possible under UK law.If the ... Continue Reading

Regulations have been published which make two changes relating to the VAT arrangements for transfers of businesses as going concerns (TOGCs). The changes have arisen in consequence of Finance Act 2007, s 100.The regulations are the Value Added Tax (Amendment) (No. 5) Regulations 2007 (SI 2007/2085). Firstly, they clarify that, where reference is made to the transfer of a business as a going concern, it includes the transfer of a part of a business which is to continue to operate as a going concern ... Continue Reading

A series of regulations have been published, which support the Government's initiative to tackle avoidance of income tax and NICs through the use of managed service companies (MSCs).In December 2006 the Government published a Consultation Document entitled Tackling Managed Service Companies, which covered the perceived problem of workers seeking to avoid employed levels of income tax and National Insurance Contributions (NICs) by providing their services through Managed Service Companies (MSCs), ... Continue Reading

Following Royal Assent to the Finance Act 2007 on 19 July 2007, HMRC have published revised guidance for the capital gains tax (CGT) TAAR for avoidance through the creation and use of capital losses.Draft anti-avoidance legislation was originally published at Pre-Budget Report 2006 targeting arrangements intended to avoid UK tax through the creation and use of contrived capital losses. The resulting legislation is contained in Finance Act 2007, s 27.Broadly, the legislation applies to capital losses ... Continue Reading

Mark McLaughlin CTA (Fellow) ATT TEP highlights recent guidance on claims for the remittance basis, and warns of anti-avoidance rules regarding 'constructive remittances' to the UK.Mark McLaughlinIntroduction Practitioners may be aware that the ‘remittance basis’ (i.e. sums received in the UK for a tax year) for foreign income of individuals not domiciled or ordinarily resident in the UK must be claimed on an annual basis (ITTOIA 2005, s 878(2)), if it is appropriate in the ... Continue Reading