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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

Matthew Hutton MA, CTA (fellow), AIIT, TEP author of Monthly Tax Review, highlights an issue regarding the interaction of business and agricultural property relief and the reservation of benefit rules.  Matthew HuttonContextAs is well known, if an individual disposes of any property by way of gift and, within seven years before his or her death, he or she enjoys any benefit from that property by contract or otherwise (otherwise than for full consideration), that property is treated as property ... Continue Reading

Julie Butler, FCA, considers whether the game shooting industry may be under attack from HM Revenue & Customs.Game shooting under attack?Has the arrival of convenience shooting brought with it a close inspection by the Inland Revenue and Customs and Excise now known as HMRC?  Is the game-shooting industry under attack from the taxman?  There is a special Norwich ‘hit team’ (yes pun intended!) which has set up a special drive (please don’t think driven grouse) to collect ... Continue Reading

A quick guide to recent additions to the HM Revenue & Customs website.Week ending 20 JulyWhat’s new? Gift Aid donor benefit limits: the online guidance for charities and donors has been updated to reflect the increased donor benefit limits, for donations made on or after 6 April 2007;UK investment manager exemption – revised Statement of Practice 1/01, which generally takes effect from 20 July 2007;New Introduction to the Enterprise Investment Scheme (EIS);Distributing Offshore Funds ... Continue Reading

HMRC have published guidance on the anti-avoidance measures contained in Finance Act 2007, s 28 in relation to management expenses.Under ICTA 1988, s 75, a deduction is allowed where a company has incurred expenses in managing its investment business. This legislation was introduced in 1915 and remained largely unchanged until 2004 when changes were made to reflect a more modern business climate. Those changes included, amongst other things, an unallowable purpose rule.Since the 2004 changes, various ... Continue Reading

The House of Lords has announced that judgment will be given in the Arctic Systems case next Wednesday morning 25th July 2007 at 9.45am.The judgment will be given in the main chamber of the House of Lords and members of the public are entitled to view the proceedings from the gallery. Entry (with security procedures etc) will be via the St Stephen's entrance to the Houses of Parliament.For those unable to wait, a copy of their Lordships' speeches will be posted on the House of Lords' ... Continue Reading

The Chartered Institute of Taxation (CIOT) is to launch a detailed study of what a new Taxpayer's Charter should cover and how it could work in practice.The CIOT agrees that a charter is no substitute for rights of taxpayers enshrined in statute.  Rights of appeal, time limits, and protection against disclosure of confidential information or legal advice, etc, should always be given proper statutory form.   However, the Institute also believes that a Taxpayer's Charter ... Continue Reading

HMRC have published draft legislation, which, subject to Parliamentary approval, will ensure that individuals who have bought or will buy a home abroad, will not face a benefit in kind tax charge for any private use of the property if purchased through a company.ITEPA 2003, Chapter 5 sets out the tax position when accommodation is provided by an employer. Broadly, unless covered by a specific exemption, a tax charge can arise where a property is provided by an employer to their employees, or to a ... Continue Reading

In response to representations received, HMRC have published a statement regarding the reattribution of inherited estates and payments to pension policyholders.Under the simplified pensions tax regime, which came into force from 6 April 2006, tax relieved funds held in a pension scheme should be used to provide for an income in retirement. This means that certain payments made out of tax subsidised pension savings, which inappropriately reduce the amount of savings available to provide a pension ... Continue Reading

Patrick Way, Barrister, comments on HM Revenue & Customs' approach to contentious tax cases, and on what tax advisers can do about it.  Introduction"Litigate or die”, so some Revenue officials would have us believe, is the new mantra of HMRC. It means, in effect, that it is much more difficult to negotiate out of court settlements with HMRC and that if matters do proceed to court the taxpayer can now expect a much rougher ride, in the form of a more antagonistic cross-examination, ... Continue Reading