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The Government has published an amendment to Finance Bill 2007, clause 31, which deals with restrictions on companies buying losses or gains and associated tax avoidance schemes.In summary, the amendments now published (Amendments 79, 80 and 81) ensure that the simplification of the conditions relating to the use of certain capital losses realised by companies before 5 December 2005 does not create an opportunity for those losses to be used by groups other than the one in which they arose. The amendments ... Continue Reading

Employers who haven't yet filed their 2006-07 Annual Return need to do so by 19 May to avoid penalty charges being imposed.HMRC have issued a reminder that employers must submit their annual return form by 19 May and that the best way to beat the deadline is by filing online.The online service is available 24 hours a day, seven days a week, at it provides employers with the quickest and easiest way to file their return. For employers with fewer than 50 employees, there is the added ... Continue Reading

The UK’s tax credits system is continuing to fail because the Government has not overhauled it in a timely and effective way, according to the Association of Chartered Certified Accountants (ACCA).In response to the Public Accounts Committee’s fourth report into tax credits,  the ACCA has expressed alarm at the report’s findings that overpayments, fraud and the complicated administrative procedures, which have caused the tax credits system so many problems in ... Continue Reading

HMRC have confirmed that they beleive the decision of the VAT and Duties Tribunal in the Weald Leasing Ltd case was incorrect. Believing that the Tribunal failed properly to understand, and thus to follow, the European Court’s guidance in the Halifax case, HMRC have accordingly appealed to the High Court.The decision, which was released on 7 Febraury 2007, is significant for a number of reasons. Firstly, it is the first Tribunal case in which HMRC have attempted to deploy a comprehensive Halifax ... Continue Reading

One third of UK taxpayers find self-assessment forms difficult to complete, according to a recent survey, carried out by CommunicateResearch, on behalf of the Chartered Institute of Taxation (CIOT).In response to the survey, John Cullinane, CIOT President, said that the forms and guides reflect how complex the UK tax system is - "In order to simplify the SA forms and guides one first needs to make the system simpler and clearer. Without this any move to making the forms ‘easier’ ... Continue Reading

A quick guide to recent additions to the HM Revenue & Customs website.Week ending 4 MayWhat’s new?The Gender Equality Scheme April 2007 has been published;A revised version of leaflet: What happens if we have paid you too much tax credit? (COP26);April edition of the IHT Newsletter is now available on-line;CIS: Letters are being issued to contractors and agents: "The new Construction Industry Scheme (CIS) is now live";Tax Law Rewrite: Report and Plans 2007/08;Research Report 29: ... Continue Reading

In the first part of a series of notes on the inheritance tax (IHT) treatment of trusts after Finance Act 2006, Matthew Hutton MA, CTA (fellow), AIIT, TEP sets the scene and considers the position for interest in possession trusts existing at 22 March 2006.Setting the SceneBudget Notice 25 issued on 22 March 2006 sent shockwaves through both the professions and, following press coverage, the informed public at large.  Although, at both Committee Stage and Report Stage of Finance (No 2) Bill ... Continue Reading

Julie Butler, FCA considers the taxation of gambling in the UK.IntroductionFrom 1 September 2007 the Gambling Act 2005 will be fully effective.  The March Budget made a surprise announcement of a tax break for on-line gaming companies.The taxation of the UK gambling industry was brought to the forefront of the financial world in 2006 by the US crackdown that so adversely affected internet gambling in the UK.  Further attention has been brought by the European Union efforts to abolish Gibraltar’s ... Continue Reading

David Whiscombe of BKL Tax highlights a 'special offer' for taxpayers concerning offshore funds.Introduction Readers will no doubt have seen reports of an HMRC "amnesty" regarding offshore accounts. 'Special offer'The truth (set out at https://disclosures.hmrc.gov.uk/oaics/) is that HMRC have announced a special fixed rate of penalties (10%) for all liabilities which are connected with a hitherto undisclosed offshore bank account provided they are notified of the "intention ... Continue Reading

HMRC have published the final version of their guidance on the new film tax relief, and this can now be used for making claims.New rules for the taxation of film production, and in particular a new enhanced tax relief (film tax relief) for the production of British cinema films, were introduced by Finance Act 2006. They apply to films which commenced principal photography on or after 1 January 2007 and to films starting principal photography before 1 January 2007, but uncompleted then.Film tax builds ... Continue Reading