06/04/2007, by Matthew Hutton MA, CTA (fellow), AIIT, TEP, Tax article - Inheritance Tax, IHT, Trusts & Estates, Capital Taxes
Matthew Hutton MA, CTA (fellow), AIIT, TEP, presenter of Monthly Tax Review, reports conflicting views on an effect of the Finance Act 2006 inheritance tax changes affecting interests in possession. ContextThe Transitional Serial Interest (TSI) Regime under IHTA 1984, ss 49C to 49E allows only ‘one bite of the cherry’. The raising of an apparently straightforward situation on the Trust Discussion Forum has, alas, produced conflicting views from two well respected ... Continue Reading
04/04/2007, by Sarah Laing, Tax news - Business Tax
HMRC have issued a statement reminding some 1.7 million small employers to send their 2006/07 PAYE End of Year returns online to receive a £150 tax-free payment.The HMRC online filing service is available 24 hours day, seven days a week, and provides employers with the quickest and easiest way of filing returns. Employers who file online are also able to benefit from practical help, as HMRC's internet PAYE service includes an error alert tool that checks all returns ... Continue Reading
04/04/2007, by Sarah Laing, Tax news - Income Tax
HMRC have published Brief 33/07 entitled Seafarers' Earnings Deduction - New information requirement for tax returns for the year ended 5 April 2007.For tax returns for the year ended 5 April 2007 onwards, employees who enter an amount for Seafarers' Earnings Deduction (SED) in box 1.37 of the Employment Pages are required to enter the names of the ships on which they performed employment duties as additional information in box 1.40. There are references to this new requirement beside box ... Continue Reading
03/04/2007, by Sarah Laing, Tax news - PAYE and Payroll Taxes, National Insurance, NICs
Regulations have been published, which ensure that payments to employees involving employment-related securities are treated as earnings for NIC purposes.The Social Security (Contributions) (Amendment No.2) Regulations 2007 (SI 2007/1057) come into force on 6 April 2007.Payments to employees involving employment-related securities which avoid income tax and National Insurance Contributions (NICs) are treated as employment income for tax purposes by provisions in Finance (No.2) Act 2005 and Finance ... Continue Reading
02/04/2007, by Sarah Laing, Tax news - Professionals in Practice & Industry
Changes announced by HMRC to Capital Gains Tax (CGT) are likely to have a significant impact upon everyday tax-planning transactions between spouses, according to the Chartered Institute of Taxation (CIOT).The Targeted Anti-Avoidance Rule (TAAR) was initially presented in the Pre-Budget Report (PBR) in December 2006. In his 2007 Budget Statement, the Chancellor reaffirmed that although the TAAR would be implemented in its original form, new guidance would be published on how it would be applied. ... Continue Reading
31/03/2007, by Julie Butler, FCA, Tax article - Inheritance Tax, IHT, Trusts & Estates, Capital Taxes
Julie Butler, FCA, of Butler & Co, highlights a recent Inheritance Tax case concerning Agricultural Property Relief, and the two year occupation rule for agricultural purposes.The two year testOne of the most frequent areas of attack by HMRC against a claim for inheritance tax relief (IHT) is whether or not the agricultural property has been occupied for the purposes of agriculture for the two years prior to death. The recent “Arnander” case was not just about the farmhouse. ... Continue Reading
31/03/2007, by Andrew Needham, Tax article - VAT & Excise Duties
Andrew Needham, Director of VAT Solutions (UK) Ltd, highlights a potential problem for certain VAT registered businesses.Difficult positionIf a business is partly exempt and deregisters for VAT, it will, unfortunately, find itself in a difficult position.On deregistering, a business has to account for VAT on some or all of its business assets and stock on hand. However, it will not have to account for any VAT if the total VAT due on the assets would be £1,000 or less.ExclusionsIt should ... Continue Reading
31/03/2007, by Matthew Hutton MA, CTA (fellow), AIIT, TEP, Tax article - Inheritance Tax, IHT, Trusts & Estates, Capital Taxes
Matthew Hutton MA, CTA (fellow), AIIT, TEP reports on the IHT implications where pension policies are held in flexible interest in possession or on discretionary trusts.ContextMany pension policies are held under flexible interest in possession trusts provided by insurance companies, although some insurance company trusts are true discretionary arrangements.The death benefits under the pension policy are held for the benefit of the trust’s beneficiaries whilst the other benefits under the policy, ... Continue Reading
30/03/2007, by Sarah Laing, Tax news - HMRC Administration, Practice and Methods
A quick guide to recent additions to the HM Revenue & Customs website. Week ending 30 MarchWhat’s new?Self Assessment drafts timetable available for 2007/08;Various NIC Contracting-out rates for 2007/08 published;Summary of Responses: Ensuring compliance with tax avoidance disclosure regime;Summary of Responses and HMRC comments: UK Investment Manager Exemption;Draft guidance for business on the prevention of money laundering;Recognised Stock Exchanges – Budget 2007: This note ... Continue Reading
29/03/2007, by Sarah Laing, Tax news - HMRC Administration, Practice and Methods
Finance Bill 2007, which runs to 113 clauses and 27 Schedules, and enacts many of the Budget measures announced on 21st March, has been published.Commenting on the Bill's publication, Paymaster General Dawn Primarolo said:"The Government is committed to creating a modern and fair tax system which promotes long term investment and environmentally sustainable growth, encourages and rewards work and savings, and supports and strengthens families. Today's Finance Bill introduces ... Continue Reading
