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HMRC have published additional guidance regarding the authorisation of multiple and specialist agents.Following the revision to the form 64-8 (Agent authorisation) in 2006, HMRC have been asked for clarification regarding a number of situations which do not appear to be dealt with by the new form, such as where a client has multiple agents for the same tax regime, or where an agent is appointed solely for a specific transaction.The guidance indicates that, in most cases, the client will need to authorise ... Continue Reading

HMRC have published Brief 29/07 which confirms that charities that have obtained zero-rating for their new buildings or construction services under Extra Statutory Concession (ESC) 3.29, will no longer be liable for any VAT charge when there is a ‘change of use’ of the building within ten years of the zero rate having been obtained.Under current rules, a  charity is entitled to the zero-rating of the supply of:a new building;construction services to construct a new building;a substantially ... Continue Reading

HMRC have confirmed that gifts by parents and grandparents to children under 18 will not be subject to a new inheritance tax charge.The uncertainties concerning IHT and gifts to children first arose following the 2006 Budget when changes to the taxation of trusts were announced. There were fears that gifts to children would be subject to a different tax regime from similar gifts to adults. Under one interpretation of the new measures, a gift to a child would be subject to an immediate inheritance ... Continue Reading

A quick guide to recent additions to the HM Revenue & Customs website.Week ending 23 MarchWhat’s new?Guidance entitled Disclosure of national Insurance Contributions Avoidance Schemes published;Stamp Duty Practitioners' Newsletter, issue 17;New CIS: Letter to subcontractors holding CIS4(T) cards;Amendment to the European Mergers Tax Directive. This Technical Note seeks views on proposed changes to corporation tax;HMRC Brief 26/07: Alternative finance arrangements – “diminishing ... Continue Reading

Patrick Cannon, Barrister, outlines a five step process for calculating Stamp Duty Land Tax on property introduced into a partnership.  Contribution of LandReferences to the transfer of a chargeable interest for the purposes of the special SDLT provisions that apply to the contribution of land into a partnership, the transfer of an interest in a partnership, the distribution of land out of a partnership and associated provisions include –(a) the grant or creation of a chargeable interest,(b) ... Continue Reading

Matthew Hutton MA, CTA (fellow), AIIT, TEP, Presenter of Monthly Tax Review (MTR), reports on a potential difficulty in claims by trustees for capital gains tax relief on the disposal of an interest in the family home.  ContextThe issue here is the availability of main residence relief under TCGA 1992, s 225 in the specific circumstance where, following the death of one spouse, the survivor occupies as owner of a beneficial share in her own right and, very often, as the beneficiary ... Continue Reading

Steve Allen, director of VAT Solutions Ltd, comments on the VAT announcements in Budget 2007.1. VAT registration thresholdsThe VAT registration and deregistration turnover thresholds have been increased (with effect from 1 April 2007) as follows:VAT registration threshold = £64,000 (up from £61,000)  VAT deregistration threshold = £62,000 (up from £59,000) Comment: For the first time in several years, the thresholds are increasing by more than inflation, and will ... Continue Reading

The Low Incomes Tax Reform Group (LITRG) of the Chartered Institute of Taxation has expressed mixed concerns over the announcements made in the 2007 Budget in relation to their affect on low earners.From April 2008, changes to the income tax and tax credit systems will benefit workers and pensioners on low incomes who are already targeted by the Government’s anti-poverty initiatives.  However, according to LITRG, those who are not so targeted, for instance, part-time workers without children, ... Continue Reading

The Income Tax Act 2007 (ITA 2007), received Royal Assent on 20 March 2007 and takes effect from 6 April 2007.The Act covers:basic provisions about the charge to income tax, income tax rates, the calculation of income tax liability, and personal reliefs;various specific reliefs, including relief for losses, the enterprise investment scheme, venture capital trusts, community investment tax relief, interest paid, gift aid and gifts of assets to charities;specific rules about trusts, deduction ... Continue Reading

Gordon Brown delivered his eleventh, and probably his last, Budget Statement yesterday (21st March). Experts throughout the tax profession have largely commented that this was a "political Budget", doing little but create more red tape for small businesses to deal with.Nick Goulding, Chief Executive of the Forum of Private Business (FPB), said: "The Chancellor has used smoke and mirrors to disguise the fact that there is nothing in this Budget to support small businesses. In fact, ... Continue Reading