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Regulations have been laid before Parliament, which provide that hot water system insulation, draught proofing, solid wall insulation and floor insulation may be classed as energy-saving items, and therefore may be deducted by landlords for income tax purposes. These regulations, details of which were originally announced in the 2006 Pre-Budget Report, will affect individual landlords who let residential properties and pay income tax, and corporate landlords who let residential properties ... Continue Reading

According to a recent survey carried out by Grant Thornton, people in the UK reject the prospect of new green taxes if the overall tax burden should increase. The general public and business would, however, support higher or new green taxes if revenue was seen to be reinvested in environmental projects.An overwhelming majority of the general public (82%) and of UK businesses (80%) have resoundingly rejected that the UK tax burden should rise to accommodate possible new green taxes. Moreover, there ... Continue Reading

The costs of the new construction industry scheme (CIS), which is due to come into force from 6 April 2007, have been vastly underestimated according to the Institute of Chartered Accountants in England & Wales (ICAEW).The scheme will operate very differently from the current one. Broadly, the existing system operates with exemption certificates, registration cards and annual returns - these will all be replaced by a new system which will be heavily reliant on online facilities and ... Continue Reading

HMRC have published some further guidance on tax deductions under the new Construction Industry Scheme (CIS), which commences on 6 April 2007.When the new scheme begins on 6 April 2007, the standard deduction rate will be 20%. (The rate is currently 18% under the existing scheme in force until 5 April).HMRC have been asked to give some guidance on how contractors should handle the change in the rate where they use a computerised accounting system and where an invoice processed on or before 5 April ... Continue Reading

Regulations have been laid before Parliament which make provisions requiring, or relating to, the disclosure of information in relation to notifiable National Insurance Contributions arrangements. The regulations align NIC procedures with the existing rules for income tax purposes.The National Insurance Contributions (Application of Part 7 of the Finance Act 2004) Regulations 2007 (SI 2007/785) come into force on 1 May 2007.Finance Act 2004, Part 7, s. 306 – 319 provides for the notification ... Continue Reading

Sue Jones reviews HMRC's efforts to bring all retirement annuities into the pay as you earn system.All retirement annuities will be taxed under PAYE from 6 April 2007. This change has been the aim of one of the Low Incomes Tax Reform Group’s (LITRG) most persistent campaigns, and we are pleased to see that it is about to come to fruition after seven years of trying to get the Government to implement a more equitable system for annuitants on low incomes.Retirement annuity contracts (RACs) ... Continue Reading

Mark McLaughlin CTA (Fellow) ATT TEP comments on recently updated guidance from HM Revenue & Customs on claims for use of home as office by the self-employed.The current positionHM Revenue & Customs (HMRC) recently updated guidance in their Business Income Manual regarding deductions by the self-employed for use of home as office. The fact that HMRC accept that ‘use of home’ claims can be made for parts of the property with business and non-business use provides welcome confirmation ... Continue Reading

Matthew Hutton MA, CTA (fellow), AIIT, TEP reports on potential planning and action points arising from the FA 2006 inheritance tax changes to trusts. ContextIBC’s 5th Private Client Tax Conference in London on 26.9.06 threw up a number of interesting suggestions.  Interest in possession trusts: creating TSIsAssume that Father is the life tenant at 22.3.06. His life interest could be replaced before 6.4.08 by successive life interests to his children within s 49C.  If so, however, ... Continue Reading

A quick guide to recent additions to the HM Revenue & Customs website.Week ending 9 MarchWhat’s new? Modified NICs procedure for tax equalised employees coming from abroad;Updated Business Tax Forum Terms of Reference;Form P87 - Tax relief for expenses of employment, year ended 5 April 2007;New 2007/08 guidance notes for TMA 1970, ss 17 and 18 returns;Revised IHT The Direct Payment Scheme forms D20 and D20 Notes;Details of an error in helpbook E10: Finishing the tax year up to 5 April 2007;Updated ... Continue Reading

The Institute of Chartered Accountants in England & Wales (ICAEW) has presented its 2007 Budget submission to the Treasury on behalf of its members, and is calling for a greater sense of urgency in Government when dealing with UK business needs.Commenting on the Institute's submission, Chief executive Michael Izza, said:“The success of UK business is not just about the interest of the few, but about the quality of life and future of millions of employees, their families and consumers ... Continue Reading