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Following comments received, HMRC have published Brief 19/07, which explains that two amendments will be made to the proposed legislation announced in Brief 18/07 (Tackling Avoidance - Individuals in partnership - restriction of loss relief). The amendments relate to the treatment of certain film-related losses.Brief 18/07 contained a technical note detailing proposed legislation to tackle avoidance based on abuse of sideways loss relief by non-active partners. The technical note explained two changes ... Continue Reading

A new set of regulations has been published relating to the new Construction Industry Scheme (CIS), which is due to come into effect from 6 April 2007.The Income Tax (Construction Industry Scheme) (Amendment) Regulations 2007 (SI 2007/672) amend the Income Tax (Construction Industry Scheme) Regulations 2005 (SI 2005/2045) (i.e. the principal regulations relating to the new CIS).Regulation 10 of the principal Regulations provides for HMRC to issue a notice to a contractor requiring a return to be ... Continue Reading

The Registered Pension Schemes (Standard Lifetime and Annual Allowances) Order 2007 (SI 2007/494) has been laid before Parliament and comes into force with effect from 6 April 2007.These regulations set out the standard lifetime allowance and annual allowance for pension contributions purposes for 2007-08 to 2010-11 inclusive.The standard lifetime allowance will be as follows: Tax year Allowance 2007/08 £1,600,000 2008/09 £1,650,000 2009/10 £1,750,000 2010/11 £1,800,000The ... Continue Reading

A quick guide to recent additions to the HM Revenue & Customs website.Week ending 2 MarchWhat’s new? Charities and bond washing - HMRC has recently approached some charities about their potential liabilities under the bond washing legislation;Pensions Tax Simplification, Newsletter No 25;Share Schemes – EMI form EMI40(2007) now available;Stamp Taxes: Technical,  Newsletter issue 4;Child Tax Credit and Working Tax Credit take-up rates 2004-05 published;The Draft Corporation Tax ... Continue Reading

Steve Allen provides an update on the proposed introduction of a 'reverse charge' accounting requirement for certain goods.  HMRC defers the introduction of a reverse charge mechanism on ‘MTIC’ goods for a second timeHMRC issued Business Brief 19/06 on 8 November 2006 confirming that, due to a delay in obtaining the necessary derogation from the European Council, the proposed 1 December 2006 introduction of the reverse charge accounting requirement for specified goods considered ... Continue Reading

Matthew Hutton MA, CTA (fellow), AIIT, TEP considers the latest decision on the issue of farmhouses for Agricultural Property Relief purposes, in Arnander, Lloyd and Villiers (executors of McKenna and another, deceased) v HMRCContextThe latest farmhouse case to come before the Special Commissioner, in this case Dr Nuala Brice, had what might be generously described as ‘unpromising facts’.  Not surprisingly Dr Brice thought that the house in this case was not even a farmhouse.  ... Continue Reading

The Government has announced details of proposals to restrict loss relief currently available to individuals who carry on a trade in partnership.ICTA 1988, ss 380 and 381 and FA 1991, s 72 allow trading losses arising to an individual to be set against other income and capital gains. These reliefs may be claimed by individuals who carry on a trade in partnership - generally referred to as “sideways loss reliefs”.Currently, the amount of trading losses for a tax year for which a non-active ... Continue Reading

HMRC have published guidance on the operation of the Construction Industry Scheme (CIS) where a payment falls due on Good Friday, 6 April 2007 and a contractor is proposing to make the payment before that date.In particular, HMRC have confirmed that the recently published guidance on the operation of PAYE & Class 1 NICs (see Related News below) does not apply to the CIS. Unlike payments to employees under PAYE, CIS has no set paydays. Under the current scheme, a voucher,  (or, from ... Continue Reading

The Federation of Small Businesses (FSB) has presented its Budget submission to the Treasury on behalf of its 200,000 members, seeking to better inform the Chancellor on how he can continue economic growth through effective assistance to small employers and the self-employed.According to statistics, although the small business sector is growing, an increasing number of businesses are choosing not to employ staff because of onerous employment legislation. 35% of FSB members recently polled have chosen ... Continue Reading

The Government has announced proposed tax measures designed to remove obstacles to competition and expand choice in the trading of financial instruments in the UK.In a recent statement, Economic Secretary to the Treasury, Ed Balls, announced the following proposals:extending the stamp duty and stamp duty reserve tax reliefs for intermediaries trading UK shares from 1 November 2007; andchanging the rules for designating stock exchanges as ‘recognised’ for tax purposes, so that any ... Continue Reading