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A quick guide to recent additions to the HM Revenue & Customs website.Week ending 19 January What’s new?UK/Ireland and UK/USA Double Taxation Conventions - claim forms availableFurther guidance about collecting student loansPossible new repo legislation for companiesRevised interest rates for corporation tax paymentsShares of negligible value list updated to 31 December 2006Corporation tax on chargeable gains: indexation allowance for December 2006Update to the Qualifying Recognised Overseas ... Continue Reading

Matthew Hutton MA, CTA (fellow), AIIT, TEP author and presenter of Monthly Tax Review, highlights some recent Inheritance Tax developments.Compliance on Death: Joint Assets ContextIn their April 2006 Newsletter HMRC explained that they were receiving an increasing number of IHT 200s that were not fully completed. HMRC told agents that they were responding to this by retaining the D18/Inventory until a complete account was delivered. The most common problem with the IHT 200 is that full information ... Continue Reading

HMRC's criminal investigation powers are to be updated, according to a consultation document published by the Government this week. The consultation forms part of HMRC's work to modernise its powers, deterrents and safeguards following the merger of the Inland Revenue and Customs & Excise.An earlier consultation paper, published in August 2006, set out a new approach on HMRC criminal powers. The further consultation document now being published includes draft clauses that give effect ... Continue Reading

People who paid voluntary Class 3 National Insurance Contributions (NICs) to make up for gaps in their records may be able to claim a refund if they made such payment after 25 May 2006.Paymaster General, Dawn Primarolo, has confirmed that where individuals have continued to make voluntary contributions  since 25 May 2006, but would have chosen not to do so had they been aware of the Government's intention to reduce the number of qualifying years required for a full basic State Pension to ... Continue Reading

HMRC have published outline guidance for individuals and partnerships on the one-off tax adjustment that arises from the accountancy changes brought about by Urgent Issues Task Force Abstract 40 (UITF 40).The new legislation, which was contained in Finance Act 2006, applies to trades, professions and vocations and to UK property and overseas property businesses.Broadly, the tax adjustment, which is called adjustment income, that can be spread arises on a change of accounting policy where:in the first ... Continue Reading

Mark McLaughlin CTA (Fellow) ATT TEP, General Editor of TaxationWeb, considers a topical area of self-assessment with the 31 January filing deadline approaching.IntroductionSole proprietors and partners carrying on a business (including letting property) are required to keep all records relevant to a tax return for at least five years and ten months following the end of the tax year (six years following the end of the accounting period for companies). However, if HMRC enquires into a return, the ... Continue Reading

Matthew Hutton MA, CTA (fellow), AIIT, TEP comments on HMRC practice regarding claims for business or agricultural property relief, and on the disclosure of foreign assets on form IHT 200.  Exempt Estates with Agricultural or Business Property – HMRC PracticeContextWhere a deduction for, say, agricultural or business relief is made in an estate which is nevertheless not liable to tax because an exemption is available, HMRC will not consider the validity of the deduction of the relief, ... Continue Reading

Mark McLaughlin CTA (Fellow) ATT TEP, General Editor of TaxationWeb, outlines the potential use and some potential inheritance tax pitfalls of discretionary will trusts to hold an interest in the family home.IntroductionThe Inheritance Tax (IHT) changes to trusts introduced in Finance Act 2006 did not alter the discretionary trust regime of chargeable events. However, legislation dealing with discretionary will trusts was changed (IHTA 1984, s 144). Practitioners may need to take those amendments ... Continue Reading

A quick guide to recent additions to the HM Revenue & Customs website : Week ending 12 JanuaryWhat’s new Updated list of PEP and ISA managers; andRecord 15-year jail sentence for carousel fraudsterManuals updated in January Self Assessment Employment-Related SecuritiesInternationalAssessed TaxesPAYE Online Company Taxation Sarah Laing Editor, TaxationWeb News Related newsHMRC announcements: week ending 5 JanuaryHMRC announcements: week ending 22 December HMRC announcements: week ending ... Continue Reading

The Government has published proposals to increase workers' minimum holiday entitlement from 20 days per year to 28. This means that up to six million workers would benefit from an extra eight days holiday each year under the plans. Some employers currently include the eight bank holidays as part of workers' 20-day annual leave entitlement (pro-rata for part-timers).  The cost to business is expected to be around £4 billion per year. This represents around 0.4% of the wages ... Continue Reading