Enter Your E-mail

Property Tax Portal by James BaileyFormer Tax Inspector James Bailey outlines a simple procedure that can save Capital Gains Tax for homeowners with more than one residence.IntroductionThe cottage next door in my village has just been sold, and the new owners (who live in London) are going to be using it as a weekend cottage. I wonder if they have considered the Capital Gains Tax (CGT) opportunities they may have as a result? As everyone knows, there is an exemption from CGT for your “only or ... Continue Reading

VAT Voice by VAT Solutions (UK) LtdAn update on some recent VAT developments by VAT Solutions (UK) Ltd.Court of Session finds for HMRC on private tuition issueThe long-awaited decision of the Scottish Court of Session in the case of EMPOWERMENT ENTERPRISES LTD was delivered on 11 October 2006. Unfortunately, and in our opinion, surprisingly, the Court found for HMRC and overturned the earlier decision of the VAT Tribunal. Case OverviewThe case concerned training courses in 'craniosacral therapy', ... Continue Reading

Tolley's Practical Tax by Matthew Hutton MA, CTA (fellow), AIIT, TEPMatthew Hutton continues his series of articles on trusts by dealing with their inheritance tax implications.The first in our three part series considered the income tax and capital gains tax (CGT) treatment of different types of trust. This article moves on to inheritance tax (IHT). These articles assume both that the settlor is domiciled in the UK and that the trustees are resident in the UK for tax purposes. Starting a trust ... Continue Reading

Busy Practitioner by Mark McLaughlin ATII TEPMark McLaughlin CTA (Fellow) ATT TEP, General Editor of TaxationWeb, highlights a Special Commissioners decision and other recent developments concerning Inheritance Tax.Recent inheritance tax (IHT) developments of note include a Special Commissioners decision involving business property relief (BPR) and qualifying business activities, and changes in law affecting excepted estates for IHT purposes. An investment business?In Phillips and others (Executors ... Continue Reading

VAT Voice by Steve AllenSteve Allen, Director of VAT Solutions (UK) Ltd, provides a VAT tip on surcharges and points out that changes in the VAT registration process may be on the way.VAT Tip: Do Me A Favour!Sending in a VAT return and payment on time can cause problems for businesses with cashflow difficulties. If you send in your returns and payment late, you can find yourself liable to Default Surcharge that can be up to 15 per cent of the net VAT due (i.e. the figure in box 5 of the return). ... Continue Reading

Tolley's Practical Tax by Matthew Hutton MA, CTA (fellow), AIIT, TEPMatthew Hutton MA, CTA (fellow), AIIT, TEP, author of Tottel’s Trusts and Estates Annual 2006-07, describes the taxation of trusts following Finance Act 2006.Trusts (or settlements) have for many hundreds of years been an established part of the English legal system. While their creation and maintenance might be dictated largely by non-fiscal issues, the tax advantages (or disadvantages) of particular types of trust should not ... Continue Reading

TaxationWeb by Julie Butler, FCAJulie Butler, FCA, of Butler & Co, considers the requirements for furnished holiday lettings to qualify for privileged tax treatment.It is known in the tax world that FHLs may qualify for Business Property Relief (BPR) for IHT provided the owner plays an active part in the management of the tenancies. Many clients can use this as an active tax planning tool to ensure that existing property does qualify and to swap non qualifying assets e.g. let property, for the ... Continue Reading

VAT Voice by Steve AllenThe recent court/Tribunal losses by HMRC on the issue of input tax on cars would appear to have changed the rules on when VAT can be reclaimed. Here’s what Steve Allen, Director of VAT Solutions (UK) Ltd, hopes will be a useful summary on where things are currently.Private use – or not?When you purchase a car you can only recover the VAT if there is no private use at all. If there is any private use no VAT can be reclaimed. HM Revenue & Customs has always taken a lot ... Continue Reading

TaxationWeb by Simon GroomSimon Groom, Head of Tax Training at Tolley Tax Training, provides some sound tips and advice to tax students.IntroductionIf I told you that there was one topic that you could guarantee would be applicable in every CTA examination and that it was likely to be worth at least 10 marks, you would certainly set aside a bit of time to study it. So why do many students choose to ignore it? Is it too difficult? Is it too obvious? I don't know the answer to that, but what I do know ... Continue Reading

Property Tax Portal by Andrew NeedhamAndrew Needham, Director of VAT Solutions (UK) Ltd, explains a VAT scheme that is commonly overlooked, but which could save a considerable amount of money!The buy to rent sector has been growing quickly over the last few years, particularly the refurbishment of existing older properties, but what VAT reliefs are available? The Gloomy Picture for buy-to-let investorsThe basic position for people entering this sector does not look good from a VAT perspective. ... Continue Reading