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Tottel's Income Tax Annual 2006-07 by Sarah Laing, CTASarah Laing CTA highlights some straightforward potential income tax planning opportunities.IntroductionProper tax and financial planning can lower and defer a liability to income tax, freeing up cash for investment, business or personal purposes. However, whilst the tax implications of any planned investments should play an important part in investment strategy, no transaction should be undertaken purely for tax reasons. The wider financial aspects ... Continue Reading

Tottel's Corporation Tax Annual 2006-07 by Juliana WatterstonJuliana Watterston, author of Tottel’s Corporation Tax Annual 2006-07, outlines a potentially valuable tax incentive for companies.IntroductionRelief is available for capital research and development (R & D) through the capital allowance rules and for revenue R & D through the tax relief for expenditure on research and development. Capital expenditureCapital allowancesCapital allowances on research and development allowances may be ... Continue Reading

Tottel's Trusts and Estates Annual 2006-07 by Matthew Hutton MA, CTA (fellow), AIIT, TEPMatthew Hutton MA, CTA (fellow), AIIT, TEP author of Tottel’s Trusts and Estates Annual 2006-07, outlines some important tax considerations in connection with the estates of deceased individuals.Written variationsA beneficiary (or indeed all the beneficiaries taken together) can re-write the provisions of a will (or intestacy) as long as they do so in writing within two years after the death. For deeds made ... Continue Reading

Capital Tax Review by Matthew Hutton MA, CTA (fellow), AIIT, TEPMatthew Hutton MA, CTA (fellow), AIIT, TEP author of Capital Tax Review, considers what planning opportunities remain in the context of second residences following Finance Act 2006.Context: the FA 2004 restriction on hold-over reliefAs is well known, FA 2004 Sch 22 put paid, as from 10 December 2003, to the traditional device of the combination of hold-over relief under s 260 and main residence relief for the trustees under s 225 on ... Continue Reading

TaxationWeb by Julie Butler, FCAJulie Butler, FCA, of Butler & Co, outlines current practice on VAT recovery following a recent European Court decision.VAT recovery restrictionUntil now, where the owner of a stud farm has carried out alterations or extensions to the farmhouse, he/she has had to disallow a proportion of the VAT incurred. The rule of thumb that allows 70 per cent recovery on repairs has been challenged. ECJ DecisionsFollowing decisions in the European Court of Justice with the Uudenkaupungin ... Continue Reading

Taxation by Mark McLaughlin and Toby HarrisMark McLaughlin and Toby Harris ponder some planning points and pitfalls in connection with inheritance tax business and agricultural property reliefs.THE GOVERNMENT MAY have recently attacked trusts in inheritance tax terms, but the generous business and agricultural reliefs remain intact, for the time being at least. In fact, Finance Act 2006 has the indirect effect that reliefs such as business property relief, agricultural property relief and heritage ... Continue Reading

VAT Voice by Steve AllenSteve Allen, Director of VAT Solutions (UK) Ltd, reports a Court of Appeal case on the interpretation of services in the course of catering.BackgroundThis was an appeal by HMRC against the VAT Tribunal decision of 6 May 2005 (19053) in favour of the appellant. The Tribunal had certified that any appeal should 'leapfrog' the High Court and go straight to the Court of Appeal as it considered that the manner in which supplies of food are made has changed so much over the years ... Continue Reading

TaxationWeb by Steve SandersSteve Sanders of Tolley Tax Training considers the tax implications of a popular form of investment for many taxpayers.In recent times, many people have decided that pensions are not the only way to provide funds for retirement, and have sought alternatives. Buying property, in many cases, tops the list. In this article, I will explore the tax implications of buying property with a view to letting it out and/or eventually selling it. Income taxLetting property produces ... Continue Reading

Tottel's IHT Annual 2006-07 by Mark McLaughlin CTA (Fellow) ATT TEPMark McLaughlin CTA (Fellow) ATT TEP, co-author of ‘Tottel’s Inheritance Tax Annual 2006-07’, outlines circumstances in which the taxpayer may escape the IHT anti-avoidance rules involving gifts with reservation of benefit.Gifts made before 18 March 1986The GWR rules do not apply to gifts before 18 March 1986, even if there is a reservation of benefit after then. For example, a pre-18 March 1986 discretionary trust which would ... Continue Reading

VAT Voice by Steve AllenSteve Allen, Director of VAT Solutions (UK) Ltd, provides an update including three-year ‘capping’ of VAT refunds, the definition of ‘premises’ for catering purposes and on theatre production costs.Three-Year CappingFollowing the 2006 Court of Appeal losses in Michael Fleming t/a 'Bodycraft' and Conde Nast Publications Ltd, HMRC have recently issued Business Brief 13/06 outlining a revised position from their perspective. Initially, HMRC sought to have the effect ... Continue Reading