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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’, highlights some potential IHT planning options for use by family homeowners in appropriate circumstances.Equity releaseA straightforward form of lifetime IHT planning involves releasing equity in the property, as opposed to making a direct gift of an interest in the property. The following possibilities could be considered: Mortgage ... Continue Reading

VAT Voice by Steve AllenSteve Allen, Director of VAT Solutions (UK) Ltd, comments on three VAT cases that give some encouragement to taxpayers for the recovery of input VAT on cars used for business.In the aftermath of the 2002 Court of Appeal decision in Upton t/a ‘Fagomatic’ [2002] BVC 451, it was difficult to see how anyone would ever be able to deduct VAT on the purchase of a car, even where the vehicle was never put to private use. The ‘Fagomatic’ decision had seemingly given HMRC an ... Continue Reading

TaxationWeb by Julie Butler FCAJulie Butler, FCA, of Butler & Co, highlights the importance of accurate land and property valuations for tax purposes.The recent publicity surrounding Antrobus 2 (Lloyds TSB Private Banking (Personal Representative of Rosemary Antrobus Dec’d) v CIR DET/47/2004) has highlighted the need for accurate valuations and the importance of the role of the professional valuer, the District Valuer and the Lands Tribunal. It has been said that tax planning is based on fact ... Continue Reading

TaxationWeb by Andrew NeedhamAndrew Needham, Director of VAT Solutions (UK) Ltd, reports on a case concerning the validity of a VAT charge on a property disposal.BackgroundThe background is the purchase by the appellant of a property from a company named NS, and a subsequent challenge to the validity of the charge of VAT by NS. The appellant was not registered for VAT. The relevant events were: NS, a fully taxable entity, purchased the property in September 1998 in October 1998, NS let part of ... Continue Reading

VAT Voice by Steve AllenSteve Allen, Director of VAT Solutions (UK) Ltd, outlines some of the issues involved in claiming VAT refunds.Three-Year CappingFollowing the recent Court of Appeal decisions in Fleming t/a 'Bodycraft, and Conde Nast Publications Ltd, the six-month 'transitional window' introduced for making claims prior to the introduction of the three-year capping provisions in 1997 have been deemed illegal (the transitional window was only retrospectively introduced by HMRC in 2002 following ... Continue Reading

TaxationWeb by Steve SandersSteve Sanders of LexisNexis Tolley Tax Training provides an overview of a valuable relief from Inheritance Tax.Inheritance Tax accounts for about 1½% of government revenue and raises about £3.5 billion a year. If we compare this with income tax or national insurance or VAT, the IHT contribution is a drop in the ocean. This is largely due to the generous array of reliefs which act to significantly reduce the value of a person’s estate for IHT. The most common (and the ... Continue Reading

Tax Planning For Family And Owner-Managed Companies by Peter Rayney FCA FTII TEPPeter Rayney FCA FTII TEP, Author of Tottel’s ‘Tax planning for family and owner-managed companies’, considers some important factors that may influence the level of remuneration paid to working shareholders.Factors influencing levels of remunerationMany family or owner-managed companies do not follow any particular remuneration strategy and simply leave matters to market forces. Whilst a rigid set of rules may ... Continue Reading

The UK Tax System: An Introduction by Malcolm JamesMalcolm James, author of ‘The UK Tax System: An Introduction’ outlines the procedures for the raising of discovery assessments by HMRC.IntroductionOnce the time limit for opening an enquiry has passed, or an enquiry has been concluded, it may not normally be re-opened. An Officer may, however, raise a discovery assessment if tax has not been assessed or has been under-assessed or excessive relief has been given because either: • the Officer ... Continue Reading

Monthly Tax Review by Matthew Hutton MA, CTA (fellow), AIIT, TEPMatthew Hutton MA, CTA (fellow), AIIT, TEP author and presenter of Monthly Tax Review highlights a recent change of view by HMRC on employer pension contributions for controlling director shareholders and others.ContextHM Revenue & Custom’s draft guidance in BIM 46025 suggested that HMRC considered that remunerating a director with a substantial pension contribution would not necessarily be for the purposes of the trade and therefore ... Continue Reading

Tolley's Practical Tax by Donald DrysdaleDonald Drysdale revisits this subject as taxpayers become liable to self assess the new charge.IntroductionThis article attempts to fulfil three purposes. First, it offers an overview of the pre-owned assets (POA) tax regime in very broad terms in the hope that this may assist practitioners. It may possibly help them explain the new tax charge to their clients if they have not already done so. The overview is aimed particularly at taxpayers who may be exposed ... Continue Reading