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The UK Tax System: An Introduction by Malcolm JamesMalcolm James, author of ‘The UK Tax System: An Introduction’ explains how to obtain advice from HMRC, and considers errors and delays by HMRC.Obtaining Advice from HM Revenue & CustomsHM Revenue & Customs are prepared to offer guidance on their interpretation of the law, Statements of Practice and other published information where they are able to do so, and in cases where there is a public interest in an industry or financial sector and the ... Continue Reading

Busy Practitioner by Mark McLaughlin CTA (Fellow) ATT TEPMark McLaughlin CTA (Fellow) ATT TEP, General Editor of TaxationWeb, highlights some significant potential changes affecting such matters as penalties in HMRC enquiries.The headlines in recent months from a tax perspective have been dominated by important and at times controversial issues, such as the Carter Report recommendations on tax return filing deadlines, and proposed changes to the inheritance tax regime for interest in possession and ... Continue Reading

Property Tax Portal by Arthur WellerTax Specialist, Arthur Weller, explains three reliefs that can be used to your advantage if you are considering temporarily moving away from your main residence.How to claim an additional three years of PPRIf you live in a property and then vacate it but return to live in the property again, you can claim up to three years relief. This is known as the three years’ absence relief. It is not necessary for the property to have been rented out during the period ... Continue Reading

Taxation of Unincorporated Businesses by Malcolm JamesMalcolm James, author of ‘Taxation of Unincorporated Businesses’ provides an introduction to some important tax issues upon the incorporation of a business.CessationThere will be a cessation of the unincorporated business and the closing year basis period rules (ITTOIA 205, s 202(1)) will apply. The date of cessation should be chosen carefully to avoid a large assessment in the tax year of cessation. It is also necessary to take the cashflow ... 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 raises an Important CGT issue in the context of a common IHT planning technique involving the family home.ContextMain residence relief on a disposal by trustees is given under TCGA 1992 s 225 if the property has been occupied by a beneficiary entitled to do so ‘under the terms of the settlement’. The typical scenarioAssume a nil-rate trust where ... Continue Reading

VAT Voice by Andrew NeedhamAndrew Needham, Director of VAT Solutions (UK) Ltd, reports two recent VAT cases involving caravans and car registration duty.Excluded From Main Zero-Rated SaleItem 1 of Group 9 in Schedule 8 to the Value Added Tax Act 1994 zero-rates caravans but the Note to the Group provides that removable contents are not zero-rated. The UK taxpayer concerned argued that under the Card Protection Plan principle, there was single, zero-rated supply of a caravan, to which the removable ... Continue Reading

TaxationWeb by Simon GroomSimon Groom of LexisNexis Tolley covers the basics of group relief, group gains and VAT.Group reliefGroup relief allows losses to be transferred to profit making companies in the same 75% group. The maximum claim is the lower of the available loss or the available profit. For group relief to apply, one company must own at least 75% of the other. Group relief also applies between two companies that are each 75% owned by the same parent company. A Ltd / \ ... Continue Reading

Capital Tax Review by Matthew Hutton, MA, CTA (Fellow), AIIT, TEPMatthew Hutton MA, CTA (fellow), AIIT, TEP author of Capital Tax Review, comments on some valuation difficulties facing taxpayers when calculating the pre-owned assets income tax charge.ContextThe joint paper (referred to below as COP 10) submitted to HMRC in July 2005 by the CIOT, STEP and the Low Incomes Tax Reform Group contained some questions on valuation, to which HMRC responded (see also CTR Issue 13 Item 6). Reg 4 of the March ... Continue Reading

Property Tax Portal by James BaileyFormer Tax Inspector James Bailey provides some practical IHT tips involving the family home.For most people, the family home is their most valuable asset. Unfortunately, it is also often the asset that admits them to what was once a very exclusive club – the Inheritance Tax club. Inheritance Tax (“IHT”) is charged on a person’s “estate” (broadly, assets less liabilities) when they die. The first £275,000 is free of charge (the “nil rate bend”) ... Continue Reading

Taxation of Unincorporated Businesses by Malcolm JamesMalcolm James, author of 'Taxation of Unincorporated Businesses' outlines business property relief, agricultural property relief and woodlands relief for IHT purposes.Business Property Relief (BPR)Qualifying AssetsRelief is given on relevant business property by reducing the value of the property included in the estate or the value of the lifetime transfer, by the appropriate percentage. There is no upper limit to the amount of relief, which is ... Continue Reading