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TaxationWeb by Burges Salmon LLPBurges Salmon LLP provide a brief overview of Form 42 in relation to employment-related securities.Under the rules relating to employee share acquisitions, referred to as employment-related securities, there is a duty to provide information in relation to reportable events. The information must be given on Form 42 which is due by 6 July following the end of the tax year in which the reportable event took place. There was much furore surrounding the first Form 42 ... Continue Reading

VAT Voice by Andrew NeedhamAndrew Needham, Director of VAT Solutions (UK) Ltd, points out that VAT inspectors may be using ‘enabling letters’ to encourage compliance, applying the tactics used by their colleagues from the former Inland Revenue.Now that the Inland Revenue has completely merged with Customs & Excise, the neighbourhood VAT Inspector has started to learn a few new tricks from his taxman colleagues, mainly because the head of the small and medium sized businesses policy division is ... Continue Reading

TaxationWeb by Burges Salmon LLPBurges Salmon LLP comments on the House of Lords Judgement in MacDonald v Dextra Accessories Ltd and OthersThe House of Lords has unanimously upheld the decision of the Court of Appeal in favour of HM Revenue & Customs (HMRC) in the case of MacDonald (HMIT) v Dextra Accessories Ltd. & Others [2005] UKHL 47. It is now settled that an employer company making contributions to an employee benefit trust (EBT) is not entitled to deduct those contributions for corporation ... Continue Reading

Tax Essentials: Direct Taxes 2005-06 by Mark McLaughlin ATII TEPMark McLaughlin CTA (Fellow) ATT TEP and Sarah Laing CTA, provide a brief outline the tax treatment of UK land and property for individuals.All income from UK land and buildings is treated as arising from a single property business (or ‘Schedule A business’ before 6 April 2005) and is taxed as investment income, except where the business activities amount to a trade (eg a hotel business). This means that all receipts and expenses ... 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 the ‘reasonable enjoyment’ condition regarding private residence relief, and on an error by HMRC regarding negligible value claims.Garden or Grounds: Permitted Area Required for the ‘Reasonable Enjoyment of the Dwelling-house’ContextI reported at CTR Issue 11 Summer 2005 Item 6 a couple of (arguably unjustified) concessions by HMRC from the ... 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 a European Court of Justice ruling that is likely to be welcomed by the UK and other EU member states.ContextAn allowance against the Netherlands Wealth Tax is available to Dutch residents and to all other European nationals, so long as 90% or more of their assets are located in the Netherlands. Under a Belgian/Netherlands Double Tax Treaty Agreement, ... Continue Reading

Taxation by Mark McLaughlin CTA (Fellow) ATT TEPMark McLaughlin CTA (Fellow) ATT TEP explains why a company’s ‘trading company’ status may depend on the HMRC official considering its Code of Practice 10 application.It is unfortunate that there is very often a necessity for tax advisers to include phrases like ‘it all depends …’ and ‘subject to …’ in their advice to clients. I can imagine that many clients interpret such phrases as ‘ifs’ and ‘buts’ and ask themselves ‘does ... Continue Reading

VAT Voice by Steve AllenSteve Allen, Director of VAT Solutions (UK) Ltd, reports on two recent VAT cases, concerning a charity and a football clubHigh Court finds for Charity on recovery of fundraising and newsletter VAT costsThe High Court released its judgment on 29 July 2005 in this appeal against Tribunal decision 18633 of 8 June 2004 in The Church of England Children’s Society v C & E Comrs. There are two aspects to the dispute between HMRC and the Society, a company limited by guarantee ... Continue Reading

TaxationWeb by Julie Butler, FCAJulie Butler, FCA reviews the tax position when employers provide employees with tax-free living accommodationWith (apparently) rising house prices regularly hitting the headlines the question of tax free accommodation for employees becomes of greater interest to the tax planner. Are there employees who could qualify under the ‘necessary’ or ‘customary’ rules? Are opportunities being lost? Is there the ability to maximise tax relief under the lease premium ... 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 how to respond to Ingram schemes and on compliance aspects in the context of the Pre-owned assets regime.The Pre-owned Assets Regime: How to Respond to Ingram SchemesContextA taxpayer who did an Ingram style lease carve-out between March 1986 and March 1999 and is therefore caught by the pre-owned assets regime, has broadly four options open to him: ... Continue Reading