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Tolley's Practical Tax by Richard PincherRichard Pincher considers the current tax issues regarding Management Buyouts (MBOs).What points should an accountant bear in mind when approached by a management team proposing to acquire the business for which they work (an MBO)? This article will look at the general tax issues that the general practitioner should consider. TerminologyIt is useful first to clarify some terminology. We have a ‘Business’ that the ‘Management’ wishes to acquire, often ... Continue Reading

TaxationWeb by Julie Butler, FCAJulie Butler FCA comments on the Single Farm Payment and the resulting need for a ‘tax marriage’ between land and farm trading vehicles.A recent special edition tax bulletin on the Single Farm Payment Scheme (SFP) for farmers has put great emphasis on the need for a farmer to stay trading. The ‘Scheme’ is the result of the mid-term review of the Common Agricultural Policy (CAP) and it is probably the most fundamental change to farming since the repeal of the ... Continue Reading

TaxationWeb by Burges Salmon LLPBurges Salmon LLP outline HMRC’s new Code of Practice 9, and compare its effect on enquiry procedures with the previous civil fraud investigation process.Following the amalgamation of the former Inland Revenue and HM Customs & Excise a Consultative Committee has been considering how best to amalgamate the sometimes very different powers and procedures pre-amalgamation into a coherent and appropriate body of powers and procedures following amalgamation. We are taking ... Continue Reading

VAT Voice by Andrew NeedhamAndrew Needham, Director of VAT Solutions (UK) Ltd, comments on a Court decision in the taxpayer’s favour concerning ‘Card handling fees’.A case which could cost the Treasury in excess of £1 million was won by Bookit Ltd in the High Court recently. The case considered whether a 'card handling fee' levied on tickets booked over the telephone or Internet for Odeon cinemas, should be VAT exempt. On 28 July 2005, the High Court held that such a fee was exempt. Bookings ... Continue Reading

TaxationWeb by Julie Butler, FCAJulie Butler FCA, of Butler & Co, considers the tax treatment of the Single Farm PaymentThe introduction of The Single Farm Payment is considered by many to be the most fundamental change to farming since the repeat of the ‘corn laws’. It essentially means that farming subsidies are no longer ‘coupled’ to production but essentially based on area and historical entitlement. The burning question has been how will this impact upon the taxation of farmers and ... Continue Reading

VAT Voice by Andrew NeedhamAndrew Needham, Director of VAT Solutions (UK) Ltd, highlights a recent VAT Tribunal decision that has helped to clarify the position regarding the VAT liability of mail packs containing both letters and leaflets.As with most things in VAT, there is little logic in the VAT liability of printed matter. If you are involved in sending out advertising literature, this decision could affect you. The basic position is that the printing of a letter is standard rated, while the ... Continue Reading

Busy Practitioner by Mark McLaughlin CTA (Fellow) ATT TEPMark McLaughlin CTA (Fellow) ATT TEP, Editor of TaxationWeb Ltd, outlines some topical practice points concerning dividends as employment income and company purchases of own shares.Dividends as employment incomeChanges to the employment income rules on shares and securities introduced in F(No.2)A 2005 contain an unpleasant surprise for some employee shareholders (and possibly practitioners too!). The legislation effectively provides not only ... Continue Reading

TaxationWeb by Roger JonesRoger Jones, Author of ‘Incorporating a Business’, considers how possible changes in tax law may affect the decision whether small business should incorporate in the future.Is incorporation the future of all small businesses? If the commentary in many professional journals over the last few years is anything to go by, the answer must be an unequivocal yes. It is not just the immediate tax savings which have a major influence. Every time the Chancellor of the Exchequer ... Continue Reading

VAT Voice by Andrew NeedhamAndrew Needham, Director of VAT Solutions (UK) Ltd, points out that HM Revenue & Customs recently provided a reminder on a VAT planning idea to improve business cashflow.In a recent Business Brief (BB 12/05), HMRC kindly reminded us of a useful VAT planning arrangement that can help your cashflow. Associated companiesHMRC has hardened its policy on associated companies manipulating the VAT return periods in order to obtain a cashflow advantage, but in doing so, inadvertently ... Continue Reading

TaxationWeb by Matthew Hutton, MA, CTA (Fellow), AIIT, TEPMatthew Hutton MA, CTA (fellow), AIIT, TEP author of Capital Tax Review, considers private residence relief on the sale of gardens or grounds and recent consultation on the intestacy rules.Garden or Grounds: Sales ‘Off’ContextThere is a traditional problem with getting relief under TCGA 1992 s 223 where only part of the grounds are sold and the area concerned exceeds the ‘permitted area’ of 0.5 of a hectare. This is the HMRC argument ... Continue Reading