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Busy Practitioner by Mark McLaughlin CTA (Fellow) ATT TEPMark McLaughlin CTA (Fellow) ATT TEP outlines some proposed tax changes for small business, and warns of possible future Government changes to the business tax system.The tax ‘landscape’ is constantly changing it seems, quite apart from the legislative changes announced in the Pre-Budget Report and introduced in Finance Acts each year. Recent examples include the integration of HM Customs and Excise and the Inland Revenue into HM Revenue ... 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 amended discussion paper issued by HM Revenue & Customs in June 2005 on the treatment of trust management expenses.ContextHM Revenue & Customs (HMRC) issued in September 2004 what was called an ‘explanatory note’ on the subject, of which some fairly trenchant criticism was made by the Chartered Institute of Taxation (CIOT), among other bodies. ... Continue Reading

Tolley's Practical Tax by Donald Drysdale CA CTA (Fellow)Donald Drysdale CA CTA (Fellow), Assistant Director of Tax at ICAS, outlines some recent developments concerning the pre-owned assets regimeIntroductionThe pre-owned assets regime applies for 2005/06 and subsequent years. Opinions on its impact vary widely. Some think it well targeted towards taxpayers using contrived schemes to avoid inheritance tax. Others fear the unfair impact it may have on the innocent and unwary. Rather than focus on ... Continue Reading

TaxationWeb by Burges Salmon LLPBurges Salmon LLP point out a flaw in the tax system concerning tax on a company repurchase of its own shares from trustees, and the tax relief potentially available in respect of it.The taxation of companies repurchasing their own shares – while deceptively straightforward - is often fraught with difficulties. Most such problems seem to be caused by an incomplete understanding of the company law issues involved in a share repurchase and the effect that this can ... Continue Reading

Taxation by Julie Butler, FCAJulie Butler, FCA, of Butler & Co, explains the tax consequences and outlines some planning ideas in relation to wind farms.Wind farms are a very controversial subject, they have been described as a ‘horrendous blot on the landscape’. However, many people consider wind turbines graceful and think that they represent a cleaner sustainable source of energy for the future but what of the tax position? To date there is no specific direction from case law and there are ... Continue Reading

TaxationWeb by Burges Salmon LLPThe VAT treatment of landlord inducements to tenants entering leases, VAT and virtual assignments, and a SDLT problem with sales and leaseback arrangements involving nominees are all considered by Burges Salmon LLP.1. VAT – Landlord inducements to tenants entering leasesHM Revenue & Customs ("HMRC") issued a Business Brief on 15 June 2005 providing revised guidance on the VAT status of inducement payments by landlords to tenants. They had previously advised that ... 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 the interaction of two forms of capital gains tax relief for only or main residences.ContextThere is a very generous extension of main residence relief to a period when the taxpayer does not occupy the property by reason of a qualifying letting under TCGA 1992 s 223(4). The amount of relief is in effect the lowest of: (a) the amount of the only or main ... Continue Reading

TaxationWeb by Bob Fraser MBA MA FSFABob Fraser, MBA, MA, FSFA, outlines the new tax relief for pension term assurance from 6 April 2006.BackgroundUp until 6 April 2001, up to 5 per cent of an individual’s net relevant earnings could be used in each tax year to purchase pension term assurance. The disadvantage was that this reduced the amount that could then be paid as an actual pension contribution. From 6 April 2001, this limit was significantly reduced, with only up to 10 per cent of the actual ... Continue Reading

VAT Voice by Andrew NeedhamAndrew Needham, Director of VAT Solutions (UK) Ltd, reports on a recent High Court case on the VAT treatment of credit card handling charges.IntroductionA 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. ... Continue Reading

Tolley's Practical Tax by Sarah Deeks LLB FCASarah Deeks considers the affect of the Money Laundering Regulations in practice.More than a year after the introduction of the Money Laundering Regulations (MLR) 2003 practitioners are still uncertain about when suspicious activity reports should be sent to the National Criminal Intelligence Service (NCIS). This article sets out ten case studies highlighting some of the reporting issues. Case 1 - Rental RenaRena (a client of your firm for four years) ... Continue Reading