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VAT Voice by Andrew NeedhamThe Advocate General has given his opinion in two cases that could have a big impact on UK businesses, reports Andrew Needham, Director of VAT Solutions (UK) LtdThe first important case is a referral from the UK courts in the joined cases of Optigen Ltd, Fulcrum Electronics Ltd (In liquidation), and Bond House Systems Ltd v Commissioners of Customs and Excise concerning ‘carousel’ fraud. The second is a referral from the Austrian courts (Kretztechnik AG v Finanzamt ... Continue Reading

Taxation by Mark McLaughlin CTA (Fellow) ATT TEPMark McLaughlin CTA (Fellow) ATT TEP considers some alternative methods of extracting value from family and owner-managed trading companies.Family and owner-managed trading companies come in all shapes and sizes. The same applies to their owners; not only in a physical sense, but also in terms of their financial aspirations and their needs and attitudes towards extracting value from the company. The challenge faced by many advisers is in convincing ... Continue Reading

VAT Voice by Andrew NeedhamEven though a partly exempt business undertakes a partial exemption calculation each quarter, once a year it will have to do its ‘annual adjustment’ as well, explains Andrew Needham, Director of VAT Solutions (UK) LtdThroughout the yearWhen a business makes exempt supplies it will be doing a partial exemption calculation at the end of each VAT period. Some periods it may be within the de-minimis limits and, therefore, able to claim back all of its VAT and in others ... Continue Reading

VAT Voice by Andrew NeedhamAndrew Needham, Director of VAT Solutions (UK) Ltd, explains how a recent Court ruling may be of potential benefit to businessesTelewest Communications CaseTelewest Communications supplied cable television services to subscribers, plus a listings magazine. Following the BSkyB case, Telewest accepted that it did not make a separate zero-rated supply of the magazine, and sought to find a way to do just that. Its solution was to show that the magazine should be supplied ... Continue Reading

Taxation by Mark McLaughlin CTA (Fellow) ATT TEPMark McLaughlin CTA (Fellow), ATT, TEP examines important recent changes affecting capital gains tax main residence relief in the second part of a two-part article (see ‘Gift Rapped’).The second article of this series of two, looks at the changes to the operation of capital gains tax only or main residence relief made in the FA 2004 in response to what the Government perceived as unacceptable tax planning. (All references are to the Taxation of ... Continue Reading

VAT Voice by Steve AllenSteve Allen, Director of VAT Solutions (UK) Ltd, explains that innocent businesses unwittingly caught up in carousel fraud can take comfort from a recent European Court decision.Missing tradersDuring the last couple of years, Customs have been on a relentless crusade against Missing Trader fraud (a.k.a. ‘Carousel’ fraud), most notably in the mobile phone and computer chip sectors. Armed with a raft of new powers, they have wreaked havoc, forcing innocent businesses into ... Continue Reading

TaxationWeb by Mark McLaughlin ATII TEPMark McLaughlin CTA (Fellow), ATT, TEP examines important recent changes affecting capital gains tax holdover relief.Parts of the tax legislation remind me of my first car. The vehicle was fairly old, but it ran reasonably well on the whole. However, not having much money to spend in those days on car repairs and such like, it was often a case of ‘patch up and make do’. Unfortunately, this strategy did not always work, and the repair bill often seemed out ... Continue Reading

VAT Voice by Steve AllenCustoms missed an error in your vat records on a previous visit, but find it on the next one and want to assess you for it - what should you do? Asks Steve Allen, Director of VAT Solutions (UK) LtdCustoms visit businesses every few years, and go through the accounting records. They may or may not find any errors but when they are finished most businesses assume that, even where a mistake is, everything else is OK. This is not always the case. If Customs missed some minor ... Continue Reading

TaxationWeb by Bob Fraser MBA MA FSFABob Fraser, MBA, MA, FSFA, Associate Investment Director, Rensburg Investment Management Limited, outlines how ‘Key Person Insurance’ operates and considers the tax deductibility of payments for cover.Key person insurance is a vital requirement for many businesses, and it is often the case that loans will not be advanced unless such cover is in place. However, this is also an area in which the quality of advice can be mixed and there are a number of issues ... Continue Reading

Tolley's Practical Tax by Richard PincherRichard Pincher comments on the implications of the Scottish Provident Institution case.This article looks at the recent House of Lords decision in IRC v Scottish Provident Institution (see page 32) that has to be read in conjunction with the decision in BMBF Ltd v Mawson (see page 31). Specifically, this article looks at the new limitation on the reinterpretation of the so-called Ramsay [1984] STC 153 principle. To summarize, BMBF reinterpreted Ramsay to ... Continue Reading