Enter Your E-mail

VAT Voice by Steve AllenSteve Allen, Director of VAT Solutions (UK) Ltd, explains why deciding whether VAT can be recovered on legal costs is sometimes difficult.In most cases, it is relatively straightforward for a business to know if it can recover the VAT on legal costs that it incurs. The basic rule is that if the legal costs relate to your taxable business, you can recover the VAT. If they relate to a VAT exempt activity or are personal or a third party costs, you cannot recover the VAT. Example ... 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 Pre-Owned Assets Technical Guidance issued by the Inland Revenue (now HM Revenue & Customs) on 17 March 2005ContextThis 25-page document comprises both a description of FA 2004 Sch 15 (and, indeed, something of a technical commentary on it – not unuseful in itself) and an explanation of the meaning of some points of uncertainty. The following ... Continue Reading

TaxationWeb by Bob Fraser MBA MA FSFABob Fraser, MBA, MA, FSFA, Associate Investment Director, Rensburg Investment Management Limited, explains why gifting the family home for tax-efficiency or other reasons can have unfortunate repercussions in the assessment of means tested contributions for long term care costsA very common area of concern on this /forum/ centres on transfers of the family home. In many cases this has been done without proper advice, and with the intention of trying to avoid the ... Continue Reading

TaxationWeb by Mark McLaughlin CTA (Fellow) TEPMark McLaughlin CTA(Fellow) ATT TEP looks at where we are with the best structure for a new businessPicture the scene. A prospective new client strolls into your office seeking advice. He intends starting a new business, and asks whether he should operate as a sole trader, or in partnership (with his wife, who will be actively involved in the business), or through a limited company. Where does one start? The choice of the most appropriate trading medium ... Continue Reading

VAT Voice by Steve AllenSteve Allen, Director of VAT Solutions (UK) Ltd, outlines a potential VAT pitfall for taxable businesses on the sale of premises.It’s a common scenario; a fully taxable business purchases premises from which to conduct its business, and is charged VAT on the purchase. The business claims back the VAT, and after five years of steady growth, it decides to move to bigger premises. It sells its existing property, and thinks no further about the VAT position. A VAT problem ... Continue Reading

TaxationWeb by Bob Fraser MBA MA FSFABob Fraser, MBA, MA, FSFA, Associate Investment Director, Rensburg Investment Management Limited, considers inheritance tax aspects of Section 32 arrangements (‘buy-out bonds’), assigned money purchase schemes, retirement annuities, personal pensions (including stakeholders) and pension fund withdrawal (‘income drawdown’)Section 32 PlansThe Section 32 is an individual arrangement that can accept transfers from an existing company pension scheme. The Section ... Continue Reading

Tax Adviser by Shiv Mahalingham BSc(Econ) ACA CTA(Fellow)Shiv Mahalingham BSc(Econ) ACA CTA(Fellow), considers some of the practicalities, processes and qualifying conditions for companies to claim Research and Development (R&D) tax credits.IntroductionThe Guidelines issued by the Department of Trade and Industry on 5 March 2004 (http://www.dti.gov.uk/rd-guide/rd-guidelines-2004.htm) have introduced some much needed clarity to the definition of R&D for the purposes of the corporation tax credits ... Continue Reading

TaxationWeb by Peter Arrowsmith, FCAPeter Arrowsmith, FCA, with a timely warning for employers and their advisers regarding PAYE end of year returns for 2004/05.The Inland Revenue has announced, albeit not very prominently, in this year’s Employers’ Pack an even harder line with employers end of year returns. For the filing of employers end of year returns (P35 and P14) for 2004/05 onwards by electronic means the position is simpler. The Inland Revenue has introduced a Quality Standard and such ... Continue Reading

TaxationWeb by Paul TaylorPaul Taylor of VATease Ltd provides a layperson’s guide to a possible ‘opportunity’ for those who have issued shares or undertaken company floatations in the last 3 years.Can I now reclaim VAT on cost relating to share issues and floatations over the last 3 years?HM Customs & Excise are likely to have a rough time of it over the next few months as high-profile European Court Cases look set to force them to repay millions of pounds of VAT that they have previously withheld ... Continue Reading

TaxationWeb by John KavanaghJohn Kavanagh, Chartered Tax Adviser, offers his initial reaction to a capital gains tax anti-avoidance measure announced in Budget 2005.The 2005 Budget contains proposals to prevent the possibility of using a double tax treaty to avoid capital gains tax on disposals during a period of non-residence from the UK lasting less than 5 full tax years. Continue Reading