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Taxation by Mark McLaughlin ATII TEPWhat are the Schedule E implications when certain payments are made to family members by other family members? Can anything be done to mitigate the potential tax liability? This article considers both questions.Picture the following scenario. One day, a child is knocked down in a road accident as the consequence of a driver's negligence. The accident is not fatal, but unfortunately your child sustains serious physical injuries, including severe head injury resulting ... Continue Reading

Tolley's Practical Tax by Mark McLaughlin ATII TEPThis article reviews the Construction Industry Scheme, outlining the conditions for obtaining subcontractor's tax certificates, recent changes in the scheme, compliance procedures for contractors and subcontractors and a warning about the consequences of non-compliance.The new Construction Industry Scheme (CIS) came into effect from 1 August 1999 and its radical changes made it more difficult for subcontractors to obtain a tax certificate, and prevented ... Continue Reading

Tax Journal by Mark McLaughlin ATII TEPCapital gains tax (CGT) broadly applies to chargeable gains arising from the disposal of assets by UK resident or ordinarily resident individuals, trustees and personal representatives. This article considers the disposal of assets by contract.Capital gains tax (CGT) broadly applies to chargeable gains arising from the disposal of assets by UK resident or ordinarily resident individuals, trustees and personal representatives. Companies are not subject to CGT, ... Continue Reading

Tax Journal by Mark McLaughlin ATII TEPThe Ramsay principle will undoubtedly be a familiar expression to practitioners engaged in tax planning for their clients. What is the Ramsay principle, and how has the approach to tax avoidance developed through the Courts? Does a clear distinction exist between unacceptable avoidance and acceptable tax planning?Avoiding tax has long been a popular pursuit among taxpayers, a fact that has apparently not been lost upon the Revenue or the courts. In addition ... Continue Reading

Tolley's Practical Tax by Mark McLaughlin ATII TEPThe family company or group of companies is a commonly used business vehicle. But why can such close relationships matter for tax purposes? What is a 'close' company and what are the exceptions from close company status?(Close companies)In practice, a high proportion of corporate clients will generally tend to consist of close companies. But what is a 'close' company? What are 'associates' and 'participators', and what role do they play in the determination ... Continue Reading

Taxation Practitioner by Mark McLaughlin ATII TEPTaper relief is a relatively new capital gains tax relief, replacing indexation allowance for individuals, trustees and personal representatives from April 1998. How is the relief measured and applied, and how does it interact with other CGT reliefs?A tax practitioner's life is generally a busy one. We work in a climate of constant tax changes - and then we have to contend with clients as well! Nowadays, I tend to improvise on my keep fit regime with ... Continue Reading

Taxation Practitioner by Mark McLaughlin ATII TEPContinuing the series of articles on the tax implications of UK trusts. The capital gains tax treatment of such trusts is covered, including the implications of various events and anti-avoidance provisions.The final article in this series focuses on two of the main occasions on which a CGT charge arises in relation to settlements (all references are to TCGA 1992 unless otherwise stated). Transfer of property upon creation of a trust, or a further disposal ... Continue Reading

Taxation Practitioner by Mark McLaughlin ATII TEPContinuing the series of articles on the tax implications of UK trusts. The capital gains tax treatment of such trusts is covered, including the implications of various events and anti-avoidance provisions.The first articles in this series ('Trust me!' (parts 1 & 2), see Taxation Practitioner August 1999, p 26 and September 1999, p 26) dealt with income tax implications concerning UK resident trusts and settlements. This article looks at capital gains ... Continue Reading

Taxation Practitioner by Mark McLaughlin ATII TEPAn introduction to UK trusts. What is a 'trust' and 'settlement', and what are the advantages and pitfalls? The income tax treatment of the most commonly-encountered types of UK trust are explained.Following last month's introduction to the basic structure of trusts and trust income, it is time to turn to some computational aspects of interest in possession trusts, before looking at other types of trust (NB all references are to ICTA 1988 unless otherwise ... Continue Reading

Taxation Practitioner by Mark McLaughlin ATII TEPAn introduction to UK trusts. What is a 'trust' and 'settlement', and what are the advantages and pitfalls? The income tax treatment of the most commonly-encountered types of UK trust are explained.(Trusts and Income Tax)The very mention of the words 'trust' or 'settlement' seems to strike fear and apprehension into the hearts of some practitioners, and can cause students to suffer mental blocks or panic attacks! However, by providing an introduction ... Continue Reading