Enter Your E-mail

Peter Vaines discusses whether discovery assessments can be stale, the efforts of the ICAEW for people stranded in the UK by COVID, gets misty-eyed over IBAs, laments the death of Closure Notices and considers HMRC's attempt to get to grips with Cryptoassets.   Discovery Assessments  There are endless difficulties with discovery assessments as I have frequently mentioned, but one aspect is particular hot at the moment. That is the question of whether a discovery can become “stale”, ... Continue Reading

Financial advisor Arnold Aaron on a recent case where a different approach might have saved significant sums of Inheritance Tax. Introduction As a Financial Advisor, I network with accountants and lawyers. My aim is to demonstrate how I can help their clients by advising them on appropriate tax saving investment products, sometimes with a bit of creativity and 'out of the box' thinking, to achieve their financial aims, particularly in the realm of Inheritance Tax planning. I recently met a partner ... Continue Reading

Supposedly “protecting the Exchequer” has given rise to a multitude of sins against the general taxpaying public. Here’s another, warns TaxationWeb’s Lee Sharpe. Introduction We are being told that HMRC is working tirelessly to assist, during the pandemic. I have no doubt that there are staff at HMRC – just as with everywhere else – who are working very hard. But it is difficult to dispel the perception that the hype is just part of a wider government strategy ... Continue Reading

What lies beneath the Chancellor’s 2021 Budget? TaxationWeb’s Lee Sharpe at the main points to come out of the Budget Speech… and the woodwork. Introduction Having spent roughly the last twelve months desperately shaking the self-same magical money tree whose very existence his predecessors spent years (if not careers) denying, some of the figures set out by the Chancellor are now so large that they make sense mathematically but nevertheless don’t… quite… ... Continue Reading

Mark McLaughlin looks at a case on the tax treatment for a professional consultant who sold his business. Introduction It is common in many occupations and professions (e.g. law, medicine) for individuals to be engaged as self-employed consultants. Some consultants will build up their own practices before eventually selling them. From a tax perspective, the question arises as to how the practice disposal proceeds should be treated. For example, is it an income or capital receipt? If capital, could ... Continue Reading

Mark McLaughlin points out that staying single could save Inheritance Tax in certain circumstances. Introduction The UK’s tax system features various reliefs, exemptions and allowances, some of which are seemingly designed to encourage couples to be married (or in a civil partnership). For example, gifts between spouses are normally exempt for inheritance tax (IHT) purposes (although the exemption is subject to a restriction if the recipient spouse is non-UK domiciled). Transferable Nil ... Continue Reading

Coronavirus Job Retention Scheme (CJRS) to be Kept Until March 2021 (UK-Wide) This is a UK-wide measure, albeit prompted by developments in England. The Coronavirus Job Retention Scheme (CJRS – aka “furlough”) was due to be withdrawn at the end of October 2020, and replaced by a new, Job Support Scheme – notable for the significant reduction in government support, and questionable logic (employers would have been significantly worse off, retaining employees on reduced hours ... Continue Reading

Mark McLaughlin, co-author of ‘Ray & McLaughlin’s Practical IHT Planning’ (Bloomsbury Professional) highlights some key considerations when valuing assets for Inheritance Tax purposes.   Introduction The Covid-19 pandemic is having a huge impact on the UK economy. The Institute of Fiscal Studies recently reported that the FTSE all-share index fell by 35% between 2 January and 23 March (www.ifs.org.uk/publications/14773). Furthermore, the Express reported that experts ... Continue Reading

Mark McLaughlin warns that appeals against some penalties from HMRC could have unexpected and unwelcome outcomes. Introduction Penalties can be imposed by HM Revenue and Customs (HMRC) for a variety of offences, such as failing to comply with self-assessment compliance obligations (e.g. failure to file a tax return by the due date). Some penalties are fixed in amount; others are tax-related. Can HMRC Decide the Amount? In some instances, HMRC may decide on the level of penalty to be imposed, ... Continue Reading

Mark McLaughlin highlights an inheritance tax exemption for gifts, which may be useful to individuals wishing to make gifts without waiting for the normal seven-year period before gifts becomes exempt. Introduction When it comes to tax reliefs and exemptions, one of the most generous is the inheritance tax (IHT) exemption for ‘normal expenditure out of income’. This is because the exemption is only limited broadly by an individual’s personal circumstances and the amount of surplus ... Continue Reading