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The gift of undivided shares of property will not be subject to the ‘gift with reservation of benefit’ (GWRB) rules provided the donor and donee both occupy the property. The donor must not receive any benefit from occupation other than a negligible one, which in itself must be paid for by the donor.It is not necessary for a proportionate sharing of the expenses of occupation, but the donor must at least bear the full share of the expenses attributable to him or her. There is no requirement ... Continue Reading

The Chancellor’s Summer Budget 2015 claimed to put security first, both national security and economic security for working people. This involved significant changes to both the tax and welfare systems. Introduction Some of the measures can certainly be viewed as encouraging people into work and allowing those in work to keep more of what they earn. There were also many measures that will not favour low income workers, in particular announcements in respect of tax credits and Universal credit ... Continue Reading

In the Summer Budget delivered on 8 July 2015, the Chancellor announced sweeping cuts to the tax credits system. This article provides more detail, explaining how you might be affected. Background The current tax credits system was introduced in April 2003 and replaced working families’ tax credit, disabled person’s tax credit, children’s tax credit and the child elements in various DWP benefits. There are two tax credits – child tax credit (CTC) and working tax credit (WTC). WTC ... Continue Reading

For a summary of the key points, please see Budget Summer 2015 - Summary Based on the changes announced in the 2015 Summer Budget, I venture that simplification was not high on Mr. Osborne's agenda. We have:  A Savings Tax Allowance and now a Dividend Tax Allowance, with new 7.5% and 38.1% tax rates (more on those new rates later) The Pensions Annual Allowance will be tapered for high earners, with what looks like a new kind of "adjusted income", which may include salary sacrifice - in ... Continue Reading

  Budget Statement Paragraph OOTLAR Page Details       2.061   Increasing the National Insurance Employment Allowance From April 2016, the NIC Employment Allowance will be raised from £2,000 to £3,000 a year. Chancellor's Speech mentioned that singleton directors would no longer be able to claim. 2.057   Dividends Taxation From April 2016. a new Dividend Tax Allowance of £5,000 a ... Continue Reading

The Chancellor's Budget of Summer 2015 was delivered by George Osborne in deceptively straightforward terms. However, the Tax Information and Impact Notices and other Budget material published immediately afterwards suggest that the legislation introducing many of the tax changes, which will be published in a Finance Bill next week, is going to be anything but straightforward. For example, there was much speculation about an increase in the inheritance tax threshold to £1 million. However, ... Continue Reading

Should a property letting business be run by individuals who wish to transfer the property into a limited company then there will be a CGT charge on the transfer at market value. The CGT charge can be wholly or partly postponed by use of an ‘incorporation relief’ (‘hold-over’) claim where the exchange is wholly or partly for shares in the company.  The charge is deferred until the person transferring the business disposes of the company shares. The ‘held-over’ ... Continue Reading

Fraudsters are targeting tax credits claimants with scam emails, fake websites and text messages in the run-up to the 31 July renewals deadline, HM Revenue and Customs (HMRC) warned today. New statistics show that nearly 51,000 phishing emails were reported to HMRC between April and July last year – double the number for the same period in 2013. Some of these scam messages claim to be from a “Tax Credit Office Agent” offering a tax refund, or include a link to a fake version of ... Continue Reading

UK-resident landlords are generally taxed on rental profits made wherever the properties are situated in the world.A record of the rental income, expenses incurred and capital items purchased must be kept. Separate sets of records are needed if the properties are let as ‘furnished holiday lets’ because these properties are taxed under different tax rules.Keep: invoices, expense and capital item receipts, rental statements; past years’ income and expenditure accounts and Tax ... Continue Reading

Stamp Duty Land Tax (First Edition) By Christopher Cox & Richard Woolich Published by Sweet & Maxwell Stamp Duty Land Tax (SDLT) can be very difficult and complex; the rules on SDLT for partnerships (FA 2003 Sch 15) are a good illustration of this. It is therefore a compliment to the authors of this book that they have covered the subject in such a practical, easy-to-read style and format. ‘Stamp Duty Land Tax’ is not very long by the normal standards of technical books. It ... Continue Reading