01/06/2015, by Tax Insider, Tax tip - Property Tax
‘Trusts for Bereaved Minors’ (‘TBM’) and ‘Age 18 to 25’ Trusts are ‘Discretionary’ trusts that are exempt from tax but are restrictive in application and the ability to be created.TBM are usually established by a parent under their own will for their own children, but can also be created under the rules of intestacy, a valid Deed of Variation to a will or under the Criminal Injuries Compensation Scheme. IHT remains chargeable on the parent’s death ... Continue Reading
29/05/2015, by Lee Sharpe, Tax article - General
In an effort to resurrect an old (and surprisingly popular) tradition, TW Ed will try very hard to dig up some nuggets from the last few weeks’ posts. Feel free to contact him with suggestions
Business Records Checks
Notable because of the comprehensive reply kindly provided by wamstax to Samson1, a taxi driver who had recently dealt with the initial Business Records Check (BRC) phone call from HMRC.
Wamstax advised:
“HM Revenue and Customs (HMRC) carry out checks on how businesses ... Continue Reading
27/05/2015, by Tax Insider, Tax tip - Property Tax
If a gift of a property (or share of a property) is made or a property is sold at less than its market value, CGT is charged as if the donor had received the market value in cash.This ruling does not apply to transfers (gifts) between spouses/civil partnerships. In this situation the donee is treated as having acquired the property at the date of the transaction, but most importantly at the original purchase price. No CGT will be due until the receiving spouse/civil partner sells the property.
Example:Joe ... Continue Reading
20/05/2015, by Low Incomes Tax Reform Group, Tax article - General
In a new report, the Low Incomes Tax Reform Group (LITRG) has called for greater clarity around how couples are dealt with in the tax and tax credits systems.
Background
Deciding when and whether two individuals become a couple or stop being a couple can be difficult – and indeed the two individuals may not always agree. Even if they can agree, the authorities may not agree with them, leading in the worst cases to protracted compliance investigations.
The tax and benefit systems in the UK ... Continue Reading
18/05/2015, by RPC Solicitors, Tax article - Property Taxation
HMRC tried to argue that the sale of an investment property was in fact a trading activity, to prevent the taxpayer using capital losses - and tried to impose a c£1million penalty to boot. Nick Fernyhough of RPC Solicitors explains why HMRC came unstuck in its key contentions. .
Introduction
In Terrace Hill (Berkeley) Ltd v HMRC [2015] UKFTT 75 (TC) TC 04282, the First-Tier Tribunal ("the FTT") rejected HMRC's arguments and concluded that a property developer's activity in relation to the ... Continue Reading
18/05/2015, by Tax Insider, Tax tip - Property Tax
How does it work?
The beneficiary has the right to receive an income for a defined period from the trust (usually for the remainder of the beneficiary’s life), but not the right to the capital held within the trust. Thus, rented property can produce the income but the property itself remains within the trust.
The ‘interest’ will cease when a beneficiary becomes ‘absolutely entitled’ to the trust assets either on a death (for example on the death of a surviving ... Continue Reading
12/05/2015, by Lee Sharpe, Tax article - Business Tax
The humble trowel – kryptonite to the average landlord’s financial wellbeing...
Introduction
As I casually browsed HMRC’s manuals over the weekend (for lack of anything better to do) I stumbled on the following two-word entry in their Construction Industry Reform Manual, at CISR12080 “Property Developers and Property Investment Businesses”
“Under Review”
To which my reply could only really be “I should blinking well think so”. Regular readers ... Continue Reading
11/05/2015, by Tax Insider, Tax tip - Property Tax
What is a trust?A trust is created when a person (a ‘settlor’) transfers assets to people whom they ‘trust’ (‘trustees’) to hold them on behalf of others (‘beneficiaries’).Why use a trust?
Convenience – the beneficiary may be a minor who is unable, as yet, to take responsibility for the property themselves, or the settlor may be looking for flexibility to provide for a class of beneficiaries who might not even be born at the time the trust ... Continue Reading
08/05/2015, by ICAS, Tax article - Income Tax
Elspeth Orcharton explores the practicalities of implementing Scotland's new devolved taxes and what it might mean for practitioners, ahead of next month's ICAS Tax Conference.
The Smith Commission recommendations on tax led to the publication of draft legislation to change UK tax legislation in January this year.
The draft legislation will permit the Scottish Parliament to have the promised powers over income tax rates and bands, beyond rate changes permitted under the Scottish Rate of Income ... Continue Reading
06/05/2015, by Tax Rebate Services, Tax article - Income Tax
The financial year runs from April to April and in 2015 the government are implementing some changes that will affect most taxpayers.
The theory is to reward work by supporting those with middle and lower incomes. Most teachers fall into the former category, so we thought it was important for you to have an overview of the main changes.
Changes that Affect Most Taxpayers
Personal Allowance is being raised from £10,000 to £10,600. If you were born after 5th April 1948 you can earn ... Continue Reading
