Enter Your E-mail

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

HM Revenue and Customs (HMRC) has announced it is allocating £45 million to improve customer service, as it released statistics which showed an inconsistent call handling performance in 2014-15. The allocation is paying for around 3,000 additional staff to join customer service teams, on top of around 2,000 staff who are being moved over from other parts of HMRC to help with the tax credits deadline and letters and forms. HMRC receives more than 60 million calls a year, peaking around ... Continue Reading

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 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

Peter Vaines of Squire Patton Boggs with observations on a couple of recent tax cases involving HMRC’s use of Information Notices under FA 2008 Sch 36, and Share Valuations. HMRC Enquiries and Use of Sch 36 Information Notices The recent case of Mathew v HMRC TC 4342 involved appeals against Schedule 36 Notices and covered a great deal of ground. However, two interesting features emerged as part of the discussion in the Tribunal. The first related to the burden of proof. Mr Mathew said that ... Continue Reading

Because of the differential between income tax and corporation tax rates, holding property in a non-resident company can result in a lower tax charge. In addition, companies are not subject to inheritance tax (IHT). To stop such tax planning the Finance Act 2013 introduced three tax charges, the main one being an ‘Annual Tax on Enveloped Dwellings’ (ATED) held by ‘non-natural persons’ (i.e. companies). Currently properties valued in the £2m to £5m band are charged ... Continue Reading

Solicitors have a week to pay the tax they owe on undeclared income or face hefty penalties, HM Revenue and Customs (HMRC) warned today. Solicitors have until 9 June 2015 to tell HMRC about any undeclared income and pay the tax they owe. By taking this chance to come forward voluntarily, any penalties will be lower than if HMRC has to investigate their tax affairs.　 Anyone who does not pay what they owe faces a penalty of up to 100% of the tax due, or more if it is offshore income. Caroline ... Continue Reading

Reuters news agency has recently posted an article Elite Group of British-Born Residents Enjoy 'non-Dom' Tax Haven  which says that in 2012/13 there were 800 individuals who were born in the UK but who claimed not to be domiciled in the UK (England and Wales, etc., for the pedants). While the article does acknowledge that one’s initial domicile – domicile of origin – is inherited from one’s father’s domicile (or the mother’s in some cases), it seems to miss ... Continue Reading

There are several articles in the press relating that the online retailer has announced that it has started to account for sales through the UK rather than its European centre of operations in Luxembourg. While other press coverage refers to a new UK “subsidiary”, the Guardian recounts: “Sales are still being recorded by Amazon EU Sarl, a Luxembourg-registered company, but – crucially for tax purposes – will be booked in a UK branch of that company, for which a tax ... Continue Reading

Summary HMRC is failing to provide comprehensive guidance to taxpayers on the new Transferable Tax Allowance. Basically, its guidance does not speak to those who earn more than their tax-free allowances but may nevertheless benefit. Introduction When I first queried the new TTA with HMRC 12 months ago, it was clear they were “clear” (or at least reasonably lucid) on principles but fuzzy on implementation. HMRC envisaged that the process would be driven by the transferor / elector, ... Continue Reading