05/05/2015, by Tax Insider, Tax tip - Property Tax
A form of ‘reinvestment relief’ is available in situations where ownership of property is swapped or is changed from joint ownership to each owning their specific part.
A significant exception to this relief is if any of the properties is, or has at any time been, a Principal Private Residence (PPR) of one of the owners or later becomes their PPR, such that a disposal within the next six years following exchange is eligible for PPR relief to any extent.
However, if all of the properties ... Continue Reading
27/04/2015, by Tax Insider, Tax tip - Property Tax
Beneficiaries under a deceased’s will are deemed to inherit the assets at market value as at the date of death. However, if a property is sold within four years of death at a lower price than the value used for the inheritance tax (IHT) calculation on the estate, that earlier IHT liability can be reduced by substituting the lower sale proceeds for the agreed value, therefore saving the estate IHT.
The relief is known as ‘loss on sale of land relief’ and if there is more than one ... Continue Reading
20/04/2015, by Tax Insider, Tax tip - Property Tax
On separation many couples decide that one party is to remain in the main residence – especially if there are children. If this is the case the sale of the former joint PPR remains tax-free for both parties so long as the property is sold within 18 months after the date of separation and one spouse leaving the family home. The tax charge is triggered by one joint owner’s interest not being fully covered by the PPR exemption.
The only situation where HMRC permit more than 18 months is ... Continue Reading
16/04/2015, by Ray Chidell, Tax article - Business Tax
Ray Chidell and Dave Jennings look at the benefit in kind exemption for mobile phones and the difference between mobiles and other devices such as tablets, laptops, etc.
The provision by employers of mobile phones for employees is today very common. Employers want to be able to contact their employees throughout the working day and a full tax exemption makes it an attractive perk for the employee. Typically, employers will allow their staff to use the phone for sending and receiving private calls, ... Continue Reading
13/04/2015, by Tax Insider, Tax tip - Property Tax
The ‘Pre-Owned Assets Tax’ (POAT) is an income tax charge levied on the ‘benefit’ earned on any property currently owned by another but of which the first person had either previously owned and given away, or otherwise funded (e.g. by providing the cash for purchase) unless sold to an unconnected party in a bargain at arm’s length. The tax may also apply to property used but which belongs to someone to whom the first person made a cash gift in the last seven years.
The ... Continue Reading
08/04/2015, by Nick Morgan, Tax article - Tax Investigations & Enquiries
In the last of this short series, author and journalist Nick Morgan offers more ways to prove "Reasonable Care", to reduce penalties.
The HMRC factsheet, Penalties for Inaccuracies in Returns and Documents, is issued to your client when HMRC believes a penalty is likely to be due. The document is full of crucial information, most of which is buried in the text. The ebook Penalties for Inaccuracies in Returns and Documents DECODED is an analysis of the HMRC document; digging up true ... Continue Reading
08/04/2015, by Lee Sharpe, Tax news - Savings & Investments, Pensions & Retirement
Several news sources - including the BBC - are highlighting that pension companies are basically obliged to follow the normal Pay As You Earn (PAYE) regime when making withdrawals under the new "flexible" rules.
This may result in a nasty surprise for many early adopters who wish to access their cash early or "in lumps" since, under PAYE, the pension provider is obliged to give only a month's worth of tax-free pay and basic rate band, unless the pensioner is able to provde a valid P45 or already ... Continue Reading
03/04/2015, by Low Incomes Tax Reform Group, Tax article - Savings and Investments, Pensions and Retirement
Changes to the rules for many pensions from 6 April 2015 mean more flexibility to draw money out of pension pots, but LITRG warns of tax issues that apply.
Background
Pensions are changing. From 6 April 2015, many of the rules limiting the amount you can take out of pensions and when are being swept aside. They are being replaced with ‘free choice’. This means that, from the age of 55, you will have much more control over what you take out of your pension, and when. However, LITRG draws ... Continue Reading
30/03/2015, by Tax Insider, Tax tip - Property Tax
The tax rules state that the purchaser’s entitlement to capital allowances in relation to commercial property be restricted to the disposal value that the vendor of the property brought into account, even if this was not the immediate past owner. Furthermore, it is the purchaser’s responsibility to obtain and provide details of prior claims and disposal values, which might prove difficult if the original owner has ceased trading or if records are no longer available.
Since April 2014, ... Continue Reading
30/03/2015, by Lee Sharpe, Tax article - General
TW Ed with a timely reminder of some essential tax planning points before the end of the current tax year.
Introduction
The current (2014/15) tax year ends on Sunday 5 April. I am not sure how many of these you will be able to do at the weekend so Friday may be a better deadline to work to. As always, direct advice should be sought from a suitably qualified adviser, before undertaking any of the following.
1. Pension Contributions / Gift Aid
For those skirting around the £100,000 of “adjusted ... Continue Reading
