06/03/2015, by Low Incomes Tax Reform Group, Tax article - Income Tax
Savers on low incomes will soon be eligible for extra tax relief, but if they are no longer a taxpayer, they will no longer be eligible for Gift Aid.
Introduction
The Government has announced that from this April there will be no tax on savings income of up to £5,000 above the personal allowance. However, the LITRG is warning savers who give to charity to watch out for the implications of the changes for any donations they make using Gift Aid. If they are no longer a taxpayer, they will no ... Continue Reading
03/03/2015, by Tax Insider, Tax tip - Property Tax
‘Value shifting’ occurs when the value of a property is altered as a result of passing an interest in the property to another.
Anti-avoidance rules are in place whereby such disposals are deemed to be chargeable to CGT despite there being no consideration involved. In these situations the ‘market value’ rule is deemed to operate and the person transferring the value is liable to CGT based on the amount which he or she could have obtained for the transfer, if the parties had ... Continue Reading
02/03/2015, by Nick Morgan, Tax article - Tax Investigations & Enquiries
In part 2 of this short series, author and journalist Nick Morgan discusses how a taxpayer might prove he or she took "reasonable care" to mitigate penalties.
How Can I Prove ‘Reasonable Care’?
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 ... Continue Reading
28/02/2015, by Jonathan Schwarz, Tax article - International Tax
World Bank Group employees who retire to the UK qualify for exemption from UK income tax on their pensions under the US-UK tax treaty holds the UK Tax Tribunal. In Macklin v HM Revenue and Customs [2015] UKUT 39, http://bit.ly/1zfGGwD the Upper Tribunal (Tax and Chancery) over-ruled the First-Tier Tribunal on 3 February 2015 and concluded that the exemption that non-US citizens resident in the US enjoy on their World Bank pensions must also be given to UK resident non-US citizens by reason ... Continue Reading
25/02/2015, by Tax Insider, Tax tip - Property Tax
When a commercial property is sold, part of the selling price will include the value of fixtures that have qualified for capital allowances in the seller’s business.
If the proceeds of sale on those assets exceed the written down value of the ‘pool’ there will be a ‘balancing charge’. A balancing charge is treated as a negative allowance whereby any capital allowances previously claimed will be clawed back.
It is mandatory for a formal ‘s198 election’ to ... Continue Reading
25/02/2015, by Julie Butler, FCA, Tax article - Income Tax
Can gambling be taxed as earnings? Julie Butler considers a recent case on gambling which covers issues frequently raised in the TaxationWeb forum.
Gambling and Taxation
Essentially betting is ‘tax-free’ in the UK – the professional gambler is outside the scope of tax. This is confirmed in HMRC’s Business Income Manual at BIM22015. The basic position is that betting and gambling, as such, do not constitute trading. This is not a new precedent either. Rowlatt J said in Graham ... Continue Reading
23/02/2015, by Peter Vaines, Tax article - General
Peter Vaines of Squire Patton Boggs considers some recent tax cases which should give taxpayers and advisers pause for thought.
CGT : Contingent Liabilities
The recent Court of Session judgment in Morrison v HMRC [2014] 113 might give you a fright.
Mr Morrison had sold his shares in Morrisons Plc at a capital gain in 2000/01. Some time later the purchaser bought an action for damages against Mr Morrison claiming that he had misrepresented the profitability of the company at the time of the sale. ... Continue Reading
23/02/2015, by Mark McLaughlin CTA (Fellow) ATT TEP, Tax news - HMRC Administration, Practice and Methods
The Chartered Institute of Taxation has launched a survey into HMRC powers regarding penalties, compliance checks and reviews. The survey is aimed at practitioners who deal with tax compliance and non-members are welcome to participate:
Dear Member
HMRC Powers: Penalties, compliance checks and reviews – a survey into their operation
(NB If you do not deal with tax compliance, you may wish to ignore this email or pass this onto a colleague who does)
This is our second survey into HMRC powers. ... Continue Reading
23/02/2015, by Nick Morgan, Tax article - Tax Investigations & Enquiries
Author and journalist Nick Morgan explains HMRC's approach to penalties for inaccuracies in returns and other documents, in this short series.
What is ‘Reasonable Care’?
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 ... Continue Reading
20/02/2015, by HM Revenue & Customs, Tax news - Income Tax
The government has today opened registration for the new Marriage Allowance, a tax break for married couples, helping them save up to £212 in 2015/16.
Applying online is straightforward. Couples can register their interest to receive the Allowance now at gov.uk/marriageallowance.
From 6 April 2015, more than 4 million married couples and 15,000 civil partnerships will be eligible for the tax break.
The Allowance means a spouse or civil partner who doesn’t pay tax, or doesn’t ... Continue Reading
