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TW Ed wonders if HMRC might have lost the plot when patting itself on the back over the Next Group IBAs case. Alongside many others, TW is regularly updated by HMRC's press office on tax cases – almost exclusively those which HMRC has won. It is difficult sometimes to reconcile HMRC's much vaunted “taxpayer confidentiality” with many of these cases and we tend to fight shy of “naming and shaming”, although it is not hard to understand that HMRC, rightly ... Continue Reading

A multi-million pound tax allowance claim made by one of the UK’s largest clothing retailers has been rejected for the second time by a tax tribunal. Next Distribution Limited, part of the Next Group Plc, claimed Industrial Buildings Allowance (IBA) on £19 million it spent on constructing two buildings used for warehousing and other activities. Under the now-defunct IBA, businesses could write off some of their construction costs if the sites being built were used to subject ... Continue Reading

TaxationWeb's Mark McLaughlin thinks HMRC's version of events in tax cases can seem a little at odds with reality. On the whole, HM Revenue & Customs (HMRC) reporting of tax cases is reasonable, albeit that they often seem to place their own interpretation or 'spin' on events. However, sometimes HMRC's reporting has a tendency to (excuse the pun) spin out of control in my view.   For example, HMRC recently published ... Continue Reading

Julie Butler comments on the effect of the new Town and Country Planning Rules on developing agricultural property.   Agriculture Property Relief (APR) for inheritance tax is restricted to Agricultural Value. Any element of market above APR needs to be protected by Business Property Relief (BPR). With the current changes to planning rules for agricultural buildings it can be argued that all agricultural buildings now have potential development value.   The changes ... Continue Reading

HM Revenue & Customs (HMRC) are issuing 2013/14 tax reconciliations to millions of employed taxpayers and pensioners. LITRG has issued a guide to help taxpayers understand their actual tax liability.  Introduction A guide issued by the Low Incomes Tax Reform Group (LITRG) leads you through the steps to check the forms P800 that are issued to people who are paid through PAYE (Pay as You Earn), but are not within self-assessment, and points out ways you may be able to reduce your ... Continue Reading

There is so much going on at the moment, it is difficult to know where to begin. One of the key issues rattling around at the moment is HMRC’s fervent desire to be able to access taxpayers’ bank funds without their permission. This is outrageous but not, perhaps, the most outrageous thing that HMRC (or HM Treasury) is currently trying to do. Many taxpayers will, I think, have suffered already thanks to HMRC’s almost unerring ability ... Continue Reading

There is an exemption for inheritance tax purposes, in addition to the £3,000 annual allowance, for gifts made out of income on a regular basis.   It is important to establish the regularity of the payments in order to qualify for this relief, so if gifts are made in cash then these should be regular in amount and frequency taking one year with another. A better way of establishing regular payments may be to take out an investment policy for someone such as your (adult) child with ... Continue Reading

LITRG concerns remain after the publication of HMRC’s consultation document on Direct Recovery of Debt directly from the bank accounts of certain debtors, first announced on Budget day. Introduction HMRC propose to strengthen their powers to recover tax and tax credit debts from those who refuse to pay what they owe by enabling direct access to their bank, building society or ISA accounts without reference to the courts. On Budget day, LITRG said that the new power risked ... Continue Reading

Introduction In recent weeks, Lord Lamont controversially claimed that the Tories would no longer be “the tax cutting party” unless George Osborne announced mass changes in his next budget (announced last month). A former Chancellor of the Exchequer, Lord Lamont’s comments have been seized upon by many on the left as proof that the Tory party is currently fracturing over the issue of tax, reverting to its true ideological colours. “Too Many” People Pay ... Continue Reading

If someone is getting married then there are certain exemptions for gifts made to them “in consideration of” the marriage. Note that these gifts should be given at the time of the marriage, and they must be conditional on the marriage actually taking place. If it is one of your own children who is getting married, then you can give £5,000 to your child and their new spouse. So assuming that each of the individuals getting married has two parents still living, each of those ... Continue Reading