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HM Revenue & Customs (HMRC) has published new figures for the “Tax Gap”, which is broadly the difference between the tax that HMRC thinks it should have assessed, and that which it has actually collected. The definition of the “Tax Gap” is arguably more problematic than collating the figures. There is wide disagreement between various parties. But using HMRC’s figures, the Tax Gap is around £35 billion, or about 7% of the total tax estimated to be due. ... Continue Reading

TaxationWeb's Lee Sharpe wonders if HMRC's determination to combat tax avoidance has blinded it to the purpose of some legislation. BPRA gives up to an immediate 100% tax relief on what would normally otherwise be capital expenditure, and therefore ineligible for immediate tax relief. The relief is designed to lower the capital investment threshold to bringing disused commercial property back into business use. On 18 July, Treasury Minister David Gauke issued a written statement ... Continue Reading

TaxationWeb's Mark McLaughlin considers HMRC's publication of the Tax Gap. HM Revenue & Customs published estimated figures in respect of the tax gap for 2011-12 the other day. For the record, the tax gap for that year is £35 billion, or 7% of tax due. The publication of these figures will no doubt trigger seemingly endless debate on their validity. This has become something of a regular event - I seem to remember a series of articles on the tax gap in 'Taxation' ... Continue Reading

Figures recently released by HM Revenue and Customs (HMRC) estimate the tax gap for 2011-12 at 7 per cent (£35 billion) of tax due, continuing a long-term downward trend.  The tax gap has fallen steadily over the last six years, from 8.3 per cent of tax due in 2005-06 to 7.1 per cent in 2010-11 and 7 per cent in 2011-12. The tax gap is regularly revised to take account of improved methods and the latest available information, and these figures include revisions going back to 2005-06. ... Continue Reading

Under new regulations, for the first time schemes designed to get around the Annual Tax on Enveloped Dwellings will have to be disclosed to HM Revenue and Customs (HMRC). The Annual Tax on Enveloped Dwellings (ATED), an annual tax charge on companies owning residential property, came into effect on 1 April 2013 to counter avoidance of Stamp Duty Land Tax on UK residential properties valued over £2 million. Together with the changes to Stamp Duty Land Tax and Capital Gains Tax, ATED is ... Continue Reading

Anyone wishing to file online returns - Self Assessment, VAT, Corporation Tax, etc. - over the next few days will need to file today, as HMRC's online systems will be down from Friday morning 06:00 right through to early Monday morning 06:00. HMRC posts updates on its Online Services availability here - Service Availability Continue Reading

If there is an overall income tax loss made for a tax year, that loss is generally relieved as follows: •    Carried forward and set against profits made in future years on properties in the same UK property business (or if overseas property, against the same overseas property business). •    Losses from UK furnished holiday lettings (FHLs) can only be carried forward and set against profits made on other UK FHL properties. The losses cannot be deducted from profits made ... Continue Reading

Does She Mean Us? TW Ed thinks the public might be better served if HMRC’s Chief Executive got off her backside and did something useful, such as learn about tax and HMRC's duty to taxpayers.  For those who think the comment a little strong, it should be read in light of Miss Homer’s remarks as reported in the national press at the end of last week. As we advised a few days ago, HM Revenue & Customs (HMRC) is keen to ensure that people who may be affected ... Continue Reading

TW Ed questions HMRC's facts and figures for its new residential property letting tax campaign. HM Revenue & Customs (HMRC) has announced a "campaign" that focuses on persons letting residential property. HMRC claims to offer more favourable terms to those who come forwards during the campaign, to settle outstanding taxes from earlier years. We have previously warned that campaigns need to be considered carefully. There are one or two points of note: HMRC apparently estimates ... Continue Reading

For income tax and capital gains tax purposes only the operation of a furnished holiday let (FHL) is deemed to be a business and not a property income investment. Specific points: •    Accommodation must be available for short-term letting for 210 days in any one tax year and actually be let for 105 days of the year. •    Accommodation should not normally be in the same occupation for a continuous period of 31 days in a period of 155 days in any one tax year. Long-term ... Continue Reading