Enter Your E-mail

Introduction

TaxationWeb's Tax Tips Forum brings together taxpayers and professional advisers in a helpful and unique way. Taxpayers are encouraged to ask tax questions on the Forum where, hopefully, someone might have the answer! If you have successfully solved a tax problem, it is an opportunity to share your experiences with others. For tax professionals, the Forum presents a chance to network, share knowledge and possibly gain new clients by demonstrating tax expertise to the Forum's visitors.

Disclaimer

Please remember that all advice given on the Tax Tips Forum is for general guidance purposes only. Neither TaxationWeb Ltd nor any of the contributors to the site can be held responsible for any losses or damages whatsoever resulting from any action taken or refrained from as a result of advice given on the site. Always contact a suitably qualified professional contributor directly by phone or email (if contact details are provided) for detailed, considered advice based on individual circumstances.

Now, here are the top 10 tips for using the Forum...

Tips for taxpayers

1. Be nice!
   
   This might be stating the obvious, but foul language and abusive messages are not welcome or permitted on the Forum. Similarly, please do not make any insulting or slanderous comments. The Forum is there to benefit you and taxpayers generally. So please help us by reporting any unsuitable messages to Webmaster, in order that appropriate action can be taken.
2. Stick to tax!
   
   Remember that TaxationWeb is a tax information website, and that the purpose of the Tax Tips Forum is to discuss tax problems and issues. So please stick to tax subjects, and do not drift into non-tax matters such as law or social security benefits unless it is directly relevant to your tax query.
3. Be realistic!
   
   Do not expect Forum contributors to solve your complicated tax affairs! The purpose of the Forum is to raise tax issues of topical or general interest. It is not reasonable or realistic to post detailed queries on tax matters with a complex background of interest to no-one else but yourself! Professional tax advisers earn their living by charging clients for the advice they give, so it is unlikely you will find anyone willing to sort out your difficult tax affairs for nothing, if you can afford to pay for advice!
   
   Equally, don't be too general either! You are unlikely to get an answer to a question such as: "I am buying 2 houses to let out and want to know the best way of saving tax on these." No-one is going to be inclined to summarise in a few sentences the subject that books have been written about. Research the subject first … there is a lot of information already on TaxationWeb, through other Forum discussions, articles, 1 minute guides, etc.
4. Use those '3 little words'!
   
   It costs nothing to be polite! It is surprising how many taxpayers expect answers to their tax questions without a simple 'please' and 'thank you'! In fact, just being polite and friendly can sometimes make the difference between contributors doing everything they can to help, and not replying at all!
5. Don't use 'Feedback' to ask questions
   
   The Forum is there to (hopefully!) answer your tax questions. The purpose of the Feedback facility is to provide visitors with an opportunity to tell us about things they like about TaxationWeb, and to highlight any problems or areas which could be improved. Please do not use 'Feedback' in an attempt to 'beat the system' and obtain a personal, specific response to your tax question. It won't work! TaxationWeb is a tax information website and not a tax consultancy. We are independent and none of the Forum contributors work for us.
6. Don't DIY!
   
   The thought of saving money on professional fees can be both attractive and tempting. However, the Forum should not be used to obtain free advice. At the end of the day, there is no substitute for obtaining detailed guidance based on specific facts and circumstances (albeit on a fee paying basis!).
   
   For those taxpayers who cannot afford to pay for the professional services of an accountant or a tax adviser, there is a charity (TaxAid), which offers free tax advice to those in financial need. For further information, visit www.taxaid.org.uk.
7. Follow up!
   
   If your tax query receives replies on the Forum, follow it up. For example, if you do not receive a definitive answer to your question, you may decide to conduct further research. Alternatively, you might conclude that specific professional advice is needed, perhaps from a professional adviser who replied on the Forum. One thing you should avoid is to continue posting more and more detailed questions on the Forum. While an adviser might be happy to give you initial guidance to the problem, they earn their living by charging clients for detailed advice. Whatever the situation, do not lose heart. Remember - 'the answer is out there!'

Tips for professionals

1. Don't abuse or criticise other contributors
   
   The dictionary definition of 'forum' is 'meeting or medium for open discussion or debate'. The complexity (and often the ambiguity) of tax legislation is such that the views of professional contributors on certain tax matters may differ. This is part and parcel of an 'open discussion and debate'. However, please do not criticise other contributors and/or their opinions, or even worse, abuse others on the Forum. And please report any such instances to Webmaster.
2. Give generously!
   
   TaxationWeb encourages professional advisers to include their contact details with Forum contributions. We hope (but cannot guarantee!) that time spent helping taxpayers on the Forum will be rewarded by referrals and new clients. However, please make a positive contribution to the Forum in reply to the tax question, so that your comments can benefit TaxationWeb's audience of taxpayers. A response such as: "I know the answer to your query. Please contact me directly for further information." is not really what the Forum is all about (and will be removed by our Webmaster!!). If you want to advertise your services without giving anything in return (i.e. initial guidance that would benefit the person asking the question and the other Forum readers), ask us about advertising on TaxationWeb. Contributors are requested to report instances of abuse to TaxationWeb.
3. Who are you?!!!
   
   Obvious though it may sound, do not forget to include your contact details at the end of your Forum contribution (unless, of course, you prefer to remain anonymous). In particular, professional advisers looking for new clients by answering Forum questions are unlikely to pick up very many if the person at the other end does not know how to contact you! Something simple will suffice - e.g. Joe Bloggs, Chartered Tax Adviser, Bloggs Tax Services, London, email: joe@bloggs.co.uk, tel: 0123 456 789.
   
   Equally, if you have raised interest through giving initial guidance, do not forget to encourage action. Without using exaggerated marketing words like: "I can save you thousands of pounds, guaranteed! Contact me NOW!!" (oh yes, you can be sure we will remove such posts a.s.a.p.!), you can increase the likelihood of the person contacting you by simply prompting them to action, e.g.: "There may be other ways of reducing your tax liability, depending on your personal circumstances. Please do not hesitate to contact me by phone or email for a more detailed discussion."

Example

Let us review some of the points above through an actual example:

- - - - - - - - - -

19 Feb 2004 : samantha_tracey

I am looking to sell my own home. Bought in August 2002 in my sole name. I moved out in October 2003 to live in a house bought jointly with my partner. My sole property is currently being rented out (and has done so since 1st November). I bought the property for £83k, putting down a deposit of approximately £30k. I took out a further advance in September 2003 for £12k. I estimate the current value of the property to be £95k. I don't want to lose the money I put into the house (which was my own) - will I have to pay CGT? I'm hoping the answer is really simple, but as I know nothing about CGT, it all seems like a minefield and I'm worried about it! Please help!

19 Feb 2004 : sue.adams@LA-Law.com

As long as you sell your property within 3 years of vacating it, you will not have to pay CGT, even though you acquired a second property during that time.

If you intend to keep the property for a longer period than this, you will pay CGT on a subsequent sale. This will not however be on the whole gain, but on an apportioned amount, depending on the number of years you own the property after the 3 years has elapsed. You will still have the benefit of main residence relief for the time that you lived in it plus 3 years.

If you intend to use both properties as a residence, you can elect for one or other to be your main residence. Which you would choose would depend on a number of factors.

If you keep the property and rent it out, you will get some relief (called 'letting relief') from CGT on the period of ownership after the 3 years has elapsed. This reduces the amount of the gain which is chargeable.

Hope this helps.
Sue Adams

- - - - - - - - - -

What is good about this discussion?

• The question is specific, although not too detailed.
• The question ends with a 'please'.
• The answer gives useful initial guidance and is helpful to Samantha, as well as to others reading this Forum discussion.
• What else do you find positive about this example? Click here to let us know.

 

What could be improved in this discussion?

• Samantha could have spent a bit of time researching the subject of CGT. For example, we have published a 1 Minute Guide on Selling the Home, which would have answered some of her questions.
• Sue forgot to add a 'call to action' and a signature. Although her email address is in the answer heading, she could have ended her answer with something like: "Hope this helps. There may be other issues involved, that would depend on your personal circumstances. If you require more information or would like further help, please do not hesitate to get in touch. Regards, Sue Adams, Solicitor and Chartered Tax Advisor, Lester Aldridge Law Firm, Bornemouth, Tel: 0123 456 789, Email: sue.adams@LA-Law.com."
• What else do you think can be improved in this example? Click here to let us know.

 

Visit the Tax Tips Forum >>

Disclaimer

The content of these guides is based on tax legislation in operation at the time of publication, which may subsequently have changed. Whilst every care has been taken in its production, no responsibility can be accepted for any action undertaken or refrained from as a consequence of this material. This information is for general guidance only. Specific professional advice should always be obtained based on personal circumstances. TaxationWeb Limited accepts no responsibility whatsoever for any action undertaken or refrained from as a result of the information contained herein.