Company Tax Relief For Shares – A ‘Hidden’ Gem!
Share transactions invariably have tax consequences. For example, when an individual subscribes for shares in their employer company for less than market value, it is generally necessary to consider the income tax (and possibly National Insurance contributions) implications of the share acquisition. A pleasant surprise? However, it is sometimes overlooked that the employer company can […]
Company Tax Relief For Shares – A ‘Hidden’ Gem!
Share transactions invariably have tax consequences. For example, when an individual subscribes for shares in their employer company for less than market value, it is generally necessary to consider the income tax (and possibly National Insurance contributions) implications of the share acquisition. A pleasant surprise? However, it is sometimes overlooked that the employer company can […]
Is HMRC Being Un-‘Reasonable’?
Taxpayers are under threat of penalties if they fail to comply with their various tax obligations. This article focuses on penalties for filing tax returns late. There is an important exception from late filing penalties, which applies if the taxpayer satisfies HM Revenue and Customs (HMRC) (or the tribunals) that there is a ‘reasonable excuse’ […]
Private Residence Relief: When ‘Quality Trumped Quantity’!
Most individuals who dispose of their dwelling-house expect that any capital gain will be subject to private residence relief. Many of them are correct, but unfortunately some are left disappointed. Private residence relief broadly applies to gains accruing to individuals on the disposal of (or of an interest in) all or part of a dwelling […]
Do As We Say – Not As We Do!
The UK tax system can seem harsh, hostile and unforgiving if taxpayers make mistakes when dealing with their tax affairs, such as where tax return errors result in penalties. HM Revenue and Customs (HMRC) also makes mistakes. For example, procedural and administration errors sometimes occur when HMRC opens an enquiry into tax returns. Of course, […]
Gifting The Family Home – An IHT Trap
It is not uncommon for individuals to give away their family home. For example, an elderly widow moving into nursing care may be in the fortunate position of being able to make a lifetime gift of her residence to her adult daughter. This article focuses on a potential inheritance tax (IHT) anti-avoidance pitfall in the […]
Gifting The Family Home – An IHT Trap
It is not uncommon for individuals to give away their family home. For example, an elderly widow moving into nursing care may be in the fortunate position of being able to make a lifetime gift of her residence to her adult daughter. This article focuses on a potential inheritance tax (IHT) anti-avoidance pitfall in the […]
Don’t Let HMRC Reject You!
Tax returns can be difficult and complicated. Mistakes often happen when completing returns. Can HM Revenue and Customs (HMRC) reject an incomplete or incorrect tax return, send it back to the taxpayer for correction and treat it as never having been received, possibly resulting in late filing penalties? HMRC seem to think so. However, that […]