Company Purchase Of Own Shares: Exit With Care!
A company purchase of own shares (CPOS) can be a useful ‘exit’ strategy for shareholders in the right circumstances. This article looks at the purchase by an unquoted trading company of its own shares from an individual shareholder of a family or owner-managed company. As a general rule, when the company buys back its own […]
Company Purchase Of Own Shares: Exit With Care!
A company purchase of own shares (CPOS) can be a useful ‘exit’ strategy for shareholders in the right circumstances. This article looks at the purchase by an unquoted trading company of its own shares from an individual shareholder of a family or owner-managed company. As a general rule, when the company buys back its own […]
Making Gifts And Legacies: Love Letters
The reason why an individual (e.g. a family member) makes a gift to another is ultimately a matter of fact. However, it will often be necessary to provide evidence in support of the reason for the gift, because the tax treatment might depend on it, particularly if there is more than one possible reason and […]
Suspended Penalties: You’ve Had Your Chance!
Appealing against HMRC assessments or notices to correct errors in tax returns might have an unfortunate knock-on effect when it comes to penalties in some cases. If an error is made in a tax return, it does not necessarily follow that a penalty will be incurred if additional tax becomes due as a result of […]
Private Residence Relief: HMRC’s ‘Off-Plan’ Arguments Off Target!
A private residence relief case involving an individual’s delay moving into a dwelling whilst it was being built. The extent to which capital gains tax (CGT) principal private residence (PPR) relief is available on the disposal of an individual’s only or main residence is straightforward to establish in most cases. However, differences in interpreting the […]
POAT: Out Of The Frying Pan Into The Fire? Part 1
An overview of the pre-owned assets tax charge as it applies to land and properties. Individuals (and advisers) will sometimes need to consider whether ‘pre-owned assets tax’ (POAT) applies, such as (but not necessarily) if inheritance tax (IHT) planning is undertaken. The POAT rules broadly charge income tax on benefits received by former owners of […]
Inheritance Tax – Whose Money Is It?
A potential inheritance tax pitfall of jointly held money accounts in banks and building societies etc. If a bank or building society account is jointly held by family members (e.g. father and adult daughter) it can cause some difficulties for inheritance tax (IHT) purposes. For example, when one of the joint account holders (say, father) […]
How’s The Family? Penalties And ‘Reasonable Excuse’
Does HMRC properly consider whether penalties are appropriate when taxpayers file their tax returns late due to serious illness? Every year, numerous appeals by taxpayers against penalties from HM Revenue and Customs (HMRC) for the late submission of tax returns reach the First-tier Tribunal. Excuses, excuses… Those taxpayers are normally appealing to the tribunal for […]
HMRC Enquiries: Should I Stay Or Should I Go?
Some issues to consider regarding potential meetings with HM Revenue and Customs in tax return enquiries. A tax return enquiry by HM Revenue and Customs (HMRC) is a possibility for virtually anyone who files a return. A common feature of tax return enquiries (especially for business owners) is that HMRC often request a meeting with […]