The run up to the Budget was unprecedented in many ways – so many briefings (and counter briefings), a lot of kite-flying, u-turns on policies
The income tax rate applicable to dividend income, property income and savings income will be increased to try and align the tax burden with earned
Salary sacrifice arrangements have been about for many years and, although they have been tightened up, the ability to sacrifice salary in exchange for your
A new tax will apply to residential property in England which is worth more than £2 million (based on the valuation in 2026) with effect
Introduced back in 2014, the concept of selling your business to an EOT allowed, in simple terms at least, for the proceeds of the sale
Where an individual, partners or trustees transfer a business into a company in exchange for the company issuing them with shares, then (subject to a
In addition to the changes to pension salary sacrifice and incorporation relief there were a number of the measures announced which will impact upon businesses: Capital
While we are still in shock from the changes announced at the Budget last year, it was not surprising that there was not much to
At what was likely to be the last fiscal event before the General Election, we expected a few surprises to be dropped in to woo
The tax giveaway… again? In what seemed somewhat like a moment of déjà vu, the Chancellor announced a further reduction to the rate of national
A number of announcements were made in respect of property taxation, many of which were suggested as a way to influence taxpayers. Too much can
Given that the Chancellor has previously defended the rules around non-UK domiciled individuals (or ‘non-doms’) by raising concern over the mobility of such individuals and
As ever, in the last couple of weeks there has been a huge amount of speculation about what may or may not be announced at
These days, it doesn’t feel like a proper fiscal event without an announcement around R&D relief! Much of this is predicated on the benefit that
In addition to the proposed changes to R&D and speculation around the Government’s plans for shareholders of private companies, there wasn’t much else to note
It’s a tax cut, Jim, but not as we know it Having been told by successive Chancellors for as long as one can care to
The key change announced for the self-employed was the ‘headline’ abolition of Class 2 national insurance and the reduction in the rate of Class 4
In what was the first (and hopefully last) budget of 2023, there was a focus on growth being supported by the Chancellor’s four pillars –
Although the budget felt a bit light on content from a personal tax perspective, there was still some interesting stuff, although not a total surprise
With the upcoming increase in the rate of corporation tax, the Chancellor was under pressure to do something to take the edge off it. An
After the debacle of eight weeks ago, the announcements by the Chancellor today were never going be so radical as to cause concern in the
What a month, what a week, what a day! An emergency statement by the Chancellor this morning, in order to prevent further speculation and help
The old adage of, “nothing in life is certain except for death and taxes” has never been so far from the truth! In the last two
They say a week is a long time in politics and indeed, that would seem very true. It was only ten days ago that we
Today was always going to be an interesting day – a new Government setting the tone of how they intend to govern, the ongoing cost
You can never truly know the content of the Budget until the Chancellor has sat down and you get to grips with all of the
The Chancellor has taken us back in time today with the increase in the rate of corporation tax. Some of you may recall that before
Last year, the Chancellor introduced a temporary increase in the threshold for which stamp duty land tax (“SDLT”) was payable on UK properties. Previously you
The Chancellor has confirmed the extension of a number of measures designed to assist taxpayers to weather the economic and administrative problems caused by the
Rather than the much anticipated increase in capital gains tax rates, or even changes to business assets disposal relief (previously known as entrepreneurs’ relief), the
During his speech, the Chancellor had everyone scratching their heads over his announcement of a super-deduction for investment – how super would it be, what
A welcome extension to the loss relief provisions was announced today by the Chancellor in his budget speech. In summary, the extension will provide a
Many company owners hope to claim business asset disposal relief (BADR) (formerly known as entrepreneurs’ relief) on an eventual sale of their shares, to benefit
Some individuals might assume that the creation of a trust necessarily involves a written document (commonly a ‘trust deed’ in England and Wales), which appoints
Parents sometimes wish to gift income-bearing assets (e.g. company shares) directly to their unmarried minor children, to take advantage of the child’s personal allowance (and
HM Revenue and Customs (HMRC) can open an enquiry into any self-assessment return within certain time limits. A tax return enquiry for one period could
Taxpayers sometimes have grievances about HM Revenue and Customs (HMRC), such as mistakes or unreasonable delays. What can be done? Some possible actions to consider
Individual partners in a partnership sometimes incur business expenses personally. It has been widely accepted that tax relief can be claimed for such expenses. This
Simply put, capital gains tax (“CGT”) is paid when an asset, other than your main residence, is sold at a profit. Currently there are four
Taxpayers such as buy-to-let landlords often seek advice from HM Revenue and Customs (HMRC). This is generally sensible, particularly if the taxpayer does not have
It is common for shares in a family company to be passed down the generations. However, anti-avoidance rules dealing with ‘gifts with reservation’ (GWR) are
A limited liability partnership (LLP) is treated like an ‘ordinary’ partnership in many respects. However, an important distinction arises where a business incorporates into a
A targeted anti-avoidance rule (TAAR) was introduced (from 6 April 2016) to prevent ‘phoenixism’. In broad terms, this practice involves company owners winding up their
There are statutory time limits for notifying chargeability to various taxes, including the tax charge that can arise when a company director shareholder’s loan account
It is common in many occupations and professions (e.g. law, medicine) for individuals to be engaged as self-employed consultants. Some consultants will build up their
Where a taxpayer is unfortunate enough to be subjected to an enquiry into their tax return, it is not uncommon for HM Revenue and Customs
A change in personal circumstances can have tax implications, such as affecting the availability of capital gains tax principal private residence (PPR) relief. For example,
The penalty regime for errors in tax returns etc. (FA 2007, Sch 24) provides an escape from penalties if an error has arisen despite ‘reasonable
It is fairly common for a business owner to lend money to their own business, or possibly a business owned by a family member, to
Capital gains tax (CGT) relief is generally available on the disposal of property in respect of improvements etc., for ‘the amount of any expenditure wholly
A tightening of conditions for capital gains tax (CGT) entrepreneurs’ relief (ER) in Finance Act 2019 may have resulted in some taxpayers no longer qualifying
Taxpayers understandably do not generally relish contact with HM Revenue and Customs (HMRC), such as receiving requests for information and/or documents in respect of an
When it comes to tax reliefs and exemptions, one of the most generous is the inheritance tax (IHT) exemption for ‘normal expenditure out of income’.
Penalties can be imposed by HM Revenue and Customs (HMRC) for a variety of offences, such as failing to comply with self-assessment compliance obligations (e.g.
The UK’s tax system features various reliefs, exemptions and allowances, some of which are seemingly designed to encourage couples to be married (or in a
Business owners who are not directly involved in construction operations might be forgiven for thinking that they can safely ignore the construction industry scheme (CIS)
Some professions could be described as ‘sexy’. Unfortunately, tax is not one of them. It would also require a monumental stretch of the imagination to
Many business owners will be aware of business property relief (BPR) for inheritance tax (IHT) purposes, and some might assume that the value of their
Any taxpayer who submits a tax return can be selected for an HM Revenue and Customs (HMRC) enquiry at random. Those taxpayers unfortunate enough to
Inheritance tax (IHT) relief at the rate of 100% is an attractive proposition. Business property relief (BPR) is available to business owners if certain conditions
Inheritance tax (IHT) relief at the rate of 100% is an attractive proposition. Business property relief (BPR) is available to business owners if certain conditions
Many employees need to use and maintain special clothing for work purposes. They may incur costs of (for example) having their protective work clothing cleaned
Valuing assets such as land and buildings is potentially tricky for various tax purposes, including inheritance tax (IHT) on making a chargeable lifetime transfer, or
The concept of capital gains tax (CGT) relief on the disposal of an individual’s home is straightforward enough. However, in practice errors by taxpayers (and
Transactions between a company and its owners are relatively common, particularly in owner-managed and family companies. Where an asset is being transferred to or from
The number of capital loss relief claims made in respect of irrecoverable loans to businesses and guarantee payments has seemingly increased significantly since the commencement
The number of capital loss relief claims made in respect of irrecoverable loans to businesses and guarantee payments has seemingly increased significantly since the commencement
Earlier this year, a readers’ forum query ‘Company residential property transfer to daughters’ (Taxation, 28 February 2019, page 22) questioned the tax implications of the
Earlier this year, a readers’ forum query ‘Company residential property transfer to daughters’ (Taxation, 28 February 2019, page 22) questioned the tax implications of the
Information notices have been an important and valuable weapon in HMRC’s armoury of compliance powers since the information and inspection provisions were introduced more than
A ‘trading company’ can sometimes be difficult to identify for capital gains tax ER purposes. To make matters worse, the statutory definition is relatively brief.
The UK tax system is extremely complex. The tax legislation is voluminous and almost impenetrable in parts. There are many ‘grey areas’ resulting in uncertainty
Married couples (and civil partners) often own assets such as investment properties in joint names. For income tax purposes, those individuals are generally treated as
When someone dies, family members or friends may have the responsibility of dealing with the deceased’s estate. This may involve (among other things) applying for
Business property relief (BPR) is a valuable inheritance tax (IHT) relief. The rates of BPR are 100% or 50%, depending on the type of relevant
Business property relief (BPR) is a valuable inheritance tax (IHT) relief. The rates of BPR are 100% or 50%, depending on the type of relevant
Director’s loan accounts (DLAs) are a common feature in the financial statements of family and owner-managed companies in particular. HM Revenue and Customs (HMRC) is
The imposition of penalties by HM Revenue and Customs (HMRC) for non-compliance with statutory obligations such as filing tax returns or paying tax unfortunately seems
‘Get it in writing’ is common advice where (say) two parties are seeking a legally binding agreement. Contract settlements For example, this can apply when
Apparently, the ‘Doomsday Clock’, which measures the likelihood of a man-made global catastrophe, currently stands at two minutes to midnight. Fortunately, there’s a little more
It is often necessary to value assets such as a property for inheritance tax (IHT) purposes. For example, if an individual makes a lifetime gift
It is fairly common for family members to pass investments such as commercial properties down the generations. A family discretionary trust is a popular means
It is fairly common for family members to pass investments such as commercial properties down the generations. A family discretionary trust is a popular means
Tax relief is available to individuals for contributions to a registered pension scheme if certain conditions are satisfied. The conditions can be complex and are
Tax relief is available to individuals for contributions to a registered pension scheme if certain conditions are satisfied. The conditions can be complex and are
Property businesses that provide residential accommodation tend to be profitable in most cases. However, unfortunately losses sometimes arise. For example, an individual may incur losses
Property businesses that provide residential accommodation tend to be profitable in most cases. However, unfortunately losses sometimes arise. For example, an individual may incur losses
HM Revenue and Customs (HMRC) want to find out about new tax avoidance and ‘unacceptable’ tax planning arrangements as soon as possible, so that anti-avoidance
Mistakes can easily happen in tax, some of which may result in an overpayment by the taxpayer. For example, an individual may have made an
HM Revenue and Customs (HMRC) will generally seek to impose penalties on taxpayers who (for example) have made tax return errors resulting in their tax
Many business owners employ family members such as adult children. The business owner will normally seek to claim a deduction for wages paid to them.
The UK tax system is not known for its generosity when it comes to allowing tax-free benefits from an employment. Any such benefit should therefore
Individual business owners may be aware that a capital gains tax (CGT) rate of only 10% can apply if entrepreneurs’ relief (ER) is available on
Individual business owners may be aware that a capital gains tax (CGT) rate of only 10% can apply if entrepreneurs’ relief (ER) is available on
The use of trusts is a fairly popular way of passing wealth down generations. For example, an individual (who is resident and domiciled in the
Business owners whose tax returns are subject to enquiry by HM Revenue and Customs (HMRC) may be asked to provide evidence about the source of
The tax system in the UK offers tax reliefs and exemptions to employees (including company directors) and the self-employed for various costs etc. relating to
Many taxpayers are aware of a ‘seven year rule’ for inheritance tax (IHT) purposes. They assume this rule to mean that if (for example) a
Amongst the detail of the Budget 2018 were some tweaks to the entrepreneurs’ relief legislation, which led to a lot of speculation and commentary. Did
Amongst the detail of the Budget 2018 were some tweaks to the entrepreneurs’ relief legislation, which led to a lot of speculation and commentary. Did
When HM Revenue and Customs (HMRC) encounters an arrangement that it regards as tax avoidance (or ‘unacceptable’ tax planning), the government will often seek to
When HM Revenue and Customs (HMRC) encounters an arrangement that it regards as tax avoidance (or ‘unacceptable’ tax planning), the government will often seek to
“In this world nothing can be said to be certain, except death and taxes.” This is a well-known quotation attributed to Benjamin Franklin. To prefer
Keeping full and proper records of property rental business expenses is an important task for landlords. For example, HM Revenue and Customs (HMRC) could seek
Many family and owner-managed trading company owners invest in their businesses through a combination of acquiring shares and making cash loans. The company might use
Some possible exceptions to the pre-owned assets income tax charge, as it applies to land and property. The pre-owned assets tax (POAT) is an income
Some possible exceptions to the pre-owned assets income tax charge, as it applies to land and property. The pre-owned assets tax (POAT) is an income
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
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
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
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
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
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
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
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
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
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
The majority of owner-managed or family company directors receive a notice to file a tax return from HM Revenue and Customs (HMRC) each year. Most
Many company owners have director’s loan accounts (DLAs), and generally understand how they operate. However, there are pitfalls for the unwary. These can sometimes result
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
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
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
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
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
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
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
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
An individual who makes a loan to a company they own will probably expect to obtain tax relief if the loan subsequently has to be
Many individuals would like to have a rental property business, but may be concerned (among other things) about the possible eventual inheritance tax (IHT) liability
The penalty rules for errors in tax returns etc potentially apply if a tax return contains an inaccuracy that results in a tax liability being
A common element in the accounts of many self-employed individuals (and partnerships) is a deduction for the wages of family members, particularly a spouse (or
When an individual shareholder sells shares in a ‘close’ family or owner-managed trading company, he or she will probably expect the proceeds to be treated
Some tenants treat the residential property they rent with great care. Unfortunately, others do not, and the landlord may receive dilapidation payments from the tenant
Some tenants treat the residential property they rent with great care. Unfortunately, others do not, and the landlord may receive dilapidation payments from the tenant
Individuals who dispose of a dwelling house sometimes find themselves in disputes with HM Revenue and Customs (HMRC) over whether private residence relief (PRR) is
Many landlords introduce properties into their rental businesses, which may have already been held for some time (e.g. gifted or inherited property). Those landlords are,
Many landlords introduce properties into their rental businesses, which may have already been held for some time (e.g. gifted or inherited property). Those landlords are,
Business property relief (BPR) is a potentially generous form of inheritance tax (IHT) relief, which can reduce transfers of ‘relevant business property’ (eg shares in
Private residence relief (PRR) for capital gains tax (CGT) purposes is potentially very generous. For example, a UK resident individual who is a higher rate
Private residence relief (PRR) for capital gains tax (CGT) purposes is potentially very generous. For example, a UK resident individual who is a higher rate
Many taxpayers pay their tax liabilities close to the statutory deadline for making such payments. For example, an individual who faced a large tax bill
Many taxpayers pay their tax liabilities close to the statutory deadline for making such payments. For example, an individual who faced a large tax bill
The use of an estimated figure may sometimes be necessary when preparing a tax return. For example, records of a particular source of income may
The use of an estimated figure may sometimes be necessary when preparing a tax return. For example, records of a particular source of income may
Everyone makes mistakes. Fortunately, HM Revenue and Customs (HMRC) has the power to suspend a penalty for a ‘careless’ error in a tax return (FA
Everyone makes mistakes. Fortunately, HM Revenue and Customs (HMRC) has the power to suspend a penalty for a ‘careless’ error in a tax return (FA
Small and family company owners are generally very busy trying to build successful businesses. Formalities of operating and administering the company can easily be overlooked.
The tax implications of transactions are sometimes overlooked; or perhaps there may have been a misunderstanding about the tax implications. For example, an individual may
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