TAX
Income tax and national insurance on overvalued shares
Beware that if a company buys back minority holdings discounting for non-influential minority holdings, the PAYE and NIC consequences must be considered. If the sum paid is...
Inheritance tax (IHT) numbers
You can apply online for an IHT number if you need to pay IHT on a deceased’s estate. Otherwise you need to complete a form IHT422 e.g. gift into trust in excess of any IHT...
CGT annual exemption – use now while stocks last!
If you do not use it, you lose it! If you have already used your annual exemption for the year, consider delaying any sale until after 5 April 2016. You will then have a new...
Charging your children rent?
With effect from 6 April 2016 the tax free amount of rental income you can receive from renting out a room or rooms in your home increases from £4,250 to £7,500 per annum. If...
Research and Developments Credits
Claims in March by Lewis Brownlee exceed £3 million! It always pays to remember Research and Development Tax credits – the tax claims submitted by Lewis Brownlee for March...
Income disregards for tax credits
From 6 April 2016 the income disregard where the income increases is reduced from £5,000 to £2,500 so it is more likely that overpayments will arise. This disregard is aligned...
CIS Returns
To save the risk of forgetting to make a nil return when you have no payments to report you report the fact that you are not likely to have payments by ticking box 8 of the...
Time limits for submitting self-assessment tax returns
Due to a defeat in the Upper Tribunal HMRC have clarified the legislation. Tax returns for the years up to and including the year ended 5 April 2013 must be submitted by 5...
‘Simple assessment’
Legislation will be introduced in Finance Bill 2016 to enable HMRC to send a Simple Assessment notice to customers with straightforward tax affairs which will set out their...
Deemed domicile with effect from 6 April 2017 for all tax purposes – consultation document
Two categories of persons will be affected by the proposed changes: Non-UK domiciled individuals who have resided in the UK for at least 15 out of the last 20 tax years before...
Nudge letters from HMRC
If you receive one of these do not assume that your agent will receive one. They are a psychological tactic used by HMRC to try and encourage taxpayers in dispute with them to...
Capital gains tax and gardens
Principal private residence relief HMRC accept that the garden or garage need not be adjacent to the property, but it is clearly necessary to be able to show that the gardens,...