Archives / 248 post/s found
July 2016 Q&A
Q1. My mother died last year and left my brother and me a commercial business unit. Probate is nearly complete now. If we sell the property in the future, what are the capital gains tax implications on the sale? A: I presume that you and your brother are inheriting equal shares in the property. Your acquisition value, for future capital gains tax computation purposes, is the market value at the date of death - known as the 'probate value'. Capital gains tax will be calculated under the normal rules on any increase in value from that date. Q2. I have [...]
Free pension advisory services to be merged
Pension Wise, the free advice service set up to promote and advise on pensions reform and annuity freedoms, is to be merged with other publically funded advice services on pensions, to create a single website and advisory service. The Low Incomes Tax Reform Group (LITRG) believes that the merger is a great opportunity for the new unified service to better help those on low incomes. Commenting on the merger, LITRG chairman, Anthony Thomas, said: 'Advice on money matters has previously been delivered in penny packets by bodies specialising in discrete areas, sometimes not well integrated with other areas which can [...]
HMRC go live with Verify identity authentication
Gov.uk Verify, the online service taxpayers will need to use to prove their identity before accessing HMRC's digital services and other government online services, is now live. The central government platform for online identity assurance has been under development for some time by the government digital service (GDS) and has been available in a beta version. It has now passed its service assessment. It should take around ten minutes for an individual to verify their identity the first time they use gov.uk Verify, and a couple of minutes any time after that. Individuals choose from a list of companies certified [...]
OTS examines potential for new trading vehicle
The Office of Tax Simplification (OTS) recently published a series of recommendations following its simplification review of small company taxation (see OTS recommends simplifications for small companies, April 2016 newsletter). The review focused on incorporated businesses with fewer than 10 employees, known as 'micro' businesses, of which there are now some 4.1 million in the UK, with 1.3 million operating through a company structure. Currently, the UK operates a corporate tax regime on a 'one-size fits all' basis, modelled on a traditional company, with third party shareholders and clear intentions for future growth. However, shifting attitudes over recent years have [...]
New PSC register requirements take effect
From 6 April 2016, all unlisted UK companies, limited liability partnerships (LLPs), or societas europaea (SEs) are required to maintain a register of the people who have significant control over them. This new register of 'people with significant control' is known as the PSC register, and its purpose is to identify individuals who ultimately own or control more than 25% of a company's shares (or more than 25% of an LLP's assets), more than 25% of the company/LLP's voting rights, or who otherwise exercise control over the company or LLP and its management. The introduction of the register is a [...]
June 2016 Q&A
Q I am thinking of purchasing a new house that I will use as my main residence, but I will still own other properties. Will I be liable to the new 3% stamp duty land tax (SDLT) change? A: HMRC guidance on the new higher rates of SDLT for purchase of additional residential properties explains that if a previous main residence is replaced within three years, then you will not be liable to the additional 3% SDLT charge, even though you own other residential properties. Q I commenced trading as a service provider on 1 September 2015 and now wish [...]
HMRC consultation on fulfilment house due diligence
Further to the Budget 2016 announcement, HMRC have published a consultation document covering proposals to introduce a fulfilment house due diligence scheme whereby fulfilment houses in the UK will be required to register, maintain accurate records and be able to evidence the due diligence they have undertaken to ensure their overseas client is a bona fide supplier. The scheme may directly affect all UK-based businesses that fulfil orders of imported goods. Some rules may also apply to businesses that import goods or those that transport imported goods to and from fulfilment houses. The consultation will run until 30 June 2016. [...]
Companies to be liable for employees who facilitate tax cheating
The Government has recently announced that it is to bring forward plans to introduce a criminal offence for corporations who fail to stop their staff facilitating tax evasion. At the time of the March 2015 Budget, the Chancellor confirmed that the government would be delivering on its pledge to introduce the measure in this Parliament. Prime Minister David Cameron has now confirmed that the offence will be introduced in legislation brought forward this year. The government has already confirmed plans to create a cross-agency taskforce to investigate all evidence of illegality that has emerged from the so-called 'Panama Papers'. Further [...]
New credit card payment fees take effect
Clients may be interested to know that HMRC have introduced a new schedule of fees, which apply from 1 April 2016, and replace the former 1.5% fee. The new rates vary depending on the type of card used and whether the card is a personal or corporate card. Broadly, the fees for paying using personal credit cards have been reduced and the rates for corporate credit cards have increased. The new rates can be found in the schedule to The Fees for Payment of Taxes, etc. By Credit Card Regulations 2016 (SI 2016/333). For personal credit cards, the fees are [...]
New student loan plans take effect
Repayment of student loans is a shared responsibility between the Student Loans Company (SLC) and HMRC. Employers have an obligation to deduct student loan repayments in certain circumstances and to account for such payments 'in like manner as income tax payable under the Taxes Acts' (Education (Student Loans) (Repayment) Regulations 2000, SI 2000/944, reg 14). With effect from 2016/2017 there are two plan types for student loan repayments: plan 1 with a 2016/2017 threshold of £17,495 (£1,457 a month or £336 per week); plan 2 with a 2016/2017 threshold of £21,000 (£1,750 a month or £403 per week). Plan 1 [...]