Pre-owned assets: Guidance published

Posted by AccountingWEB PM | on Fri, 18/03/2005 - 09:45 7098 3 comments

The Inland Revenue has published technical guidance on the operation of the pre-owned assets charge, which comes into effect on 6 April 2005.

The guidance outlines the circumstances in which the charge to income tax arises, explains how to calculate the benefit subject to the charge or elect for inheritance tax to apply, and describes how the Revenue will approach certain issues and specific circumstances.

The

Continued...

Long & Difficult !

Paul Scholes | Thu, 24/03/2005 - 10:30 | Permalink

And I've only looked at the charge calculations for an "Ingram" case. Can anyone help me understand the section devoted to an Ingram Scheme please?

At the end it says that "the value subject to charge will be the value attributable to the property actually disposed of", but he (Mr R) transfers title to a nominee first then the freehold reversion is gifted to his son, so which one is the one "actually disposed of" the whole or the freehold reversion?

Thanks
Paul

I hope but doubt

AnonymousUser | Fri, 18/03/2005 - 16:40 | Permalink

I really do hope that the Inland Revenue give a lot more publicity and also adopt a light touch approach for the unrepresented. I suspect, however, that Taxaid will find a few more cases to add to their portfolio.

Advice for the unrepresented

biggins | Fri, 18/03/2005 - 13:49 | Permalink

As the Low Incomes Tax Reform Group have previously demonstrated to the Revenue,this new legislation can reach down and hit people who are not rich and who are unrepresented.

We have asked the Revenue to ensure that those people who need to know whether they could be caught will receive proactive advice from them.

No doubt plans are afoot to mount a major press campaign to reach pensioners and others who may be affected prior to 6 April.

One hopes that it will be simply explained.