ICPA's August 2018 Tax Update

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Tax Update:

This is your chance to take a look at the latest issue of ICPA’s Tax update.

Download the latest ICPA Tax Update here

The ICPA produce this small practice specific quarterly e-magazine which is distributed FREE of charge to all ICPA Members. In this Tax Update Mark McLaughlin looks at and discusses the issues that directly affect us as Accountants in practice.

Here is a list of articles which are discussed in this issue:

A family affair – but don’t overdo it!

Business owners need to think carefully before claiming deductions for salaries paid to their spouses or civil partners. 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 civil partner). Read More...

PPR: turning the tables

A look at a case in which the burden of proof was on HMRC in respect of a taxpayer's private residence relief claim. Individuals who dispose of a dwelling house sometimes find themselves in disputes with HMRC over whether private residence relief (PRR) is due on the disposal of the property for capital gains tax (CGT) purposes (under TCGA 1992, s 222). Read More...

Decisions, decisions

How HMRC might enquire into share disposals under certain anti avoidance rules. 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 as a capital receipt. Read More...

Income or capital?

Mark McLaughlin notes a case on whether a tenant's payment in respect of lettings which had become dilapidated was income or capital in the landlord's hands. 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 to enable the landlord to restore the property to its former condition at the end of a tenancy. Read More...

Out of the frying pan

An overview of the pre-owned assets income tax charge in the context of 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. Read More...

Beware bouncing cheques

A warning that taxpayers need to keep an eye on tax payments made by

cheque close to the statutory deadline. 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 on 31 January 2017 might have needed time to find the necessary funds. Read More...

Download the latest ICPA Tax Update here