Member Since: 15th May 2006
4th Mar 2021
Very many thanks Richard. The only thing that occured to me was that sometimes trust law is different to tax law in the way in which capital and income are treated. I will follow your advice and treat it as income in the hands of the trustee.
10th Feb 2021
I too have looked for years, but sadly nothing. I seem to cope OK with the auto-calculation facility in HMRC's pdf form. There are though sometimes problems if you want to amend a particular box as the auto-calculation doesn't always pick up on the change until you delete the total and let it re-calculate.
3rd Feb 2021
There is nothing to prevent a tax advisor or accountant from preparing an IHT form. When I qualified with the ATT, one of the exam papers was all focused on IHT so we are qualified to act and are entitled to charge a fee for it. In fact many firms of solicitors employ me to prepare their IHT forms for them, both IHT100's and IHT400's. We are not allowed to prepare the PA1P Probate Application for a fee, but can give the executor the gross and net estate values to put on it as these will have been calculated as part of the IHT form. We can also prepare estate accounts and period of administration forms. In fact I prepare more period of administration forms than I do SA100's.
28th Oct 2020
I have had a husband and wife in a similar position, but could not escape a penalty just because the wife had paid sufficient tax to discharge the husband's liability. Section 6(5) of FA2007 Sch 24 says that no account should be taken of the loss of tax being balanced by another's overpayment of tax. In the end I got the penalty deferred, but it was a struggle and had to threaten taking the matter to tribunal to get the deferral. There was no loss of revenue and in fact the government gained, because we could only reclaim the last 4 years of tax and for all earlier years tax was paid twice (once by each spouse). Fortunately only a couple of hundred pounds otherwise I would have used the trustee approach. Nevertheless I was not happy with HMRC charging a penalty when the exchequer had gained £200 from my client's oversight.
22nd May 2019
Surely this is what HMRC's Form 17 is for. Evidence of the non equal ownership will though have to be provided with the form, i.e. a copy of a declaration of trust or other evidence to show the source of the unequal funds i.e. receipt of a gift / inheritance
4th Apr 2019
AMLCC gets our vote too with Taxcalc for the id checks
18th Feb 2019
I have had 20 0r 30 of these situations over the years. Since the lender has not bought a share in the property, their ultimate gain when the property is sold is an income gain assessable to income tax in the year of sale. I have consulted many solicitors about these over the years and there have been many articles in the "TAXATION" magazine too. The arrangements used to be very common in Nil Rate Band trusts where the a beneficiary would borrow the capital in exchange for an "IOU" linked to the rise in value of the property.
18th Jan 2019
I have not (as yet) received any penalties for 2017/2018. I have though received over 80 on 30 clients for the 6 years to 2016/2017.
18th Jan 2019
Over the last 6 years I have had about 30 trusts that suffered unlawful "early tax return" penalties. I made a FOI request and HMRC replied on 31 Aug 2018 to say that in 2011-12, 480 trust returns had a false penalty, a further 470 in 2012-13, 460 in 2013-2014 and supposedly only 10 pa in each subsequent year. I do not believe the figure of 10 and neither do my professional body as 7 of them were mine. Rather than have to prepare over 100 separate invoices to individually reclaim compensation for my clients, HMRC offered me £150 paid direct to me which I accepted in view of the work in claiming individual compensation was more than putting the problem right. With the Ombudsman refusing a Class Action against HMRC, HMRC know that they can get away with their continued failings and will never be forced to put the matter right once and for all.
18th Jan 2019
I have had continuous unlawful "early tax return" penalties on a variety of trust tax returns over a 6 year period. In some years I have taken the trouble to claim compensation and this year for 2016/2017 I have taken it to the Ombudsman. Sadly the Ombudsman just said it was a genuine error on the part of HMRC as no one single trust received any more than a couple of errors. They were unprepared to take all the other cases into account thus ignoring the fact that HMRC have been issuing these unlawful penalties for 6 years on other cases.