Doing some reading round, I came across an HMRC consultation response dated 15-3-23 on 'low income trusts' which concluded with 'Next Steps':
"4.1. Following consultation, the government has announced at Spring Budget 2023 its intention to legislate the proposals outlined in the consultation document as part of a package of simplification reforms.
4.2. These reforms will:
provide that trusts and estates with income up to £500 do not pay tax on that income as it arises....."
(But that this change would not apply until 2024-25!)
and also the statement that HMRC would 'consider' the suggestion that "trusts within the de minimis amount would be classed as ‘non-taxable’ trusts" (which presumably would mean they didn't have to register).
I can't find anything later than this. Anyone got any idea where we currently stand?
"the deferment instalments are being paid from company."
Or - "the individual who has bought the shares will be paying the balance of the purchase price for the shares using funds he extracts from the company"?
It is, after all, the individual who owes the money to the seller, not the company.
My answers
And a review of Acorn Venture Ltd v HMRC [2023] TC09006 would be useful, since it deals with exactly this issue
"I'm not sure what the 2019 tax return that HMRC are looking into has to do with the 2014-15 loan scheme."
Because the loan charge applied on 5th April 2019 to all unsettled 'disguised remuneration' cases from earlier years.
Thanks. Yes, I did as described so as you say, could be a glitch or gremlins.
How would you treat the cost of healthcare insurance if this appeared in the accounts of a sole trader?
You'd disallow it in the tax comp as not allowable.
That's what you do in the LLP tax computation.
"I’m thinking about a bit of DIY estate planning ahead of new wills."
Good luck. Sounds about as advisable as DIY dentistry.
MyMateDownThePub LLP is one of the biggest tax advisory firms in the world.
I to have an ethical dilemma.
One of my older clients has dementia and keeps repeatedly paying the same bills, and in cash too.
So the dilemma is, do I split the money with my partners or keep it all for myself?
It's a joke, people, it's a joke!
Disincorporation relief ended 31st March 2018. So that might be relevant.
Thanks for this.
Doing some reading round, I came across an HMRC consultation response dated 15-3-23 on 'low income trusts' which concluded with 'Next Steps':
"4.1. Following consultation, the government has announced at Spring Budget 2023 its intention to legislate the proposals outlined in the consultation document as part of a package of simplification reforms.
4.2. These reforms will:
provide that trusts and estates with income up to £500 do not pay tax on that income as it arises....."
(But that this change would not apply until 2024-25!)
and also the statement that HMRC would 'consider' the suggestion that "trusts within the de minimis amount would be classed as ‘non-taxable’ trusts" (which presumably would mean they didn't have to register).
I can't find anything later than this. Anyone got any idea where we currently stand?
What a mess!
"the deferment instalments are being paid from company."
Or - "the individual who has bought the shares will be paying the balance of the purchase price for the shares using funds he extracts from the company"?
It is, after all, the individual who owes the money to the seller, not the company.