Member Since: 27th Oct 2014
3rd Jun 2020
Thanks for the feedback. That appears to be bad news. I must admit I've tried to find how and where HMRC define income for these puropses and to be honest I can't find where they refer to Total Income for SEISS. I looked at S23 ITA 2007 as suggested by Tim and the definition of Total Income but I can't find where HMRC say that is the definition they will use for SEISS. Are the deductions in Step 2 of S23 ignored for these purposes?
The property was a furnished holiday let in the EU and it made a loss in pretty much every year I owned it. However I sold it in late 2018 and the profit on the property in that year was basically the capital allowance balancing charge; on the tax return I was able to set the brought forward losses against this balancing charge so Box 15 on the tax return showed NIL for taxable L&P profit for the year (Box 13 less Box 14).
If HMRC don't take the losses into account it tips the non trading income just above the trading profits by a couple of thousand for the 3 years 2016 to 2019.
Sounds like it may be bad luck on this one!
26th May 2020
Thats great .. thank you. Thought it was odd!!
29th Mar 2020
The Director has been on his company's payroll for many years and I have checked the 19/20 RTIs and he appears as an employee on all of them but as "Not paid" until March when his annual salary of 8,632 is reported.
So I think he meets the criteria of being on payroll in February 2020 and I think his average salary for the year is £719 per month albeit being £8,632/12.
Is this another grey (or gray) area or is my interpretation incorrect?
16th Aug 2019
Correct there was no CGT on the 2013 sale and he worked abroad for less than 5 years. He was based in the U.K. when he made the property sale in 2017.
I am trying to determine if he just gets PPR relief for just the last 18 months of ownership of that property or if he also gets relief on the new PPR from 2013 as part of a period of absence between 2011 and 2016 even though the PPR changed? He had lived in the original house as his PPR before going abroad and lived in the second house as his PPR before selling it in 2017. He did not live in the second house before the period of absence however my question is can the period of absence PPR relief be transferred from one PPR to another PPR if he sells and buys his main home whilst abroad? HMRC were informed of the change of PPR in 2013 and acknowledged it in writing to the client.
My understanding of the period of absence relief was that a tax payer should not be penalised on CGT for taking up a post abroad for a few years.
15th Aug 2019
He occupied the original property as his PPR before going abroad but not the new property until he returned home. Are HMRC likely to accept that the new home just replaced the original home as his PPR whilst he was abroad and allow him to carry the relief for a period of absence abroad to the new PPR?
10th Apr 2019
Ive just done a first CIS tax return for 18/19 and in TaxCalc and it used 52 weeks x 2.95
27th Dec 2018
Just wondered as she didn't own another house for that 4 month period until the rental started whether it might be a deemed period; just thought it worth asking
27th Dec 2018
Thank you very much. I did wonder about the 4 month period; she didn't own another house in that period I believe she moved in with her new partner and then it took 4 months to find a tenant. Is it worth claiming that 4 months and see if it is challenged (and advise client of potential risk of a challenge)
8th Dec 2018
Thanks John & Tax Dragon. Totally agree with your caveat. I only have 2 LLPs amongst my client base and both very small so I have never developed much expertise in this area. Large more complicated LLPs I have declined - for obvious reasons!
7th Dec 2018
Many thanks for the clarification .. with hindsight it’s obvious. Very helpful feedback!