Member Since: 9th Nov 2012
14th Jan 2020
Thanks for your replies. I found out a bit more background information.
The client is an IT manager, he is not a property investor and has no relationship with the building company.
His intention was the purchase the flat to live in as a family home so this deal is not a trade he is carrying out.
He believes all the new owners have been offered the same kind of deal but does not know why this is and doesn't have any further details of this. He believes the property was offered to him at the correct market value originally.
The flat will not be finished until the end of 2021 and therefore he will take the deal offered and purchase a new property which is ready to move into immediately.
So it seems CGT is payable as normal but I understand about the wider considerations so thanks for your insight.
30th Apr 2019
I agree with the last comment, looks like dividends from profits whilst non resident don't need to be taken into account.
If you’re not resident in the UK, the tax you pay on all your income can’t be more than:
• the amount of tax that would be chargeable on income, other than the ‘disregarded income’ shown below, but before the deduction of any personal allowances due
• plus the amount of tax deducted at source from the ‘disregarded income’
‘Disregarded income’ includes:
• dividends from UK companies
Temporary non-residents and Income Tax
Certain types of income received during the period of temporary non-residence will also be treated as arising in the year of return, therefore being taxable in 2018 to 2019. These are:
distributions paid by close companies (or those that would be close, if they were UK resident) of which you are a material participator or their associate, in the case of distributions that are dividends, those out of trade profits arising in the temporary period of non-residence are not taxable - ‘Distributions’ includes dividend income received by a person abroad which you have power to enjoy, under the Transfer of Assets Abroad code
27th Feb 2019
Thanks, seems like i was trying to over complicate it.
Is there anything else to be aware of or are there no further complications. It will be repaid by declaring a dividend in around 6 months time.
And out of interest, would it be the same answer if the wife was not an employee and only a shareholder?
25th Jun 2015
Thanks for your comments.
I will tell the client to seek legal advise. Stupid question...So who would he contact for this, what kind of company?
Does anyone have a recommendation?
23rd Jun 2015
Sorry wrong termination. I meant basically the client just submitted the DS01 himself.
I will check about the VAT registration.
14th Apr 2014
And they will remove a notice already issued for 2013/14?
I am talking about removing already issued TR's, not ones for the following year.
10th Apr 2014
Thanks for your help, I will call and see what happens.
s8B was mentioned in the letter we tried first which didn't work so I will try the phone and let you know what happens.
10th Apr 2014
I have tried
When I have rung in the past they just say, 'oh we cannot remove them, a Return has already been issued for that year and therefore needs to be completed'.
Have you had this success even after a Return has been issued for the year in question?
11th Apr 2013
Thanks for the useful information Shirley
5th Apr 2013
I have had the same kind of thing today.
2011/12 liability of £8k due 31 Jan 13
First payment on account £4k for 2012/13 due 31 Jan 13
Client only paid the £8k liability but HMRC have split the payment and allocated £4k to the balancing payment and £4k to the first payment on account.
Therefore, they are saying a 5% surcharge is due on half of the balance of £8k that has not been paid.
I have never seen them do this before, why does it not all just get allocated to the actual 2011/12 balance?
If this is now the case, then i will just reduce the payments on account to nil to cancel the surcharge on purpose and tell the client to just pay the payments on account as normal, although still slightly late and now technically not being expected by HMRC.
If I did this and reduce the payments on account, if the client still actually pays them in anticipation of his higher 2012/13 liability would this cause any issues or would everything work out ok on the statement in the end?
I was thinking HMRC may still ask for interest for us reducing the payments on account even though the statement would have been in credit. Baring in mind they only pay 0.5% interest on credits but charge 3% on late payments so to them they would be losing out, if there systems work it out like that?