Member Since: 21st Nov 2001
Tax Consultant Raven Taxation Ltd
1st Nov 2019
I've never liked the idea of kids knocking on doors asking for stuff so mine didn't do it. I avoided it this year by taking my son to see Joker at our local Curzon. Brilliant film!
31st Oct 2019
I'm surprised to hear that HMRC are confused about the correct treatment as this is pretty standard stuff. Dividends and interest are taxable even if reinvested by the portfolio manager - but then the reinvested amount, if used to purchase new securities, is additional expediture for CGT purposes. If this is not a simple portfolio but some sort of bond/ISA/pension/investment wrapper, then it could be different.
13th Sep 2019
An assignment of royalties can create a market value amount charged to income tax not CGT so you need to get proper advice before recommending this course of action. I imagine the final questions can probably be answered by searching the Internet or, if your client is happy to pay, by consulting a lawyer who deals with that area.
8th Aug 2019
26th Jul 2019
Not if you have a car with wing mirrors that fold in when you lock the car!
10th Jul 2019
I give Nick advice but I was on holiday last week - cooking in 35 degrees heat in Tuscany! He has said that he is happy for me to post on here the advice I have given him today, to facilitate discussion on this point. No doubt some of you won't agree with what I have said but I'm sure we can have a mature discussion about it! I've had a quick look at legislation and referred to it but I haven't done a detailed analysis of all the relevant legislation because the question didn't warrant that amount of time (and cost) so if someone has a more considered answer with other legislative references, I'd be very happy to see it. Here's my view, for what it's worth!:
"The partnership return guidance notes (2018) say:
‘You should return details of the partnership’s trading and professional income and expenditure for the accounting period, or periods, ended on a date in the period 6 April 2017 to 5 April 2018.’
Which sounds unequivocal but it then goes on to say:
If no accounts end in 2017 to 2018
You should try to make sure that there’s at least one accounting period ending in 2017 to 2018. If you don’t, the partners may have to use estimates to calculate their tax liability for 2017 to 2018 and could end up being charged interest if the estimates are too low.
But then, in the same section, says:
If no accounts end in 2017 to 2018 you should:
• provide details of the partnership’s income and expenses for the period 6 April 2017 to 5 April 2018
• enter 6 April 2017 to 5 April 2018 in boxes 3.4 and 3.5
Though clearly you couldn’t enter a start date of 6 April 2017 when the trade commenced during the tax year and the actual income and expenses for the period falling within the tax year may bear no relationship to the taxable figures when the first accounts are apportioned and are highly unlikely to be available.
The legislation in the TMA – s12AB - actually says that a partnership statements should be prepared to show income of ‘the period in respect of which the return is made and each period of account ending within that period”. This wording was substituted for “each period of account ending within the period in respect of which the return is made” in 1996. So arguably that means you do show the income falling within the tax year if there is no period of account ending in that year – but if you interpret it that way then you would surely also have to interpret it as meaning you need to show income and expenditure for an accounting period ending in that year (if there is one) and for the period after the accounting date ends up to 5 April following because the legislation says ‘and’ not ‘or’ - and that is clearly nonsensical!
I believe the simplest way is that you do not submit figures for the accounting period which ended on 31 December 2018 as it didn’t end between 6 April 2017 and 5 April 2018. But the partners should then put estimates in their personal returns to minimise interest and explain this in the white space. Provided HMRC get a partnership return showing all the taxable profits for the first period of account (i.e. the 2018/19 partnership return) and the partners declare the correct amounts, a return has been submitted, no tax is lost and everyone is happy. If you prepare partnership statements showing apportioned profits for a period which didn’t end in the year and then show those profits again on the next year’s returns, I would say you have overstated the tax adjusted profits for the partnership. The profits are, of course, partially taxed twice and an overlap relief figure calculated but not on the partnership tax return and including them twice is going to just cause confusion for the individual partners."
22nd Mar 2019
And it's not a PET but an immediately chargeable lifetime transfer .
22nd Mar 2019
Many years ago, when I worked in London, I had a call from my client, the senior partner of a large, international law firm telling me that the collector had turned up at their swanky offices threatening distraint! They didn't owe any tax at the time. It's the only time I've managed to extract a grovelling letter of apology from the Inland Revenue!
28th Feb 2019
There is - but at a cost. I happened to mention to a friend over dinner (scintillating conversationalist that I am!) that I had to pay several hundred pounds to get access to bang up to date legislation and she was shocked that taxpayers are obliged to comply with the law but can't access it in its current form for free. I'm so used to it that I hadn't really thought about it but she's absolutely right - all the updated legislation should be readily accessible to all UK taxpayers at no cost.
27th Feb 2019
As I said, the investor won't get EIS relief unless they subscribe for the shares. See here: https://www.gov.uk/hmrc-internal-manuals/venture-capital-schemes-manual/...
There are other conditions that must be met as well, of course, but they are irrelevant if there is no share subscription.