Member Since: 16th Mar 2018
22nd Oct 2020
Really interesting especially since I have just watched HMRC's webinar on this subject (today 22/10/20 12:45 to 13:45) and your post was brought to my attention just after I had emailed my client's financial adviser, who handles so much for her, of this latest news.
HMRC's position is that the "new" method of calculation applies to:
2020-21 and subsequent years
2019-20 (presumably because the announcement in the budget fell during that year)
2018-19 because of timings concerning the "Silver" case
No earlier years.
Unlike your client, mine had her gain in 2017-18 and so does not benefit from the changes.
A few complaints, including from me, during the webinar about the cut off for "earlier years" on the grounds that HMRC have been aware of this for some time. In my view a poor show from The Treasury.
20th Aug 2020
20th Aug 2020
Thank you very much Paul. Really appreciate your help.
20th Aug 2020
Thank you! Much appreciated!
The agreement states
9 OWNERSHIP OF THE GOODS
You will become the owner of the goods if you comply with the terms of this
agreement when you have made all the payments shown on the front page
(except the Final Payment postponed under clause 2.04 if you appoint us to
act as your agent to sell the goods). Until then the goods will belong to us
even though you have possession.
I can provide by email a copy of the full agreement suitably redacted for confidentiality if you wish.
Also client has provided info from manufacturer/dealer on the contract and finishing with " I feel that this would satisfy the criteria for treating the agreement as a Hire Purchase and therefor being eligible for Capital Allowances, as per Mercedes case that went before the European Court if Justice in 2017."
26th Jun 2020
Thank you! I had to do that and while the process was straightforward Covid meant it took several weeks for the documents to arrive.
14th May 2020
Thanks Wanderer but I was aware of the article. It doesn't change my client's situation. Please see my response timed at 17:58 on Wednesday 13 May 2020 to lionofludesch
13th May 2020
Yes Mrs Silver did win but HMRC indicated that they would appeal but a few days after the budget announced that they had withdrawn the appeal. Presumably that means that the lady may apply to have her liability re-calculated generating an income tax repayment if she had paid up or the cancellation of the "additional tax " if she hadn't.
The problem is that she won at the First Tier Tribunal which is not binding on any other case and so does not constitute a precedent.
The proposal in the budget only relieves gains arising on or after budget day and so as matters stand pre budget gains are still caught unless the taxpayer appeals and wins but technically HMRC could appeal that FTT decision and though it might seem unlikely win at the Upper Tribunal potentially closing off all other appeals by those with pre budget gains.
12th Dec 2019
Thanks accountantcole! Much appreciated! I will certainly look at AISMA and take on board what is there. Client past retirement age but not drawing either NIRP or University pension as yet. Not paying premiums against private fees.
8th Nov 2019
With help from other members I sorted it out a few days ago. Awaiting the review now.