Member Since: 1st Mar 2006
6th Jan 2020
Many thanks to the three practitioners who have responded so far.
The position is that Mother owned the whole of the property, which is thought to be worth around £425k. She has left 1/5 to Stepfather and 2/5 to each child (both adults). Accordingly, there is no IHT issue resulting from her death.
Stepfather has the right to remain living in the property for one year under the terms of the will, but this is likely to be succeeded by an informal arrangement with the same result. The three of them could sell the property, but I understand they have their eyes set on a more distant "planning gain" and will hang on for that.
My concerns are still twofold: Does Stepfather look like a life tenant on his death in (say) ten years' time? There's no guarantee that he will have other assets in his estate at that point, but I don't think it's for me to speculate on that at this point.
The other issue is the 3% surcharge on SDLT for the sons. Neither is contemplating a sale just now, but one of them lives in job-related accommodation and has a property elsewhere, so could be caught for a surcharge on trading that up (you can avoid the charge if you sell a property which has been your home within 2 years prior to sale).
We are not dealing with big numbers here, but constructive thoughts would be welcomed.
7th Dec 2018
Did you mean "dress down Fridays"?
It comes to something when even people who consider that at least they sound knowledgeable embrace the grocer's apostrophe. We must fight this: civilisation is at stake!
16th May 2018
This is probably a small client, who is probably more trouble than the fee income justifies. Can you suggest some other lucky accountant?
8th Dec 2017
Capium - £943,000 of capitalised software and zero amortisation. I wish them luck; I think they'll need it.
7th Dec 2017
I would not commit myself to new accounting software - perhaps to be used for many years - without taking a look at the accounts for the software company on the Companies House website. Prelude Accounts is written and sold by Diamond Discovery Ltd.
23rd Jul 2013
Thanks to everybody
As initiator of the OP, I'd like to thank everybody for their contributions thus far. I'm left with the feeling that HMRC has created a complete muddle, and that we are all struggling.
A highly respectable firm of Chartered Accountants has published something that includes the following example:
"Mr Bloggs owns a property and provides carpets, white goods and curtains. He has let the property for a number of years and claimed the renewals cost of items as deductible as each needed replacement. ... From 6 April 2013 none of these costs are deductible. After seeking advice, Mr Bloggs has acquired a Sofa and a Bed for the property. Together with the items he had previously offered, the property can now be considered ‘fully furnished’ with wear and tear allowance available." Instinctively, I find this advice is alarming. What do others think? No-one has been able to point me to anything very definitive from HMRC, beyond the draft guidance which is primarily (and possibly even exclusively) about plant and machinery. For now, I think some of the very clear statements about the abolition of renewals for let property currently to be found on the websites of many firms are open to at least an element of doubt, and I think the muddle will go on for some little while.
27th Apr 2012
A quick question is one to which the inquisitor desires an answer but not an accompanying bill.
26th Oct 2006
QuickBooks over the web
I don't think I agree with an earlier comment that "QB is crap in the UK". It's a very powerful package and represents good value for money. The multi-currency aspects of it are somewhat primitive.
Earlier versions were capable of running on terminal server, but current versions will not. If you want to access the package from no more than two locations at once (and I have one or two clients for whom we do this) then the answer is to dedicate a cheap PC to it at one location and run a VPN to that PC over the web. Multi-currency QB licenses then enable access to the same data from other PCs on the local network. The data can sit on that dedicated PC, or perhaps on a server where it stands some chance of being backed up on a regular basis.
This solution is very considerably cheaper than most of the more obvious alternative packages.