TRSM23030:
"Trusts of life policies are, subject to certain conditions, excluded from registration as express trusts during the lifetime of the person(s) assured (Sch3A(4)(1) of the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017)...
The general position is that trusts holding policies with surrender values can remain excluded from registration under Sch3A(4) until such time as the policy is actually surrendered. If a policy is surrendered and the cash sum is retained in the trust, the trust would be required to register from that point."
Thanks, and to be explicit, I guess the reason is that the plan doesn't actually receive taxable income, it just holds units that change in value, and the liability to tax arises on the companies in the funds that the plan invests in, rather than on the trustees themselves.
The recently released Agent Update 98 contained the following information from HMRC about upcoming changes to VAT registration:
“Updates to the VAT Registration Service (VRS) from 1 August
... The service will go live on 1 August 2022. We recommend that if you have incomplete, unsubmitted VAT applications for your customers, that these are submitted by 31 July 2022 at 5pm. Any partially completed, saved applications on the old service will be lost after this time. You will however have the same functionality in the new service to save applications for up to 4 weeks before submitting them."
Not sure this is true. I saved a VAT registration application a couple of weeks ago and it wasn't deleted on 1/8 and seems to have been succesfully submitted today.
"Whether a dividend is income or capital in nature is determined by
reference to the mechanism of distribution under the constitutive law
of the territory where the company is incorporated or registered and
its implications for the company making the distribution.
The question is whether or not the ‘corpus of the asset’ is left
intact after the distribution. If not, the receipt will be a capital
receipt; if it is, the payment will be chargeable as income. The
corpus is not disturbed by payment of a large dividend simply because
it is large - see HMRC v First Nationwide [2012] EWCA Civ 278: Moses
LJ said ‘ the reality was the distribution of share premium as
dividends’ (this type of distribution is possible under Cayman Islands
company law though it is not under UK law). But it will be disturbed
by some form of capital reduction, as with the partial liquidation
under Maryland law in Rae v Lazard. Another example of a dividend of
capital nature is found in the trust-law case Sinclair v Lee [1993] Ch
497, where Nicholls VC held that shares distributed by way of dividend
in specie as part of an indirect or ‘3-cornered’ demerger should be
regarded as giving rise to a distribution of capital. The importance
lies not in what is distributed (shares, in this case) but rather in
the effect of that distribution on the distributing company, its
‘corpus’."
Businesses on the first affected stagger cycle (March returns) should sign up between 8/5/22 and 4/8/22 so it's a bit pointless looking at how many have signed up as of now.
My answers
The sender's email was a bit of a clue: ahmed.zandaradze @intouristxobatumi.com
The NI reference is not misleading, it's the correct use of that box since Brexit, and HMRC expect you to correct any prior incorrect Returns.
I was wondering about the invoicing documentation from the seller's perspective.
Are you in NI as I think Boxes 2 and 9 are for EU acquisitions into NI? UK import VAT goes in Boxes 1 and 7.
TRSM23030:
"Trusts of life policies are, subject to certain conditions, excluded from registration as express trusts during the lifetime of the person(s) assured (Sch3A(4)(1) of the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017)...
The general position is that trusts holding policies with surrender values can remain excluded from registration under Sch3A(4) until such time as the policy is actually surrendered. If a policy is surrendered and the cash sum is retained in the trust, the trust would be required to register from that point."
Thanks, and to be explicit, I guess the reason is that the plan doesn't actually receive taxable income, it just holds units that change in value, and the liability to tax arises on the companies in the funds that the plan invests in, rather than on the trustees themselves.
There's next to no help from Xero themselves, but here's a good independent site:
https://xero4charities.co.uk/
The recently released Agent Update 98 contained the following information from HMRC about upcoming changes to VAT registration:
“Updates to the VAT Registration Service (VRS) from 1 August
... The service will go live on 1 August 2022. We recommend that if you have incomplete, unsubmitted VAT applications for your customers, that these are submitted by 31 July 2022 at 5pm. Any partially completed, saved applications on the old service will be lost after this time. You will however have the same functionality in the new service to save applications for up to 4 weeks before submitting them."
Not sure this is true. I saved a VAT registration application a couple of weeks ago and it wasn't deleted on 1/8 and seems to have been succesfully submitted today.
I had a look at this sort of thing recently so this might be relevant:
Distributions in a formal MVL of a UK company can be classed as
capital payments relating to the shares owned by individuals. See
here:
https://www.companydebt.com/capital-distribution-on-winding-up-a-company/
For distributions from non-UK companies, HMRC guidance can be found
here:
https://www.gov.uk/hmrc-internal-manuals/savings-and-investment-manual/s...
"Whether a dividend is income or capital in nature is determined by
reference to the mechanism of distribution under the constitutive law
of the territory where the company is incorporated or registered and
its implications for the company making the distribution.
The question is whether or not the ‘corpus of the asset’ is left
intact after the distribution. If not, the receipt will be a capital
receipt; if it is, the payment will be chargeable as income. The
corpus is not disturbed by payment of a large dividend simply because
it is large - see HMRC v First Nationwide [2012] EWCA Civ 278: Moses
LJ said ‘ the reality was the distribution of share premium as
dividends’ (this type of distribution is possible under Cayman Islands
company law though it is not under UK law). But it will be disturbed
by some form of capital reduction, as with the partial liquidation
under Maryland law in Rae v Lazard. Another example of a dividend of
capital nature is found in the trust-law case Sinclair v Lee [1993] Ch
497, where Nicholls VC held that shares distributed by way of dividend
in specie as part of an indirect or ‘3-cornered’ demerger should be
regarded as giving rise to a distribution of capital. The importance
lies not in what is distributed (shares, in this case) but rather in
the effect of that distribution on the distributing company, its
‘corpus’."
Just had notification today that March PVA statement is now available for one client - three weeks late!
Businesses on the first affected stagger cycle (March returns) should sign up between 8/5/22 and 4/8/22 so it's a bit pointless looking at how many have signed up as of now.