Had one last week. Discussed with client who categorically assured me everything declared. Agreed no further action to be taken (I.e. will not reply to HMRC letter). Will wait to see what happens.
Thanks. So, it is not inconceivable to think that a non-internet-savvy client might visit his or her accountant (socially distanced, of course), log on from the accountant's computer/IP address and make the claim, with the accountant overseeing the process to check for mistakes, etc. No fraud involved, just a bit of hand-holding.
I'd be interested to know how HMRC will know that an Agent has made the claim. I had a zoom call this morning and the client shared her screen with me. I talked her through the screens and told her what to put in what boxes. It could just as easily have been done the other way around; I log into the client's account and the client tells me what to put in what boxes. How would HMRC know who has completed the application process?
And playing Devil's Advocate for a moment, will there be a proportion of capital gains not covered by PRR where a room has been exclusively set aside at home for non-private purposes? A highly unlikely scenario, but you never know....
Hi Tim, thanks (again), and just to clarify...occupation is required BEFORE 6 April 2020 (not just the inter-spouse transfer) for this to work? Sorry to be a pain, but obviously it's a crucial point I would like to clarify. Thanks.
The draft Finance Bill 2019-20 clause applies the change to spousal transfers (rather than property disposals) made before 6 April 2020. So the answers to your three questions are yes, no and yes.
Thanks for your reply, Tim. My reading of draft FB Clause 1 subsection 13 is that the inter-spouse transfer needs to be done after 5 April 2020 in order for the new rules to apply. I had read into that that so long as the transfer was effected before 6 April 2020 then the moving in date and ultimate sale date are irrelevant. In fact, looking at point 14 of the explanatory notes to the draft Bill, this states that "The existing rules continue to apply where the transfer between spouses or civil partners occurred prior to 6 April 2020, even where the disposal by the recipient spouse or civil partner is made after that date". Am I reading this completely wrong? Thanks for clarifying.
Very helpful. Can I ask a question about the change to the PRR rule? Does the date of occupation of the property (being after the date of transfer) also need to be before 6 April 2020? Or is that irrelevant, the most important point being to make the transfer before 6 April 2020?
My answers
Had one last week. Discussed with client who categorically assured me everything declared. Agreed no further action to be taken (I.e. will not reply to HMRC letter). Will wait to see what happens.
Ok, so who wants their client to be the guinea pig and file their overdue Return and see what penalties arise, and whether HMRC will strictly impose?
I haven't missed the point. I'm just not a conspiracy theorist.
Thanks. So, it is not inconceivable to think that a non-internet-savvy client might visit his or her accountant (socially distanced, of course), log on from the accountant's computer/IP address and make the claim, with the accountant overseeing the process to check for mistakes, etc. No fraud involved, just a bit of hand-holding.
I'd be interested to know how HMRC will know that an Agent has made the claim. I had a zoom call this morning and the client shared her screen with me. I talked her through the screens and told her what to put in what boxes. It could just as easily have been done the other way around; I log into the client's account and the client tells me what to put in what boxes. How would HMRC know who has completed the application process?
And playing Devil's Advocate for a moment, will there be a proportion of capital gains not covered by PRR where a room has been exclusively set aside at home for non-private purposes? A highly unlikely scenario, but you never know....
Ah, thanks very much again. I hadn't appreciated the order of the yes, no, yes, but now I fully understand. Thanks very much for clarifying.
Hi Tim, thanks (again), and just to clarify...occupation is required BEFORE 6 April 2020 (not just the inter-spouse transfer) for this to work? Sorry to be a pain, but obviously it's a crucial point I would like to clarify. Thanks.
Thanks for your reply, Tim. My reading of draft FB Clause 1 subsection 13 is that the inter-spouse transfer needs to be done after 5 April 2020 in order for the new rules to apply. I had read into that that so long as the transfer was effected before 6 April 2020 then the moving in date and ultimate sale date are irrelevant. In fact, looking at point 14 of the explanatory notes to the draft Bill, this states that "The existing rules continue to apply where the transfer between spouses or civil partners occurred prior to 6 April 2020, even where the disposal by the recipient spouse or civil partner is made after that date". Am I reading this completely wrong? Thanks for clarifying.
Very helpful. Can I ask a question about the change to the PRR rule? Does the date of occupation of the property (being after the date of transfer) also need to be before 6 April 2020? Or is that irrelevant, the most important point being to make the transfer before 6 April 2020?
Thanks.