Member Since: 3rd Dec 2002
26th Feb 2021
PPR is not automatic - there is a wealth of case law to support this - and intention and facts are key - as the client has stated that his intention is to develop and sell even before he has sold his existing residence (for which he should get PPR) then he is effectively developing with a view to profit i.e. trading and his arguments for PPR would have to be very robust and an election would be required as he would have more than one residence
22nd Nov 2019
She might not get the post, and even if she is successful and relocates, that doesn't automatically bring her UK activities to a halt.
17th Sep 2019
Whether or not you are obliged to provide the requested information is almost beside the point since penalties are assessed on 'behaviours' and being seen to be co-operative may reduce the scale of such penalties, whereas being unco-operative (unless it is obvious that the request is not relevant to anything - and if so that should be pointed out politely) will increase any penalties - as an investigation is already underway the disclosure is hardly unprompted, so provided there is nothing untoward about it, the requested information should be volunteered, if still available. Depending on how long ago the purchase was, it may not be; however, if so, that should be explained to HMRC i.e. you would like to provide it but are unable to do so. However, if there is anything likely to cause more questions than it answers, you should be having a serious conversation with your client before you engage any further with HMRC and possibly seeking more specialist professional advice.
17th Sep 2019
they can find out how much it cost themselves directly from the Land Registry (at least the amount stated) and can compare with stamp duty returns submitted, but they may want to confirm this with source documents. However, their enquiry may not be entirely random and has already triggered an undeclared income source, so they may be working towards establishing how the client was able to afford to buy this property and whether there is anything else that may be flushed out.
13th Sep 2019
Agreed - jointly held property of any kind does not form part of the Estate and should not be included in Estate accounts (except perhaps as part of the initial death Estate/IHT reconciliation), nor should any income arising therefrom be included in any Estate accounts or tax return - as you mention, it is not being 'administered' by the personal representatives but rather devolves immediately on death to the other joint tenant(s).
10th May 2019
Yes, I would argue that the inheritance was your MIL's.
Yes, the Estate is an excepted Estate on the circumstances you have described - also, if any of the gifts could fall under normal expenditure out of income exemption this would reduce still further the NRB used against the pre-death gifts and increase the TNRB available to your MIL's Estate in due course.
21st Mar 2019
With a value of 900k when the trust was created there would have been IHT to pay on set up and any subsequent exits of capital from the trust will carry an IHT exit charge at that effective rate. The first and subsequent 10 year anniversaries simply reset the rate that will be used then for the principle charge and also for the next 10 years. Also any undistributed income accumulated during the first 5 years will be treated as capital for the purpose of this calculation.
Unless the property is sold at arms length (perhaps to a company), he can only transfer the property to beneficiaries in accordance with the trust deed - the discretionary class of beneficiaries is unlikely to contain a company. Also, whether selling property or transferring in-specie on breaking the trust will be a capital gains tax event, with CGT at 28% (if the property is residential rather than commercial), although hold-over relief may be available because of the IHT.
4th May 2017
SSP does not subsidise the cost to the employer since it is no longer recoverable, but still has to be paid, where appropriate.
7th Apr 2017
was fine first thing but then had this from about 10.30/11am and it lasted all day - couldn't get Aweb on Chrome either - didn't try mobile - all other sites working fine on IE & chrome....
24th Mar 2017
No a discretionary trust can not only have one beneficiary - there should at the very least be another long-stop beneficiary e.g. a charity - otherwise what happens if the sole beneficiary goes under a bus?
Also the rule about perpetuities does not allow non-distribution of income, except during an accumulation period. Accumulated income is capital/relevant property for IHT; undistributed income is not.
As already stated, proper legal advice is required - an accountancy forum can advise on the tax or accounting implications or consequences but should not provide legal advice.