I had a similar but much bigger problem when I took over payroll mid year. Moneysoft showed completly different figures to the HMRC website. I printed off from Moneysoft what the correct figures should be and sent it off to HMRC. They adjusted figures within a couple of weeks.
Thanks for replies - but I have been having a think. Obviously the point is to try and pay as little CGT as possible. The son has a large loss he can set off - the mother hasn't. As she owns 2/3rd of land and 2 properties, then she owes one whole property plus part of the other. I suggest that the one sold is the one she has only part ownership in. She is pretty old and likely to die fairly soon when the other property becomes part of her estate to go to the son, hence no CGT on that and no inheritance tax as she has her plus husbands allowance and her own property plus the one left does not reach that allowance value. Am I right in this?
I have asked for copy Tax Returns so i can see what info. they have. The Trust itself hasn't existed for the last 6-7 years and so HMRC would not allow the argument you used. I think in that case they go back to the beneficiary. However, as the Trust no longer exists surely they could not have any info. about beneficiaries from that Trust?
I do know my competence - hence the question. And anything US related has been filed by a specialist at extortionate rates. My client was going to file this years US tax forms himself as he now lives over there, but when he got 12 forms to read and fill in, he gave up! makes me think our tax system is not as bad as all that.
Thank you for that - very interesting. Problem being that my client will fall into the split tax year scenario about which the article really doesn't say much. Does anyone else know the rules on this bit?
My answers
I had a similar but much bigger problem when I took over payroll mid year. Moneysoft showed completly different figures to the HMRC website. I printed off from Moneysoft what the correct figures should be and sent it off to HMRC. They adjusted figures within a couple of weeks.
Thanks to everyone - I have read up on partitioning and the Varty case and don't think I can use either. Just have to put up with paying the CGT.
Thanks for replies - but I have been having a think. Obviously the point is to try and pay as little CGT as possible. The son has a large loss he can set off - the mother hasn't. As she owns 2/3rd of land and 2 properties, then she owes one whole property plus part of the other. I suggest that the one sold is the one she has only part ownership in. She is pretty old and likely to die fairly soon when the other property becomes part of her estate to go to the son, hence no CGT on that and no inheritance tax as she has her plus husbands allowance and her own property plus the one left does not reach that allowance value. Am I right in this?
I think it will be best settled then over 3 tax years than all put in one. Will wait to see what figures they come up with
I have asked for copy Tax Returns so i can see what info. they have. The Trust itself hasn't existed for the last 6-7 years and so HMRC would not allow the argument you used. I think in that case they go back to the beneficiary. However, as the Trust no longer exists surely they could not have any info. about beneficiaries from that Trust?
No - the Trust no longer exists and so they won't be asking for the loan back.
I do know my competence - hence the question. And anything US related has been filed by a specialist at extortionate rates. My client was going to file this years US tax forms himself as he now lives over there, but when he got 12 forms to read and fill in, he gave up! makes me think our tax system is not as bad as all that.
Thanks chipette. Google is
Thanks chipette. Google is great if you know exactly what you want and how to phrase the question correctly.
Thank you for that - very interesting. Problem being that my client will fall into the split tax year scenario about which the article really doesn't say much. Does anyone else know the rules on this bit?
Thank you so much for that full and comprehensive reply. I really appreciate it.