I don't see how a peppercorm rent is an oxymoron. Howver, my answer was too simplistic it should have been 'Full ER' not just ER.
That aside, its the rent actually paid as a proportion of market rent that would restrict the relief .
As Taper Relief went out in Apr 08, if the property has been held that long then the gain would probably be a large one. Specialist advice would be worthwhile in that case .
The bigger problem might be the lack of uplift to market value at death.
Will they be clobbered for IHT at 40% then CGT on the later sale on the full gain at 40%?
I think that this person is not an accountant and is posing questions on his own behalf.
However, if your level of dealing increases it could be viewed as self-employment by HMRC. But be prepared for them to not be inclined to accept your prefered date for the change in the tax situation and the consequential penalties etc.
Thank you for the link. Underneath the rules on "Time of supply or tax point"
There is
"Exceptions
If you use the VAT Cash Accounting Scheme, the tax point is always the date the payment is received."
Please note from my post that THERE IS NO STOCK, its gone!
By Wilson Philips
The VAT is pre-registration VAT and since the goods have been sold it is not claimable.
HMRC- “If you pay for the goods or services after you have registered for VAT, claim the VAT, as though it was input tax, in the tax period in which you pay for them”.
By lionofludesch
Large enough to be counted as stock on deregistration ?-
Spreadbetting is gambling, so tax free in general. This would not be the case for Futures trading.
Unless you do it full time then it maybe taxable. However, if you lose money under those circumstances it is unlikely HMRC will allow the losses to be offset against another type of income.
My answers
I am in a similar position with a client who took her spouse & child on a trip to Dubai.
Please read:
https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim37610
I don't see how a peppercorm rent is an oxymoron. Howver, my answer was too simplistic it should have been 'Full ER' not just ER.
That aside, its the rent actually paid as a proportion of market rent that would restrict the relief .
As Taper Relief went out in Apr 08, if the property has been held that long then the gain would probably be a large one. Specialist advice would be worthwhile in that case .
the Sale of her investment property:
Investments do not get ER.
It will be taxed at market value (as a transfer to connected party).
ER will not be available unless its been rented to the company at zero rent.
The bigger problem might be the lack of uplift to market value at death.
Will they be clobbered for IHT at 40% then CGT on the later sale on the full gain at 40%?
Tax Dragon
Yes, I have clients who are proper traders and fall into income tax rather than CGT - whether they gain or lose!
I think that this person is not an accountant and is posing questions on his own behalf.
However, if your level of dealing increases it could be viewed as self-employment by HMRC. But be prepared for them to not be inclined to accept your prefered date for the change in the tax situation and the consequential penalties etc.
By I'msorryIhaven'taclue
Thank you for the link. Underneath the rules on "Time of supply or tax point"
There is
"Exceptions
If you use the VAT Cash Accounting Scheme, the tax point is always the date the payment is received."
Please note from my post that THERE IS NO STOCK, its gone!
By Wilson Phillips
I'd like to see the context - where did you see those words?
https://www.gov.uk/guidance/vat-cash-accounting-scheme-notice-731
By Wilson Philips
The VAT is pre-registration VAT and since the goods have been sold it is not claimable.
HMRC- “If you pay for the goods or services after you have registered for VAT, claim the VAT, as though it was input tax, in the tax period in which you pay for them”.
By lionofludesch
Large enough to be counted as stock on deregistration ?-
Its gone- there is no Stock!
Spreadbetting is gambling, so tax free in general. This would not be the case for Futures trading.
Unless you do it full time then it maybe taxable. However, if you lose money under those circumstances it is unlikely HMRC will allow the losses to be offset against another type of income.