Maybe the problem is too high a corporation tax rate in the UK
If corporation tax wasn't high in the UK there wouldn't be the incentive to organise multi national affairs so that profits are taxed outside the UK.
On the contrary, the incentive would be to shift profits into the UK to get them taxed at a lower level here.
The UK corporation tax rate must presumably be missing the sweet point where revenue is maximised, regardless of the percentage rate charged.
I don't deal with international tax, but looking at Wikipaedia the Republic of Ireland has a 10% corporation tax rate for international service companies resident there. That's a very significant saving on the UK large companies corporation tax rate.
Maybe in four or so years time there will be another much lower corporation tax rate for Scottish companies, and then companies will be relocating across that border also.
Adding to the CGT rant I haven't double checked this, but from my hazy recollection, pre Taper Relief there was Retirement Relief, and taper relief effectively replaced this. Now Taper Relief goes also,, so now those looking to retire have no capital gains tax reliefs. Was this ever the situation since CGT was introduced?
We also had Gordon Brown's 'raid' on pension funds, which coupled with a stock market downturn, resulted in quite a few business people saving for retirement via their business premises. Now this is hit with an extra 80% tax.
So we will have a situation where someone who has recently finished university, and earns £20,000 per annum, will be paying 21% tax plus 11% national insurance plus 9% student loan, on the top part of their earnings. So they are paying 41% in deductions. A relatively (or very) wealthy individual, with sufficient funds to have a second home ...or indeed a portfolio of fifty properties, can pocket any gains at 18% tax.
Non domiciled individuals and £30K charge Does anyone know how this will work please? Say you have a non UK but EU domicile individual, who has worked in the UK for a few years and continues to do so (and pays tax on earnings and assets in UK). However also have modest assets in country of birth (and domicile). What are the options? Presumably the only option isn't to pay a flat £30K pa? Will the only other options be to declare the income in the UK as well, and claim double tax relief?
Working from home and Business Rates It seems clear that the Inland Revenue Valuation Office has significantly changed its position regarding Business Rates and working from home. There is a specific web page devoted to the subject at http://www.voa.gov.uk/ (under Council Tax - Working from Home). The examples given makes it very clear that they now consider a large number of home workers liable to pay Business Rates. My areas of concern are firstly what is the position regarding arrears of Business Rates? For instance if someone has been working from home for 5 years with a room's use of say 90% business/10% private, and the Valuation Office are informed now, or maybe don't find out for another 2 years, are they going to go for arrears? Secondly does this change of stance affect the Capital Gains Tax position? Presumably not, since they don't appear to be going towards exclusive use for Business Rates. Finally I would add that this position is very different from previously. I raised the question with my local authority 10 years ago, and they made it clear that unless I was making a separate entrance and putting up signes etc. they weren't interested.
Self-build houses and capital gains If a builder builds a house and lives in it for at least 12+ months, then builds another house, sells the original, and moves into the new one, and stays in that for 12+ months, and so on, is it safe to say that the transactions fall within the private residence rules, or is there a risk the Inland Revenue will argue that the sales are to make a profit? If 12 months causes a potential problem, is there another period after which the problem is effectively eliminated?
My answers
HMRC share scheme deadline extended
Where do I find the actual link to where HMRC announce the deadline extension please?
It doesn't show up here https://www.gov.uk/government/latest?departments[]=hm-revenue-customs
Thanks
£30,000 seems completely disproportionate to the fine
...so much so I thought maybe it was a typo but £30,000 is the figure on the ICAEW Disciplinary Link.
Maybe the problem is too high a corporation tax rate in the UK
If corporation tax wasn't high in the UK there wouldn't be the incentive to organise multi national affairs so that profits are taxed outside the UK.
On the contrary, the incentive would be to shift profits into the UK to get them taxed at a lower level here.
The UK corporation tax rate must presumably be missing the sweet point where revenue is maximised, regardless of the percentage rate charged.
I don't deal with international tax, but looking at Wikipaedia the Republic of Ireland has a 10% corporation tax rate for international service companies resident there. That's a very significant saving on the UK large companies corporation tax rate.
Maybe in four or so years time there will be another much lower corporation tax rate for Scottish companies, and then companies will be relocating across that border also.
Adding to the CGT rant
I haven't double checked this, but from my hazy recollection, pre Taper Relief there was Retirement Relief, and taper relief effectively replaced this. Now Taper Relief goes also,, so now those looking to retire have no capital gains tax reliefs. Was this ever the situation since CGT was introduced?
We also had Gordon Brown's 'raid' on pension funds, which coupled with a stock market downturn, resulted in quite a few business people saving for retirement via their business premises. Now this is hit with an extra 80% tax.
So we will have a situation where someone who has recently finished university, and earns £20,000 per annum, will be paying 21% tax plus 11% national insurance plus 9% student loan, on the top part of their earnings. So they are paying 41% in deductions.
A relatively (or very) wealthy individual, with sufficient funds to have a second home ...or indeed a portfolio of fifty properties, can pocket any gains at 18% tax.
Mmmm ... socialism in action?
Non domiciled individuals and £30K charge
Does anyone know how this will work please?
Say you have a non UK but EU domicile individual, who has worked in the UK for a few years and continues to do so (and pays tax on earnings and assets in UK).
However also have modest assets in country of birth (and domicile).
What are the options? Presumably the only option isn't to pay a flat £30K pa?
Will the only other options be to declare the income in the UK as well, and claim double tax relief?
Working from home and Business Rates
It seems clear that the Inland Revenue Valuation Office has significantly changed its position regarding Business Rates and working from home. There is a specific web page devoted to the subject at http://www.voa.gov.uk/ (under Council Tax - Working from Home).
The examples given makes it very clear that they now consider a large number of home workers liable to pay Business Rates.
My areas of concern are firstly what is the position regarding arrears of Business Rates? For instance if someone has been working from home for 5 years with a room's use of say 90% business/10% private, and the Valuation Office are informed now, or maybe don't find out for another 2 years, are they going to go for arrears?
Secondly does this change of stance affect the Capital Gains Tax position? Presumably not, since they don't appear to be going towards exclusive use for Business Rates.
Finally I would add that this position is very different from previously. I raised the question with my local authority 10 years ago, and they made it clear that unless I was making a separate entrance and putting up signes etc. they weren't interested.
Self-build houses and capital gains
If a builder builds a house and lives in it for at least 12+ months, then builds another house, sells the original, and moves into the new one, and stays in that for 12+ months, and so on, is it safe to say that the transactions fall within the private residence rules, or is there a risk the Inland Revenue will argue that the sales are to make a profit?
If 12 months causes a potential problem, is there another period after which the problem is effectively eliminated?