Thanks stepurhan, do you know of where I can find the guidance / legislation on this?
I had, mistakenly, thought that they were, given that they are directors of the same company. However, I understand now from CG14623 that in fact, they are not, and therefore you're absolutely right, whatever price they agree is the figure used for calculation of the CG.
I was thinking all along that because they were connected, the disposal would be treated as being at market value, but I realise now that this is a red herring.
Thanks for your help everyone.
And on the same note, if there is other income, for example income from foreign property, of course this isn't taxable in the UK, but should it still be shown on the tax return?
Thanks Les. Can I please just clarify, what about the purchases from EU suppliers who aren't VAT registered - are these also added to taxable supplies for registration purposes?
I know this is a late post, but I wanted to ask you if you complete these for clients, or ask your clients to complete?
At the bottom of the form, it seems to suggest that I can put my name and submit on behalf of my client.
Do you agree with me, or do your clients submit rather than you?
Thanks Tony. I'm unclear on the fact that 'Loan interest was the one exception to the alignment of making good dates which has applies since 6 April 2017' - can you please clarify what you mean, or let me know where to look, as I couldn't seem to find anything on this.
The wife gained 50% of the shares as a gift from the husband. It was during the year in question. Does this affect your response?
Thanks so much Paul - I've been going around and around on this issue for so long without a good solution. What you've said here resolves my problem completely. Thanks!
Paul Scholes wrote:
In these days of cloud accounting it is so much easier to keep an eye on profits and for you &/or the client to prepare the necessary paperwork as the events occur and most of mine do this quarterly, either creating the dividend at the start of the quarter or, more usually at the end, to cover DLA drawings.
Thanks Paul, that's the way I've been doing it. The problem is we produce the management accounts for each of our clients at the end of each quarter. If they're then taking, say £5k per month (but not always, meaning we can't just declare that as a monthly dividend), then they're going to be exceeding the £10k taxable benefit level by the time we provide them with their next set of management accounts.
How would you deal with this? Ask the client to declare dividends during the quarter to remain below the £10k, or show the taxable benefit of the interest free loan?
Thanks for the response. I'm wondering though about the impact of the DLA being more than £10k - wouldn't this then have to be a taxable benefit?