Apologies.
The Limited co has obtained the extensions re all the flats. Each tenant is a shareholder of the Ltd.
Leases gone from c30 years to 100+ years I think.
This is specialised engineering equipment. One piece of kit would cost c£40k new but the market value if he was to sell the machine in it's current state is c£30k. He paid someone he used to work with for years c£5k for the machine so if he transfers the machine into the company at market value he's personally made c£25k gain (Company owes him £30k and company gets capital allowances on the machine).
I know the GOV site isn't known for its accuracy but it states there the 4 years:
"Write to HMRC to tell them about a change to your tax return if the deadline was more than 12 months ago.....You can claim a refund up to 4 years after the end of the tax year it relates to. " https://www.gov.uk/self-assessment-tax-returns/corrections
These were paper submitted returns by the client where HMRC calculated the tax. The paper return is correct as has the CIS deducted on there but the HMRC calculation is incorrect as it doesn't include the CIS in the tax calculation.
Client is definitely uk resident and I think uk domiciled (need to confirm). They are using the as arising basis rather than remittance basis anyway.
They have a german accountant who has completed a german tax return which has
1. German state pension - was going to disclose in white box that received but not taxable in uk under article 17(2)
2. Rental income - german accountant has told client not taxable in uk. Under article 6(1) says that May be taxable in the contracting state but does not then say is not taxable in uk. I've told the client that Uk tax payers need to declare their foreign income on uk tax return and they get relief for any tax deducted elsewhere if there is a double tax treaty. That amount of relief will be the smaller of the amount of foreign tax paid and the amount of uk tax chargeable on that income.
Looks like previous uk accountant netted down the rental income on the tax return (showed the rent and then showed costs greater than the rent (they have not been able to tell me what was in the cost and this years costs are minimal). I've said that doesn't appear to be correct.
My answers
Thanks for your response and reference to Steadfast Manufacturing.
Re the car park lighting -is it plant (I can see that towers to support floodlights are listed in list C s23 CAA2001)?
Apologies.
The Limited co has obtained the extensions re all the flats. Each tenant is a shareholder of the Ltd.
Leases gone from c30 years to 100+ years I think.
He's let the Ltd co use them for nothing up to this point.
This is specialised engineering equipment. One piece of kit would cost c£40k new but the market value if he was to sell the machine in it's current state is c£30k. He paid someone he used to work with for years c£5k for the machine so if he transfers the machine into the company at market value he's personally made c£25k gain (Company owes him £30k and company gets capital allowances on the machine).
I know the GOV site isn't known for its accuracy but it states there the 4 years:
"Write to HMRC to tell them about a change to your tax return if the deadline was more than 12 months ago.....You can claim a refund up to 4 years after the end of the tax year it relates to. "
https://www.gov.uk/self-assessment-tax-returns/corrections
These were paper submitted returns by the client where HMRC calculated the tax. The paper return is correct as has the CIS deducted on there but the HMRC calculation is incorrect as it doesn't include the CIS in the tax calculation.
Client is definitely uk resident and I think uk domiciled (need to confirm). They are using the as arising basis rather than remittance basis anyway.
They have a german accountant who has completed a german tax return which has
1. German state pension - was going to disclose in white box that received but not taxable in uk under article 17(2)
2. Rental income - german accountant has told client not taxable in uk. Under article 6(1) says that May be taxable in the contracting state but does not then say is not taxable in uk. I've told the client that Uk tax payers need to declare their foreign income on uk tax return and they get relief for any tax deducted elsewhere if there is a double tax treaty. That amount of relief will be the smaller of the amount of foreign tax paid and the amount of uk tax chargeable on that income.
Looks like previous uk accountant netted down the rental income on the tax return (showed the rent and then showed costs greater than the rent (they have not been able to tell me what was in the cost and this years costs are minimal). I've said that doesn't appear to be correct.