Original submitted SA return had some capital gains but on doing next year SA return a disposal initially believed to be next year was actually the previous year so amendment to previous submitted SA return to include it.
If legal registered title not being changed then its a Deed of Gift and Declaration of Trust template that is required detailing the gift to the wife and that the husband as the legally registered person is holding the gifted interest in the property on trust for his wife.
Agree accountant should not be undertaking any legal drafting, but client could use template as simple one page document would usually suffice.
Any gift and DOT should be made well in advance of any agreement of sale and sale proceeds allocated to wife and not immediately returned to the husband.
Why do you refer to "they are renting it out" , is it not currently 100% beneficially owned by the husband and rental income currently all reported as his?
Ultimate Group Parent is the main shareholder currently in Buyco but is intending to transfer Buyco to be held by another intermediate holding company in the group. Target vendor with the put options in Buyco is wondering if this potentially may have any tax implications for him. There is a guarantee in original target SPA that Parent will guarantee its obligations re Put option if it is no longer the major shareholder in Buyco ie if Buyco transferred elsewhere in group.
Any thoughts on potential tax issues for target vendor if ownership of Buyco changes from Parent to another company in the purchasers group?
Under CG57315 is a NR company letting a commercial property to be regarded as "providing a service on a commercial basis" on the one hand, but CG57315 also refers to a company holding investments for its participants and merely seeking to benefit from the actual or anticipated increase in the value of the asset as unlikely to meet the test for exemption from s13 TCGA.
How is this to be interpreted - if not passive holding of investment solely for increase in value but commercial letting of property providing service to tenants then exemption may apply, even if a property letting agent is appointed to manage the lettings?
What was the outcome of club becoming a SCIO. Club would have been subject to corporation tax on gain on transfer of property? The relief for gifts to charities at s257 TCGA only applies to individuals?
I was looking to confirm that bank interest received by the executor is reported to HMRC and tax paid on it, is matched by the beneficiary of the estate reporting the same income and tax paid, and if they were in a repayment position for the tax year the tax paid by the executor is effectively reclaimed by the beneficiary on form R40.
The other point made was one of timing as to reporting by the beneficiary. I understand that if there were no interim distribution of estate assets by the executor then there could be say two tax years of interest received by the executor that would be reportable in the one year by the beneficiary when the estate was distributed.
Any interim distribution of an asset ( eg car or share of joint house ) from the estate however if it exceeds the value of the interest received by the executor in that tax year I believe is deemed to be a distribution of income such that the interest would be reportable by the beneficiary for that tax year ( even though the actual cash received by way of interest by the executor was not distributed until the next tax year when the estate was wound up).
If outside amendment window might HMRC take the view that prevailing practice would be to make a best estimate of recovery of wip so that accounts become final following the amendment window and an overpayment relief claim is not competent, notwithstanding that the retiring partner has not agreed and signed the accounts in respect of the recoverable wip figure for the clients he dealt with? Clearly the recovery of the wip for the retiring partner will affect the profits allocated to him in the final year and so the accounts remain provisional in that regard until all wip has been billed and payment collected.
My answers
2019/20 return to be amended January 2022 for disposal before 6 April 2020 that had originally believed to be post 5 April 2020.
I've not seen any penalties following taxpayer amendments to previous year SA return that results in increased tax if paid when return amended .
Original submitted SA return had some capital gains but on doing next year SA return a disposal initially believed to be next year was actually the previous year so amendment to previous submitted SA return to include it.
But is the bank account that of the investor or the broker or does it matter?
If legal registered title not being changed then its a Deed of Gift and Declaration of Trust template that is required detailing the gift to the wife and that the husband as the legally registered person is holding the gifted interest in the property on trust for his wife.
Agree accountant should not be undertaking any legal drafting, but client could use template as simple one page document would usually suffice.
Any gift and DOT should be made well in advance of any agreement of sale and sale proceeds allocated to wife and not immediately returned to the husband.
Why do you refer to "they are renting it out" , is it not currently 100% beneficially owned by the husband and rental income currently all reported as his?
Ultimate Group Parent is the main shareholder currently in Buyco but is intending to transfer Buyco to be held by another intermediate holding company in the group. Target vendor with the put options in Buyco is wondering if this potentially may have any tax implications for him. There is a guarantee in original target SPA that Parent will guarantee its obligations re Put option if it is no longer the major shareholder in Buyco ie if Buyco transferred elsewhere in group.
Any thoughts on potential tax issues for target vendor if ownership of Buyco changes from Parent to another company in the purchasers group?
If CGT receipt is it regarded as receipt of consideration for the disposal of shares otherwise would not get ER.
Under CG57315 is a NR company letting a commercial property to be regarded as "providing a service on a commercial basis" on the one hand, but CG57315 also refers to a company holding investments for its participants and merely seeking to benefit from the actual or anticipated increase in the value of the asset as unlikely to meet the test for exemption from s13 TCGA.
How is this to be interpreted - if not passive holding of investment solely for increase in value but commercial letting of property providing service to tenants then exemption may apply, even if a property letting agent is appointed to manage the lettings?
What was the outcome of club becoming a SCIO. Club would have been subject to corporation tax on gain on transfer of property? The relief for gifts to charities at s257 TCGA only applies to individuals?
I was looking to confirm that bank interest received by the executor is reported to HMRC and tax paid on it, is matched by the beneficiary of the estate reporting the same income and tax paid, and if they were in a repayment position for the tax year the tax paid by the executor is effectively reclaimed by the beneficiary on form R40.
The other point made was one of timing as to reporting by the beneficiary. I understand that if there were no interim distribution of estate assets by the executor then there could be say two tax years of interest received by the executor that would be reportable in the one year by the beneficiary when the estate was distributed.
Any interim distribution of an asset ( eg car or share of joint house ) from the estate however if it exceeds the value of the interest received by the executor in that tax year I believe is deemed to be a distribution of income such that the interest would be reportable by the beneficiary for that tax year ( even though the actual cash received by way of interest by the executor was not distributed until the next tax year when the estate was wound up).
Prevailing practice on retiring partner?
If outside amendment window might HMRC take the view that prevailing practice would be to make a best estimate of recovery of wip so that accounts become final following the amendment window and an overpayment relief claim is not competent, notwithstanding that the retiring partner has not agreed and signed the accounts in respect of the recoverable wip figure for the clients he dealt with? Clearly the recovery of the wip for the retiring partner will affect the profits allocated to him in the final year and so the accounts remain provisional in that regard until all wip has been billed and payment collected.