Tha k you. You and several others it seems. Looks as though I'll have a fun Saturday evening with the TMA.
In your hypothetical example I would (rightly or wrongly) submit a nil partnership return. The individuals' personal returns would show their respective profit shares calculated on a different basis period to the partnership return.
I can't see where any of this is costing the clients.
You seem to be implying that overlap profits should be shown on the partnership return.
Thanks. Has there been clarification on this as HMRC continue to accept nil partnership returns on this basis?
Clearly I don't do enough partnership tax returns
I would have done a nil partnership return for 2018 as there was no accounting period ending in that return period.
yes, the tax returns for the individuals for 2018 should be amended to show their respective share of the profits (calculated on a time apportionment basis) for the period to 5 April 2018. These profit shares will be different to those declared on the partnership return (nil).
I know there is no mention of the individual being married but if the land is transferred to a spouse before it becomes the main residence, then the spouse effectively takes the original base cost (nil gain/nil loss), but doesn't take the non-qualifying ownership period.
In scenario 1) therefore, as long as the conditions in CG64950 are not satisfied, the past 10 years of history can be wiped out.
I think S.116 FA2003 has the definition of Residential Property.
A recent case at (FTT PN Bewley Ltd v HMRC, 2019 UKFTT 0065 TC) noted that the test is whether the building is 'suitable' for use as a dwelling at the point at which the SDLT became payable.
The case was regarding a derelict property which was determined to be non-residential as not a suitable dwelling and the additional rate of SDLT did not apply.
Make sure you know the gross profit margin on the products and how this compares to staff costs, to determine what can be afforded.
Think about bonuses calculated based on GP to control freebies/sales incentives.
Depending on the working environment, team bonuses are a good idea.
It's the taxpayers responsibility to get this right.
The limit does not restrict the amount that they or their employer can pay into the pension. If the limit is breached, however, the taxpayer is subject to an income tax charge. It's self assessment.
I wouldn't go there without any paperwork in support. I wonder whether any rent has been declared for income tax purposes....
Forget about the PET. I suspect there is a GWROB so chances are the property was still in mother's estate when she passed away this year.
Your starting point for the base cost should be the market value at the date of acquisition, as a connected party transaction. Bear in mind that determining the market value could be tricky if, for example, your client's mother retained a right to occupy the property when it was gifted.