A short Web-update this week, but there is a lot packed into it. Of great interest is the result in the Wildin case. This concerned a capital gains tax dispute over the method of valuing a small accountancy practice.

Valuation of any private business is something of a dark art: unless you happen to have seen the details of the sale of any similar business it is difficult to do more that make an educated guess as to the price a willing purchaser would really pay a willing seller. HMRC's Shares and Assets Valuation group ("SAV") maintain a large database which they use to check valuations, and if necessary challenge valuations made by taxpayers.

Given that valuation disputes are so lengthy it would be rather useful for taxpayers if SAV's database were available to the public. HMRC's practice of not divulging the details of other taxpayers on the grounds of confidentiality is not an issue if the details were anonymised. Consultation has recently closed on the government's proposals to share some of HMRC's data with third parties and the government is pressing ahead with some elements of data sharing. More details are expected this year but if data sharing can eventually speed up the settlement of tax disputes such as Mr Wildin's all the better for everyone.

Subscribers: don't miss this time's Land and Property update.

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Best wishes

Nichola Ross Martin FCA Tax Director


Your online Virtual Tax Partner®: practical support for accountants, tax advisers and their clients

News and freeview

Valuation of goodwill: accountancy practice defeats HMRC
In Graham Michael Wildin v HMRC [2014] TC03586 there was a dispute over the correct method for valuing goodwill in an accountancy practice. HMRC favoured an assets basis and the accountant (the appellant) a multiple of gross re-occurring fees (GRF).

VAT penalties: proportionality
In Trinity Mirror PLC v HMRC TC03490, a £70,900 late filing VAT penalty for being one day late in filing a VAT return was dismissed on the grounds of proportionality.

Swiss list top 10 destinations for offshore evasion
This follows the latest tax agreement between the UK and Swizerland.

Subscribers: new guides and updates (paid content)

Land and Property: an Adviser's Tax Update
CPD special: a NEW update on recent developments and case law

Accounts: tax health check (self-employed)
UPDATE: a checklist/review note designed to provide you with a lot of pointers to key areas for discussion with clients.

Editor's choice

Share awards: filing and tax penalties
Lots of compliance: file Form 40 (unapproved share issues/options) or form EMI40 etc by 6 July on paper, however employers must also go online and set up their  scheme details there too. HMRC is proposing a new and onerous penalty regime for you in the Finance Bill and you will be penalised if you don't file online.

Goodwill & incorporation: valuation

UPDATE: a guide to the different valuation methods for different types of business, flagging up those which are suitable/unsuitable for incorporation. 

NEW: save on scheme charges: owner managers can create flexible pension arrangements and cut the cost of scheme charges by setting up their own Small Self Administered Schemes.

How to gift your shares to the family
NEW "back to basics guide"


Close company loans toolkit
This guide takes a detailed look at the corporation tax treatment when a close company makes a loan to a participator (director-shareholder). It also provides links to our guides for individuals on the making of loans to companies.

Director's loan account toolkit
HMRC instructs staff to examine directors' private expenditure during the course of an enquiry into a close company's books and records. In most cases the company will be expected to produce a transaction history of any director's loan or current account.

Property profits & losses: toolkit 
UPDATE: a handy summary if you are a landlord or advising one on self-assessment.

Director's tax planning toolkit 2014/15
UPDATE: like all our maintained guides a rolling planner so we keep updating it when we find practical points that will interest you.

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