This time we have a new client briefing on the changes to buy-to-let interest, with worked examples, an update on pensions, and a couple of case reports that may well be of interest to many advisers.

We also feature a case that features the befuddling provision that is section 68(3)(b) ITA 2007. This awful piece of drafting can deny a farmer sideways loss relief if she runs a loss making trade on a commercial basis and yet did not anticipate the extent of the loss making period at the outset. There have been three cases in two years where the tribunals that have struggled with its meaning. Surely an excellent candidate for salvation by the Office of Tax Simplification?

Back soon

Nichola Ross Martin FCA Tax Director


Your Virtual Tax Partner®: online PRACTICAL support for accountants & tax advisers by accountants & tax advisers

Quick News

VAT refunds: not for profit clubs and enjust enrichment
HMRC have issued a new VAT brief detailing their repayment policy following the CJEU decision in Bridport and West Dorset Golf Club

Errors in IHT reporting
HMRC report that people are not completing forms correctly.

Tax on carried interests: the tax loophole
NEW: what is a carried interest and why is it that investment managers only pay at 28% on their earnings? This new guide attempts to explain the logic as it summarises the tax rules.

Topical Cases

No (sideways) loss relief for farming
In Peter Silvester v HMRC [2015] TC04682 a farmer was denied sideways loss relief, despite changing his business model. HMRC was entitled to make a discovery assessment on losses, even though losses were reported every year.

VAT and Income Tax assessments: Business Economics Exercise fails
In Ernest O Bustard v HMRC [2015] UKFTT TC04703 a take-away owner successfully appealed the results of a mark-up exercise by HMRC: its assessments were not made in best judgement and were excessive. An interesting case if you are looking to disprove HMRC estimates.

Mutiple PRR election invalid: properties were never residences
In William P Harrison v HMRC [2015] TC04693 the taxpayer made multiple invalid main residence elections. His claim failed: he failed to grasp the fact that to elect any property it must be occupied as a "residence".

When tax overrides GAAP accounts
In GDF Suez Teeside Ltd v HMRC [2015] TC04590 the FTT concluded that the company's accounts did not fairly represent its profits, despite them being prepared in accordance with GAAP.

When an Inspector Calls 

Home Loan Schemes (HLS)
NEW: a briefing on Home Loan tax avoidance Schemes (HLS). HMRC have reached a number of settlements. The ICAEW have met with HMRC to try to obtain clarification for those wanting to avoid litigation as to how these settlements are agreed.

Subscriber specials and updates
(paid content)

Losses (sideways): restriction for relief for uncommercial trades
UPDATE: new section on hobby farming losses and case summaries illustrating the pitfalls of section 68(3)(b) ITA 2007.

Pensions: What's New?

Pension annual allowance doubles up for 2015/16
Pension input periods are to be aligned with the tax year from 6 April 2016, with the transition being made during 2015/16.  The effect of the transitional arrangements enables some taxpayers to double their pension contributions to £80,000 this year.

Pensions: tax rules and planning
UPDATE: Fully up to date guide including all the implemented and proposed changes to pensions.  

Pensions planning for directors
UPDATE: Fully up to date guide including all the implemented and proposed changes to pensions.

Property letting

Buy-to-Let Ownership: personal v Limited Company
UPDATE: with all the changes to tax relief on interests and the changes to dividend tax, which is the best way to run your property rental business?

Client briefing: restricting finance charges and mortgage interest relief
NEW: a briefing note, together with tax planning tips, to go over with your clients to explain the new rules on restricting tax relief on buy-to-let properties.

Furnished Holiday Letting
Escape the restrictions on finance charges by furnished holiday letting.

Capital Gains Tax Reliefs

Private Residence Relief
This guide explains the detailed rules for CGT relief, examines the qualifying conditions for a residence and its grounds, examines the limits of making an election, together with practical examples, case summaries and planning tips and tools. 

Entrepreneurs' Relief
A practical tax guide to all aspects of the relief, this looks at the rules, the quirks and provides tips and planning points with worked examples and case law.

CPD for lunch

We are extending our lunchtime CPD specials (you can watch them anytime provided that you are online). Each one is approx 30 mins long.

Entrepreneurs' Relief: what's new?
Capital Taxes Update Part 1: CPD webcast 

Non-residents CGT & ATED gains
Capital Taxes Update Part 2: CPD webcast

IHT: additional nil rate band and trusts
Capital Taxes Update Part 3: CPD webcast

Missed last time's update?

Nichola's SME Tax Update 5 Nov 2015

Updates on:

  • Goodwill
  • BEPS & Diverted Profits Tax
  • Non-dom tax
  • Substantial Shareholding Exemption
  • Carrier Bags!
  • Buy to let: personal v company ownership

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