This time we have a really useful guide on issuing shares and what happens when you get it wrong.

It might be easier in many cases to simply transfer shares from an existing shareholder to a new one, unfortunately that may deny valuable tax relief further down the line. We also have a bit of a 'back to basics' look at what is in fact an ordinary share. 

Do check out our CGT Private Residence Relief updates. We noted that some firms had got slightly confused over the higher rate CGT provisions due to slightly misleading guidance in the notes to the Finance Act.

We have new guides on what it means to be a VAT representative, and also how to make a tax disclosure using HMRC's new system as well as many more updates and news. 

Just when we all thought that there could not possible be any more consultations we have another one. This is on a new enhanced penalty regime for participation in VAT fraud, a measure announced at the last budget. It's worth a quick look because it is proposed that the distinction between the business' actions were careless or deliberate in relation to the fraud is to be removed. The result is a much higher penalty. 

We are delighted to see that so many of you are trying out our new Virtual Tax Partner® technical support portal at www.VtaxP.co.uk. You can now all meet the team behind the machine! We are also doing a lot of development work at the moment on the www.rossmartin.co.uk site which should make it much more interesting to use and enjoy in the future. More on that in the coming weeks. 

Enjoy the guides and updates and the news is below. 

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 (freeview)

CIOT urges chancellor to reform tax policy making
The Chartered Institute of Taxation (CIOT) have written an open letter to Phillip Hammond asking him to reform the way tax policy is made in the UK. 

Landlords lose interest relief court case
A group of landlords have lost their High Court attempt to force a judicial review of legislation to reduce tax relief on buy-to-let interest payments from April 2017. 

Case Update (freeview)

Reasonable excuse: insufficiency of funds & illness
In ETB (2014) Limited v HMRC [2016] UKUT 0424 the Upper Tribunal (UT) held that the sale of a company's business and the director's illness were not a reasonable excuse for late payment of VAT.

Practical Tax Guides and Updates (subscribers)

VAT representatives
NEW: When can (or must) a business appoint a VAT representative, and what does it mean to be one? 

Making a tax disclosure
NEW: A practical guide to making a disclosure using HMRC's new online system. 

Client notification (offshore bank accounts and investments)
UPDATED: Now contains the text of HMRC's notification leaflet so you can copy and paste this into client correspondence.

CGT reliefs: disposal of a business or its assets
UPDATED: More details added, including a short section on when it is (and isn't) a good idea to claim roll-over relief.

SDLT & residential property: higher rate
UPDATED: To include section on annexes and subsidiary dwellings.

Editor's Choice

Issuing new shares
NEW: An essential guide for company owners and advisers on how to issue new shares in a company together with a summary of planning points and the potential pitfalls if you fail to make a qualifying issue for tax purposes. 

Share capital: what's an ordinary share?
How to determine whether a share is an ordinary share or not: a key issue for many tax reliefs.

Dividends (how to pay & process): step-by-step guide
A step-by-step guide for companies and their owners.

Loss relief (income tax) disposal of shares
A guide to the income tax loss relief available when you dispose of shares at a loss or a company fails.

CGT Private residence relief
UPDATED: Our comprehensive guide to the relief, including case references and examples, with sections on marriage and divorce, permitted periods of absence, determining quality of occupation and more.

Consultations (freeview)

VAT fraud participation penalty
HMRC have launched a consultation ‘Penalty for participating in VAT fraud’.  This proposes a new penalty for those that knew or should have known their transactions were connected with fraud.


Missed last time's update?

Nichola's SME Tax Update 29 September


  • SME Tax Update
  • Self Employed Update
  • Devolved taxation: Scotland, Northern Ireland and Wales
  • Client notification
  • SDLT and leases
  • Unauthorised payments by pensions
  • VAT cases on incomplete invoices and trade waste services

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