Hello
This time we feature another IHT Business Property relief case. Although only a FTT decision, this one features an interest in a partnership that ran multiple holiday cottages, and certainly builds on previous decisions in this area.
HMRC have formally launched their small business forum. It is evident that many people are testing this out with some nasty questions and the responses are, well not brilliant, but then what can anyone expect from a forum? The long term benefits and the cost v. benefits of this to the taxpayer remain to be seen. Will it affect tax agents? It could do, however there are some 3 million unrepresented taxpayers out there and as more people fall into self employment at the hands of 'the ubers' there is probably more than enough work to go round.
Problems with HMRC's software specification for this year seem to be continuing, although it may also be that the new rules are baffling to most people. These can mean that some taxpayers with dividend or savings income are not being taxed correctly. If you follow the link below you can see the latest update as to who can and cannot file online.
Finally, we have noted that Microsoft's document redacting system does not work properly. If you use it then be very careful about client confidentiality. I am going back to a Sharpie and a scanner.
More guides and updates below.
If you have any tax queries please do try out our Virtual Tax Partner support portal at www.VtaxP.co.uk
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)
Disincorporation Relief: what of the future?
With time running out for this under-utilised relief the OTS seeks your views.
How to redact a document
If you use Microsoft Word’s highlighter to redact documents, you need to read this.
Client Notification Offshore bank holders
Notify clients by 31 August or face a £3,000 penalty
Employment Related Securities: notification and annual returns
Still time to notify HMRC about gifts of shares to employees or directors for 2016/17
HMRC new Small Business Forum
Designed to assist small business.
HMRC latest update on 2016/17 self assessment specification errors
Situations where HMRC's calculations give the wrong results.
Case Update (freeview)
Test for BPR is qualitative not quantitative
In Executors of The Estate Of Marjorie Ross (Deceased) v HMRC [2017] TC05959 the letting of eight holiday cottages did not qualify for IHT Business Property relief: it was mainly an investment activity.
Accountant error: careless not deliberate
In D Lyth v HMRC [2017] TC05994 a failure to declare a capital gain on the taxpayer’s return was caused by stress, it was careless rather than deliberate.
Reasonable excuse allowed
In Pradipkumar Hindocha v HMRC [2017] TC05838, long term mental health issues were a reasonable excuse in a late filing penalty appeal.
Editor's Choice (subscribers)
Offshore company holding UK residential property: tax issues
NEW: how to tax this type of company
De-enveloping property
UPDATE: how to extract a property from a company (UK or offshore)
Practical Tax Guides and Updates (subscribers)
IHT: Business Property Relief Guide
UPDATE: exciting new developments on IHT and BPR re holiday lettings
Furnished Holiday lettings
UPDATE: CGT and IHT treatments explained
SEIS & EIS: Qualifying trades & activities
What is a qualifying trade or activity for Enterprise Investment Scheme (EIS) and Seed Enterprise Investment Scheme (SEIS) relief? Which trades do not qualify for relief? What are excluded activities?
IS and SEIS for the individual
A new guide aimed at the investing taxpayer, setting out the tax consequences of each type of investment.
Close company loans toolkit (loans to participators)
UPDATE: our comprehensive guide on loans to participators and how to recover s455 tax
Directors' loan accounts: toolkit
UPDATE: HMRC do a toolkit for advisors. This is our own version with planning points.
Purchase of own shares
UPDATE: what do you do if you don't have a trading company?
VAT
Practical guides on topical VAT: see our VAT index
Making Tax Digital
No news on this topic since the decision was announced to defer MTD for the self employed and landlords. It will still apply for VAT registered business, see our MTD index.
CPD Webinars
Missed last time's update?
Nichola's SME Tax w-update 28 July 2017
Features:
- When do directors need to file tax returns?
- Furnished Holiday Letting
- Property letting: personal v company
Partnerships: what makes a partnership? - Partnerships and SDLT
- New Corporate Offences
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