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?


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

New CPD click here

Missed last time's update?

Nichola's SME Tax w-update 28 July 2017


  • 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


Come and join our Cloud

Subscribe (and UNLOCK the whole site) A single user annual subscription is £365 (+ VAT). 

What do you get?

  • We keep YOU up to date in SME tax.
  • FULL access to www.rossmartin.co.uk: your firm's personal TAX INTRANET containing over 2,500 actively maintained tax guides, briefings, toolkits and checklists.
  • Want to know more? Commission your own articles and checklists.
  • Structured CPD: our detailed SME tax updates "for Advisers Only" provide topical summaries and planning notes & our NEW webcasts provide you with structured CPD at your desk.
  • Regular client tax briefings: these cover the latest business and employment tax issues and are designed to assist you plan meetings and improve your client services.
  • Nichola’s regular SME tax news web-update: we do the reading and cherry pick the best of the taxpress, magazines and websites for you.
  • You can also commission guides and checklists for your own practice, post comments and upload your own articles.
  • Access to the Virtual Tax Partner ® service provides subscribers with FREE quick calls and a discount of on phone, email and tax support and mentoring.