This week we are featuring residency and domicile as we are fielding so many queries in these areas following the changes to non-domicile taxation and the new CGT regimes.

As another tax year draws to a close it is essential to ensure that clients have retained accurate data to complete both residency and domicile pages in their tax returns. I note that many taxpayers and advisers have not realised how drastic the changes have been. 

We have confirmation that the government will bring in a register on non-resident entities owning UK property and there have been recent calls in Parliament for a register of offshore trusts making payments to UK residents, it seems that this is an area that we will need to continue to look at in some detail.

We are also looking ahead to the new tax year in April, with a focus this time on employers. Look out for more pre tax year-end guides and toolkits over the coming weeks. We also feature a couple of interesting cases, wages paid to a family member and how to prepare accounts for tax when there is a change in the law.

If you have any tax queries please do try out our Virtual Tax Partner support portal at www.VtaxP.co.uk: subscribers you are entitled to free quick queries so do ask.

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)

Public register of beneficial ownership
BEIS confirms that the government will establish a public register of beneficial owners of non-UK entities that own or buy UK property, or which participate in UK Government procurement.

Data Protection & HMRC
New guidance has been agreed on verifying that callers claiming to be from HMRC are genuine.

Increase in Scottish income tax rates for 2018/19
Scottish Income Tax Rates for 2018-19 were announced during the Scottish Budget on 15 December 2017 but have already been increased.

What's the 2018/19 PAYE code?
Freeview guide to PAYE codes for the new tax year.

Case Update (freeview)

Payments to student son not exclusively for the business
In Alan Nicholson v HMRC [2018] TC06293, the tribunal disallowed a sole trader's payments made to and on behalf of his son as wages, whilst at university: the expenditure was not 'wholly and exclusively incurred'. 

Just Apportionment
In Maersk Oil North Sea UK Limited and Maersk Oil UK Limited v HMRC [2018] TC06295, the FTT held that an allocation of profits within a period simply had to be on a basis that was just and reasonable; the existence of a better method was not sufficient reason to displace it.

Loan Note Bonus Scheme Fails
In Cyclops Electronics Limited and Graceland Fixing Limited V HMRC [2018] UKUT 0007 (TCC), the UT upheld the decision of the FTT that tax planning involving an award of loan notes to directors as bonuses failed. The loan instruments were held not to be forfeitable restricted securities and were taxable as if they were cash bonuses.

Editor's Choice (subscribers)  

Employer's: What's on - January - March 2018 
NEW: An essential update for employers highlighting recent and upcoming tax changes as we approach the new tax year, together with a round-up of cases.

Tax Guides and Updates (subscribers) 

Transactions in securities
UPDATE: Further clarification added in respect of the Finance Act 2016 changes in respect of groups of companies.

R&D Tax Relief
UPDATE: HMRC have slipped in a change to their timescales for responding to applications

Adviser's Tax Penalty Planner
UPDATE: to include new penalties where the error has an offshore element

Residence tests: individuals, companies & trusts

Statutory Residence Test
Our detailed guide to the SRT

SRT Toolkit
Our interactive toolkit to determine residence status

SRT: Split Year Treatment
Our guide to Split Year treatment

SRT: Split Year Toolkit
Our Split Year Treatment flowchart

SRT Day Counting Toolkit
Our guide to day counting and links to our day counting calendar

Companies & trusts: residence and permanent establishment
UPDATE: a look at the modern tests in determining company residence and permanent establishments.

Non-domiciles Tax Toolkit
UPDATE: an essential tax toolkit that summarises and explains the highly complex tax regime for anyone who is non-UK domiciled and living in the UK. 

Non-domicile, deemed domicile & tax
UPDATE: from April 2017 changes to the deemed domicile rules bring long term UK residents into income tax and CGT, there are also further changes relating to excluded property for IHT.   

Remittance Basis
UPDATE: to add notes about the impact of deemed domicile on offshore capital losses.

Transfer of Assets Abroad
UPDATE: reflecting changes to the rules introduced in Finance (No.2) Act 2017 and Finance (No.2) Bill 2017-19.

Non-Resident Trusts
UPDATE: to reflect Finance (No.2) Act 2017 and Finance (No.2) Bill 2017-19


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  • EIS, SEIS, & VCT risk to capital condition
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  • Grounds for appeal toolkit
  • Non-domicile tax toolkit
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