As you know we had the Budget earlier in the week. Some announcements have immediate effect and these include changes to Entrepreneurs' Relief. These are all listed in our Budget Summary.

Other important changes to note are that the shared occupancy condition is not going to apply to Rent-a-room relief from next April. Before you let out a massive sigh of relief, this is no Budget give-a-way as the proposal is replaced by new measures to change the qualifying conditions for CGT Private Residence Lettings relief instead. If you are letting your home and not in occupation while it is let out there will be no CGT Lettings relief for that period. Basically, if you are letting your unoccupied home it will now be treated in the same way as if it were being used exclusively for business purposes. The changes are also going to be postponed by one year, so you have until 2020 to set up a new record keeping system. 

Aside from lots of Budget updates, we report on the first of many cases that examine the tax treatment of compensation paid out by banks for mis-selling of interest hedging products, another CGT Private Residence relief case where the owner could not provide any evidence of having lived in her property and some VAT. 

If you have any tax queries please do try out our Virtual Tax Partner support portal at www.VtaxP.co.uk.

Enjoy the guides and updates and the news is below. 

Back soon

Nichola Ross Martin FCA CTA (Fellow) Tax Director


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

Quick news (freeview)

Budget 2018: summary for individuals and business
Our handy guide to the new announcements in Monday's Budget

Making Tax Digital (freeview)

Making VAT Digital
Guides and updates on the new VAT filing regime from April 2019

Editor's Choice (subscribers)  

CGT Entrepreneurs' Relief
UPDATE: Budget 2018 proposes major changes which affect the qualifying conditions for all disposals. This week's essential reading.

CGT Private Residence Relief
Update: Budget 2018 proposals may well affect all those who are renting out their private residences.

Tax Guides and Updates (subscribers) 

R & D Relief: SME Tax Credit Scheme
Update: Budget 2018 proposals to reduced abuse of the scheme by small companies with low wage bills.

Recreational benefits
UPDATE: VAT recovery and self-supplies for private use by staff.

R & D & Patent Box Subscriber Guides and our unique R & D Zone
SME or Large company, grant assistance or not, find out all about maximising tax relief 

Purchase of Own Shares
UPDATE: a purchase of own shares (POS), is a purchase, by a company of its own shares from a retiring shareholder. 

Case Update (freeview)

Compensation for mis-sold interest hedging products is taxable as income
V M Gadavi & others v HMRC TC6762, the FTT found that compensation received for mis-sold interest rate hedging products (IRHPs) was taxable as a business income.

PRR denied: No intention to make house a residence 
In Katie Lo v HMRC [2018] TC06767 Private Residence Relief was denied and a discovery assessment allowed; the property was never occupied as the appellants residence and the discovery was not stale.


VAT (freeview)

HP finance companies can recover VAT
In HMRC v Volkswagen Financial Services (UK) Ltd [2018] C-153/17, the Court of Justice of the European Union (CJEU) ruled that HMRC cannot treat VAT on costs as solely relating to exempt finance charges when a car is bought on HP.

VAT recoverable on failed takeover
In Ryanair Ltd v The Revenue Commissioners [2018] C-249/17, the CJEU ruled that VAT on consultancy fees relating to a failed takeover bid was recoverable as Ryanair intended to make taxable management services to the target.

VAT (subscribers) 

Sport and physical recreation
NEW: When does the VAT exemption apply to sport? What is an eligible body for the VAT exemption? What is a sport?

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Missed last time's update?

Nichola's SME Tax w-update 26 October 2018


  •  ABC Shares and employees
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