This week we take a closer look at tax issues for property landlords, and there is also lots to interest employers and entrepreneurs.

It appears as if Budget 2020 will go ahead as planned next month and some people are worrying about the fate of Capital Gains Tax (CGT) Entrepreneurs' Relief. It may be tempting to sell your own shares in your trading company to another company owned by you, for cash, however this type of transaction is known as a 'Transaction in Securities' and it will not achieve CGT treatment. 

Judging by my inbox, another troublesome topic is the mechanism of the restriction on mortgage interest relief. This continues to baffle many landlords, and I must admit I never quite remember where we are on the transitional provisions without looking it up. I have featured a guide which illustrates exactly how this works and this should help explain the complexity of the different steps in the calculation to work out the relief. 

As we reach the end of another tax year, don't forget to register for PAYE if you are intending to run an annual payroll. It can take some time for the reference to come through and then you will still need to register for online services too. Do check out the Employer Bulletin, always worth a read at this time.

Finally, we have new CPD on the Statutory Residence test.

If you have any queries please post them up to our sister site www.VtaxP.co.uk

Back soon

Nichola Ross Martin FCA CTA (Fellow) Tax Director


Your Virtual Tax Partner® online PRACTICAL support for accountants, tax advisers BY accountants and tax advisers.

Quick news & guides (freeview)

Delays to 2020/21 coding notices
HMRC have advised that as income tax thresholds and rates will not now be finalised until March, tax codes for 2020/21 will have to be initially calculated using 2019/20 rates and then revised as necessary after the budget.

Employer Bulletin: February 2020
HMRC have published their Employer Bulletin for February 2020. We summarise the key content for you, with links to our detailed guidance on the topics covered.

Government response to salaried hour work and salary sacrifice consultation
In early 2019 the Department for Business, Energy and Industrialtrategy (BEIS) launched a National Minimum Wage consultation on salaried workers and salary sacrifice schemes and the response has now been published.

Editor's pick (subscribers)

Adviser guide: Property profits and losses
UPDATE: brush up your know-how with our practical guide

Property profits and losses: Toolkit
UPDATE: a handy check list for you and your clients

Property rental: restriction for finance costs
UPDATE: work through the transactional rules, step by step ahead

Buy-to-let ownership: personal v company
What is the most tax efficient option given recent developments, between owning a buy-to-let property personally or via a company?  

Entrepreneurs' Relief
Use it or lose it ahead of Budget 2020?

Transactions in Securities: signpost
Just why selling your own shares to your other company does not work for tax purposes, and much more.

Case Update (freeview)

No goodwill from FTT
In Neill Dyer v HMRC [2020] TC07567 an accountant’s claim that he had retained personal ownership of the goodwill of his practice, following its incorporation was rejected by the First Tier Tribunal (FTT): no such asset existed and his claim for Entrepreneurs’ Relief when he did dispose of his asset was rejected.

Group relief: EU claims did not make UK claims invalid
In LINPAC Group Holdings Ltd v HMRC [2020] TC7556, the First Tier Tribunal (FTT) found that EU group relief claims did not replace earlier domestic claims to relief. The UK claims remained valid.

VAT Cases (freeview)

Illegal imports did not exceed threshold
In Kendrick v HMRC [2020] TC 07515, the First Tier Tribunal (FTT) held that tobacco retailing did not breach the VAT registration threshold, as alleged by HMRC. He should not have had to register for VAT. 

Virtual Tax Partner Toolkits (freeview)

Virtual Tax Partner © Tax Toolkit© Tax Toolkits
NEW: be a winner with our game-changing tax diagnostics tools. Sign up now.

  • Entrepreneurs' Relief: Sole traders: sale of a business, incorporation, sale of assets
  • Entrepreneurs' Relief: Company owners: rules for sales pre 29 October 2018, sales between 29 October 2018 and 5 April 2019 and after.
  • TAAR: closing your Personal service company? Will your final dividends be taxed as income?
  • Salary or dividend, or a mixture of both. Better to claim the Employers' Allowance?
  • Making Tax Digital for VAT: when do you need to join..

Tax Queries?

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Have a tax query? Need a second option? Open a ticket and ask a question. A team of tax experts with a very wide range of expertise: covering direct and indirect tax, as well as accounting, R&D claims, reorganisations and much more. 

CPD for lunch 

Byte-sized chunks of CPD for subscribers

More at CPD Index

Missed last time's Web-update?

Nichola's SME Tax W-update 13 February 2020

  • Statutory legacy changes
  • Off-payroll rules will only apply to services provided on or after 6 April
  • Law Commission report on signing documents electronically
  • CIS VAT Reverse Charge
  • IR35 & Off-payroll working
  • Home Loan Scheme test case: success for HMRC
  • SAO notification includes dormant companies
  • VAT zero-rating penalty: reliance on counsel was reasonable
  • More...

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