Hello

The Office of Tax Simplification (OTS) has launched a Capital Gains Tax (CGT) review and call for evidence. Perhaps the chancellor has his eye on reforms in this area ahead of an Autumn budget.

Looking at all the taxes, I would say that as a group of taxpayers, individual property investors have the toughest time of it when it comes to complicated interactions of taxes. Let me explain. You have Stamp Duty Land Tax (SDLT) for properties located in England and the Scottish version, Land and Buildings Transaction Tax (LBTT), or the Welsh version, Land Transaction Tax (LTT) when you make your purchase elswhere in the UK. You may also have to work through the higher rate rules that apply for residential properties. If you are collecting rents you have the ongoing restriction for tax relief on financing costs, and also the rules on replacement of furniture and repairs etc are not so easy. When you sell, you may be within CGT (with all of its accelerated new reporting deadlines) otherwise you may fall into being taxed within Income Tax thanks to the ‘profits in dealing in or developing UK land’ provisions (if you have heard of them, although ignorance of the law is no excuse!). For Inheritance Tax (IHT), things are not much easier, as there are the various nil rate bands and transferable bands to consider. Now when someone asks me 'Do I sell and spend it now or try and take it to the grave', in respect of a property porfolio, I say, 'give me a couple of weeks and I'll do the workings'. 

If you have any tax-specific queries, please post them up to our sister site, details are here: www.VtaxP.co.uk. We apologise that we are asking everyone to upload their ID when they ask a question, it just seems to be the only cost-effective way of performing some of the necessary checks for anti-money laundering purposes.

Back soon 

Nichola Ross Martin FCA CTA (Fellow)
Tax Director

www.rossmartin.co.uk

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

Quick News

Millionaires plan to deal with the costs of COVID-19
A group of millionaires from around the world called ‘Millionaires for Humanity’ have signed an open letter urging governments to charge them more tax to help with economic recovery from the COVID-19 pandemic.

Capital Gains Tax Review: Call for evidence
Following a request from the Chancellor the Office of Tax Simplification (OTS) has launched ‘Capital Gains tax review - call for evidence’ plus an online survey, to hear from taxpayers and their advisers about which areas of capital gains tax are complex and hard to get right, and suggestions for improvements.

FRC finds audit firms' performance unacceptable
The Financial Reporting Council (FRC) has criticised the performance of the UK’s biggest audit firms

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UPDATE: Start here to track the latest government measures and announcements aimed at supporting businesses and individuals during the pandemic. Watch out for: NICs calculations for flexibly furloughed staff and time limits for all claims.

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Case Update (Freeview)

£100 penalty trumps ignorance of Scottish LBTT
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Bonuses paid to partners are earnings from previous employment 
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VAT Update

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Is a release of a call option to buy land taxable or exempt supply?
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CPD for lunch 

Byte-sized chunks of CPD for subscribers

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Missed last time's Web-update?

Nichola's SME Tax W-update 9 July 2020

  • Summer Economic Update: Live speech highlights
  • Summer Economic Update: SDLT reduction
  • Summer Economic Update: VAT reduction
  • Plan for Jobs: Job Retention Bonus
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  • A Plan for Jobs: Green measures
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...More

Nichola's SME Summaries for June 2020

Links to all of June's newswires

...More 

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