Hello,
This week we have our take on yesterday's Autumn Statement, updates to some of our guides and some more topical case updates.
Following the news that inflation has been halved, the Chancellor had some leeway this time to allow for some pre-election tax cuts, the most notable of which were the reductions in National Insurance for both the employed and self-employed, and what he described as “the biggest business tax cut in modern British history” as full expensing on expenditure on plant and machinery was made into a permanent relief.
Other measures were less dramatic and the much-rumoured changes to Inheritance Tax were conspicuous by their absence, not for the first time. Our freeview Autumn Statement ‘At a glance’ guide contains full details of the key changes announced as well as those that have been less well publicised, such as the removal of the requirement for individuals who only have income taxed under PAYE to file a tax return from 2024-25, and confirmation that there are currently no plans for Making Tax Digital for Income Tax to apply to those with self-employment and property income below £30,000.
In other news, we have the Supreme Court decision in the Fisher case which delivered a win for the taxpayers, confirming that the transfer of assets abroad anti-avoidance rules do not apply where the transfer abroad is made by a company. This is in spite of the decision to make the transfer being made by the individual shareholders who stand to benefit from it.
On a different topic, the First Tier Tribunal has found that renovating and selling your own home is not trading even if you do it three times in five years.
Finally, we have our extended version of the latest Agent Update from HMRC.
More news, cases and updates are below. Do check out the Editor's Choice.
Back soon
The Team
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Quick News (Freeview)
Autumn Statement 2023: At a glance
This is our 'At a glance' summary of the Chancellor's Autumn Statement 2023. It summarises the key tax announcements and measures and includes links to nine in-depth sectoral tax reports.
Autumn Statement 2023: Corporation Tax
Full details of the key proposed changes to Corporation Tax that were announced in the 2023 Autumn Statement.
Autumn Statement 2023: National Insurance
Details of the proposed changes to employee and self-employed National Insurance Contributions that were announced at the 2023 Autumn Statement.
Autumn Statement 2023: Income Tax
Our summary of all of the proposed changes to Income Tax that were announced in the 2023 Autumn Statement.
Autumn Statement 2023: Capital Allowances
Full expensing was made permanent in the 2023 Autumn Statement, our summary has all the details.
Agent Update: November 2023
HMRC have issued their Agent Update for November 2023. We have summarised the key content for you with links to our detailed guidance on the topics covered.
Tax Cases
Transfer of Assets Abroad rules cannot apply to a transfer by a company
In HMRC v Fisher & Anor and HMRC v Fisher Respondent No 2 [2023] UKSC 44, the Supreme Court held that the transfer of a business to Gibraltar could not be a Transfer of Assets Abroad as it was not made by the individual shareholders but by a company owned by them.
HMRC assessments upheld as incorrect CIS status used
In Access Contracting Services Ltd v HMRC [2023] TC08994, the First Tier Tribunal (FTT) found that a company had not taken reasonable care to comply with the Construction Industry Scheme (CIS) regulations. The FTT upheld HMRC’s assessment of CIS under-deducted from subcontractors.
Three renovated family homes in five years was not trading
In Gary Ives v HMRC [2023] TC08989, the First Tier Tribunal (FTT) found that the appellant was not carrying on a trade by renovating and selling three successive properties. These were family homes subject to Capital Gains Tax (CGT) and, as such, Private Residence Relief (PRR) applied.
Editor's Choice (subscribers)
Plastic Packaging Tax
What is the Plastic Packaging Tax? Who does it apply to? Are small businesses subject to Plastic Packaging Tax?
Valuations (non-tax): Businesses
An overview of valuation methods for sellers.
Tax Tools
Tax calculators
FREE for subscribers: We have a suite of useful tax tools that help agents, business owners and sole traders calculate their taxes.
Tax Tools
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Calendar of tax deadlines and new tax measures
UPDATE: This is a freeview 'At a glance' rolling calendar of common recurring tax deadlines, new tax measures and other tax significant events.
Guides & Updates (subscription content)
Self-Employed
Partnership agreements: What should be considered?
Partnership agreements can be invaluable to clarify everyday matters and settle disputes within a partnership. What sort of things should be discussed for inclusion in a partnership agreement? Why are they important?
Employers
Image rights and tax
Are image rights fees taxable? How do you tax payments made for use of a player's image?
Penalties: RTI (Real-Time Information) for PAYE
What penalties apply to PAYE Real Time Information (RTI) reporting and payments?
Directors & Companies
Transactions in Securities
What are the Transactions in Securities rules? When do they apply?
Striking off a company: Step-by-step
What are the steps required to strike off a company? What are the tax implications?
Private Client & Estate Planning
State benefits: Tax-free and taxable
NEW: What state benefits are taxable? What state benefits are tax-free?
Divorce & Separation: Toolkit
A summary of the tax implications which can arise on divorce and separation.
Land & Property
Furnished Holiday Letting
What is Furnished Holiday Letting? How do you qualify for Furnished Holiday Letting? What are the rules for Furnished Holiday Letting?
SDLT: Amending returns & refunds
How do I amend an SDLT return? When can I amend an SDLT return? How do I claim an SDLT refund? How do I deal with contingent consideration?
Overseas & Residence
SRT: Split Year Treatment
UPDATE: What is Split Year Treatment? When does it apply?
Tax treaties: Where do you live?
Where do you live for the purposes of a double tax treaty? How can you resolve disputes and uncertainties over your tax residency?
Capital Allowances
Disposal values & rules
What is a disposal for capital allowance purposes? What is the tax consequence of a disposal? What value needs to be accounted for on a disposal?
Vehicles (4 wheels): Allowances
What capital allowances are available for vehicles? How does HMRC classify what is a car or what is a van?
VAT News & Cases
VAT: Live screenings are not the same as attending the theatre
In Derby Quad Limited v HMRC [2023] TC08972, the First Tier Tribunal (FTT) rejected Derby Quad’s argument that their live screenings of plays were the same as attending the performance in person. As a result, the entrance fee was standard-rated.
Capital Goods Scheme
What is the VAT Capital Goods Scheme (CGS)? When do I use it? How does it work?
CPD for Lunch
Byte-sized chunks of lunchtime CPD for subscribers
- CPD: Corporation Tax Part 1: Rates and Challenges
- CPD: Corporation Tax Part 2 Associated Companies
- CPD: Corporation Tax Part 3 Augmented Profits & Marginal Relief
More at CPD Index
CPD Workouts
Two hours of CPD: Unravelling the diverse tax rules over a range of topical subjects
- VtaxP Tax Workouts 2023: AML Essentials update & IHT and Family Investment Company case studies
- VtaxP Tax Workouts 2023: Tax Update for OMBs & Taxing the Digital Nomad
Tax Queries?
UK Agent for registration of Overseas Entities
Do you require assistance in the registration and verification of an overseas entity that owns UK land or property?
Virtual Tax Partner© Support
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.
Missed Last Time's Web-update?
Nichola's SME Tax W-update 16 November 2023
- International agreement on crypto tax evaders
- Welsh budget date set for 19 December 2023
- LLP property tax planning One-to-Many letters
- Incorporation Relief One-to-Many letters
- Company could not distribute goodwill it did not own
- FTT confirms pre-Wilkes HICBC assessments were invalid
- VAT DIY housebuilders scheme changes
- Pharmaceutical company’s bitter VAT pill to swallow
- Sale of occupational income: Anti-avoidance UPDATE
- Pre-trading expenses (companies) UPDATE
- Investment bonds & tax UPDATE
- Named tax avoidance schemes, promoters, enablers UPDATE
- Super-deduction & First Year Allowances UPDATE
- Full expensing & First Year Allowances UPDATE
- Replacement of Domestic Items Relief
- Website and e-commerce costs
- SRT: Statutory Residence Test ...More
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