This week we have summarised the highlights of the new Agent Update for you. It has been a relatively quiet week leading up to the end of the month with many changes from 1 April/6 April announced well in advance.  

Companies who own residential property valued at £500,000 or more in the UK should be reviewing their circumstances for the year ahead. You will need to file a return to pay Annual Tax On Enveloped Dwellings (ATED) or to claim a relief from the charge. Looking at what is written online, it seems that some folk do not realise that the ATED return is filed in advance. The return for the year ending 31 March 2025 is due in by 30 April 2024.

There is a high probability that HMRC will be matching up the details of overseas entities that are now on the Companies House's Register of Overseas Entities holding UK property, with the records of property ownership on the Land Registry. Talking to some overseas company owners, it is clear that that their knowledge of the ATED is at best incomplete, and with so many beneficial owners not being UK nationals they are heavily dependent on UK agents flagging up tax issues, such as the potential to file an ATED return.

By co-incidence, we reviewed a tax appeal against an ATED charge and Stamp Duty Land Tax (SDLT) assessment this week. It's an interesting case: it features an Option agreement. The appeal did not go well.

In our other news this week there is the long overdue introduction of offset rules for IR35 which will mean Income Tax and employee National Insurance Contributions can be set against the deemed employer's liability under PAYE.

For subscribers who are feeling a little overwhelmed by the changes coming in via the various finance acts and bills this year, we have released our Rolling Tax Planner for 2024-25, which tracks the key tax announcements that impact the new tax year and beyond. The planner will be updated on an ongoing basis.

Have you thought of subscribing to our webservice? Now is the time to take the plunge and you can claim tax relief in the current year. If you are unsure then sign up to a free trial direct from our site.

Have a lovely bank holiday weekend.

Back soon

Nichola & the Team


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

Quick News (Freeview) 

National Living Wage rates/National Minimum Wage rates 
The National Living Wage rates/National Minimum Wage rates all change annually on the 1st April. Employers need to ensure that they make the necessary adjustments.

HMRC's Agent Update
We summarise the key points and add some more useful ones too.

GOV.UK One Login
HMRC has introduced GOV.UK One Login as a new way of signing into government services

IR35 offset rules
From 6 April 2024, HMRC is finally given the power to deduct tax and NIC already paid by a worker from the tax and NIC due from their deemed employer when the off-payrolling IR35 apply to an engagement. The new rules do not extend to an offset of the Employer's National Insurance Contributions (NIC).

Tax Cases (Freeview)

Distributions of share premium were dividends not capital gains
Distributions in specie made from a share premium account were confirmed by the Upper Tribunal to be income distributions and not capital. The UT considered if the payments by a non-resident company satisfied the definition of a dividend for the purpose of English law.

No SDLT or ATED relief for option to purchase property
 An agreement involving an option which allowed a company to purchase a £9.3 million property in two stages and advantaging the seller too, fell foul of both SDLT and ATED relief as the option was not ‘acquired exclusively’ for re-development as claimed.

Editor's Choice 

Creative Industries Tax Reliefs: At a glance (freeview)
What are Creative Industries Tax Reliefs? Which Creative Industries Tax Relief are you eligible for? When should relief be claimed under Audio-Visual Expenditure Credit (AVEC) and Video Games Expenditure Credit (VGEC)? 

 Finance Acts 2024 and Rolling Tax Planner 2024-25 (subscribers)
UPDATE: This rolling planner tracks the key tax announcements that impact the 2024-25 tax year and beyond. This planner is updated on an ongoing basis.

 Year-end Top Tips for OMBs 2023-24 (subscribers)
UPDATE: A last-minute year-end tax planning advice for owner-managed businesses and clients. What should you focus on as the end of another tax year-end approaches? What should you do before 5 April and what could you leave until later? 

Explore our site (freeview)

Tax Tools and Calculators: Start Here
UPDATED for NICs changes: FREE for subscribers: We have a suite of useful tax tools that help agents, business owners and sole traders calculate their taxes. 

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. 

A new business? Start here...
Starting a new job or starting in business? Will you be Self-employed? Our 'At a glance' guide takes you through the key steps in getting started for tax, with links helping you drill down for more detail.

A sole trader? Start here...
This freeview ‘At a glance’ guide is essential reading for anyone who is thinking of starting in business on their own, as a sole trader.

Tax planning for directors: Our top picks of 2023/24
Editor's choice: some of our favourite tax guides, toolkits & checklists for directors.

An Index to Share Transactions incl. Reorganisations, Demergers & Share Exchanges
What tax relief applies in a share transaction? When do you need a company reorganisation or reconstruction? What tax reliefs apply to a company reorganisation, a share for share exchange, reconstruction or other transaction involving shares?

A new director? Start here...
This freeview 'At a glance' guide is essential reading for anyone thinking about becoming a company director.

A new company? Start here...
This 'At a glance' freeview guide is essential reading for anyone thinking about starting up a new company.

Land & Property (subscribers)

Different ways of taxing UK property
Buying as an individual/trust or company? This guide summarises the different ways of taxing income and gains in respect of the exploitation of UK property. 

Incorporation: property business/buy to let
What reliefs can I claim if I incorporate my property business? What claims and elections do I need to make? What are the VAT and Stamp Duty Land Tax (SDLT) implications?

SDLT: Residential property higher rates
A guide to the Stamp Duty Land Tax (SDLT) higher rate charge on residential property, when it applies and what reliefs are available to exempt buyers from the charge.

CPD for Lunch

Byte-sized chunks of lunchtime CPD for subscribers

More at CPD Index

CPD Workouts

Two hours of CPD: Unravelling the diverse tax rules over a range of topical subjects

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 21 March 2024

  • HMRC changes view on Boilers
  • Time to claim Child Benefit again?
  • CGT: time of completion of contract
  • Trust residence: place of effective management
  • Footballer's deduction for agent's fees
  • New guide to VCTs
  • New: last minute tax planning for OMBs
  • Basis year reform
  • Non-doms and stat residence 
  • SDLT changes...More

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