Hello
The Autumn Budget changes to Capital Taxes herald a 'golden age' for Private Client tax specialists and even led to James Murray MP, Exchequer Secretary to the Treasury, making an appearance on BBC's Newsnight where he clearly recommended that those impacted by the tax changes should consult the services of a tax adviser. Hopefully, we can help out there!
The combination of changes made to and proposed for Capital Gains Tax (CGT) and Inheritance Tax (IHT) by the Chancellor in her recent budget coupled with the reforms to non-domiciled taxation are set to keep tax advisers extremely busy.
In response to the protests of farmers to the changes to IHT Agricultural Property Relief (APR), James Murray MP, Exchequer Secretary to the Treasury appeared on BBC's Newsnight program this week recommending that farming families should take tax advice to mitigate their potential IHT liabilities. But, it is not just farming families who need to consider IHT.
As a tax, IHT is far more complex than it appears at first glance. With rises in the rate of CGT, there is a serious amount of number crunching required to weigh up the advantages of lifetime giving with the merit of rolling over gains with the benefit of a CGT-free uplift on death. Our new IHT top planning ideas guide looks at these and further options for you and your clients.
If you are a tax agent, have you received HMRC's reminder email about Agent codes? We have not, the thought occurs that I trashed mine mistaking it for phishing as we did receive phishing emails at that time. Oddly there is no mention of code verification on our Agent online account.
More news, cases and updates below. Do note the impending deadline for topping up on National Insurance Contributions (NICs).
Nichola and the Team
Your Virtual Tax Partner®: online PRACTICAL support for accountants, tax advisers BY accountants and tax advisers.
Quick News
Request overlap profits by 31 December 2024
Basis Year change cases: HMRC has asked that requests for overlap information be submitted by 31 December 2024, to help them manage the volume of requests ahead of the 2023-24 submission deadline on 31 January 2025.
NICs: Top up before April 2025
Taxpayers can go back to 2006-07 to top up their NICs contribution record, but this facility ends on 5 April 2025.
The Loan Charge: What now?
We look at the current situation for those who have remaining liabilities and the government's plans for a review. MPs and tax professionals have raised concerns over the lack of independence in the first review.
Consultation on new ways to tackle non-compliance
HMRC has launched a new consultation 'The Tax Administration Framework Review: New ways to tackle non-compliance'. This invites views on whether HMRC’s approach to correcting taxpayer inaccuracies in a claim or return could be improved.
Reduction in HMRC's interest rate
Following the Bank of England’s announcement on 7 November 2024 that the base rate would decrease to 4.75%, HMRC's interest rates are also decreasing by 0.25%, to 7.25% for late payment interest and 3.75% for repayment interest, from 26 November 2024.
Confirm HMRC agent codes by 6 December
On 4 October 2024, HMRC e-mailed tax agents to request that they provide details of their agent codes for Self-Assessment, VAT and Corporation Tax by 8 November 2024. This deadline has now been extended to 6 December 2024.
Tax Cases
CGT: no TTP, no reasonable excuse
In Darren Wragg v HMRC [2024] TC09350, the First Tier Tribunal (FTT) found that a lack of funds owing to the terms of a sale agreement did not amount to a reasonable excuse for late payment of Capital Gains Tax.
Editor's Choice (subscribers)
Ten top planning tips for IHT
The Budget recently made a number of changes to Inheritance Tax (IHT). What are the ten top IHT planning tips to consider?
Autumn Budget 2024 Zone
Check our Budget coverage with links to our Subscriber special updates and Client Briefings.
Guides & Updates
Self-employed
NICs Top Ups: National Insurance Contributions
Topping up NICs: when should you make additional National Insurance Contributions (NICs)? How do you check your NICs record? How to pay voluntary NICs? How to check your state pension entitlement?
Partnerships
Salaried members: When is a partner taxed as an employee?
In some circumstances, Limited Liability Partnership (LLP) members are taxed as employees under PAYE. When does this apply?
Directors & Companies
Website & software costs
What tax relief can a company claim on the cost of buying or creating a website, software or on e-commerce development?
Patent Box
UPDATE: On 7 November 2024, HMRC published GfC9 Help with Patent Box computations. The guidelines set out the recommended best practice for record-keeping, the information included in claims and common errors found in claims.
Overseas & Residence
Client Briefing: Changes to the Non-Domicile tax regime
Budget update on Non-doms, Residence, IHT and Transitional arrangements.
Employers
Employers' Autumn Budget 2024 (Subscriber Update)
UPDATE: we look at winners and losers from the changes to National Insurance rates, changes to benefits and expenses and actions on umbrella companies.
Private Client & Estate Planning
CGT: Payment of Tax
When is Capital Gains Tax (CGT) due? Can I pay in instalments? What are the penalties if I pay late?
CGT changes: Autumn Budget Subscriber update
UPDATE: changes include increases in the lower and higher CGT rates to 18% and 24% an increase in Business Asset Disposal Relief (BADR) and Investors’ Relief (IR) as well as changes to the rules for Employee Ownership Trusts (EOTs) and Carried Interest gains.
Adviser Briefing: Changes to BPR (Autumn Budget 2024)
Significant changes to Business Property Relief (BPR) were announced at the 2024 Autumn Budget. What is changing and what might the impact be?
Land & Property
Land & Property Autumn Budget 2024 (Subscriber Update)
Changes to alternative financing of property, the start of business rates reform with large rates rises for 'online giants' and a rise in the ATED charges rise. The abolition of FHL tax status goes ahead as previously announced.
Penalties & Compliance
Named tax avoidance schemes, promoters, enablers
UPDATE: HMRC publishes a list of named tax avoidance schemes, promoters, enablers and suppliers. It is not recommended that taxpayers use any of these schemes, as HMRC does not consider that they work and you may end up with a significant tax liability if you engage with the scheme suppliers.
VAT News & Cases
Correcting VAT errors
What are the VAT error correction time limits? Can you correct errors through the VAT return? Do you have to notify HMRC?
Starting in business: VAT
One of the first decisions to make when starting in business is whether or not you should register for VAT. Am I running a business for VAT purposes and if so, when do I register?
Tax Tools & Calculators
Tax tools & calculators
UPDATE: 2024/25 versions available now. 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.
CPD
CPD for lunch: Byte-sized chunks of lunchtime CPD (free for our Subscribers)
- CPD: Income Tax and Trusts
- Free Study Skills Session - Preparing for Your Tax Exams
- CPD: Change of basis periods: Transitional rules 2023-24 Returns
- How to run the most tax-efficient business 2024/25.
- Purchase of Own Shares: all the details.
- Anti-money Laundering Update and Firm-Wide Risk Assessment ...More...
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 wide range of expertise: covering direct and indirect tax, as well as accounting, R&D claims, reorganisations and much more.
Missed the Last Tax Update?
Ross Martin Tax: SME Tax News 14 November 2024
- Consultation: IHT on Pensions
- Simplifying offshore avoidance legislation
- Help to Save Reform update
- Report outcome on HMRC’s enquiry and assessment powers
- Finance Bill 2024-25
- SME R&D claim success
- APN judicial review no excuse for late payment of penalties
- Late tax appeal was ten years too late
- Accountant's ‘Compensation’ claim liable to Income Tax ...More
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