March 2006 saw a major change in the tax treatment of trusts, and as we head towards the tenth anniversary of this change many trusts created since then will have reporting obligations and potential IHT liabilities to consider for the first time.
SME Tax News
In Viscount Hood, executor of the estate of Lady Diana Hood v HMRC [2016] T04858 an IHT avoidance scheme in granting a reversionary lease failed: the lease was a gift with reservation of benefit (GWR).
In Julian Nott v HMRC [2015] TC04897 the First Tier Tribunal (FTT) decided that the letting of holiday units was different to operating a B & B or a hotel and so did not amount to a trade for the purposes of NICs or sideways loss relief.
New companies are being duped into paying for an online directory listing by a webservice that displays a coat of arms that is not unlike that of Companies House.
In C Lucy v HMRC [2016] UKFTT TC04878 the First Tier Tribunal (FTT) found that the taxpayer was not conducting any trade and disallowed a claim to set off losses against general income.
The Low Incomes Tax Reform Group (LITRG) has urged the government to delay the proposed changes to self-employed NIC contributions which could be introduced as early as April 2017.
The Ministry of Justice (MoJ) has launched a consultation “Fee proposals for grant of probate”. Its proposes a new banding structure.
In Fab Cleaning Management Limited v HMRC [2016] TC04824 the First Tier Tribunal (FTT) cancelled penalties for inaccuracy in PAYE returns, agreeing that the forms must record amounts actually deducted from employees, not those which should have been deducted.
In A G Reid v HMRC [2016] UKFTT TC04872 the First Tier Tribunal (FTT) found that part of a payment made to an employee on a TUPE transfer was non-taxable: it was compensation for loss of pension rights.
HMRC have opened a consultation, Simplifying the Gift Aid donor benefits rules, following a call for evidence about how and why charities provide benefits, and the use of the extra statutory concessions and admission disregards.