TAX
Understanding the Withdrawal of a Self-Assessment Notice to File
When Can a Self-Assessment Notice Be Withdrawn? A self-assessment notice to file is issued when HMRC requires an individual to complete a tax return. However, if the taxpayer...
The P800 process as it stands (Year ended 5 April 2016)
HMRC appear to be trying to be helpful by working out from the information they hold whether taxpayers have underpaid or overpaid tax. But the system is horribly flawed...
Simple tax assessments
HMRC will have the power from 2016-17 to assess an individual’s income tax or capital gains tax liability without them first being required to complete a self-assessment...
Estates and the nil rate dividend band and gross interest
Two changes, effective from 6 April 2016 will result in more estates having to settle tax liabilities arising during the period of administration. Prior to 6 April 2016 most...
Invest with HMRC?!
Following the reduction in base rate in August from 0.5% to 0.25%, HMRC have amended the interest rate due on late paid tax. HMRC have reduced all interest charge rates from...
Stamp duty and mortgages
When Is Stamp Duty Payable on a Mortgage Transfer? Stamp Duty Land Tax (SDLT) is generally not payable when property is transferred with no consideration. However, an...
Rent a room relief and bed and breakfast income
Understanding Rent a Room Relief for B&B Income Rent a Room Relief allows homeowners to earn up to £7,500 tax-free (previously £4,250 before 2016/17) by letting out...
Farmers’ losses and tax relief
Restrictions on Claiming Tax Relief for Farming Losses Many farmers rely on tax relief for farming losses to offset profits from other income. However, a restriction applies...
Suspended penalties HMRC
When HMRC identifies carelessness in tax filings, they may issue a penalty. However, in some cases, suspended penalties HMRC applies allow taxpayers to avoid an immediate...
Charitable trusts and the single rate band
Charitable trusts are typically exempt from income tax, making them a useful structure for managing donations and assets intended for charitable causes. However, complications...
Deemed domicile and residency
Individuals will be deemed UK domiciled from 6 April 2017 if: They have been resident in the UK for at least 15 of the last 20 years They were born in the UK with a UK...
Investors’ Relief: A Valuable CGT Break for External Investors
Introduced in the Finance Bill 2016, investors' relief provides a capital gains tax (CGT) break for external investors subscribing for shares in unquoted companies. This...