Tax Insider Newsletter Bundle

Understanding the Seven-Year Rule and Inheritance Tax Taper Relief

Many individuals without much knowledge of inheritance tax (IHT) will nevertheless be aware of a ‘seven-year rule’ for escaping IHT on lifetime gifts. 

Mark McLaughlin looks at how and when inheritance tax taper relief can apply. 

In May, HM Revenue and Customs (HMRC) reminded parents of the savings they can make on childcare costs when a child starts primary school for the first time. 

Richard Curtis suggests that parents should check whether they and their children are eligible for tax-free childcare.

The Pitfalls of VAT Deregistration for Small Businesses

Businesses have been going through difficult times recently and some smaller businesses selling to the public, particularly services, find that they have fallen below the VAT deregistration threshold (currently £88,000 p.a.) and think that they would be better off deregistered. 

Andrew Needham looks at some possible traps a business can fall into when deregistering from VAT that can result in an unexpected bill from HMRC. 

What Qualifies as Allowable Capital Expenditure for Capital Gains Tax?

Most readers will be aware that capital expenditure cannot be offset as an expense against income. 

Ken Moody goes back to basics in considering what is allowable expenditure for capital gains tax purposes and reminds readers that the issue is circumscribed by specific legislation.

Can I Avoid Inheritance Tax by Giving My Assets to My Children?

A question often asked is: “Can I give all my assets to my children and avoid inheritance tax (IHT)?”. 

Tristan Noyes looks at some inheritance tax planning techniques with the family home and rental properties. 

Exploring Tax Relief Options for Business Loan Interest Payments

At some time during the life of a business, that business may need funding, whether the monies come from the owner's personal resources or via a bank. 

Jennifer Adams considers whether tax relief is available for interest paid on all loans taken out to fund a business.

The Basics of Trusts: What You Need to Know for Law and Tax

Trusts are formed when the legal ownership of an asset is separated from the beneficial ownership, i.e., a legal owner (the trustee) holds it ‘on trust’ for another person (the beneficiary) who benefits from it. The person who establishes the trust is the ‘settlor’. 

Chris Thorpe outlines some of the basics of trusts for law and tax purposes.

Q&As with Arthur Weller

Dividends or bonuses? We can work it out!

Consider the following scenario:

'On a wintry sunny morning, Alan was reviewing his company’s January 2024 management accounts. Alan was the sole director and 100% shareholder of Llandudno Hotels Ltd, which operated two large hotels in Llandudno. The business was on course to healthy pre-tax profit of around £650,000 for the year ended 31 March 2024. Alan had been planning to pay himself a substantial ‘bonus’ before the year-end'. 

What does Alan do?

Peter Rayney examines an owner-manager’s cash extraction following the numerous tax and National Insurance contributions changes.

Use them or lose them: 2023/24 tax allowances

As the tax year draws to a close, it is prudent to review one’s 2023/24 tax allowances and consider whether there is scope for utilising any unused allowances so they are not lost. 

Sarah Bradford explores options for using 2023/24 tax allowances so they are not wasted.

Record-keeping in a digital age

Lee Sharpe looks at taxpayers’ record-keeping obligations in light of HMRC’s inexorable march to digital everything (almost).

Historically, HMRC has been quite relaxed about whether original records must be maintained or digital facsimiles (scans, etc.). 

Trap for business owners seeking CGT incorporation relief

HM Revenue and Customs (HMRC) recently commenced a ‘One to Many’ campaign, targeting taxpayers who incorporated property businesses in the tax year 2017/18 but reported no capital gains tax (CGT) liability in their tax returns on the basis that ‘incorporation relief’ applied in full. 

Mark McLaughlin highlights a potential trap for business owners seeking capital gains tax incorporation relief.

Q&As with Arthur Weller