Tax Insider 3 x Newsletter Bundle 

Tax compliance - Don’t you just love a good suspense!

Tax compliance is difficult and complex. Making a mistake in a tax return is a distinct possibility for many taxpayers.

Mark McLaughlin looks at how penalties for careless errors in tax returns can be suspended and ultimately cancelled.

Lifetime ISAs: Worth a look?

Qualifying individuals are eligible to open a lifetime individual savings account (LISA) in the same way as opening a regular ISA and contribute up to £4,000 each year, with the government providing a 25% bonus on contributions at the end of each tax year up to the age of 50. 

Sarah Laing looks at the benefits of opening a lifetime ISA and flags up an important recent change.

Hospitality: The 5% VAT rate 

Under current UK VAT law, the standard rate of VAT (20%) applies to all supplies of restaurant services, hot takeaway food, holiday accommodation and admission to many attractions.  

Andrew Needham looks at the implications of the temporary 5% VAT rate for the hospitality industry.

Accountants vs solicitors: Decisions, decisions!

The divide between solicitors and accountants has been getting fuzzier over the last 20-30 years; it is certainly not a new question. 

Chris Thorpe looks at the differing services which a solicitor and accountant can offer for tax planning.

When does a rental business cease?

For UK tax purposes all sources of rental income, be they commercial or residential lets, furnished or unfurnished, are regarded as being derived from the same single property rental business, except for furnished holiday lets (FHL), which are kept separate. EU lettings and EU FHL are also separate activities.

Jennifer Adams considers the date on which a property business ceases to trade.

IHT: It’s all in the timing!

Where people act as personal representatives (PRs) for those who died in the months leading up to the coronavirus pandemic, there is a good chance that they will be realising assets for less than their value at death.  

Kevin Read explains how personal representatives can save inheritance tax where quoted investments or land have lost value.

Child benefit: Is it really tax free?

Tax allowances for children have been around since 1798 and are a very welcome contribution to most UK households. In its modern form, child benefit was phased in from 1977 to 1979. 

Meg Saksida considers the workings of the high income child benefit charge.

Q&As with Arthur Weller

Divorce and tax: From bad to worse?

The end of a marriage (or civil partnership) is often difficult and stressful. Unfortunately, the tax rules could make a bad situation worse.

Mark McLaughlin points out that transfers of business assets as part of court orders in divorce proceedings can have unwelcome capital gains tax consequences. 

They think it’s all over: Relief for terminal losses

The tax legislation provides various reliefs for business losses, both for income tax and corporation tax purposes. The provisions include a specific relief for terminal losses.

Sarah Bradford outlines the tax relief available to business owners for terminal losses.

Stamp duty on shares: The new rules 

Stamp duty is in many ways a strange and archaic tax, although a lot of work has been done recently on bringing it more ‘up to date’.  

Alan Pink explains the new rules imposing market value on transactions in shares for stamp duty purposes, as included in Finance Act 2020.

Simplifying R&D claims for small firms

Prior to February 2019, making research and development (R&D) claims was something of a minefield for small firms. Some claims were submitted with no more than a single figure included in the tax computation, representing the total qualifying R&D expenditure, while others contained extremely detailed information about the individual projects undertaken and the costs to justify the claim.

Iain Rankin looks at changes in HMRC’s new simplified claims procedure for research and development, and how small firms may benefit.

Q&As with Arthur Weller

Trust for the kids: What could possibly go wrong?

A parent with sufficient means may sometimes wish to transfer an income producing asset. For example, a mother may wish to transfer investment property into a discretionary trust for her daughter (e.g. to help cover university costs or supplement income when buying her own home and/or starting a family). 

Mark McLaughlin highlights a selection of potential tax pitfalls when parents transfer investment property into a discretionary trust for their adult children.  

A good time to expand the buy-to-let portfolio?

To help the country recover from the impact of the Covid-19 pandemic, the Chancellor announced a temporary increase in the stamp duty land tax (SDLT) threshold in his summer statement. Changes were also announced by the devolved governments to land and buildings transaction tax (LBTT) in Scotland and land transaction tax (LTT) in Wales.

Sarah Bradford considers whether landlords should look to take advantage of the temporary reduction in stamp duty land tax, land and buildings transaction tax and land transaction tax by expanding their property portfolio before 1 April 2021.

Interest relief: Shifting sands

The UK notoriously has one of the most complicated tax systems in the world, and this certainly isn’t helped by the way HMRC administers it on some occasions.  

Alan Pink looks at the (still) vexed question of relief for interest on buy-to-let loans following refinancing.

Property in the deceased’s estate: IHT reliefs and exemptions

The main residence, although exempt for capital gains tax, is not exempt for inheritance tax (IHT) purposes. Usually, it will be taxed at 40% of the probate value at the date of death. 

Meg Saksida considers various ways property can be protected from IHT in the death estate.

Q&As with Arthur Weller