Tax Insider Newsletter Bundle

When Inheritance Tax Planning Triggers the Pre-Owned Assets Tax

Planning to mitigate a particular tax can sometimes have an unforeseen knock-on effect for other taxes. 

Mark McLaughlin looks at the pre-owned assets tax charge, and its connection with inheritance tax planning.

While income tax applies to most sources of income, capital gains tax (CGT) applies to profits on the sale or disposal of an asset that has increased in value since its acquisition. 

Richard Curtis considers the capital gains tax exemptions for chattels and wasting assets.

VAT Errors and Penalties: What Triggers Them and How to Reduce the Impact

Any under-declaration of VAT could potentially attract a penalty. The level of penalty broadly depends on whether an error was careless, deliberate but not concealed, or deliberate and concealed. 

The standard penalty for a careless error is 30% of the potential lost revenue, increasing to 70% if the error is deliberate but not concealed, and 100% if the error is deliberate and concealed. 

Andrew Needham looks at how to minimise any penalties due if a business is assessed by HM Revenue and Customs. 

CGT and Spousal Transfers: Timing Matters for Main Residence Relief

Transfers of assets between spouses who are living together are treated as taking place at neither a gain nor a loss for capital gains tax (CGT) purposes under TCGA 1992, s 58. 

Joe Brough highlights how the date of transfer of an interest in a main residence between spouses can affect the amount of capital gains tax principal private residence relief available.

Are Nationwide’s £50 ‘Thank You’ Payments Taxable?

Eligible members of Nationwide Building Society saw ‘Big Nationwide Thank You’ payments of £50 paid into their accounts. What is the tax position of such payments?

Ian Holloway looks at the tax position of payments to certain investors.

LLPs and Companies: Using Both Structures for Business Planning

Limited liability partnerships (LLPs), often described as being a 'hybrid' combining features of both partnerships and corporations, allow two or more individuals to own and operate a business together while limiting their personal liability. 

Jennifer Adams considers the use of a combination of limited liability partnerships and companies. 

How Company Cars Will Be Taxed in 2025

If a car is made available to an employee for their private use, an income tax charge arises.  

Chris Thorpe considers how company cars may be taxed from April 2025.

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