Dec 052016
 

Hooray. I’ve been waiting and waiting all day for this (not really – slight exaggeration).

You can download the Draft Finance Bill 2017, together with the Explanatory Notes from this page. These documents are both in pdf format.

One other link which should be particularly useful is the  overview of the draft legislation. I would urge you all to take a look at this page while you’re also going through the draft Bill. After the opening bits we come to a section called Information about changes to tax legislation. For the first time in a long time, we have a single page on a government website where you can access links to the separate policy papers and technical notes.

Which saves me having to do it on this site. Happy reading everybody.

Nov 232016
 

The Corporation Tax Annual is part of a collection of Core Tax Annuals published by Bloomsbury Professional. There are eight volumes in all, making a complete set. Apart from corporation tax, the annuals deal with: income tax, capital gains tax, national insurance contributions, stamp taxes, VAT, inheritance tax and trusts and estates.

This year, there’s another set of annuals to deal with the Scottish taxes. Because as you’re all aware, Scotland has recently been following its own tax map – Scotland can set its own tax rates and has its own set of stamp taxes called Land and Buildings Transaction Tax. And soon, Wales and Northern Ireland will follow suit. Creating a nightmare for tax practitioners. Continue reading »

Nov 222016
 

I don’t know for certain. The awful GOV.UK website tells me that the main page will be here.

And the important documents – you know, the ones that tell you what’s really going to happen – well, they are to be found here.

Oh, perhaps I’d better tell you the date. Tomorrow. Wednesday 23 November 2016. Continue reading »

Nov 122016
 

The following article was written in July 2013. Since that time, the Government has introduced various changes to the tax legislation, in order to discourage private landlords operating in the buy to let sector. These changes include higher SDLT rates on acquiring a “second home” restrictions on tax relief for borrowings and higher CGT rates on residential property.

This has led to increasing interest amongst individual landlords in the question whether it is worth incorporating. Although companies are also subject to the higher SDLT rates, they are not affected by the interest relief restrictions, and they are taxed at lower rates, both on rental profits and capital gains.

There is a special CGT relief for incorporating a business. In the context of buy to let incorporations, it is crucial that the properties are held as business assets rather than as an investment – and the two are not necessarily the same thing.

(This article can be downloaded in pdf format at Academia.edu.)

Continue reading »

Nov 062016
 

Investors’ relief is a new CGT relief introduced by Finance Act 2016, designed for people who invest in unquoted trading companies without being involved in the management or operation of the business. These people cannot qualify for entrepreneurs’ relief on realising their investment, and so they wouldn’t expect to benefit from the special 10% rate – until now.

This is a tax relief which should be of particular interest to business angels. Although we already have other tax advantaged schemes, such as the venture capital schemes, they are too complicated and hedged with all sorts of rules and regulations. Investors’ relief is far simpler and should prove an attractive alternative for investors.

(This article can be downloaded in pdf format at Academia.edu)

Continue reading »

Sep 082016
 

The news is in the heading. The source is here at the GOV.UK site. Particularly gratifying to see that they haven’t waited a few days after it first appears on the BBC website.

Not that there’s anything particularly wrong with the latter, but those who practice law, and professional historians and journalists all know that primary sources are always better than secondary ones. Continue reading »

Finance Bill 2016 – Entrepreneurs’ Relief and Joint Ventures

 CGT, Corporate Tax  Comments Off on Finance Bill 2016 – Entrepreneurs’ Relief and Joint Ventures
Jun 032016
 

Last year, the Government made some changes to the rules on entrepreneurs’ relief, aimed at individuals who use a corporate vehicle to conduct their business. Before the changes, it was possible for the individual’s personal company to trade through a joint venture or partnership and apply “look-through” rules to qualify for trading status. This was stopped, but now, following Budget 2016, the position is being restored in cases where the individual holds a 5% interest in the relevant joint venture or partnership.

However, there are quirks in the new rules. As we shall see, the position has not been restored exactly in the way that one might expect. We shall concentrate on the rules for joint ventures, but the rules for partnerships are similar and give rise to the same issues.

(This article can be downloaded in pdf format at Academia.edu)

Continue reading »

Property Tax: Why can’t corporate landlords deduct their finance costs in calculating their profits?

 Corporate Tax, Property Tax  Comments Off on Property Tax: Why can’t corporate landlords deduct their finance costs in calculating their profits?
Apr 152016
 

Did you know that a corporate landlord can’t deduct its borrowing costs when calculating the profits of its rental business? Don’t believe me? Well, it’s true. And in this article we are going to find out exactly why.

I must confess that I myself had always assumed that interest payments on loans taken out to fund the business were tax deductible. But I got a huge shock one day when I was doing a piece of research and my eyes strayed into another part of the legislation. But once I got over my shock, I realised what was really going on.

(This article can be downloaded in pdf format at Academia.edu)

Continue reading »

Apr 132016
 

A major political storm is brewing in Westminster as more revelations into the tax affairs of leading public figures have come to light.

It appears that many of these figures have salted away substantial sums of money in a trust structure that allows them to draw an income tax free, and with no capital gains tax to pay when they sell their investment. Furthermore, it looks as if the taxman is letting them get away with it.

Continue reading »