News and Comments

News and Comment

(I apologise if the content is not always ‘pc’,

There are links to other sites included here

HMRC budget cut 5% in Spending Review

http://www.accountancyage.com/aa/news/2277699/hmrc-budget-cut-5-in-spending-review

Creditors’ Voluntary Liquidation in the UK – The Key Facts

http://www.linkedin.com/news?viewArticle=&articleID=5755673387984777233&gid=81256&type=member&item=253233168&articleURL=http%3A%2F%2Fhub%2Eam%2F136Sp6y&urlhash=P80j&goback=%2Egde_81256_member_253233168

New Miss USA is an accountant

http://www.linkedin.com/news?viewArticle=&articleID=5752274752605536340&gid=2755005&type=member&item=251246176&articleURL=http%3A%2F%2Fow%2Ely%2Fm7SAU&urlhash=09VH&goback=%2Egde_2755005_member_251246176

http://www.cbsnews.com/8301-207_162-57589547/new-miss-usa-is-an-accountant/

Five Things to Know about Transfer Pricing

http://www.linkedin.com/news?viewArticle=&articleID=5753571583448858652&gid=2755005&type=member&item=253251996&articleURL=http%3A%2F%2Fblog%2Eclaytonmckervey%2Ecom%2Fblog%2F2013%2F06%2F20%2Ffive-things-you-need-to-know-about-transfer-pricing%2F&urlhash=G20C&goback=%2Egde_2755005_member_253251996

Cadbury fingered for aggressive tax avoidance

http://www.accountingweb.co.uk/article/cadbury-accused-aggressive-tax-avoidance/543591

Car list price for P11D

How do you find the original list price for a 1999 Ford Fiesta Zetec?

http://www.accountingweb.co.uk/anyanswers/car-list-price-p11d-0

MSPs scrap stamp duty

MSPs have unanimously passed the Land and Buildings Transaction Tax (Scotland) Bill after its final debate. Finance Secretary John Swinney told MSPs this was the first tax bill in Scotland for 308 years and said it was the "first step in strengthening the tax powers of the parliament". The tax will replace stamp duty on properties sold in Scotland when the Scottish Parliament is given control over property tax in 2015.

The Scotsman, Page: 13 The Herald, Page: 6

Daily penalties batted back

http://www.accountingweb.co.uk/article/sch-55-penalties-and-methods-attack/543283

Nigel Farage: Offshore fund was mistake

'Tax-dodgers' hotline receives 300 tip-offs a day: HMRC received 72,000 calls about potential tax evasion last year!

http://ow.ly/m64Mb

http://www.linkedin.com/news?viewArticle=&articleID=5750505362725806090&gid=81256&type=member&item=249055889&articleURL=http%3A%2F%2Fhub%2Eam%2F1194plU&urlhash=d6zl&goback=%2Egde_81256_member_249055889

Dragon PR tax fraud trial aborted

http://www.accountingweb.co.uk/article/pr-legal-battle-hmrc-and-accountants-begins/543877

HMRC rewrites inheritance tax manual

http://www.ftadviser.com/2013/07/02/ifa-industry/tax-planning/hmrc-rewrites-inheritance-tax-manual-KbDyNlyeWDwsXtg8I81BtN/article.html?j=342895&e=john@jeppsllp.com&l=346_HTML&u=9934217&mid=1062735&jb=0

http://www.hmrc.gov.uk/manuals/ihtmanual/ihtm42900.htm?j=342895&e=john@jeppsllp.com&l=346_HTML&u=9934216&mid=1062735&jb=0

Aim shares to be allowed in ISAS by autumn

http://www.investorschronicle.co.uk/2013/07/03/shares/news-and-analysis/aim-shares-to-be-allowed-in-isas-by-autumn-4eHlbbYMdC9mInB6h4bcYI/article.html

IHT free Isas [An article in the Financial Times]

The FT looks at how Isas will be available without IHT liability when Aim-listed shares become eligible in the autumn. Although Isas are seen as tax-free, assets within them form part of their owner's estate on death and are therefore liable for IHT. However, shares listed on the Aim are exempt from IHT. As a result the Treasury's announcement that Aim shares are to be allowed in Isas from the autumn means that investors will be able to hold shares in a way that is free from income tax, CGT and IHT. "Over 1,000 companies listed on the Aim will now be eligible for direct Isa investment," the Treasury said. "The changes will provide savers with a tax-efficient way to hold shares traded on SME markets." Danny Cox of Hargreaves Lansdown commented: "This paves the way for the IHT-free Isa." He added: "Qualifying Aim stocks benefit from 'business property relief' or BPR, which provides an IHT exemption once the shares have been held for two years. Investors holding these stocks in their Isa for the two-year qualifying period should benefit from virtually no lifetime taxes, and no death taxes either."

Financial Times, Page: 3

Britain should embrace tax havens

http://www.investortoday.co.uk/news_features/britain-should-embrace-tax-havens

Ways for couples to cut their tax bills

http://www.thesundaytimes.co.uk/sto/business/money/Tax/article1283656.ece

Swiss tax deal deficit leaves Osborne staring at £2.2bn hole

http://www.thetimes.co.uk/tto/business/economics/article3809596.ece

Get back to the land for big tax breaks

http://www.thetimes.co.uk/tto/money/tax/article3809446.ece

Directors to be liable for corporate collapses

http://www.financialdirector.co.uk/financial-director/news/2282570/directors-to-be-liable-for-corporate-collapses?wt.mc_ev=click&WT.tsrc=Email&utm_term=&utm_content=Directors%20to%20be%20liable%20for%20corporate%20collapses&utm_campaign=FDweeklyJUL16&utm_source=Financial%20Director%20Tuesday%20Newsletter&utm_medium=Email

HMRC halts £135m stamp duty avoidance scheme - 16 Jul 2013 - Accountancy Age ifaonline.co.uk

A tax tribunal ruled against a £135m stamp duty land tax (SDLT) avoidance scheme, which included the Chelsea Barracks property

http://www.linkedin.com/news?viewArticle=&articleID=5762542610841342051&gid=4073143&type=member&item=258328167&articleURL=http%3A%2F%2Fwww%2Eifaonline%2Eco%2Euk%2Fifaonline%2Fnews%2F2282456%2Fhmrc-halts-gbp135m-stamp-duty-avoidance-scheme&urlhash=kmc9&goback=%2Egde_4073143_member_258328167

Share Buybacks For UK Private Limited Companies – An Overview

http://www.pearse-trust.ie/blog/bid/99011/Share-Buybacks-For-UK-Private-Limited-Companies-An-Overview?utm_source=linkedin&utm_medium=social&utm_content=827980

Voidable Trusts – 4 Reasons Why Courts Can Set Aside A Trust

Posted by Pearse Trust on Mon, Jul 08, 2013

http://www.pearse-trust.ie/blog/bid/98804/Voidable-Trusts-4-Reasons-Why-Courts-Can-Set-Aside-A-Trust?utm_source=linkedin&utm_medium=social&utm_content=684334

HMRC launches self-assessment amnesty

http://www.accountancyage.com/aa/news/2280557/hmrc-launches-selfassessment-amnesty

HM Revenue & Customs Employee Benefit Trusts Campaign is in serious trouble.

.
"5,600 businesses are reticent to engage with HMRC or take up the settlement because it is unwilling to enter negotiations"

HMRC faces gridlock if it continues with it's campaign.

The Rangers OldCo appeal case may well sink it.
.

HMRC yet to collect £2bn in unpaid tax held in offshore trusts accountancyage.com

Less than a quarter of £3bn of tax sheltered in employee benefits trust has been collected by HM Revenue &...

Finance Bill 2013 receives Royal Assent

The Finance Bill 2013 received Royal Assent on 17 July 2013 and became the Finance Act 2013.

Duties & Powers Of Directors Of Private Companies In Ireland

Posted by Pearse Trust on Wed, Jul 24, 2013

Supreme Court quashes Nortel/Lehman pension rulings

by Rachael Singh & Jack Jones, Professional Pensions

http://www.accountancyage.com/aa/news/2284449/supreme-court-quashes-nortel-lehman-pension-rulings

Tchenguiz brothers prepare £2.5bn action against Grant Thornton liquidators

http://www.accountancyage.com/aa/news/2285396/tchenguiz-brothers-prepare-gbp25bn-action-against-grant-thornton-liquidators

Client portals reach a tipping point

4 July 2013

A new survey by Wolters Kluwer Tax & Accounting reveals the attitudes that will drive growth in this emerging sector.

http://www.cch.co.uk/croner/jsp/Editorial.do?itc=0&channelId=-760081&contentId=2650770&ito=2948&Failed_Reason=No+BVCookie+present+to+retrieve+the+session.&Failed_Page=%2fjsp%2fEditorial.do&BV_UseBVCookie=No

DAILY CHECKS could soon be used by HM Revenue & Customs as a tool against firms offering aggressive tax avoidance schemes.

Officials hope the daily checks will nip abusive schemes in the bud, instead of challenging them when they reach an advanced stage, the Daily Mail reports.

http://www.accountancyage.com/aa/news/2285339/hmrc-plans-daily-checks-against-rogue-tax-avoidance-firms

News story

HMRC wins in court have protected over £1 billion

Organisation:

HM Revenue & Customs

Page history:

Published 18 July 2013

Policy:

Reducing tax evasion and avoidance

Minister:

David Gauke MP

https://www.gov.uk/government/news/hmrc-wins-in-court-have-protected-over-1-billion

HMRC to target non-doms over remittance errors

HM Revenue & Customs is to make contact with non-domiciled individuals to ensure they are aware of the taxation of remittances made to the UK

Announced today, proposals to reform the Close Company Loans to Participator rules. These come on top of recent changes in FA 2013..more

http://www.linkedin.com/groupItem?view=&srchtype=discussedNews&gid=4291727&item=256932226&type=member&trk=eml-anet_dig-b_pd-ttl-cn&fromEmail=&ut=1GOqYfVacUNlQ1

Greek deputy PM says UK has become top destination for tax avoiders

http://www.telegraph.co.uk/finance/10233675/Greek-deputy-PM-says-UK-has-become-top-destination-for-tax-avoiders.html?goback=%2Egde_2069101_member_264864767#%21

Project Blue: A UK Stamp Duty Land Tax Case That Made History

To Pierce Or Not To Pierce The Corporate Veil - Landmark Decision P.II

Posted by Pearse Trust on Wed, Aug 21, 2013

http://www.pearse-trust.ie/blog/bid/100167/To-Pierce-Or-Not-To-Pierce-The-Corporate-Veil-Landmark-Decision-P-II?utm_source=linkedin&utm_medium=social&utm_content=1233529

HMRC SUFFER HUMILIATING DEFEAT IN OVERSEAS PENSION SCHEME JUDICIAL REVIEW –

In what can only be described as a humiliating capitulation, HMRC have conceded defeat during the course of a hotly contested judicial review hearing in the High Court. HMRC withdrew the relevant assessments and were ordered to pay the applicants' costs on an indemnity basis. While HMRC's withdrawal means that a judgment is unlikely to be issued, the proceedings have been publicised by various investment advisers.

http://www.linkedin.com/groupAnswers?viewQuestionAndAnswers=&discussionID=267557100&gid=4073143&trk=eml-anet_dig-b_nd-pst_ttle-cn&fromEmail=&ut=1PFWojo_L9lRU1

http://www.linkedin.com/groupAnswers?viewQuestionAndAnswers=&discussionID=267557100&gid=4073143&trk=eml-anet_dig-b_nd-pst_ttle-cn&fromEmail=&ut=3SaXIbTy72vBU1

Is PPR due on derelict building?

http://www.accountingweb.co.uk/anyanswers/question/ppr-due-derelict-building

Agricultural Property Relief & Business Property Relief

http://www.accountingweb.co.uk/press/agricultural-property-relief-business-property-relief-how-protect-your-clients

A Simple Solution to HMRC’s concerns – the case of Simple Solutions GB Limited

16th August 2013

In general HMRC expects, and its officer’s do make, thorough checks before issuing assessments. However the case of Simple Solutions GB Limited, a business involved in construction services, highlights the potential cost to a business when an officer makes an incorrect decision. The case relates to a disputed assessment for VAT of £111,477.98 and a blocked repayment claim relating to VAT claimed on purchase invoices.

http://www.thevatpeople.co.uk/news/a-simple-solution-to-hmrc-s-concerns-the-case-of-simple-solutions-gb-limited

Project Blue: A UK Stamp Duty Land Tax Case That Made Headlines

Article By:

Sanjay Mehta

Peter Sugden

Katten Muchin Rosenman LLP

In July 2013, the Stamp Duty Land Tax (SDLT) case of Project Blue Ltd v. HM Revenue & Customs, concerning the high-profile development of Chelsea Barracks, was the first real test of the SDLT’s broad anti-avoidance rule (Section 75A of the Finance Act 2003). This advisory considers why Project Blue has attracted mass media comment and why the real estate sector should take note of it.

http://www.natlawreview.com/article/project-blue-uk-stamp-duty-land-tax-case-made-headlines

Disincorporation relief: The lowdown

Posted by rachael power PM | on Thu, 29/08/2013 - 16:18 1072 print

Disincorporation relief came into force on 1 April 2013 and is aimed at companies wanting to carry on their business activities through a non-corporate structure.

http://www.accountingweb.co.uk/article/disincorporation-relief-lowdown/546247

Accountants whose clients deduct business expenses from their tax bill need to ensure that the expenses are solely for the purpose of trade, two recent tax cases have shown.

http://www.accountingweb.co.uk/article/auf-wiedersehen-expenses-two-lessons-tax-tribunals/546281

Tax Residency Legislation

Following a protracted period of consultation, a draft statutory residence test was published alongside the Autumn Statement in December 2012, and a final version became part of the 2013 Finance Act, having effect from 6 April 2013.

http://services.parliament.uk/bills/2013-14/finance.html

Statutory Residence Test.

The current rules for determining tax residence depend to a large extent on cases decided by the Courts and can be found in HM Revenue and Customs guidance. The new statutory residence test wil replicate as far as possible the residency outcomes delivered by the current rules. However the new test will take into consideration the days spent in the UK and connections to the UK. It is structured in 3 parts:

https://www.skandiainternationalknowledgedirect.com/Financial-Planning-Solutions/Country-Specific/Summary-of-the-main-changes-announced-in-the-Finan.html

The following information is based upon the guidance note issued by HM Revenue and Customs in December 2012 and the draft legislation within Finance Bill 2013, issued in March 2013.

The Statutory Residence Test will determine individual UK tax residence with effect from 6 April 2013 onward. The following sets out the broad structure of the test. Specific definitions apply to certain aspects of the test and therefore action relating to your status should not be taken without individual advice.

http://www.statutoryresidencetest.co.uk/