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. LLP vs Company In a traditional general partnership, profits (or losses) are allocated to the partners in accordance with the agreed
Tax Planning with Limited Liability Partnerships Read More »
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? The £50 payment is made in addition to the £100 ‘Fairer Share’ paid earlier (to eligible members). So, as taxpayers deal with their tax returns, there are two payments
Income tax and Nationwide’s ‘Thank You’ and ‘Fairer Share’ payments Read More »
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. Where the asset transferred is a property which at some point has also been occupied as the only or main residence of one
PPR Relief: Transfers Between Spouses Read More »
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
How to Reduce VAT Penalties Read More »
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. However, some assets are exempt (e.g., a person’s only or main residence) while others (e.g., business assets) enjoy specific reliefs. Chattels and wasting
Chattels: Taxable or Exempt? Read More »
Mark McLaughlin looks at the pre-owned assets tax charge, and its connection with inheritance tax planning. Planning to mitigate a particular tax can sometimes have an unforeseen knock-on effect for other taxes. A Nasty Surprise? For example, ‘pre-owned assets tax’ (POAT) is an income tax charge, which was introduced to block certain ‘unacceptable’ inheritance tax
Goodbye IHT…Hello Income Tax? Read More »
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’. These trusts are known as ‘express trusts’, i.e., those deliberately created
Trusts: The Basics Read More »
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. To ensure that the interest paid is tax-deductible, it is essential that not only is the loan ‘wholly and exclusively’ used for business purposes from the outset, but
Funding a business: Is Tax Relief Available? Read More »
A question often asked is: “Can I give all my assets to my children and avoid inheritance tax (IHT)?”. The short answer is yes, but to avoid the tax, you need to live seven years from the gift and cannot benefit from the asset after the gift. If you continue to ‘enjoy’ the gifted assets,
Friends Without Benefits! Read More »
Most readers will be aware that capital expenditure cannot be offset as an expense against income. There is a huge body of case law concerned with the (sometimes fine) line to be drawn between capital and revenue expenditure. One of the founding principles was stated by Viscount Cave in Atherton v British Insulated and Helsby
CGT Expenditure: Section 38 Rules, Okay? Read More »
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