People are sometimes surprised that they can trigger capital gains tax (CGT) if they gift an asset or sell it at undervalue. Unfortunately, that is what the tax law requires. Suppose that I have a piece of art worth £30,000 and I gift that to my cousin. I am treated as if I sold it for
It is standard inheritance tax (IHT) planning to write death benefits payable from money purchase (defined contribution) pension schemes into trust for one or more nominated beneficiaries (usually family members). Under current rules, this puts them outside the IHT net if the policyholder dies. At the Chancellor’s Budget on 30 October 2024, the government announced
Think Carefully About How you Use your Pension Read More »
With Christmas approaching, businesses will be giving business gifts to valued customers and suppliers. But how much VAT can be claimed back on their purchase? Wine for Christmas For example, a regional firm of accountants decides to give each of their valued clients two bottles of wine worth £40 plus VAT of £8.00. In addition,
A Small Seasonal Gift from HMRC Read More »
Charitable giving is seen as a ‘good thing’ and is supported by the UK tax system with various tax reliefs designed to encourage donations. As well as financially incentivising the donors, these reliefs also benefit the charities by increasing the value of donations. This article looks at the various tax reliefs available to individuals. Gift Aid The most well-known tax
Giving Generously – And Tax-Efficiently! Read More »
Let go – Properly! Mark McLaughlin highlights a potential beartrap when setting up a trust for family members as part of their lifetime inheritance tax planning. Many individuals set up trusts for family members as part of their lifetime inheritance tax (IHT) planning. The intention is that assets gifted into trust fall outside their estate
Let Go – Properly! Read More »
After a lifetime of grind, retirement seems particularly sweet when it’s a business which was built from the ‘ground up’ – all that effort and the risks taken. With regard to the relevant taxes, it is primarily capital gains tax (CGT) which needs consideration when a business is being sold. A business is generally free
Selling Up: Which Route? Read More »
Mistakes happen. The HMRC voluntary disclosure process allows individuals or businesses to come forward and correct tax errors, omissions or undeclared income before HMRC has initiated an inquiry, having discovered the error itself. It gives taxpayers the opportunity to pay what they owe, explain how the error occurred, and often receive lower penalties for doing
Voluntary Disclosure of Undeclared Income Read More »
When I first mentioned a spousal bypass trust (SBT) to my wife, she thought I was trying to write her out of my will! Of course, this was not the case – in basic terms, an SBT simply transfers funds that would typically go to your spouse into a trust which they, and others, can
In HMRC v Bunting [2025] UKUT 00096 (TCC), the Upper Tribunal (UT) considered when a loan to a trading business can be regarded as ‘outstanding’ and ‘irrecoverable’, meaning that the lender can claim an allowable capital loss. The Facts Timothy Bunting (TB) made a series of loans, totalling £3.45m, to a trading company (Rectory Sports
Worthless Debt can be More Valuable for Tax than Worthless Shares! Read More »
In many cases, it is easy to identify a commercial vehicle, such as an HGV, transit-type van or a coach. However, there are some vehicles that are classified as commercial vehicles (defined as having a payload of over one tonne or an unladen weight of three tonnes) but have a dual purpose and are held
Commercial Vehicles and VAT Recovery Read More »
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