HIGH INCOME CHILD BENEFIT CHARGES NOT VALID

A recent tax tribunal has ruled against HMRC who were seeking to raise tax assessments for the high-income child benefit charge (HICBC) for earlier years that had not been reported to HMRC. HICBC is a special tax charge that applies where one member of a couple in receipt of child benefit receives income in excess[…]

INHERITANCE TAX IN THE SPOTLIGHT

We are expecting major changes to inheritance tax (IHT) in the March budget following two reviews by the Office of Tax Simplification (OTS) and a report by an all-party parliamentary committee. IHT is perceived as a complicated tax with numerous trivial reliefs and exemptions. Currently the tax only generally applies to transfers on death and[…]

WHEN IS A VAN NOT A VAN?

HMRC are being urged to provide clarity and consistency on the tax treatment of commercial vehicles such as VW Kombi Vans marketed as goods vehicles. The need for clarity follows the ruling in an important tax tribunal case involving “vans” provided to employees of Coca Cola. The court has upheld the HMRC view that certain[…]

CGT PRIVATE RESIDENCE RELIEF CHANGES

Draft legislation to be included in the next Finance Bill will make important changes to the calculation of CGT private residence relief. As announced in the Autumn 2018 Budget, there will be a reduction in the final period exemption to just nine months and stricter conditions for letting relief to apply. Currently where a property[…]

MAKE SCHOOL HOLIDAYS EASIER WITH TAX-FREE CHILDCARE

Did you know there is a government scheme available that can help contribute towards childcare costs which may mean fewer of your employees will need time off at the same time this summer.   Tax-Free Childcare is a scheme available to working parents with children from 0-11 years and many parents are not taking advantage[…]

HIGH INCOME CHILD BENEFIT CHARGE AND STATE PENSION

In previous blogs we’ve looked at tax planning to minimise or eliminate the high income child benefit to keep both husband and wife (or civil partners) looking after a child below the £50,000 threshold.   Where the income of one of the individuals exceeds £60,000 such that the whole of the child benefit is taxed[…]

NO TAX CHANGES ANNOUNCED IN SPRING STATEMENT

Despite the continuing uncertainty surrounding Brexit, the Chancellor delivered his Spring Statement on 13th March. The purpose of this statement is to update the House of Commons and the country on the state of the economy; it is not intended to include any major tax announcements, and none were made by the Chancellor.   As[…]