Mark McLaughlin Associates

Chartered Tax Advisers

Tax Return Errors: They Told Me To Do It!

Errors are sometimes made in tax returns. This can result in HM Revenue and Customs (HMRC) seeking to impose penalties in respect of the errors. The calculation of penalties for errors etc. is beyond the scope of this article, but there is guidance in HMRC’s Compliance Handbook manual (including a table of ‘standard’ maximum penalties […]

Joint Property And Form 17: Practical Points

It is relatively common for an asset (e.g. an investment property) to be jointly held in the names of a married couple (or civil partners). The general rule is that those individuals are treated for income tax purposes as beneficially entitled to the property income in equal shares. This is sometimes referred to as the […]

Land And Property: Going On An Adventure?

The UK’s tax legislation is very often unclear when it comes to the treatment of certain events or transactions. For example, a potential ‘grey area’ is the tax treatment where an individual disposes of land or property; does the transaction fall within the income tax or capital gains tax (CGT) rules? This uncertainty over income […]

Passing Shares To The Children: How Difficult Can It Be?!

Many family companies have been trading for generations. Shares are often gifted when parents are approaching retirement, and wish to pass the business reigns to their adult children. Alternatively, parents may wish their children to have some of the company’s shares and possibly receive dividends to help fund further education. The potential tax implications of […]

Entrepreneurs’ Relief: Not A Good Time!

Entrepreneurs’ relief (ER) is among the most popular and well-known of tax reliefs. ER offers a capital gains tax (CGT) rate of 10% on net chargeable gains of up to £10 million. A claim for ER is available on a material disposal of business assets, such as an individual’s company shares, where certain conditions are […]

Gifting Property – IHT Free?

The inheritance tax (IHT) regime includes various useful reliefs and exemptions. Furthermore, certain categories of relief and exemption are not subject to a fixed upper monetary limit, if the relevant conditions are satisfied. Some of them are better known than others.  Perhaps one of the less well known IHT ‘exemptions’ (i.e. whereby a disposition is […]

Business Property Owners: Don’t Become A Contractor By Accident!

Many owners of businesses not engaged in construction work will probably know little or nothing about the construction industry scheme (CIS). This is perhaps understandable, as the definition of ‘contractor’ for CIS purposes means that non-construction businesses are generally excluded, unless average annual expenditure on construction operations (normally measured over a three year period) exceeds […]

Tax Return Enquiries: Check The Small Print!

The UK’s tax system might seem harsh to taxpayers who make a mistake, such as where a tax return error results in a penalty. The message in the title of this article may not come as a major surprise to many practitioners! However, taxpayers (and practitioners) could be forgiven for thinking that in contrast to […]

Entrepreneurs’ Relief: Watch Out For ‘Funny’ Shares!

Entrepreneurs’ relief (ER) offers individual taxpayers an attractive capital gains tax (CGT) rate of only 10% on total net chargeable gains from qualifying disposals of up to £10 million, if certain requirements are met. For trading company shareholders, ER is subject to four alternative main conditions (i.e. A, B, C or D in the ER […]

Service Companies – Can They Help?

Individuals who operate their businesses as sole traders or partnerships may sometimes wish that they operated through a company instead. For example, following changes to dividend taxation from April 2016, an income tax rate of 0% applies to the first £5,000 of dividend income (for 2016/17 and 2017/18). This has obvious potential attractions. Furthermore, if […]

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