Mark McLaughlin Associates

Chartered Tax Advisers

Gifting Cash Into Trust – IHT Free!

The inheritance tax (IHT) exemption for normal expenditure out of income is very generous. There is no upper limit on an individual’s gifts (or ‘transfers of value’) in monetary terms; the only cap is the amount of ‘spare’ income eligible to be given away! Perhaps unsurprisingly, there are strings attached. A gift will only benefit […]

Entrepreneurs’ Relief – Share And Share Alike!

Family companies have always been a relatively common and popular trading medium, particularly husband and wife (or civil partner) companies. This popularity is likely to increase over time, following changes to the income tax regime for dividends from 6 April 2016. The possibility of husband and wife each utilising a dividend nil rate (or ‘allowance’) […]

Unpaid Deductions: Company Owners Beware!

Owner-managed and family businesses (among others) often fail. Unfortunately, the business owner’s problems do not necessarily end there. For example, an owner-managed company may have owed HM Revenue and Customs (HMRC) substantial amounts of PAYE income tax and National Insurance contributions (NIC) when it ceased trading and was liquidated. Those company liabilities may relate to […]

Furnished Holiday Lettings: Is Your Property ‘Special’?

Individual taxpayers who are residential property landlords will be aware that a profit on disposal of a property will normally be subject to capital gains tax (CGT). For disposals in 2017/18, the basic and standard rates of CGT are 10% and 20% respectively. However, gains on the disposal of interests in residential properties (that do […]

Interest Relief – Who Pays?

The restriction for landlords in the deduction of residential property finance costs (e.g. loan interest) to the basic rate of income tax, which is being phased in over a four year period commencing from 6 April 2017 (ITTOIA 2005, ss 272A-272B, ss 274A-274C), has prompted new landlords to consider operating through a limited company, and […]

Entrepreneurs’ Relief: Business Assets – Dispose With Care!

Many taxpayers, such as self-employed individuals, will be familiar with entrepreneurs’ relief (ER). The relief offers a reduced capital gains tax (CGT) rate of 10% on lifetime net aggregate chargeable gains of up to £10 million. ER is available on qualifying business disposals, including a material disposal of business assets. To be a ‘material disposal […]

An IHT Escape No-one Wants!

It is said that nothing is certain but death and taxes. However, there are exceptions in respect of inheritance tax (IHT) on death in certain circumstances. Departing together… The general law (in England and Wales) provides that where two or more people have died and it is unclear if one of them has survived the […]

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 […]

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