Mark McLaughlin Associates

HMRC seems determined to adopt a ‘policing’ role in respect of tax agents. A further HMRC consultation document (‘Working with Tax Agents: The Next Stage’) was published with the Pre-Budget Report 2009. There are two main categories of tax agents; those who are affiliated to a professional body, and those who are not. HMRC’s first consultation [...]

It is no secret that HMRC is taking a tougher line against tax avoidance. Indeed, there is a degree of openness about the type of tax planning arrangements that HMRC regards as unacceptable, or which are not considered to work as intended. HMRC has an ‘Anti-avoidance Group’ section on its website, which sets out HMRC’s strategy [...]

When dealing with small and owner-managed companies, it can often be difficult to ascertain the number of associated companies. For small companies relief purposes, the lower (£300,000) and upper (£1.5 million) ‘relevant maximum amounts’ are divided between active associated companies in the accounting period. The small companies’ rate of 21% applies to profits up to the [...]

The ability of companies to reduce share capital has been simplified following changes introduced in Companies Act 2006 from 1 October 2008. The capital reduction procedure (in CA 2006, ss 641-657) was discussed in my article ‘Don’t wind me up’ (Taxation, 5 February 2009), in the context of winding up companies using Extra Statutory Concession C16. As [...]

It is not uncommon for assets to be transferred to pension schemes instead of cash. However, are assets an acceptable form of pension contribution to a registered scheme for tax relief purposes? HMRC guidance categorically states in the context of employer contributions: “In-specie contributions are not allowed. The legislation only permits monetary contributions” (RPSM05102035). However, the same [...]

Retrospective tax planning would be a wonderful thing in many cases. For example, it would potentially be very useful if partnership profit shares could be adjusted after the year end based on the personal circumstances of the individual partners, particularly in the context of partnerships involving family members. However, is retrospective tax planning involving the allocation [...]

The introduction of the Inheritance Tax (IHT) transferable nil rate band facility in Finance Act 2008 has made life much easier for married couples (and civil partners) in terms of enabling the nil rate band to be utilised on the first death. In certain circumstances, up to four nil rate bands may be available. For example, [...]

Recent changes Accountants and tax advisers who were familiar with the concept that a dividend paid by one UK company to another UK company was not generally liable to corporation tax will need to think again, following legislation introduced in Finance Act 2009. Bad news or good news? Under the new rules, the basic position is that all [...]

What is a ‘renewal’? It is well known that a deduction is generally available from trading profits for expenditure on repairs to fixed assets. However, the position is perhaps less clear in relation to the cost of renewing assets, or so it would seem in HMRC’s view. When dealing with renewals expenditure, a distinction needs to be [...]

Recent guidance Penalties under the new regime can be avoided for inaccuracies in tax returns, provided that ‘reasonable care’ has been taken. An area of possible contention in tax returns is asset valuations. How far must a taxpayer (or agent) go in order to demonstrate that reasonable care has been taken, where HMRC considers that an [...]