Mark McLaughlin Associates

The first Finance Act of 2010 introduced a new penalty regime in respect of undisclosed offshore accounts, from a date to be appointed by Treasury Order. The publicity generated by this legislation resulted from a ‘headline’ maximum penalty rate of 200%. Many individuals, particular those with a foreign connection, have offshore accounts these days. In [...]

Extra Statutory Concessions (ESCs) have been with us for decades, but are now slowly disappearing. This follows the House of Lords’ decision in R v HM Commissioners of Inland Revenue ex p Wilkinson [2006] STC 270, which raised issues about the validity of ESCs and the extent of HMRC’s discretion to make and apply them [...]

The reduction in personal allowances for those with income exceeding £100,000 was introduced from 6 April 2010 for 2010-11 and later years. The effect of legislation introduced in Finance Act 2009 is that personal allowances above that level are tapered away, and at current levels are reduced to nil if adjusted net income exceeds £112,950, [...]

Distinguishing between repairs expenditure and capital costs is often difficult. The distinction can become even more difficult in the case of an old, dilapidated building. Where there’s a Will(s)… In Christopher Wills v Revenue & Customs [2010] UKFTT 174 (TC), the taxpayer appealed when HMRC disallowed a claim for £43,665 in respect of repairs to an outbuilding [...]

‘New HMRC powers’ is a phrase we have all become accustomed to hearing over the last few years. Among those powers is the facility for HMRC to make regulations specifying the records and supporting documents which must be kept, and the period for which they must be retained. HMRC’s record keeping powers were introduced for income [...]

When dealing with company reorganisations and some business sales, it is generally good practice to apply to HMRC for clearance (under ITA 2007, s 701) that the anti-avoidance rules regarding ‘transactions in securities’ will not apply to treat a capital transaction as giving rise to a potential income tax liability. The rules were originally introduced [...]

Recent case law has highlighted two interesting scenarios involving dividend payments. Recategorised dividends In Stirling Investments v HMRC [2010] VKFTT 61 (TC) TCOO374, a VAT Case, a husband and a wife partnership were also director shareholders of a company. The partnership invoiced the company for a management charge of £525,000 plus VAT. However, the company later sought [...]

For Inheritance Tax (IHT) purposes, the general rule is that a transfer of value requires positive action by the person making it, such as the gift of an asset. However, in certain circumstances a failure to take positive action is treated as a disposition as well. In particular, the deliberate omission to exercise a right [...]

An unfortunate effect of the recession has been an apparently increasing number of capital losses on assets. A negligible value claim (under TCGA 1992, s 24) is a useful mechanism to realise an allowable capital loss. In cases involving qualifying shares, the loss can be converted to an income tax loss and offset against general [...]

The issue of whether a worker is employed or self-employed is often unclear. This uncertainty has resulted in a number of Court cases over the years. From those cases various indicators have been established, pointing towards either a contract of service (employment) or a contract for services (self-employment). Treating a worker’s employment status correctly is [...]