Mark McLaughlin Associates

They think it’s all over … it is now! This will be a familiar quotation to football loving readers of Taxation (or the more senior ones, anyway), being the famous words from Kenneth Wolstenholme’s BBC TV commentary in the closing moments of the 1966 World Cup, in which England beat West Germany 4-2 after extra [...]

Significant changes Changes to legislation and practice affecting tax compliance seem to be happening at a rapid pace. Below is a summary of some recent significant practice procedural changes, and when they take effect. Tax return filing dates The changes to personal tax return filing dates announced in FA 2007 apply to tax returns for 2007/08 and later [...]

Inaccuracies in returns A new penalty regime was introduced in FA 2007, and extended in FA 2008. It is expected to apply to inaccuracies in returns (or other documents) due to be filed from 1 April 2009, where the return (e.g. personal, company, VAT) relates to a tax period beginning on or after 1 April 2008 (e.g. [...]

A welcome simplification It is becoming more common in this age of international markets for businesses to send employees on overseas assignments. This will result in accommodation and subsistence expenses being incurred, which normally requires the employee to obtain expense receipts for P11D purposes. Fortunately, a welcome optional simplification of the rules regarding accommodation and subsistence payments [...]

Issues of uncertainty Recent cases before the Special Commissioners have dealt with two issues of uncertainty on Business Property Relief (BPR) claims for IHT purposes. Business property does not qualify for BPR if the business consists wholly or mainly of dealing in securities, stocks or shares or land or buildings, or in making or holding investments (although there [...]

Coming soon… Tax practitioners will be aware that a new penalty regime was introduced in Finance Act 2007 (FA 2007, s 97 and Sch 24), which is being extended in Finance Act 2008 (FA 2008 is awaiting Royal Assent at the time of writing). It is broadly expected to apply to inaccuracies in returns (or other documents) due [...]

Ownership requirement It is relatively well known that to qualify for Business Property Relief (BPR) for Inheritance Tax (IHT) purposes, there is a general requirement that the business property must have been owned for a minimum period of two years (IHTA 1984, s 106). However, there are certain exceptions to this basic two-year ownership requirement, in [...]

What is a ‘Phoenix company’? Capital Gains Tax taper relief disappeared from 6 April 2008. However, it is being replaced by Entrepreneur’s Relief in Finance Act 2008. ‘Phoenix’ companies therefore look set to continue. These are broadly companies which are set up to trade for a limited time period (commonly just over two years, under the [...]

Transactions in securities Share Transactions such as a company purchase of its own shares or a company sale for consideration which includes loan notes commonly involve applications to HMRC for advance clearance (under ITA 2007, s 701), that the ‘transactions in securities’ anti-avoidance rules do not apply. The rules are in ITA 2007, Part 13, Chapter [...]