Mark McLaughlin Associates

Most tax professionals and many taxpayers will be familiar with the concept of ‘time to pay’ (TTP) arrangements with HM Revenue and Customs (HMRC). The basic position of HMRC is that tax is payable when due by law (note – the tax legislation does allow certain tax liabilities to be paid by instalments, but such [...]

Most tax agents involved with enquiry work will be familiar with the HMRC practice of ‘spreading’. This generally occurs when there is an agreed addition to the taxpayer’s income for the year of enquiry. HMRC will often seek to assess similar additions in earlier years, and sometimes to agree additions for later years as well. [...]

It is probably a sign of the present hard economic times that more taxpayers seem to be seeking tax relief for losses on investments in shares and business loans. This is reflected in the number of cases reaching the tax tribunal. Tax relief claims for losses against capital gains are prevalent. However, such relief generally [...]

The Capital Gains Tax (CGT) relief on disposal of an individual’s only or main residence is very valuable and well known. Taxpayers are generally aware of the need to reside in the property, which is a fundamental requirement for principal private residence (PPR) relief. However, what degree of permanence and continuity is necessary to qualify [...]

The loan relationships provisions for companies have been around since 1996, and it is fair to say that the legislation overall is complex. However, it is not normally difficult to identify a loan relationship for these purposes, although a recent case indicates that even this task may not be without its problems. The loan relationship [...]

Married couples (and civil partners) benefit from favourable treatment for certain tax purposes. A common example is the ‘no gain, no loss’ capital gains tax (CGT) treatment for inter-spouse transfers (TCGA 1992, s 58). In addition, the inheritance tax spouse exemption is unlimited for transfers between UK domiciled spouses (although it is restricted to £55,000 [...]

It is straightforward in most cases to establish an individual’s income entitlement for tax purposes. However, there are exceptions. HM Revenue and Customs (HMRC) recently issued new guidance in its Trusts Settlements and Estates manual on the concepts of ‘resulting trust’ and ‘constructive trust’ for income tax purposes. These are ‘implied trusts’, which are created [...]

Taxpayers have recently been successful in a number of appeals before the tax tribunal on the grounds of ‘reasonable excuse’, mainly in respect of late filing penalties. One such case is highlighted below. In addition, the approach of HM Revenue and Customs (HMRC) in a case involving a discovery assessment was criticised by the tribunal, [...]

Can a taxpayer (A) require HM Revenue and Customs (HMRC) to apply favourable, but incorrect, tax treatment to him or her, on the basis that the same tax treatment had been allowed to another taxpayer (B)? In other words, does taxpayer A have a legitimate expectation of the same favourable but incorrect tax treatment? What [...]

Many taxpayers and agents take the precaution of including as much additional information as possible when filing tax returns, with a view to reducing the possibility of HM Revenue and Customs (HMRC) making a discovery assessment outside the normal time limit for them to make an enquiry into the return. However, a recent Upper-tier tribunal [...]