Mark McLaughlin Associates

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 [...]

In this edition of Practice Update: 1. Beating The 50% Tax Rate? – What are the planning possibilities for unincorporated businesses? 2. Partnership Profit Shares – Is there any scope for flexibility? 3. IHT: Transferable Nil Rate Band – When living together could beat getting married 4. Tax Relief For Pension Contributions – ‘In specie’ contributions of assets. Download version [...]

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 [...]

In this edition of Practice Update: 1. ‘Reasonable care’ – valuations – What steps are necessary to avoid a penalty? 2. Repairs and renewals: What is a ‘renewal’? 3. Asking HMRC – Some tips when seeking certainty from HMRC on tax matters. 4. New dividend rules – Dividends between companies are potentially exempt following FA 2009 changes    Download version (pdf): [...]

In this edition of Practice Update: 1. What is ‘Careless’? – A recent tax case considered an incorrect return submitted by a solicitor.  2. Wills and ‘Commorientes’ – How even a large estate can pass free of Inheritance Tax. 3. Equitable liability – The end of a helpful HMRC practice – or is it?  4. Normal expenditure out of [...]

In this issue of Practice Update: 1. Loans and capital losses – Converting loans into shares and claiming loss relief. 2. The goodwill trap – The valuation of goodwill in trade related property. 3. Termination payments – Improving the prospects of claiming the £30,000 exemption. 4. Furnished holiday lettings – Taking advantage of beneficial tax treatment – while you [...]