Category Archives: Articles

Purchase of own shares: What could possibly go wrong?

A company purchase of own shares (CPOS) is often a tax-efficient way for an individual shareholder to dispose of their shares (e.g., on retirement). However, unexpected tax consequences can arise if a CPOS is not handled correctly. Income treatment As a general rule, when the company buys back its own shares from the shareholder, any… Read More »

Property valuations: Get it right!

How much are your assets worth? Some asset valuations (e.g., quoted shares) are relatively straightforward; others might cause disagreements with HM Revenue and Customs (HMRC). What is ‘market value’? For example, when valuing a chargeable lifetime gift of a property for inheritance tax (IHT) purposes, or a property on an individual’s death, its market value… Read More »

Escape from POAT!

Many individuals who are concerned about inheritance tax (IHT) being payable on their death estates will undertake IHT planning in their lifetimes. Income tax – on IHT planning! However, in some cases this will result in an income tax charge instead. Even if no IHT planning is undertaken, this income tax charge can still bite… Read More »

Nice try by HMRC!

Taxpayers must play by the rules. HM Revenue and Customs (HMRC) enforces its vast powers to ensure this is so. Thankfully, those powers invariably also give taxpayers some degree of protection. For example, HMRC may require information and documents ‘reasonably required’ to check a taxpayer’s tax position. HMRC may impose penalties if the taxpayer fails… Read More »

Penalties: Let’s be reasonable!

Tax return filing season is well and truly here. Unfortunately, many individuals within self-assessment will submit their return after the filing deadline (i.e., normally 31 January after the end of the tax year) and face a penalty from HM Revenue and Customs (HMRC). Excuses, excuses… However, there is an exception from late filing penalties if… Read More »