Hello,
This week we have summarised the highlights of the new Agent Update for you. It has been a relatively quiet week leading up to the end of the month with many changes from 1 April/6 April announced well in advance.
Companies who own residential property valued at £500,000 or more in the UK should be reviewing their circumstances for the year ahead. You will need to file a return to pay Annual Tax On Enveloped Dwellings (ATED) or to claim a relief from the charge. Looking at what is written online, it seems that some folk do not realise that the ATED return is filed in advance. The return for the year ending 31 March 2025 is due in by 30 April 2024.
There is a high probability that HMRC will be matching up the details of overseas entities that are now on the Companies House's Register of Overseas Entities holding UK property, with the records of property ownership on the Land Registry. Talking to some overseas company owners, it is clear that that their knowledge of the ATED is at best incomplete, and with so many beneficial owners not being UK nationals they are heavily dependent on UK agents flagging up tax issues, such as the potential to file an ATED return.
By co-incidence, we reviewed a tax appeal against an ATED charge and Stamp Duty Land Tax (SDLT) assessment this week. It's an interesting case: it features an Option agreement. The appeal did not go well.
In our other news this week there is the long overdue introduction of offset rules for IR35 which will mean Income Tax and employee National Insurance Contributions can be set against the deemed employer's liability under PAYE.
For subscribers who are feeling a little overwhelmed by the changes coming in via the various finance acts and bills this year, we have released our Rolling Tax Planner for 2024-25, which tracks the key tax announcements that impact the new tax year and beyond. The planner will be updated on an ongoing basis.
Have you thought of subscribing to our webservice? Now is the time to take the plunge and you can claim tax relief in the current year. If you are unsure then sign up to a free trial direct from our site.
Have a lovely bank holiday weekend.
Back soon
Nichola & the Team
Your Virtual Tax Partner®: online PRACTICAL support for accountants, tax advisers BY accountants and tax advisers.
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GOV.UK One Login
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IR35 offset rules
From 6 April 2024, HMRC is finally given the power to deduct tax and NIC already paid by a worker from the tax and NIC due from their deemed employer when the off-payrolling IR35 apply to an engagement. The new rules do not extend to an offset of the Employer's National Insurance Contributions (NIC).
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Distributions of share premium were dividends not capital gains
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No SDLT or ATED relief for option to purchase property
An agreement involving an option which allowed a company to purchase a £9.3 million property in two stages and advantaging the seller too, fell foul of both SDLT and ATED relief as the option was not ‘acquired exclusively’ for re-development as claimed.
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UPDATE: A last-minute year-end tax planning advice for owner-managed businesses and clients. What should you focus on as the end of another tax year-end approaches? What should you do before 5 April and what could you leave until later?
Explore our site (freeview)
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This freeview ‘At a glance’ guide is essential reading for anyone who is thinking of starting in business on their own, as a sole trader.
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An Index to Share Transactions incl. Reorganisations, Demergers & Share Exchanges
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A new director? Start here...
This freeview 'At a glance' guide is essential reading for anyone thinking about becoming a company director.
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Land & Property (subscribers)
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Incorporation: property business/buy to let
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More at CPD Index
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Two hours of CPD: Unravelling the diverse tax rules over a range of topical subjects
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Tax Queries?
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Do you require assistance in the registration and verification of an overseas entity that owns UK land or property?
Virtual Tax Partner© Support
Have a tax query? Need a second option? Open a ticket and ask a question. A team of tax experts with a very wide range of expertise: covering direct and indirect tax, as well as accounting, R&D claims, reorganisations and much more.
Missed Last Time's Web-update?
Nichola's SME Tax W-update 21 March 2024
- HMRC changes view on Boilers
- Time to claim Child Benefit again?
- CGT: time of completion of contract
- Trust residence: place of effective management
- Footballer's deduction for agent's fees
- New guide to VCTs
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- Non-doms and stat residence
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