Hello,
This time we have a new Visitor Levy, leading tech-savvy CTAs have their say about AI and tax, cautionary tales on three Capital Gains Tax (CGT) reliefs and, are London cabbies right: is Whitehall turning a blind eye to money laundering in the capital?
Scotland has introduced a new Visitor Levy. At present it's discretionary and not being introduced until 2026, but we are all keen to know if this is the start of a trend that might spread to other parts of the UK.
Last night there was a fascinating talk on the effect of AI on tax, we have a summary of the key messages below.
We have the latest instalment of Hotel La Tour Ltd’s input VAT recovery dispute with HMRC and a selection of cases:
- Capital Gains Tax (CGT) Principal Private Residence (PPR) relief (PPR) and Letting relief: so often the biggest battle is finding the facts of the case. Once done the actual 'tax part' is the easy bit!
- EIS relief: another taxpayer bites the dust and fails to secure Capital Gains Tax (CGT) relief by failing to make a claim for Income Tax relief. An example of a horrible and punitive tax rule.
- CJRS: we consider another failed appeal against a claw back of an employer's COVID-19 grant scheme claim.
We are holding two new CPD courses on the 18th and 19th June; these are two absolute essentials for accountants:
- A 2024/25 tax update and review of business structures and models
- Our annual Anti-Money Laundering (AML) update which takes a closer look at what you should be considering when you make your annual firm-wide risk assessment.
Do follow the link below to book up. If you can come to the live event you can ask questions at the end of the seminars.
Thinking about Money Laundering, a couple of cab journeys across London have revealed that London cabbies are united in a common concern about the large number of London souvenir shops in the West End and now seeping down Whitehall. As one cabbie noted, "This lot are all money laundering. None of them even closed during Covid". Interesting allegations, which are coming up a lot on Reddit, and I see that Private Eye had concerns back in 2022. National scandal or just a conspiracy? I would love to know more, but we are in pre-general election 'purdah' and neither HMRC nor relevant MPs are available for comment until after July 4th.
Back soon
Nichola & the Team
Your Virtual Tax Partner®: online PRACTICAL support for accountants, tax advisers BY accountants and tax advisers.
Quick News (freeview)
Talking tax: CTAs address the impact of AI and tax
Conrad Young gave the 2024 CTA address last night to a packed audience on The impact of AI on tax. Joined by Bivek Sharma and Shan Sun, what do tech expert Chartered Tax Advisers (CTAs) think is going to be the impact of AI on tax?
Scottish tourist tax bill passed
The Scottish Government has recently passed the Visitor Levy (Scotland) Bill. This Bill will give councils the power to introduce a local tax on visitors to their area, from 2026.
HMRC-recognised payroll software
HMRC have updated their list of free and paid-for recognised payroll software used to report PAYE online. HMRC emphasise that they do not recommend one product or service over another and they are not responsible for any problems you have with the software you’ve bought.
BADR one-to-many letters
HMRC have issued the latest round of one-to-many letters, this time focusing on individuals exceeding the lifetime limit for Business Asset Disposal Relief (BADR).
Tax Cases (freeview)
CJRS claim rejected: Employees were not added to RTI
In Digital Buying Partners Limited v HMRC [2024] TC09116, the First Tier Tribunal (FTT) rejected a Coronavirus Job Retention Scheme (CJRS) claim. The employees were deemed ineligible for CJRS payments because they were not included in an RTI submission on or before 19 March 2020.
CGT confusion over jointly owned property
In Elizabeth Rooke v HMRC TC09170 [2024] the FTT had to recalculate CGT on the disposal of a flat, jointly owned by siblings, one of whom did not understand the rules and had acquired her interests at different stages. To cap it all there was Private Residence Relief (PRR).
No late claim for EIS Income Tax relief
In Kaljinder Singh Kalay v HMRC [2024] TC9155 an EIS investor’s attempt to persuade the FTT to allow a late claim for Income Tax relief to effect CGT relief on an £8m disposal failed. The tribunal had no jurisdiction to allow the late claim.
Editor's Choice
VtaxP CPD: How to run the most tax efficient business...ever 2024/25
NEW: sign up for our CPD tax update 2024/25 in which we explore tax efficient business models. What's hot or not? What models should you avoid? What advantages can be had from changing your structure?
VtaxP CPD: Anti-Money Laundering update + making your firm-wide risk assessment
NEW: what's new in AML and company reporting? What goes wrong? How should you be making your own firm-wide risk assessment?
Guides & Updates
Self-Employed
Farming: Tax Overview
UPDATE: What is farming? What are the tax consequences and tax considerations of farming? What are the features of agricultural tenancies? What expenses can farmers claim for tax purposes? Are there special tax and accounting rules for farmers? What are the VAT rules for farmers?
Woodlands: Overview
Woodlands and forestry ownership carry significant tax reliefs, including Income Tax, Capital Gains Tax (CGT) and Inheritance Tax (IHT).
Partnerships
Partnerships: Losses
What loss reliefs are available to partners and what restrictions are there? What is the definition of capital contribution? How to calculate a partner's capital contribution? What are the anti-avoidance rules?
Overseas & Residence
Non-Doms Remittance changes: briefing
It was proposed at Spring Budget 2024 that the non-domicile tax regime and current version of the Remittance Basis will be abolished on 5 April 2025 and replaced with a new regime.
Non-Resident Landlords
How are Non-UK resident landlords taxed? What of Making Tax Digital for Income Tax? What is the Non-Resident Landlord scheme? How does it work? Who does it apply to? How can I apply to receive rent without a withholding tax deduction?
Directors & Companies
Bona Vacantia & striking off
What is Bona Vacantia? What does this mean? How does it impact companies?
Tax-efficient extraction of profits: toolkit (2024/25)
This is a general guide and refresher which aims to help a company and its owner decide how company profits are to be extracted based on current tax, rates, reliefs and allowances.
Employers
Tips, gratuities and troncs
How are tips, gratuities and troncs taxed? What are the rules for National Insurance Contributions (NICs)? What impact will the Employment (Allocation of Tips) Act 2023 have?
CIS: Contractors and Subcontractors
What is the Construction Industry Scheme? Who does it apply to? How does it work?
Land & Property
SDLT: First-time buyers
What Stamp Duty Land Tax (SDLT) relief is available to first-time buyers? What qualifying conditions must be met?
Property Profits & Losses: Toolkit (2024-25)
Our Property Profits & Losses toolkit takes HMRC's version as its starting point and adds a great deal more information about what you can claim as an individual landlord
Private Client & Estate Planning
CGT: Deductible expenditure
What expenditure is allowable for Capital Gains Tax (CGT)? What about loan interest, early redemption fees etc?
IHT Agricultural Property Relief
UPDATE: What is Agricultural Property Relief (APR)? When does it apply? What are the conditions and restrictions of the relief?
Deed of variation
What is a Deed Of Variation? When can a Deed Of Variation be used? What are the requirements for a valid Deed Of Variation?
Giving your home to your children
What are the tax implications of making a gift of your home to your children?
Capital Allowances
Annual Investment Allowance (AIA): Related companies
What restrictions to AIA apply to companies? What does common control mean? When are companies related?
Farming: Capital allowances
What types of expenditure may qualify for capital allowances in farming businesses? What farming-specific points need to be considered?
VAT News & Cases
Input VAT not recoverable on costs of share sale
A company could not recover input VAT incurred in connection with selling shares in its subsidiary. There was a direct and immediate link with an exempt supply.
Capital Goods Scheme
UPDATE: What is the VAT Capital Goods Scheme (CGS)? When do I use it? How does it work?
VAT fraud: What is the Kittel principle?
What is the VAT Kittel principle? What happens when the Kittel principle applies? What tests do HMRC and the tribunals apply? How can I protect my business?
Tax Tools & Calculators
Tax tools & calculators
UPDATE: 2024/25 versions available now. We have a suite of useful tax tools that help agents, business owners and sole traders calculate their taxes.
Calendar of tax deadlines and new tax measures
UPDATE: This is a freeview 'At a glance' rolling calendar of common recurring tax deadlines, new tax measures and other tax-significant events.
CPD for Lunch
Byte-sized chunks of lunchtime CPD for subscribers
- NEW: CPD: Change of basis periods: Transitional rules 2023-24 Returns
- CPD: VAT Penalties Update
- CPD: CGT Reporting and payment deadlines
More at CPD Index
Tax Queries?
UK Agent for registration of Overseas Entities
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 30 May 2024
- Employment-Related Securities: What's New? May 2024
- Advisory fuel rates from 1 June 2024
- Statistics show decrease in take-up of share investor reliefs
- Non-resident companies miss Corporation Tax rate changes
- Updating provisional claims in returns
- HMRC Updated the Standard for Agents ...More
Come and join our Cloud
Subscribe and UNLOCK the whole site. A single-user annual subscription is just £50 (+ VAT) per month. All subscriptions are for a 12-month term.
What do you get?
- We keep YOU up to date in SME tax.
- FULL access to www.rossmartin.co.uk: your firm's favourite TAX INTRANET containing over 5,000 actively maintained tax guides, briefings, toolkits and checklists.
- Want to know more? Commission your own articles and checklists.
- Structured CPD our detailed SME tax updates written for Advisers provide topical summaries and planning notes and our webcasts provide you with structured CPD at your desk.
- Regular client tax briefings: these cover the latest business and employment tax issues and are designed to assist you, plan meetings and improve your client services.
