Commentary

I3.748 Implications of the pre-owned assets regime for self-assessment

IHT, trusts and estates

I3.748 Implications of the pre-owned assets regime for self-assessment

I3.748 Implications of the pre-owned assets regime for self-assessment

Personal self-assessment tax returns for 2005–06 and subsequent years will make provision for amounts chargeable under FA 2004, Sch 15. Anyone who finds in due course that they are liable to tax on a pre-owned assets charge but have not received a return should notify their chargeability to income tax in the normal way.

The pre-owned assets regime raises fundamental problems in relation to self-assessment.

There are two crucial issues. One is the sheer complexity of the new legislation, drawing as it does on a variety of concepts from income tax and inheritance tax law in a way that does not appear to have been carefully thought through. The other is the fact that it appears to affect a much wider range of situations than is immediately apparent from government statements about its intended targets; discrepancies between the apparent letter of the law and the stated intentions of the government pervade the pre-owned assets regime, and may present immense

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