The following Owner-Managed Businesses guidance note Produced by Tolley provides comprehensive and up to date tax information covering:
A trade commences when the main trading activity starts. There may have been earlier activity in preparation to trade, but this is pre-commencement work. For example, a new trader may hire some staff, acquire some premises and set up supplier and customer contracts before the actual manufacturing activity commences. The commencement date for tax purposes of this trade is the date that the actual activity began, ie the date that the manufacturing started. This rule was given in the case of the Birmingham and District Cattle By-Product Company.
In determining when somebody starts trading, you must look for the main activity. For example, a shopkeeper will start to trade on the day he first opens his doors to the public, or an accountant may start to trade when he is first available to accept work. The actual commencement date will depend on the facts in each individual case. For HMRC guidance on commencement, see
**Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason.
Access this article and thousands of others like it free for 7 days with a trial of TolleyGuidance.
Read full article
Already a subscriber? Login
IntroductionUK tax must be withheld on UK payments including:•interest•royalties•rental incomeWithholding tax may be reduced under double tax treaties (DTT) or European directives, both of which may be subject to making a formal claim.This guidance note outlines the rules for UK withholding tax, and
This guidance note explains how to calculate the amount of tax that arises under the lifetime charge. In general terms the lifetime charge will apply to individuals who transfer property into a trust that is subject to the relevant property regime. See the Chargeable transfers and Occasions of
The basic rule is that all benefits provided to an employee by reason of their employment are taxable unless there is a specific exemption or other rule that means they are not chargeable to tax.ExemptionsThe main exemptions for employee benefits are in ITEPA 2003, ss 227–326B (Pt 4).Below is an
Expenditure of a capital nature is not allowed as a deduction when calculating trading profits. Expenditure of a revenue nature is allowable, provided there is no specific statutory rule prohibiting a deduction and the expenditure also satisfies the wholly and exclusively test. See the Wholly and
To view our latest tax guidance content, sign in to Tolley Guidance or register for a free trial.