The following Owner-Managed Businesses guidance note Produced by Tolley in association with Emma Broadbent of Grant Thornton provides comprehensive and up to date tax information covering:
It is important that a tax return and / or supporting documents (if appropriate) contain adequate disclosure to prevent HMRC using its powers to make a discovery assessment. See the Disclosure ― relationship with discovery guidance note for further comment in respect of these powers.
There is a difference between disclosing critical information in a tax return to protect a taxpayer from discovery and making a disclosure of an inaccuracy on a return.
See the Penalty reductions for inaccuracies guidance note for further details of such a disclosure. See also the Making disclosures of irregularities guidance note for information on the obligations on an adviser in respect of irregularities in a client’s tax affairs.
Adequate disclosure on a return also protects a client from a penalty if the treatment adopted proves to be incorrect. HMRC’s powers under FA 2007, Sch 24 deem that a careless inaccuracy incurs a penalty. However, where ‘reasonable care’ has been taken a penalty should not be charged. CH81010 details the circumstances where a penalty is payable in respect of inaccuracies. Also, see the Calculating the penalty for inaccuracies in returns ― behaviour of the taxpayer guidance note for further details.
The guidance at CH81120 states that a taxpayer should take care to find out about the correct tax treatmen
**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
The substantial shareholding exemption (SSE) provides a complete exemption from the liability to corporation tax on the gains generated from qualifying disposals of shares and interests in shares by qualifying companies. Conversely, if losses are generated by the disposal and the SSE conditions are
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
From 6 April 2015, an individual can elect to transfer 10% of the personal allowance (£1,250 in 2020/21 and 2019/20) to the spouse or civil partner where neither party is a higher rate or additional rate taxpayer. The legislation calls this the ‘transferable tax allowance’ but the GOV.UK website
Why is this important?Tax-free amountEach individual, whether or not they are resident in the UK, is entitled to an annual exempt amount when calculating the taxable amount of their chargeable gains for the tax year (although see the exceptions below). The annual exempt amount is also known as the
To view our latest tax guidance content, sign in to Tolley Guidance or register for a free trial.