The following Corporation Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:
The new rules on taxing the profits of dealing in and developing UK land are mainly designed to ensure UK non-residents as well as UK residents are within the scope of UK tax on these profits. These rules repeal the previous legislation on transactions in land and replace them with a new regime. The new rules are widely drafted and will catch all persons undertaking transactions in UK land and property, whether resident in the UK or resident outside the UK. When originally enacted, the new rules applied to profits arising from contracts entered into from 5 July 2016. However, the commencement provisions have been amended by F(No 2)A 2017, s 39 such that all profits recognised in the accounts on or after 8 March 2017 are taxed, regardless of the date the contract was entered into.
This guidance note firstly discusses the new rules as they apply for corporation tax purposes and, secondly, the previous rules which applied prior to 8 March 2017.
Separate rules apply for income tax which are not discussed further in this guidance note, although the key provisions are similar. For personal tax rules, see the Transactions in UK land ― individuals guidance note.
Given the wide drafting of the new provisions, it was not clear at first how investment activities would be targeted. However, HMRC has provided some guidance on this and has confirmed that it is not the purpose of the rules to alter the treatment of the activity if it is clearly investment. Transactions such as buying or repairing a property to generate rental income and to enjoy capital appreciation are not likely to be treated as trading activity under the transactions in UK land provisions. Some of these concerns are discussed in ‘Finance Bill 2016 changes to treatment of offshore developers and dealers in UK land’ by Michael Thomas in Tax Journal, Issue 1319, 10 (29 July 2016).
The transactions in
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This guidance note explains the general rules surrounding the availability of indexation allowance on the disposal of company assets and provides information on the rebasing rules for assets held on 31 March 1982. For an overview of the general position regarding company disposals, please refer to
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
Income and gains may be taxable in more than one country. The UK has three ways of ensuring that the individual does not bear a double burden:1)treaty tax relief may reduce or eliminate the double tax 2)if there is no treaty, the individual can claim ‘unilateral’ relief by deducting the foreign tax
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
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