The following Owner-Managed Businesses guidance note Produced by Tolley provides comprehensive and up to date tax information covering:
These are our brief notes and thoughts on cases published in the last week or so which caught our eye and are likely to be of particular interest to tax practitioners. Full case reports and commentary on most of these cases will be included within our normal reference sources in the coming weeks.
Two of the issues which have dominated the courts and tribunals in recent years have been discovery and the high-income child benefit charge (HICB). This important decision looks at the interaction between the two. The taxpayer’s circumstances meant that he was liable to the charge, but he had not notified HMRC of the liability. HMRC became aware that he was due to pay the charge but instead of issuing him with a return for the years in question, issued discovery assessments. Discovery allows HMRC to assess ‘income which has not been assessed’. The question here was whether or not the HICB charge fell within that definition. The HICB charge does not treat the child benefit itself as income ― it operates to increase the amount of tax payable by a recipient.
In a very carefully constructed decision, the tribunal went back to basics and analysed the precise way in which the rules for determining taxable income work. It came to the clear conclusion that a disco
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This guidance note provides an overview of the partial exemption de minimis rules. This note should be read in conjunction with the Partial exemption overview guidance note. If a business incurs an insignificant amount of input tax which is associated with exempt supplies (exempt input tax), it may
The detailed definition of a close company is set out below but in summary the rules are targeted at those companies where the owners can manipulate the activities of the company to influence their own tax position. Therefore, broadly speaking, most owner-managed or private family businesses will be
Terminal loss relief for trade losses in the final 12 monthsTrading losses incurred by a company in the final 12 months leading up to the discontinuance of trade may be carried back for up to three years from the period beginning immediately before that 12-month period. So if the final accounting
This guidance note considers the capital gains tax implications where shares are sold in exchange for new shares.The consideration paid by a purchasing company to the shareholder(s) for their shares in a target company could be in the form of either:•new shares in the purchasing company in exchange
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