Owner-Managed Businesses

Weekly tax highlights ― 9 May 2022

Produced by Tolley
  • 16 May 2022 11:30

The following Owner-Managed Businesses guidance note Produced by Tolley provides comprehensive and up to date tax information covering:

  • Weekly tax highlights ― 9 May 2022
  • Direct taxes
  • Loans secured on foreign income
  • Final Direction for mandating format of claims for employment expenses
  • CIOT comments on CIS: landlord contributions to tenant works
  • Indirect taxes
  • HMRC to issue electronic certificates of status
  • Updated HMRC guidance: VAT Notice 700
  • Taking over responsibility for PPT
  • Administration
  • More...

Weekly tax highlights ― 9 May 2022

Direct taxes

Loans secured on foreign income

Together with the professional bodies, the CIOT has published an updated note highlighting HMRC’s approach to the treatment of loans made to remittance basis users (RBUs) where assets of the borrower are held by the lender. The note, first published in December 2021, applies to present or former RBUs who have otherwise unremitted foreign income and gains (FIGs). It is relevant where the RBU has incurred a debt (the ‘relevant debt’) either in the UK or abroad, and the money borrowed or property deriving from it is brought to the UK or used in the UK in such a way as would constitute remittance.

The note has been updated to add two supplementary questions and answers and to reference new examples added to HMRC’s Residence, Domicile and Remittance Basis Manual.

HMRC’s current position is that all FIGs used in respect of the relevant debt are to be treated as remitted if 100% of the borrowed money is brought to the UK. But if not all the borrowed money is brought to the UK, a cap still applies, being what is brought to the UK.

Final Direction for mandating format of claims for employment expenses

From 7 May 2022, HMRC will only accept postal claims using the revised P87 form for income tax relief on employment expenses and will reject claims that are made on substitute claims forms. Previously, substitute claim forms were widely used by high-volume repayment agents but these will no

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