A couple who bought a property for GBP9.75 million, demolished and rebuilt it, then sold it for GBP27.15 million, have won their appeal against a GBP3.3 million capital gains tax charge. Raymond and Diana Eyre successfully claimed they were not developing in the nature of a trade and the house was their principal private residence...
The UK’s tax authority, HMRC, has recently intensified its scrutiny of companies owning residential property. This move aims to ensure compliance with tax regulations, particularly regarding Annual Tax on Enveloped Dwellings (ATED) and Capital Gains Tax (CGT) obligations. Property – owning companies must now ensure their tax affairs are in order to avoid penalties. ...
Improved Processes for Trusts and Estates: What You Need to Know Managing trusts and estates can often feel overwhelming, especially given the intricate legal and tax-related responsibilities. However, recent changes in the UK have streamlined these processes for trusts and estates, bringing much-needed clarity and efficiency for both professionals and individuals. This post explores the...
The Office of Tax Simplification has revealed a new report on the policy design and core principles of CGT. The OTS has suggested some reforms for simplifying the design of Capital Gains Tax (CGT). In July 2020, the Chancellor asked the OTS to carry out a review of Capital Gains Tax to identify: the opportunities...
Business Asset Disposal Relief (BADR) previously known as Entrepreneurs’ Relief (ER) Business Asset Disposal Relief was known as Entrepreneurs’ Relief before 6 April 2020. BADR/ER provides a beneficial 10% Capital Gain Tax rate on the first £1 million of eligible gains per individual (which is tested on a lifetime basis). The Budget 2020...
The leading economists have warned that the UK will likely face “substantial” tax rises in the coming years, as the government seeks to pay for the cost of its COVID-19 response and public services. Some top economists told parliament’s Treasury Select Committee on Tuesday that tax rises were likely, although they said increases would likely...
Chancellor Rishi Sunak has asked the Office of Tax Simplification (OTS) to carry out a thorough review of capital gains tax (CGT). He requested to analyse the aspects of the taxation of chargeable gains in regard to individuals and small businesses. In the 2016 Budget, there was a drop in CGT, apart from on...
If someone wants to gift a house to his children, he needs to consider the following tax consequences regarding the gifted house. Capital Gain Tax (CGT): There will be a Capital Gains Tax (CGT) and the proceeds will be deemed to be the market value of the property at the date of the gift....
HMRC has confirmed it will not charge late filing penalties for capital gains tax (CGT) payment on disposals of UK residential property by UK residents made by 31 July 2020. The announcement came in a question and answer factsheet shared with ICAEW’s Tax Faculty. The gov.uk has not published the information yet but HMRC has...
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Copyright by CareAccountancy. All rights reserved.
