MTD for individuals
MTD for individuals is centred around the Personal Tax Account (PTA) which already has many of the services needed by PAYE taxpayers. HMRC continues to improve and develop the PTA.
Personal tax
Expert commentary and practical guidance from ICAEW related to personal taxation, covering areas including: capital gains tax, income tax, inheritance tax, pensions, residence and domicile, savings and investments and trusts.
Need to know
In this section
Capital gains tax
Taxes on Sale of Shares held in the Farm Partnership
Over the years, a number of farm businesses will have acquired parcels of quoted shares, sometimes by way of a purchased investment, but more commonly when spun out on the flotation of a co-operative trading entity. Many farm accountants have been seeing these shares being sold by their farming clients, some of which have grown significantly in value over the years. This article will briefly cover some of the salient tax aspects.
HMRC confirms that CGT property returns must be filed
HMRC has clarified that, with one exception, a CGT property return must be filed even if the disposal has already been reported on a self assessment return. ICAEW’s Tax Faculty explains the rules and the impact on penalties.
Draft Finance Bill 2022-23: personal tax measures
Government announcements on legislation day include possible changes to the capital gains tax rules on separation and a significant consultation on improving the data HMRC collects from taxpayers. ICAEW’s Tax Faculty summarises the planned measures likely to affect individuals.
HMRC consults on taxation of lending and staking of cryptoassets
HMRC contemplates changes to the taxation of DeFi lending or staking so that the tax treatment reflects their economic substance.
Income tax
Tax treatment of charging company-provided electric cars
ICAEW’s Tax Faculty highlights that HMRC’s guidance on reimbursement of electricity costs for charging company-provided wholly electric cars conflicts with the law.
MTD ITSA notices are a small piece of the jigsaw
In its comments on the draft MTD ITSA notices, ICAEW highlights some of the many significant policy, design, and implementation issues that have yet to be resolved. The solution to some of these issues may lie in changes to policy and legislation.
Tax news in brief 3 August 2022
Highlights from the broader tax news for the week ending 3 August 2022, including: penalties for facilitating avoidance schemes involving non-resident promoters; a review of hybrid and distance working; and a reminder to review eligibility to claim the marriage allowance.
Inheritance tax
Land registry issues
A change of policy by the Inheritance Team at HMRC has led to issues at the Land Registry where charges are being applied to land where the ownership details are being updated following a death in the name into the names of the beneficiary. Previously, to register land, an application for a clearance certificate (IHT30) was historically automatically sent out by HMRC. Now these need to be applied for.
Will land in fully environmental usage still be eligible for APR?
With the general move towards ‘greener’ farming following on from the Health and Harmony consultation and the Agriculture Act, some concerns have been raised as to whether land which is put into long term schemes that are fundamentally environmental rather than agricultural will still be eligible for the existing Inheritance Tax reliefs.
Gifts with reservation: de minimis and other let-outs
Mark McLaughlin points out some important exceptions from the inheritance tax gifts with reservation anti-avoidance provisions affecting gifts.
Is it a business or not?
Julie Butler explains why the Babylon Farm case highlights the need to focus on the economic activity for VAT and other taxes too.
Pensions
Pensions and benefits
A full chapter on the taxation of pensions and benefits in the UK, written for tax practitioners.
Pensions, state benefits and tax credits
A chapter on pensions taxation, containing worked examples.
Autumn Budget 2021: Personal tax
ICAEW's Tax Faculty provides a summary of the announcements in the 2021 Autumn Budget covering personal taxation, including allowances and thresholds, dividends, capital gains tax, savings, inheritance tax, pensions and state benefits.
Residence and domicile
Tax news in brief 6 July
Highlights from the broader tax news for the week ending 6 July 2022, including: L-Day; tax credit renewals; ID for government gateway; HMRC survey on forms; residence indicator tool; CHIEF closed to new importers; and an updated partial exemption toolkit.
Domicile and the use of partial closure notices
Andrew Cockman, Director, Personal Tax Advisory at Azets Birmingham, reviews the Court of Appeal’s decision in Epaminondas Embiricos v HMRC [2022] EWCA Civ 3.
Changes to the inheritance tax reporting rules
Changes to the excepted estate rules announced this year will apply from January 1, 2022. ICAEW technical editor Lindsey Wicks looks at the effects as more than 90% of non-taxpaying estates will no longer have to complete full inheritance tax accounts.
Domicile status, appeals and taxpayer rights
Andrew Cockman explores whether HMRC can request details of a non-domiciled individual’s worldwide income and gains.
Savings and investments
Treasury invites views on reforming UK capital allowance regime
Chancellor Rishi Sunak wants businesses “to have their say” in how investment taxes should be reformed to “drive and sustain growth in the UK.”
Boosting business investment: are capital allowances changes on the cards?
In light of a possible announcement on tax relief for business investment at the Spring Statement on Wednesday, 23 March, ICAEW’s Tax Faculty looks at the current incentives and when they are due to expire.
Lockdown savings dwindling? Maximise your ISA allowance before 5 April to earn tax free interest and build up a nest egg
Whether it’s getting on the property ladder or postponed holidays, many of us were able to build up savings over the last two years from essentially not consuming leisure and hospitality services. Make your savings work for you by opening an Individual Savings Account (ISA) and using your annual tax-free allowance.
Trusts
Trust registration of gifted property
FAQ on whether there is a requirement to register a bare trust with HMRC, on a property gifted to children, but currently held in trust by their parents.
Support on the extension of trust registration
The deadline for registering non-taxable trusts becoming registerable on or after 6 October 2020 is 1 September 2022 or 90 days if longer. ICAEW’s Tax Faculty highlights the support available to all members dealing with the new requirements.
Trust Registration Service Update
New rules require all UK express trusts and some non-UK trusts to register with HMRC. This includes non-taxable trusts unless the trust is specifically excluded.