articles: Private client

Make sure you don’t ‘taint’ your protected trust

Following the changes to the taxation of non-UK domiciled individuals from 6 April 2017, certain offshore trusts enjoy protected status. If you have a settlor interested offshore trust (i.e. where you or certain family members can benefit), you need to take care to preserve this protected status – or face potentially significant tax costs.

Are you affected by the 2017 Liechtenstein directive?

A recent directive affecting trustees and trust companies licensed to practice in Liechtenstein has introduced a number of tax compliance measures with respect to establishing new or managing existing legal entities, such as foundations, trusts and establishments. Where these entities involve settlors, beneficiaries or unitholders who are resident for tax purposes in the UK (‘relevant persons’) the trustees are required to adhere to the new regulations.

Are you prepared for the requirement to correct?

The requirement to correct (RTC) legislation is now in force and concerns all taxpayers with overseas income or assets. The purpose of the RTC rules is to encourage taxpayers with overseas interests to ensure that their historical UK tax position is corrected by 30 September 2018. Those who do not do so by that date will be exposed to greatly increased penalties.

Tax awards shortlist

Moore Stephens has been shortlisted in two categories in the prestigious Tolley’s Taxation Awards 2018: Best Private Client Tax Practice and Best Tax Investigation Team.

Breaking news for non UK domiciliaries

The changes to the taxation of non UK domiciliaries which were to apply from 6 April 2017, have been dropped from the Finance Bill due to a shortage of Parliamentary time in advance of the General Election. When the clauses were dropped, it was announced that they will be brought forward in a Finance Bill as soon as is practicable after the election. It is not clear whether this will be through a further Finance Bill after the election (and potentially backdated in effect to 6 April 2017) or postponed to 6 April 2018.

This could have serious implications for anyone who undertook restructuring prior to the introduction of the new rules, particularly if they are not reintroduced in their current form.

Latest changes to the taxation of non-domiciled individuals

The Government recently issued the final version of the draft legislation affecting ‘non doms’, due to take effect on 6 April 2017, as a further update to the draft Finance Bill 2017. The new material mainly concerns the tax treatment of income in offshore trusts. It also updates the proposals for rebasing of offshore assets for certain individuals and for the cleansing of mixed funds by certain individuals.

Changes to the taxation of non-domiciled individuals

The long-awaited draft non-dom legislation has now been published as part of the draft Finance Bill 2017. The proposals are broadly moving forward as discussed in the various consultations, with a few surprises and some small beneficial tweaks. It is confirmed that the changes will take effect from 6 April 2017.

The Budget 2016 – video summary

A sugar-coated Budget for the next generation

In the uncertain global economic environment, the Chancellor’s deficit-reduction goals have become more challenging. But he still managed to strike an up-beat tone when delivering “a Budget that puts the next generation first”.

Draft legislation for the 2016 Finance Bill

The Government has today published draft legislation to be included in the 2016 Finance Bill, together with explanatory notes, amounting in total to several hundred pages.

Most of the material relates to measures that were announced in principle in the July 2015 post-election Budget, or in the Autumn statement on 25 November 2015. In many cases, it reflects the results of consultation exercises.

An Autumn Statement for “rebuilding Britain”

Five years since delivering his first spending review, George Osborne spent over an hour delivering his 2015 Autumn Statement. He repeatedly stated the Government’s intent to build public services, infrastructure, national defences and strong public finances.

New company car fuel rates

HMRC has published new ‘advisory fuel rates’ (AFR) for company cars, which apply to journeys from 1 September 2015Where an employer reimburses an employee for the cost of fuel used for business travel in a company car, if the payment is too high there is an element of profit to the employee...

The two faces of UK tax policy

The UK is often viewed as a tax haven, due in part to the low rate of corporation tax (20% from 1 April 2015) borne out by the fall in receipts from UK business over recent years. One would therefore expect overseas entrepreneurs to be rushing to the UK to take advantage.

Changes to the remittance basis charge for non-doms

In his Autumn Statement today the Chancellor announced changes to the remittance basis available to individuals resident but not domiciled in the UK. The proposed changes increase the annual remittance basis charge (RBC) for longer terms residents so that the top charge would be £90,000 per annum.

The Autumn Statement – what can we expect?

The Chancellor of the Exchequer will deliver his Autumn Statement on Wednesday 3 December. This will provide an update on the government’s plans for the economy based on the latest forecasts from the Office for Budget Responsibility, which will be published the same day.

Gift Aid explained

The annual ‘Children in Need’ appeal will be taking place tonight, on Friday 14 November, so now is a good time to be reminded how Gift Aid can increase the value of your donations to charity.

Loss relief: is your business being carried out on a commercial basis?

The recent case of Judith Thorne v HMRC has again raised the issue of whether a business is trading commercially and the impact this can have on the availability of income tax loss relief. Relief for trading losses is only available where a trade is carried on during the accounting period on a commercial basis with a view to the realisation of profits. If it is established that there is a reasonable expectation of profit at some point, the trade is considered to be carried on with a view to the realisation of profits.
 

Tackling offshore tax evasion

In August HMRC issued two consultation documents on offshore tax evasion which proposed the strengthening of civil penalties and the introduction of a ‘strict liability’ criminal offence. Such an offence could result in convictions where taxpayers failed to disclose the full amount of their overseas income, even where this was not done deliberately.

Capital gains tax: relief for private residences

In general a UK-resident individual is liable to capital gains tax (CGT) on gains that arise on the disposal of any assets, wherever situated, with very limited exceptions. There are special rules, however, for individuals who are resident but not domiciled in the UK. There are also a number of reliefs, including one for private residences.

The Budget 2014 – summary

In a speech full of sound bites, the Chancellor’s 2014 Budget repeated past themes – the need to build a resilient economy and for Britain to live within its means. But his dominant message was new: this was a Budget for “the makers, the doers and the savers”.

The Seed Enterprise Investment Scheme

The Seed Enterprise Investment Scheme (SEIS) was introduced by the Finance Act 2012 with effect from 6 April 2012 and offers a number of valuable tax reliefs to individuals who subscribe for shares in qualifying companies.