Posts Categorized: Tax

Tax Question of the Week

Question Two sisters inherited a property development business when their father passed away. They continued this business as a partnership renovating and developing properties to sell on at profit. One of the sisters wants to buy one of the properties for herself. She is to pay market value but the partnership will make a loss… Read more »

Tax Question of the Week

Question My client has transferred a residential property into a discretionary trust. The value of the property is over the IHT nil rate band. Are there are CGT implications? If the trustees sell the property in the future can they claim principle private residence relief? Answer A transfer into a discretionary trust is a chargeable… Read more »

Tax Question of the Week

Question I have a client who is non-resident in the UK having lived and worked abroad for the last 7 years.  He currently owns a property in the UK that was his main home before he left to work abroad.  Since his departure he has let this property out, receiving rents which have been included… Read more »

Tax Question of the Week

Question An employee has two separate employment contracts with the same employer.  During the day he is a school teacher, and in the evenings he is a lecturer at a college.  We currently calculate NIC on his total earnings.  However, if we were to split his earnings and calculate NICs separately on each job, there… Read more »

Tax Question of the Week

Question My client is a self-employed earner and is liable to pay Class 2 National Insurance contributions.  He has incurred a trading loss in the 2016/17 tax year which I am proposing to carry back to 2015/16.  What effect will this have on the Class 2 NIC of 2015/16?   Answer Until 5 April 2015,… Read more »

Tax Question of the Week

Question My client has asked if his girlfriend and him are about to buy their first home together and are concerned that they may have to pay the higher rates for stamp duty. His girlfriend will sell her flat but he is keeping his buy to let which he will continue to let. Will they… Read more »

Tax Question of the Week

Question My client owns an investment property and pays higher rate tax on the rental income but her husband has some unused personal allowance and fully available basic rate band. It would make sense for him to have some of the income but she wants to leave the property on her death to her children… Read more »

Tax Question of the Week

Question My client spends time working from home and wishes to claim a deduction against her trading profits for use of home expenses. I doubt whether the income tax savings will be significant and could easily be outweighed by future capital gains tax payable because of a loss of principal private residence relief. What should… Read more »

Tax Question of the Week

Question I have a client who wishes to gift his sole trade business to his son.  No consideration will be paid by the son.  What is the position with the trading stock?  Will this trigger a tax charge?   Answer If a person permanently ceases to carry on a trade, in calculating the profits of… Read more »

Tax Question of the Week

Question I have been told it is possible to give an employee £1,000 tax free in recognition of long service. Is this correct? Answer No, but it is possible to make tax free non-cash awards to employees with no less than 20 years’ service provided the value of the award does not exceed £50 for each… Read more »