September Tax Tips Newsletter
Non-Residents and UK Property
HMRC’s guidance for non-UK residents disposing of UK property has been updated to reflect the changes which took effect on 6 April 2019. The guidance note can be found here.
Loan Charges
The government has announced an independent review of the Disguised Remuneration Loan Charge. The Treasury has asked for the report by mid-November with the intention of giving taxpayers some certainty in advance of the 31 January 2020 self-assessment deadline.
The Chartered Institute of Taxation has produced a very helpful technical note which explains the history and background to the Loan Charges and some of the issues still to be addressed and resolved.
The technical note can be found here.
Stamp Duty Land Tax
HMRC have recently been looking very closely at claims that properties with extensive grounds and maybe disused farm outbuildings are ‘mixed use’ and taxable at the lower non-residential rates of SDLT.
The September 2019 issue of the Stamp Taxes Newsletter highlights the fact their views on the subject are set out in updated guidance in the Stamp Duty Land Tax Manual starting at SDLTM00440.
Business Investment Relief (‘BIR’)
The Chartered Institute of Taxation has written to HMRC highlighting concerns over the way HMRC is interpreting the BIR legislation. BIR gives income tax relief to non-domiciles who use their remittances to make certain investments in UK businesses. The issue here is that HMRC appear to be placing undue emphasis on how the profits of a trade are being applied rather than whether a trade is being undertaken on commercial terms with a view to profit. HMRC has been invited to comment and a copy of CIOT’s letter can be found here.