NEWS UPDATES – TAX

Research & Development

HMRC has put together a collection of guidance on R&D which can be found here. It includes HMRC’s explanation of how R&D is defined, guidance on the different reliefs which can be claimed and a series of videos intended to give an overview of the subject.

Land Transaction Tax

The Welsh government has published rates and bands for the new Land Transaction Tax which replaces Stamp Duty Land Tax with effect from 1 April 2018 and which is claimed to be the first new Welsh tax for almost 800 years. It is intended that the slightly higher starting threshold of £150,000 will mean the average first time buyer will have no tax liability. Buyers of residential property costing up to £400,000 will pay the same or less tax than under SDLT. Full details can be found here.

Group Relief 

HMRC has published draft legislation and explanatory notes in connection with simplified arrangements for claims and surrenders of carried-forward losses. The documents can be found here.

Trading Income Allowance

The Association of Tax Technicians has pointed out that an existing sole trader who starts a new micro-business is unlikely to be able to benefit from the new £1,000 trading income exemption. On the other hand, an individual who is an employee or who trades in partnership will be able to carry on the same micro-business and qualify for the exemption in full which discriminates against the sole trader.

Credit Card Payments

HMRC has reminded taxpayers that they will no longer accept payments made by personal credit cards from 13 January 2018. Readers are also reminded that the Post Office payment facility is withdrawn from 15 December 2017.

Resolving Tax Disputes

HMRC has replaced the guidance on how they use their Litigation and Settlement Strategy (LSS) framework and on their code of governance for resolving tax disputes.

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