From the cantons to the shires
I have a client who has lived and worked in Switzerland for many years but is intending to return permanently to the UK next year when she retires. She has built up a considerable pension pot in Switzerland, but she has not yet taken anything out, either as a lump sum or by way of pension.
Is it better from a tax perspective for her to take out the lump sum before she leaves Switzerland or to wait until she has become UK resident and transfer the pension pot into a UK pension and withdraw it under the UK pension rules? I think that the effect of the UK-Swiss treaty is that if she takes the pension while still resident in Switzerland, the pension will only be taxable in Switzerland, but I am rather out of my depth here, particularly if I also have to take into account the new foreign income and gains (FIG) regime. Can readers point me in the right direction, please?
Query 20,767– Cuckoo Clock.
Death and taxes – but no certainty!
I have been asked to handle a messy investigation case that the previous adviser admitted was too difficult for him to deal with.
A partnership business has been in operation for many years. There were originally four partners but unfortunately one of the partners, Mr Y, died four years ago – the other three carried on the business in partnership together and still do. It is now clear that profits have been significantly understated for many years (perhaps at least ten) and I have been asked by the three remaining partners to make a disclosure to HMRC. Mr Y’s widow has been approached by the other partners but does not want anything to do with the matter and won’t co-operate. If there are understated profits for the years before Mr Y died, HMRC could assess his personal representatives (PRs) up to six years back. Where does that leave me? Can I agree the partnership profits and allocations for all years and leave HMRC to assess Mr Y’s PRs? Do I have to insist on taking instructions from Mrs Y? I’d like to get things moving as soon as possible so that I can prepare an unprompted disclosure.
Query 20,768– Impatient.
Late R&D deadline claim – time out?
My corporate client ceased to trade on 30 June 2022 when it sold its business and became dormant. HMRC has enquired into the corporation tax return for the final period and it is likely that the outcome of the enquiry will be to increase the chargeable profits because of significant disallowance of legal fees. In the course of dealing with the enquiry, I have realised that the company failed to make a research and development claim in its final accounting period. Such a claim would reduce the amount of tax that will ultimately be due.
I know that where there is an enquiry it is possible to make supplementary claims that would normally have been outside the time limit. However, FA 1998, Sch 18 para 61(3) and para 62(1) seem to say that the time limit for making such a claim is a year after the end of the accounting period in which the closure notice was made. But in my client’s case the company will be dormant when the closure notice is issued, so there is no accounting period to tie the supplementary claim to. Have I misunderstood this, or is there a problem here that means the supplementary claim can never be made?
Any advice readers can give would be much appreciated as I have never come across this situation before.
Query 20,769– Hopeful.
Identity check when trying to submit MTD for SA report
When I attempt to submit a client’s MTD for a self-assessment (SA) quarterly report, I am met with a statement that ‘we need to check your identity’. This usually comes up immediately after I have entered my agent services account login details (the usual 12 figures and password), but can pop up before this stage is reached.
My problem is that I have no current passport or driving licence, which leads the system to conclude that I have insufficient information for it to allow me to jump through the hoop, so to speak. It advises me to contact a helpline. When I did this, however (technical services), the person I spoke to concluded that I did not have enough information for this purpose.
This problem persists, and my many attempts to make progress have failed, notwithstanding slight variations from day to day in the variety of the questions asked (a dynamic shift, I understand).
The choices available on the SA helpline and agents’ hotline were such that I could get precisely nowhere with them. For the avoidance of doubt, my relevant client is registered for MTD for SA, and her details copied over from my online services for agents account.
I have now written a letter to HMRC Self Assessment (at BX9 1AS) on this subject and understand that penalties for a late report for the first quarter of 2026-27 will not be sought.
Any advice on how I may surmount this problem would be gratefully received.
Query 20,770– Roadblock.
Queries and replies
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