On the road
We act for a client (a limited company) which deals in buying and selling cars at preferential rates from main dealers.
The company has recently acquired a BMW for £30,000, which is leased back to the director/shareholder by the company at a full market rent plus VAT.
The director insists that there is no benefit in kind because of this and intends to apply the principle to several other employees.
How will community investment tax relief introduced in the Finance Act 2002 work? ALLISON PLAGER reports.
THE CURRENT CHANCELLOR of the Exchequer is extremely keen to encourage wealthy investors to put their money into worthy projects, and what is more, he is prepared to make it worth investors' while. He does this by dangling generous tax reliefs under their noses, so that provided the relevant rules are met, investors are rewarded with substantial tax savings.
ALLISON PLAGER reports two recent decisions.
ALLISON PLAGER reports some recent decisions.
ALLISON PLAGER examines recent trends in accountants' use of technology as reflected in a recent survey.
Customs win their appeal in Tesco plc v Commissioners of Customs and Excise.
TESCO OPERATED A scheme whereby customers could earn points on their purchases, and the points would eventually be converted to vouchers to be redeemed in Tesco. Tesco claimed that the vouchers were granted for a consideration, and that their cost should be disregarded for VAT. The court disagreed, saying that the customer was paying for the goods, not the points or vouchers, so no part of the price paid by the customer was consideration for the vouchers.
ALLISON PLAGER reports a recent case.
ALLISON PLAGER reports some recent decisions.
An American in England
A United States citizen had a United States passport and citizenship, and a domicile of origin in Missouri. He came to England to live in 1991, where he continued to live until his death in 1997. The issue, for the purposes of inheritance tax, was whether or not the deceased had acquired a domicile of choice in England, as claimed by the Inland Revenue.
ALLISON PLAGER reports three recent decisions: National Westminster Bank plc (17687); S J Phillips Ltd (17717); and Royal Bank of Scotland Group plc (17637).
Special Commissioners' Decisions
ALLISON PLAGER reports four recent decisions: Beauty Consultants Ltd (SpC 321); Timothy John Bancroft and James William Bancroft (SpC 322); The Executors of Elsie Fanny Stedman (SpC 323); and Wildin & Co (a firm) (SpC 327).
Whose benefit?
Beauty Consultants Ltd appealed against a corporation tax assessment for the year ended 31 December 1997, claiming that certain insurance policy premiums were an allowance expense.
ALLISON PLAGER finds out what various professional firms had to say about it.
THE PRE-BUDGET Report went off smoothly, perhaps with more of a whimper than a
bang, and initially there seemed little to it, except perhaps to stand back and
admire how a potentially gloomy outlook can be transformed into a positive one.
On the tax side, the Chancellor said little, but the press releases as usual
flag up changes and plans which have given the professional firms plenty to talk
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