Business

Revisiting an old tax case concerning the difference between income and capital expenditure

Planning opportunities for maximising business property relief

Revisiting an old tax case concerning the difference between income and capital expenditure

The UK’s video games tax relief could be abandoned after the European Commission (EC) opened an in-depth investigation into the proposed measure over doubts it is necessary

“There is no obvious market failure in this dynamic and growing sector and that such games are produced even without state aid,” said the commission about the planned 25% relief on a maximum of 80% of the production budget of a qualifying video game for expenditure on goods and services used or consumed in the UK

It was understood that, to make a personal pension contribution, then subject to the lower limit of £3,600, the taxpayer must have earned income of at least an equivalent amount. This is the case, but relief may effectively be obtained against investment income and employer contributions should not be overlooked

Mistakes by those in the construction industry scheme can be costly despite the new penalty regime

Sere Properties Ltd (TC2429)

Builders are seen by HMRC as easy targets, claims accountancy provider

A limited company intends to purchase a dog that will be used for promotional purposes. The animal will be taken home in the evenings and at weekends by one of the directors

HMRC will be holding business-and-employer advice days at the end of March. The informal events will provide a chance to meet the Revenue’s team of tax advisers, listen to talks on a range of tax subjects, and ask questions about the department’s rules and procedures.

Topics to be covered include self-employment, VAT, first steps as an employer and real-time information.

The annual residential property tax (ARPT) is set to come into effect on 1 April.

HMRC will carry out what they call pre-return banding checks on high-value residential properties owned by taxpayer companies, to determine if they are liable to the new levy.

The service is available on request when a taxpayer is not due a relief that will reduce the ARPT charge to nil and the value placed on the property falls within 10% of a banding threshold.

A long-established partnership of five persons is considering the retirement of the present individual partners who would be replaced by five limited companies. Is this acceptable tax planning or are their pitfalls?