TaxBuzz for the Tax Advice Network

Cheers @TaxTeddy I said as much when I wrote an e...

2012-05-18T10:11:16.710Z

Cheers @TaxTeddy

I said as much when I wrote an earlier piece re the ubiquitous advice that accountants should start blogging in a post back in 2008.
http://www.bookmarklee.co.uk/2008/10/20/blogging-myths-for-accountants/#

Couldn't agree more Mark - the whole social me...

2012-05-17T15:34:08.275Z

Couldn't agree more Mark - the whole social media thing has become an end in itself and has lost sight of whether is is actually useful.

Marketeers used to say that only 50% of advertising worked - but nobody knew which 50%.

I would say that only 0.005% of blogging is effective - but nobody cares.

It doesn't matter if 1 person evades paying £1...

2012-05-11T12:49:15.526Z

It doesn't matter if 1 person evades paying £1 million or 1 million people avoid paying £1 in tax; the net result to the country is the same.

The only difference is in the first example, the person would be vilified and considered evil.

Very well said, tax should be deducted on high inc...

2012-04-23T21:02:01.249Z

Very well said, tax should be deducted on high income earners but less on low income earners.

Yet according to Hansard in 1987, the type of retr...

2012-02-17T16:37:06.819Z

Yet according to Hansard in 1987, the type of retrospection was the opposite of that claimed by Hansard in 2008. Yet S58 is merely a clarification of Clause 62 "which itself was retrospective" to quote Hansard 2008. The fact is that retrospection in 1987 achieved the exact opposite of retrospection in 2008. Check Hansard for both, it's quite obvious but not admitted by HMRC.

The quickest, and surest way, for everyone to save...

2012-01-26T19:41:39.849Z

The quickest, and surest way, for everyone to save tax is simple. Report tax abuse to the hotline whenever you come across it. Whether it be your local cafe, newsagent or friend who boasts he is not paying tax, or most commonly the tradesman who advertises on lamp posts using a telephone number.
If the 'tradesman' states he can come only after 5PM or at the weekend, he has a daytime job and is avoiding tax.
The more tax the cheats avoid, the more the honest taxpayr has to pay!

And in reply to Nicholas I also think you have mis...

2011-12-30T17:03:47.824Z

And in reply to Nicholas I also think you have missed the point. What I was told (and believe to be true) is that "there are NO off-the-shelf schemes around any more that work and which are legal."

I very much doubt that Patrick or any other SDLT specialist Barristers are promoting off-the-shelf schemes any more.

Thanks for your comment but I think you may have m...

2011-12-30T17:00:54.196Z

Thanks for your comment but I think you may have missed my point.

I'm not talking about illegal SDLT evasion but about the so-called 'Creative' schemes that the promoters claim will avoid a liability to SDLT through legal (but contrived and 'abusive') means.

Whether any such schemes will ultimately prove to be successful or not will remain unclear for some time.

Great article Mark. I attend a lot of property ne...

2011-12-30T13:59:50.506Z

Great article Mark.
I attend a lot of property networking events and mix with many people who have built large portfolios using creative strategies (creative NOT illegal). The companies who offer these stamp duty avoidance schemes are always prominent. Indeed one well known company advised that many MPs had used these systems including the Chancellor of the last government!! I find that a little hard to believe, not because of the integrity of MPs, but because Mr. Heslop and Private Eye would be on their case before HMRC. But there is definitive wide-ish spread use of these schemes.

I was "sold" one of these "investme...

2011-12-07T21:25:00.910Z

I was "sold" one of these "investments". Although it looked like an investment, (if you invested the initial return), it still worked out much the same as a 15 year loan but with the added worry and complication of tax matters that far exceed our knowledge and pockets. they certainly should not be sold to ordinary people. The added worry, costs and potential investigations at every turn were never mentioned by the salesman. As for the small print, I read it but was assured at the time that this scheme was an investment and risk was mitigated. It's a constant worry, a drain on finance and the point is that the advisers have zero liability and all the profit from both the investor and the actual scheme.

Patrick Cannon the leading tax barrister on Stamp ...

2011-12-07T13:47:08.280Z

Patrick Cannon the leading tax barrister on Stamp Duty would disagree with the comments posted by your stamp duty lawyer that there are "no schemes around any more that work and which are legal".

I must commend you Mark. You give excellent insig...

2011-12-01T18:17:52.561Z

I must commend you Mark.

You give excellent insight into a subject where Tax explanations are normally re hashed on the net.

Many lay people are looking into Tax facts as there are a growing number who also turn to entrepreneurial ways of earning that little extra income in these difficult times.

So much uncertainty Black Friday sales were encour...

2011-12-01T06:58:57.782Z

So much uncertainty
Black Friday sales were encouraging

Chris
Owner Cel Financial Services
Registered bonded California CTEC Tax Preparer
Please visit my website for all your Income Tax Fillmore needs.
http://www.merchantcircle.com/business/CEL.Financial.Services.Tax.Preparation.Fillmore.805-625-0796

Sorry 'anonymous' but I doubt your referen...

2011-11-30T07:21:06.138Z

Sorry 'anonymous' but I doubt your references to HRA or to 'certainty' are relevant here.

No retrospective legislation would be involved. It's simply that the Courts MAY choose a different interpretation to that which Counsel anticipated when 'blessing' the scheme. It happens all the time. If the law was that clear (and certain) there wouldn't be an issue.

That is indeed a further issue but the structure i...

2011-11-30T07:16:57.260Z

That is indeed a further issue but the structure is often therefore designed to avoid CGT on disposal of the shares as these may be held by an offshore trust

Thank you for this post Mark. I read the articles ...

2011-11-29T20:56:03.474Z

Thank you for this post Mark. I read the articles in The Times and was wondering whether you were going to mention this on your blog!

I think you hit the nail on the head regarding the question how you get the property into the company in the first place. The articles do imply this is an issue, though they don't spell it out clearly. They can give a misleading impression that there's no SDLT payable at all. Even so, I expect the SDLT on the property going in will be relatively small compared to subsequent taxes - assuming property values in London increase.

Is there a downside for UK tax residents in that they won't get private residence relief when they come to sell? This is on the basis that they'd be selling shares rather than the underlying property.

Satwaki

Because retrospective legislation would breach the...

2011-11-29T11:26:06.648Z

Because retrospective legislation would breach the Human Rights Act. A taxpayer has the right to certainty about the tax laws in place on a given day before making a decision regarding his/her tax affairs.

Thanks guys - appreciate you taking the time to po...

2011-11-24T08:31:58.706Z

Thanks guys - appreciate you taking the time to post supportive comments.

Yep, I agree with Satwaki. As a planner for finan...

2011-11-23T14:09:59.548Z

Yep, I agree with Satwaki.

As a planner for financial advisers I am on the edge of the tax world. This kind of thing which explains some of what's going on is useful.

Also having access to tax professionals willing to take on specialist work is very useful.

Thank you very much for your posts Mark. I don...

2011-11-23T09:28:51.818Z

Thank you very much for your posts Mark.

I don't think you should give up. This idea of debunking tax myths and educating the lay public is a really good one.

The fact you get few comments doesn't necessarily mean your posts aren't useful or no one reads them - lots of people just lurk on blogs without commenting. I myself am one of these people! We are normally too shy to say anything, witness the fact that this is only the second comment I have ever left on a website!

I totally agree I never understood them I have a...

2011-11-23T00:48:07.567Z

I totally agree

I never understood them

I have a friend who went into one and had to re-mortgage the house as a guarantee in the scheme got called - cost him £100,000

Sounds like we should organise a mis-selling claim !

watch the video of the hearing, you can find it on...

2011-11-22T14:25:03.956Z

watch the video of the hearing, you can find it on LinkedIn. Mr Inglese was being very evasive and refusing questions on the grounds of confidentiality and legal privelege. He also refused to answer yes or no questions. The committee lost patience with him. if it wasn't so serious, it would be seriously funny.

I wonder whether HMRC send Inspectors "under ...

2011-11-22T14:16:09.177Z

I wonder whether HMRC send Inspectors "under cover" to Stringfellows to find out first hand how the business operates and whether the dancers declare all their tips.

As you say, lots of common sense. However, I hav...

2011-11-22T09:57:46.620Z

As you say, lots of common sense.

However, I have a feeling that when legislation is finally drafted we (practitioners) will be outraged that HMRC / Treasury have ignored all the common sense issues as they stampede towards filling the 'tax gap' though the use of GAAR.

I really hope not - but judging on past experience I think this will be the way it works out.

Of course, if the Treasury do take an aggressive view then I expect it will just serve to drive a wedge between HMRC and the profesion. Again.

Having followed the 'how much does IR35 raise&...

2011-11-19T22:07:05.153Z

Having followed the 'how much does IR35 raise' debate since 2000, I was interested to read about the latest FOI request data on P35 returns here, which more than explains why the Chancellor decided to keep the Intermediaries Legislation intact during Budget 2011.