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23 May 2013 - UK - Swiss Bilateral Agreement
31 May is the deadline for making elections under the Agreement. By this date any UK resident account holders will either have to prove their residence is outside of the UK, elect for disclosure to the UK authorities or accept a "tax penalty" of up to 48% of the capital and future withholding tax.
9 May 2013 - Some HMRC updates
- HMRC have issued their updated guidance on the Statutory Residence Test. Are you a winner or loser?
- HMRC have confirmed the abolition of the concept of Ordinary Residence. This will have an impact on UK Domiciliaries ability to claim tax relief on non UK income.
- Guidance on the new operation of Overseas Workday Relief has been announced. This confirms the restriction on years that the "relief" can be claimed and limits it to Non Domiciliaries.
- HMRC confirm to us again that all Non Resident Companies holding UK rental property will be issued with tax returns.
- HMRC have issued their updated guidance on the Statutory Residence Test. Are you a winner or loser?
- HMRC have confirmed the abolition of the concept of Ordinary Residence. This will have an impact on UK Domiciliaries ability to claim tax relief on non UK income.
- Guidance on the new operation of Overseas Workday Relief has been announced. This confirms the restriction on years that the "relief" can be claimed and limits it to Non Domiciliaries.
- HMRC confirm to us again that all Non Resident Companies holding UK rental property will be issued with tax returns.
1 May 2013 - 2011/12 tax returns
Is your tax return for 2011/12 still outstanding. If so you will probably now be charged a daily penalty of £10 a day for up to 90 days while it remains unsubmitted. This is in addition to the automatic penalty of £100 for late submission plus another £300 if it is six months late.
21 March 2013 Statutory Residence Status (SRT)
Our residence and domicile page has been updated to include a summary of the SRT. This is supposed to simplify the rules surrounding those individuals who are leaving and arriving in the UK. Have a read and see whether you agree.
20 March Budget Day 2013
Some updates
- Income Personal Allowances are to increase to £10,000 but not until 2014.
- Income Tax and Capital Gains Tax Rates remain as previously announced.
- The rate at which Higher Rate tax becomes due will be £32,010 (above the personal allowance).
- Corporation Tax Rate to be reduced to 20% for all companies by 2015.
- Statutory Residence Test to be introduced from 6 April 2013.
- Concept of Ordinary Residence is to be abolished from 6 April 2013.
- Overseas Workday Relief to be restricted to tax year of arrival and two subsequent tax years and to non domiciliaries only.
- Amount that can pass free of Inheritance Tax from a UK domiciled spouse to a non UK domiciled spouse to be increased from £55,000 to the nil rate band in operation (currently £325,000).
- The ability for non domiciliaries to opt for UK domicile for Inheritance Tax purposes to be introduced.
- Capital Gains Tax to be introduced for UK property valued at over £2 million where it is held by certain non natural persons.
- Annual Tax to be levied on residential property valued at over £2 million and held by non natural persons.
4 February 2013
Tax Return deadlines & penalties
The tax return deadline for 2011/12 tax returns may have passed and over 9.6 million tax returns may have been submitted to HMRC but that doesn't mean that the deadlines are over.
The tax return deadline for 2011/12 tax returns may have passed and over 9.6 million tax returns may have been submitted to HMRC but that doesn't mean that the deadlines are over.
If you have not submitted your tax return for 2011/12 then you will already have incurred a £100 non refundable penalty. On 28 February a 5% surcharge for any tax still unpaid will be levied. After three months a daily penalty of £10 becomes due up to a maximum of £900 before a further £300 penalty after six months.
Subsequent penalties mean that a tax return that is six months late can accrue penalties of £1,300 even if no tax is due.
21 September 2012
HMRC offer tax amnesty for 2009/10 tax returns
HMRC are offering an "amnesty" for those people who have tax returns outstanding from 2009/10. In truth they are just offering to mitigate any penalties that may be due as if the submission is an unprompted one. Nevertheless it does make it easier to minimise penalties. Therefore if you still have a tax return outstanding or you have an unreported liability for that year you should urgently take tax advice.
16 September 2012
HMRC collect £500m in extra tax
It has been reported by HMRC a new unit that specialise in the taxation of the country's most wealthy people has brought in an extra £500m in tax since it was set up in 2009. No doubt this will have been a mixture of additional tax, interest, surcharges and interest and reinforces the need to ensure that annual tax returns are submitted accurately and timely under Self Assessment.
28 August 2012
Amending electronically submitted returns
Did you know electronically submitted "Amended" tax returns must be filed online within 12 months of the due date? Miss the date and you’ll have to file paper returns.
24 August 2012
Life insurance time apportioned reductions
HMRC are inviting views on reforming the rules for time apportioned reductions reflecting a policyholder’s period of residence outside the UK, for the purposes of the chargeable event gain regime for life insurance policies.
The closing date for comments is 5 November 2012.
HMRC issues penalties for missing self-assessment returns
Harsh penalties for late filing of self-assessment forms has come into force and HMRC have started sending out penalty letters to half a million people who have not lodged their 2010-11 tax returns.
The new penalties will be for a minimum £1,200, including a maximum £900 in daily penalties for non-filing and a further late-filing penalty of £300 or five per cent of the tax due (whichever is higher).
The latest penalties are in addition to £100 late-filing penalties for missing the 31 January filing deadline, which were sent out in late February and early March.
10 August 2012The attribution of gains to members of closely controlled non-resident companies
HMRC has published a consultation document seeking views on proposals for the reform of two anti-avoidance tax law provisions: (1) gains attributed to members of non-resident closely controlled companies, and (2) the transfer of assets abroad. The closing date for comments is 22 October 2012.
27 July 2012Burger and coke giants to waive Olympic tax breaks
Corporate giants McDonald's and Coca-Cola have bowed to online consumer pressure and agreed to turn down generous Olympic tax exemptions granted by the Government.
Campaigners say the exemptions are worth tens of millions of pounds to the companies. Fellow Olympics sponsors Samsung, Visa, Panasonic and US chemical giant Dow are being urged to join the exodus.
Pressure group 38 Degrees, says its online petition - calling on sponsors to reject the exemptions - has amassed over 160,000 signatures after campaigners said the tax breaks turned the Olympic venues into ‘offshore havens’.
Harsh penalties for late filing of self-assessment forms has come into force and HMRC have started sending out penalty letters to half a million people who have not lodged their 2010-11 tax returns.
The new penalties will be for a minimum £1,200, including a maximum £900 in daily penalties for non-filing and a further late-filing penalty of £300 or five per cent of the tax due (whichever is higher).
The latest penalties are in addition to £100 late-filing penalties for missing the 31 January filing deadline, which were sent out in late February and early March.
HMRC has published a consultation document seeking views on proposals for the reform of two anti-avoidance tax law provisions: (1) gains attributed to members of non-resident closely controlled companies, and (2) the transfer of assets abroad. The closing date for comments is 22 October 2012.
Corporate giants McDonald's and Coca-Cola have bowed to online consumer pressure and agreed to turn down generous Olympic tax exemptions granted by the Government.
Campaigners say the exemptions are worth tens of millions of pounds to the companies. Fellow Olympics sponsors Samsung, Visa, Panasonic and US chemical giant Dow are being urged to join the exodus.
Pressure group 38 Degrees, says its online petition - calling on sponsors to reject the exemptions - has amassed over 160,000 signatures after campaigners said the tax breaks turned the Olympic venues into ‘offshore havens’.