Capital Gains Tax and Investment Income

 


From 6 April 2020 non-residents who are required to report direct disposals of residential and non-residential UK property or land need to create a Capital Gains Tax (CGT) on UK property account to report and pay the tax within 30 days of completion of the transaction.

The Chartered Institute of Taxation (CIOT) respond to the Treasury Committee inquiry in to the Spring Budget 2020

The Finance Bill had its second reading in the House of Commons on Monday 27 April.  The Bill includes measures such as a Digital Services Tax, changes to the controversial Loan Charge and retaining corporation tax at 19 per cent (rather than implementing a previously legislated cut to 17 per cent). It makes some business reliefs more generous to encourage investment but introduces restrictions on the availability of two capital gains tax reliefs - entrepreneurs’ relief and private residence relief.

Further directions issued today by the President of the First-tier tax tribunal, Judge Sinfield, to the Tax Chamber and Tribunal users extending, in relation to certain proceedings, the general stay of all proceedings released on 24 March (as amended and released on 26 March).

This update provides some background to and information about HMRC’s letters and some guidance to help members decide the most appropriate way to respond if a client receives one of the letters.

HMRC has provided comments on the Q&As on the extension of IHT to overseas property representing UK residential property interests.

The Labour Party have published their general election manifesto, which includes plans for higher corporation tax, income tax increases for those earning more than £80,000 and taxing capital gains and dividends at income tax rates with a single allowance.

The Chartered Institute of Taxation (CIOT) responds to the consultation document which sets out HMRC’s current thinking and approach to interpreting DAC6.

The Chartered Institute of Taxation (CIOT) responds to the draft legislation regarding inheritance tax and excluded property added to and transferred between trusts.

The Chartered Institute of Taxation (CIOT) has sent further comments to HMRC in relation to the provisions in Finance Act 2019 for chargeable gains accruing to non-residents.