SDLT – Transfer of equity and remortgage

Property Tax, Stamp Duty Land Tax

Mr A and Miss B, who were not married, wished to rearrange their financial affairs.  The main residence which they shared and which had been funded by Mr A, was valued at around £900,000. The existing mortgage was £800,000 and the couple were looking to move it to...

Read More

VAT – Supply of serviced flats

Value Added Tax

D owned a company which had bought some flats around 20 years ago through an agent who has been renting them out since then.  This was D’s query:

‘It all started in August 2014 when the agent came to see me as he said he had been made aware for the first time that VAT was chargeable on the rents he had been charging on behalf of my company…

Read More

Proposed BVI investment fund

Capital Gains Tax, Income Tax

Five unconnected individuals wanted to establish a private equity/venture capital fund (the ‘Fund’).  The Fund vehicle was  a limited partnership formed and tax resident in the British Virgin Islands (‘VC Fund LP’). The five individuals were to be the general partners in VC Fund LP.

Read More

VAT – Exercise of a power of sale

Value Added Tax

Several queries have come up on this during 2014.  Getting it right can be tricky.  The principle is that where a business is carried on by a taxable person and goods forming part of that business are sold by a third party exercising a power of sale, those goods are deemed to be supplied by the taxable person in the course or furtherance of his business and VAT is chargeable (or not) on that basis.

Read More

CGT – Entrepreneurs’ relief and compensation

Capital Gains Tax

In 2002 M who was suffering from ill health sold his interest in a thriving accountancy practice to the other two partners, C and P.  Entrepreneurs’ relief was available on the gain attributable to the goodwill at the time of disposal. In 2011, M discovered that C and P had deliberately used incorrect figures to calculate the value of the goodwill.

Read More

SDLT – Multiple dwellings relief and sale and leaseback relief

Property Tax, Stamp Duty Land Tax

A building consisting of two floors of offices above a shop was owned by the trustees of a small self-administered pension scheme (SSAS).  The trustees, Mr and Mrs J, owned the freehold in their capacity as trustees and were also the beneficiaries of the SSAS which had been set up by their employer (E Ltd).

Read More

VAT – Intervention services for depression and addiction

Value Added Tax

The client company (AS Ltd) operated as a provider of in-house counsellors and general advice to individuals suffering from addiction and depression and those who were concerned about them. Fees were charged to either patient or family.

Read More

Tax treatment of proposed lease changes

Property Tax

A building had been divided into four leasehold properties, two residential units (let to A and B respectively) and two commercial units (let to C and D Ltd). The freehold of the building was owned by NGM Ltd, a property management company. A, B and D Limited were also the directors and shareholders of NGM Ltd.

Read More