News & Events

Taxation of Buy-to-Let Properties

In 2015 the UK Government set out its Five Point Plan for housing which was designed to stimulate housing supply and encourage first-time ownership. Support such as this was welcomed by many as the impact of the global financial crisis, and the critical effects this had on the property development sector, continued to be felt by first-time buyers as they battle astronomical rents and house prices worsened by low salaries. Alongside the introduction of affordable homes, and enhancements to the Help to Buy scheme, the Government has over recent Finance Acts introduced a number of tax changes imposed on buy-to-let investors presumably with the intention of deterring investors from investing further, which the Government believes will free up property for owner-occupiers. Read more

April 2019 Loan Charge – Transfer of liability to employees

The most recent instalment in the continuing disguised remuneration discussion was published on Friday 1st December, in the form of a technical note discussing how HMRC would seek to transfer the April 2019 tax liability to employees who had received benefits from EBTs and other disguised remuneration schemes where Employers are unable to pay.

The note focuses on a particular three scenarios a liability might be transferred out to the employee/ultimate beneficiary under the scheme; 1. where the employer is/was offshore, 2. where the employer is no longer in existence and 3. where the employer simply cannot pay the PAYE arising from the April 2019 charge. Read more

Employee Benefit Trusts and other ‘disguised remuneration’ schemes – HMRC new terms of settlement issued and embargo lifted

Following on from our four part series discussing the April 2019 loan charge (which you will find here), we are now able to discuss the recently issued settlement terms available to users of Employee Benefit Trusts and other ‘disguised remuneration’ schemes.

As we highlighted in that recent series of blogs, following their success in the Murray Group Holdings (Rangers Football Club) EBT case, HMRC recently enforced an embargo on settlements, bringing all settlements in progress to an immediate halt at the beginning of October. The embargo was, we understand, to allow HMRC to review the settlement terms available to all disguised remuneration cases, to ensure they fell in line with the findings in Murray. Regardless of how progressed they were, no settlements were allowed to complete. Read more

Taxation of Buy-to-Let Properties

In 2015 the UK Government set out its Five Point Plan for housing which was designed to stimulate housing supply and encourage first-time ownership. Support such as this was welcomed by many as the impact of the global financial crisis, and the critical effects this had on the property development sector, continued to be felt by first-time buyers as they battle astronomical rents and house prices worsened by low salaries.

Alongside the introduction of affordable homes, and enhancements to the Help to Buy scheme, the Government has over recent Finance Acts introduced a number of tax changes imposed on buy-to-let investors presumably with the intention of deterring investors from investing further, which the Government believes will free up property for owner-occupiers. Read more

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