Edge Tax March 2016 Newsletter

EdgeNews l et t er I s s ue10 Mar c h2016

Ne ws l e t t e r

I nt hi si s s ue

Edi t or i al : af ewt hi ngst he WI SEf or got I ’ m nots a y i ngGr egWi s ea ppr oa c hedmebuti fhedi d, t hi s mi ghtha v ebeenwha tha ppened.T hea ppr oa c hwoul dha v e beenma des a yt hr oughhi s na nc i a l a dv i s erS t ev eBut t er c a s e a ndt hens ubs equent l yt hr oughhi sper s ona l a s s i s t a ntVi c t or i aS pr i ngs a yi nOc t obera ndNov emberl a s ty ea r .

F ora ny t ha tha v er ea dt henewsors eent het el ev i s i onpr ogr a mme ‘ Di s pat c hes ’ t heyma yr ec a l l howt hi s“ s uc c e s s f ul ”a c t ors et a boutunc ov er i ngt hos epr omot i ngt a xa v oi da nc es c hemes .

-TheL etPr oper t yCampai gn L andl or dsunderpr es s ur e?

-Cher i eBl ai rVsHMRC -NoL oCons i der sHMRC’ s“ T en t hi ngsaboutc ont r ac t orl oan s c hemes ”gui danc e Ant onL ane , Managi ngP ar t ne r

Gr e gs ubme r ge dhi ms e l f i nt hi s“ mur k ywor l d”f ort heCha nne l 4doc ume nt a r ya ndt heups hoti s t ha thef oundHMRCwe r e n’ tdoi nge nought oc ount e ra v oi da nc e .I nt e r e s t i ngl yhes t a t e st ha t “ I ’ v eat l e as t t r i e dt odomyhome wor kont hi sone .

Hone s t . ”I nhi si nf a mouswi s dom Gr e gs i t e s HMRCa r el ook i ngt opr os e c ut e1, 000pe opl ea ndt ha ti s“ l e s st hanus e l e s s ” .

Gr e ga l s or e f e r st oi ma gi na t i v et a xc ons ul t a nt s , a l t houghs omeof t hepe opl ehec hi nwa gge d wi t hwe r el e s squa l ie dt ha nhi m.F ore x a mpl e , I f e e l s y mpa t hyf or T onyAs hbol t , whoI k now r e a s ona bl ywe l l .T onyha snott omyk nowl e dgeoffe r e d“ t a xs ol ut i ons ” di r e c t l ybutme r e l y i nt r oduc e da dv i s e r swhomi ghtbea bl et os ol v eat a xpr obl e mi nr e t ur nf oraf e e .Wet he ns t e p i nt ot hewor l dof whe t he rs uc hape r s oni sapr omot e rof at a xs c he me , whi c hi sal i t t l et e c hni c a l f ort hi se di t or i a l buts houl dy ouwi s ht odi s c us sdoc a l l me .

Howmuc hhomewor kdi dGr egdo?I nmyv i e w, Gr e gha ss ur pa s s e dhi ms e l f a tdoi ngv e r y l i t t l ea c c ur a t ehome wor kora l t e r na t i v e l yhi st e a m of s uppor ts t a ffs houl dber e pr i ma nde d.I f Vi c t or i aS pr i ngi sage nui nepe r s on, ma y bes hes houl dr e s e a r c hal i t t l ebe t t e r .Ce r t a i nl yMrBut t e r c a s e , whoi sar e gul a t e d na nc i a l a dv i s e r , s houl dha v ebe e na bl et ohe l pGr e gwi t hhi shome wor k .

T hei l l i nf or me d“ Mr Wi s e ” s houl dc ons i de rt hea c c ur a c yof a l l e gi ngt ha tHMRCa r enotdoi ng e nough, f ore x a mpl eaf e wt hi ngst heWi s ef or gott oi de nt i f y : 1. T her e mune r a t i ont r us ts t r uc t ur e , whi c hI a s s umei swha t T onyAs hbol tr e f e r r e dt oc oul d bec a ughtunde ra nt i a v oi da nc el e gi s l a t i on, na me l yt het r a ns f e rof a s s e t sa br oa d l e gi s l a t i on; 2.T het r a ns f e rof a s s e tl e gi s l a t i onwa sr e wr i t t e ni nt oS 720I T A2007a ndi sa r gua bl ymuc h wi de rt ha ni t spr e de c e s s or ; 3. Re c e ntc a s el a w( T hePhi l i pBoy l ec a s ea ndt ha tof Mur r a yGr oupI nt e r na t i ona l ) s uppor t t hepos i t i ont ha tt he s es t r uc t ur e sa r eunl i k e l yt owor k ; 4. HMRCha v ec omme r c i a l l yc hos e nt ooffe rs e t t l e me ntoppor t uni t i e sf ort hos eus i ngs uc h pl a nni ng; 5. Ov e rade c a dea got hedi s c l os ur eof t a xa v oi da nc es c he mel e gi s l a t i onwa si nt r oduc e d; 6. Pl a nni ngc a r r y i ngs a yadi s c l os ur eof t a xa v oi da nc es c he menumbe rha v ebe e nt he s ubj e c tma t t e rof a c c e l e r a t e dpa y me ntnot i c e s ; 7. T hege ne r a l a nt i a bus er ul eha sbe e ni nt r oduc e da l t hougha dmi t t e dl ynotus e dt oo muc hy e t ; 8. I nt e r gov e r nme nt a l a gr e e me nt sf ort hee x c ha ngeof i nf or ma t i onwi t hov e r90c ount r i e s ha sbe e ne nt e r e di nt o; 9. Compa nyhous epol i c i ngha sbe e nt i ght e ne dup; 10.Al l Gov e r nme ntde pa r t me nti nf or ma t i ont oi de nt i f ypot e nt i a l t a xi r r e gul a r i t i e s ows i nt oHMRC’ sa wa r dwi nni ngf r a udde t e c t i ons of t wa r e , Conne c t ; 11.Ane wpe na l t yr e gi meha sbe e ni nt r oduc e d; 12.Anne wa bs ol ut ec r i mi na l offe nc ef oroffs hor et a xe v a s i onha sbe e ni nt r oduc e d; 13.T heoffs hor edi s c l os ur ef a c i l i t ywa sl a unc he da ndc l os e dt ober e pl a c e dbyal a s tc ha nc e di s c l os ur ef a c i l i t y ; 14.HMRCa r er e or ga ni s i ngt he i roffic es t r uc t ur ea ndi nt e r na l c ommuni c a t i onst obe t t e r t a c k l et a xa v oi da nc ea nde v a s i on; a nd 15.Pr oj e c t e dpr os e c ut i onsa r ei ne x c e s sof t hr e et i me st ha twhi c ht heWi s eme nt i ons .

-Pl ot t i ngapa t ht hr ought he offs hor ej ungl e -Pa y r ol l i ngbene t si nki nd -Nont ax adv ant agedShar e pl ans -Openi ngandCl os i ngY ear Rul es - ATEDUpda t e - Keyda t esf ory ourdi ar y - EdgeNews -

Don’ tf or gett of ol l owus ons oc i al medi a: @Edge T ax edget ax l l p Edge T ax L L P +Edget ax Vi s i tourwebs i t ef ormor e ar t i c l esbyc l i c ki ngt hel i nkher e: www. edget ax . c om orby s c anni ngt hebar c odebel ow:

Ne ws l e t t e r T hel i s tc oul dgoona ndI hopet ha ti se nought oma k emypoi nt t ha tt heWi s edi dn’ tdohi shome wor ka l t houghdi da c hi e v ehe a dl i nes t a t usf orawhi l e .Obv i ous l yr e s e a r c hi ngt a xda t ac a nbe , we l l t a x i ng.

Butmos tof t hea bov ei sc l e a r l ypl a c e donHMRC’ swe bs i t e , whi c hwoul dbea nobv i ousr e s e a r c hs t a r t i ngpoi nt .

Whati st heLetPr oper t yCampai gn?

T heL etPr oper t yCa mpa i gnwa sl a unc hedi nAut umn2013a s pa r tofHMRC’ seffor t st oc l a mpdownont a xa v oi da nc ei nt he pr oper t ys ec t ora ndc l os et het a xga p.

T hec a mpa i gni sa i med a ti ndi v i dua l l a ndl or dsa ndpr ov i dest heoppor t uni t yt ov ol unt a r i l yma k eaf ul l di s c l os ur eofa nyundec l a r edr ent a l i nc ome a ndt a xowedt oHMRC.

S owha twoul dha v eha ppe ne dwi t hmea ndGr e g( of c our s ei f we ha ds pok e n) ?We l l notmuc ha c t ua l l y ; I woul dha v ef oundt he us ua l “ l ooka tmeI ’ m ac e l e br i t y ” de ma ndi ngpe r s ona l i t ya ni r r i t a t i on; I woul dha v ebe e na s k e da ts hor tnot i c et oa t t e ndame e t i ng. HMRCe s t i ma t est ha ta smuc ha s£550mi l l i oni nt a xi sunder pa i dbyl a ndl or dsea c hy ea r( c l ea r l ynotf eel i nga nypr es s ur e) !

Whe na s k e dt oa t t e ndame e t i ngwi t houtr e a s ona bl enot i c e , I t e ndt odi s e nga ge–i npa r t i c ul a ri f i tmi ghtbea na t t e nt i ons e e k - Howdoy ouknowi fi tappl i est oyou? i nghi ghma i nt e na nc ebr a t–nott ha tGr e gi s .Gr e gwa sj us tdoi ng hi sj ob, whi c hha ppe nst obea ppe a r i ngi nt heme di al i me l i ght T hec a mpa i gna ppl i est oi ndi v i dua l l a ndl or dswhoa r el et t i ng ( c e r t a i ni r ony ) .Howe v e r , i f I di dha v eal e ngt hyc ha twi t hGr e g r es i dent i a l pr oper t yi nt heUKora br oa d. whi l s tdr i v i ngdownt heM5us i ng, of c our s e , myha ndsf r e e , I woul dha v er e l a y e danumbe rof t hepoi nt sa bov et ohi m.Us i ng T hi si nc l udesy oui fy ou’ r e: t ha tc ont e ntmi ghtha v eobt a i ne dadi ffe r e ntr e s ul tt ha nGr e g •Rent i ngoutas i ngl epr oper t y wa nt e d.

•Rent i ngoutmul t i pl epr oper t i es I f onl yt hec onv e r s a t i onha dt a k e npl a c ea ndMrBut t e r c a s e , Ms S pr i nga ndl e s st ha nMr Wi s eha dwa s t e da not he rpe r s on’ st i me !

T oc onc l ude , HMRCa r edoi ngaphe nome na l j obi nc ount e r i ngt a x a v oi da nc e .T hepa c es t a r t e ds l ow; ov e rade c a dea go, butnow t he r ei smome nt um a ndi ti snots t oppi ng.

•As pec i a l i s tl a ndl or d, e . g. s t udentl a ndl or dsorwor k f or c e r ent a l s •Rent i ngoutahol i da yhomeev eni fy ouus ei ty our s el f •Rent i ngoutar oom i ny ourhous ef ormor et ha n£4, 250a y ea ror£2, 125ay ea ri fl et t i ngt hepr oper t yj oi nt l y , i . e . a bov et her entar oom s c hemet hr es hol d.

T hec a mpa i gna l l owsy out or epor tpr ev i ous l yundi s c l os ed r ent a l i nc omet oHMRCa swel l a sc ur r entundi s c l os edr ent a l i nc ome .

TheL etPr oper t yCampai gn: Landl or dsunderpr es s ur e? YoucannotusethisschemetodisclosetaxifyouareacompaI nt hewor dsofFr eddi eMer c ur y , ar el andl or dsf eel i ng“ under pr es s ur e” ?

nyorat r us tr ent i ngoutr es i dent i a l pr oper t y , t hi sc a mpa i gni s di r ec t l ya i meda ti ndi v i dua l l a ndl or ds .

T hi ss c hemea l s odoes n’ t a ppl yt ot hos er ent i ngoutc ommer c i a l pr oper t y .

Sowhydi dHMRCopent hi sc ampai gn?Whyar et heyt ar get i ngl andl or ds ?

I twa ses t i ma t ed( bef or et hec a mpa i gnopened) t ha tt her e wer ea ppr ox i ma t el y1.

4mi l l i onl a ndl or dsoper a t i ngt hr oughoutt heUK, ofwhi c honl y500, 000ha dr egi s t er edf or s el f a s s es s menta nddec l a r edt hei rr ent a l i nc omet oHMRC. T hi sl ea v esa ppr ox i ma t el y900, 000l a ndl or dswhoha dn’ t dec l a r edt hei rr ent a l i nc omea ndHMRCneedi nga neffec t i v e wa yofc ol l ec t i ngt het a xowed.

I nr ec entweek sweha v es eenabi gi nc r ea s ei nt henumberof peopl el ook i ngf ora dv i c eont heL etPr oper t yCa mpa i gn.

T hi s c oul dmea nHMRCha v ebeeni s s ui ngmor el et t er st ol a ndl or dst o c ol l ec tt a xwhi c ht heys us pec ti sdue .

I tma ya l s obet her es ul tof t hei nc r ea s edpubl i c i t yoft hec a mpa i gna l t houghma nyl a ndl or ds whoha v es eent hec a mpa i gnma ynotbec omi ngf or wa r da st hey r ema i nuna wa r et ha tt heyc oul dha v ea ni s s ue( f a rf r om f eel i ngt he pr es s ur e) !

I fy oua r eal a ndl or d( orha v ec l i ent swhoa r el a ndl or ds ) a nda r e una wa r eoft heL etPr oper t yCa mpa i gn, orwoul dj us tl i k et o nd outmor ea boutt hec a mpa i gn, r ea don…

Ha v i ngi dent iedt hi sa ndwi t ht hei nc r ea s i ngpr es s ur et oc l os e t het a xga pa ndc r a c kdownont a xa v oi da nc e , HMRCopened t hi sc a mpa i gnt oenc our a gel a ndl or dst oc omef or wa r dv ol unt a r i l ya nddi s c l os et a xowedont hemos tf a v our a bl et er ms .

T he c a mpa i gna l l owsHMRCt hec ha nc et oc ol l ec tmi l l i onsof poundsi nt a xwi t houtha v i ngt ot a k et het i met oa ppr oa c h ea c hl a ndl or di ndi v i dua l l y .

2

Ne ws l e t t e r Whati nf or mat i ondoesHMRChaveac c es st oandwhatdo t heyknowaboutyou?

HMRCga t he r si nf or ma t i onf r om i t sa wa r dwi nni ngc omput e r s y s t e m“ Conne c t ” .

Us i ngConne c ta l l owsHMRCt oa c c e s smi l l i ons of da t aa bouti ndi v i dua l sorbus i ne s s e sa tt het ouc hof abut t on.

Conne c ti sada t ac onne c t i ont ool t ha tc r os s ma t c he sov e ra bi l l i ondi ffe r e ntda t ai t e ms , bot hi nt e r na l l ya ndf r om t hi r dpa r t i e s .

I nf or ma t i ont he yha v ea c c e s st oi nc l ude s ; ba nks t a t e me nt s , pa s t a ndpr e s e nte mpl oy me ntde t a i l s , bus i ne s sma t e r i a l c os t s , pr ot ma r gi ns , l a ndr e gi s t r yi nf or ma t i ona ndmuc hmor e .

Us i ngt hi s t ool , t he ya r ea bl et oqui c k l ybui l ds e c t ore x pe r t i s e , t he r e f or e i de nt i f y i nga nyobv i ousa noma l i e s .

F i ndoutmor ea boutConne c t he r ei noura r t i c l e“ HMRC’ sConne c tS y s t e m -wha ti si ta ndwha t doe si tk nowa bouty ou? ” HMRCa r ea l s oga t he r i ngi nf or ma t i onbyt a r ge t i nge s t a t ea ndl e t t i nga ge nt s ; i s s ui ngt he m wi t hs t a t ut or ynot i c e sr e que s t i ngi nf or ma t i ononr e ntc ol l e c t e donbe ha l f of l a ndl or ds .

Us i ngt hi s me t hodof da t ac ol l e c t i onhe l psHMRCt oi de nt i f ywhi c hl a ndl or ds a r enotpa y i ngt a xort hec or r e c ta mountof t a x .

S t a t ut or ynot i c e s , onc ei s s ue d, gi v ea ge nt s60da y sf r om t heda t eof t henot i c et o r e t ur nt her e que s t e di nf or ma t i ont oHMRC. Age nt sha v eno opt i onbutt oc ompl ywi t ht henot i c ea ndpa s st hei nf or ma t i ont o HMRCorf a c ea ni ni t i a lneof £300pl usa na ddi t i ona l £60ada y f orc ont i nue df a i l ur et opr ov i dei nf or ma t i on.

HMRCc a na l s o ne l e t t i nga ge nt supt o£3, 000f ors uppl y i ngi nc or r e c ti nf or ma t i ons o i ti sv e r yi mpor t a ntt hei nf or ma t i onpa s s e dt ot he mi sa c c ur a t e !

I mpor t a nt l y , v ol unt a r i l ydi s c l os i ngt hr ought hec a mpa i gnwi l l a l s ogi v ey oupea c eofmi ndk nowi ngy ourt a xa ffa i r sa r eupt o da t ea ndc oul dmea ny oua r el es sl i k el yt obea tr i s kofHMRC a ppr oa c hi ngy our ega r di ngat a xl i a bi l i t ya ndenqui r i ngi nt oy our t a xa ffa i r s( al otofpr es s ur e! ) .

Whathappensi fyoudon’ tt aket hi soppor t uni t y?

I nt hewor dsofChi efS ec r et a r yt ot heT r ea s ur y( a tt het i me– Oc t ober2013) , Da nnyAl e x a nder , whena nnounc i ngt he c a mpa i gn, i t ’ st i mef orl a ndl or dst o“ pa yuporf a c et hec ons equenc es ” !

I fy oudon’ tdi s c l os et hr ought hi sc a mpa i gnbutdoha v eundec l a r edr ent a l i nc omea ndowet a x , y ouc oul df a c es omeha r s h c ons equenc ess uc ha s : •Pena l t i esofupt o100%oft a xdue •Cr i mi na l i nv es t i ga t i onl ea di ngt opos s i bl epr os ec ut i on.

I fav a s tnumberofl a ndl or dsf a i l t oc omef or wa r dov ert i me , we c oul dpot ent i a l l ye x pec tt os eeHMRCi s s uea c c el er a t ed pa y mentnot i c es( “ APN’ s ” ) t ol a ndl or dsa f t ert hec a mpa i gnha s c l os ed.Weha v es eent hi sha ppenpr ev i ous l yf ol l owi ngt he c l os ur esofot herc a mpa i gnss uc ha s ; t heCont r a c t orL oa nS et t l ementOppor t uni t y( “ CL S O” ) a ndt heE mpl oy eeBenetT r us t S et t l ementOppor t uni t y( “ E BT S O” ) -e x t r emepr es s ur e!

F i ndout mor ea boutt hi sher e .

l s tt hec a mpa i gni ss t i l l open, y ouma yr ec ei v eal et t erf r om Gi v e nHMRC’ sda t ac ol l e c t i onme t hods , HMRCa r el i k e l yt ok nowi f Whi HMRCr ega r di nga nyt a xl i a bi l i t i esy ouma yha v e .

Wea r ea wa r e y ouha v ea nyunde c l a r e di nc omea ndi t ’ sonl yama t t e rof t i me t ha tHMRCha ss entl et t er st ohundr edsofpr i v a t el a ndl or dss o unt i l t he yc ont a c ty ou( unl e s sy ounot i f yt he m r s t ) ! f a r .

I fy ouha v eordor ec ei v eal et t er , pl ea s edonothes i t a t et o c ont a c tusf ora dv i c e .

Whats uc c es shast hi sc ampai gnhads of ar ?

Asof 31s tJ a nua r y2015, j us tov e r9, 500l a ndl or dsha dc omef or wa r ddi s c l os i ng£20m i nt a x .

T ha tl e a v e s890, 500l a ndl or dsi nt he UKs t i l l wi t hunde c l a r e di nc ome .

T he s ee x t r e me l ypoorr e s ul t s f r om t hec a mpa i gns of a re x pl a i nwhyHMRCa r ec hoos i ngl e a v i ng t heoppor t uni t yope nf oral ongpe r i odof t i me .

Wee x pe c tt os e e upt oda t e gur e sof t a xc ol l e c t e di nt hene x tf e wwe e k s !

Haven’ tr ec ei vedal et t erbutwantadvi c e?L etust a k et he pr es s ur eoffa ndma na gey ourdi s c l os ur ef ory ou.AtE dge , we ha v ee x per i enc ei nma na gi ngma nyl etpr oper t yc a mpa i gn di s c l os ur esa ndha v ee x t ens i v ee x per i enc ei npr oper t yt a x a t i on.

Wes pec i a l i s ei nt a xr i s ka ndhowHMRCi dent i f yt a r get sf or i nv es t i ga t i on.

F ori nf or ma t i ononWhyE dge , c l i c kher e .

Howl ongi st heoppor t uni t yopenandwhatar et hebene t s ofdi s c l os i ngundert hec ampai gn?

I fyouorac l i entneedsa nya dv i c eont heL etPr oper t y Ca mpa i gn, pl ea s edonothes i t a t et oc ont a c tus .

T hec a mpa i gni se x pe c t e dt or e ma i nope nf ors omet i mea l t hough wewoul de nc our a get hos ewi t hl i a bi l i t i e st oc omef or wa r da s s oona spos s i bl et oa l l owy out os e t t l eont hebe s tpos s i bl et e r ms , put t i ngy our s e l f i napos i t i ont or e c e i v el owe rpe na l t i e sa ndne got i a t ea na ffor da bl epa y me ntpl a n.

I f y oude l a ya ndc hoos et o di s c l os eout s i deof t hec a mpa i gn, HMRCa r el e s sl i k e l yt obe unde r s t a ndi nga ndc oul di s s uehi ghe rpe na l t i e s !

Mor ei nf or ma t i onbe l ow.

3

Ne ws l e t t e r Cher i eBl ai r( andar myof l andl or ds )vsHMRC Cher i eBl ai r ght sbac kagai ns tHMRCf orl andl or dsr i ght sas HMRCl ookt opuni s hl andl or dsandbuyt ol etmar ketagai n Keypoi nt s •Gov e r nme nta nnounc e sne wpol i c yt oc l a mpdownon l a ndl or dsa ndc ol l e c tmor et a x •L a ndl or dsa r eunha ppywi t ht hec ha nge sa ndwi l l be gi na l e ga l c a s ef orbr e a c hoft he i rhuma nr i ght s •Che r i eBl a i rl e a dst hel e ga l c a s ewi t hl a w r m Omni a •Apr ea c t i onl e t t e rha sbe e ns e ntl e a v i ngt heGov e r nme nt14 da y st or e s pondbe f or ej udi c i a l r e v i e w I ft heUKwa s n’ ts uffe r i ngba dl ye noughf r om ahous i ngc r i s i s a l r e a dy , i twi l l bebyt het i met hene wpol i c yc ome si nt opl a c e … ( i fi tdoe s ) .

Unha ppywi t ht hene wpol i c ya nnounc e dbyt heCha nc e l l ori nt he S umme rBudge t , a na r myofl a ndl or ds , l e dbyChe r i eBl a i r , ha v e ge a r e dupt ot a k ea c t i ona ga i ns tt heGov e r nme nt …

T hene wpol i c ya nnounc e dbyt heCha nc e l l or , Ge or geOs bor ne , i s be i ngi nt r oduc e di nor de rt oc l a mpdownonbuy t ol e tl a ndl or ds de duc t i ngmor t ga gei nt e r e s tc os t sf r om t he i rr e nt a l i nc omebe f or e c a l c ul a t i ngat a x a bl epr ot .

Whe nma k i ngt hea nnounc e me ntt heCha nc e l l ors t a t e dhewa nt s t o“ l e v e l t hepl a y i ng e l d” be t we e nhome owne r sa ndt hegr owi ng numbe rofbuy t ol e ti nv e s t or swhi c hi snowe s t i ma t e da tt womi l l i on!

T heT r e a s ur ye s t i ma t e st ha tt hene wc ha ngewi l l c ol l e c t£1bnpe r y e a rf ort heE x c he que rby2021.

Al t hough, t heGov e r nme nta r gue st hene wpol i c yi sk e yt ot he Gov e r nme nt ss t r a t e gyt ohe l pgr owhomeowne r s hi pa ndhe l pt he y oungpr ope r t yma r k e t , wha tt he ydon’ tr e a l i s ei st hec ha nge s c oul da c t ua l l yha v equi t et heoppos i t ee ffe c t .

S i nc ea nnounc i ngt hec ha nge st he r eha sbe e nupr oa rbe t we e n l a ndl or dsa boutt hene wt a xbe i ng‘ una ffor da bl e ’ l e a v i ngl a ndl or ds wi t hv e r yl i t t l e , i fa nypr o tf r om t he i rbuy t ol e tpr ope r t i e s !

Ma ny a l s oa r guet ha tt hec ha nge sc oul dha v eade t r i me nt a l i mpa c ton t hey oungpr ope r t yma r k e ta sma nyl a ndl or dswi l l nowi nc r e a s e r e ntf ort e na nt si nor de rt oc ov e rt hec os t soft het a x .

T hi swi l l l e a v e t e na nt swi t he v e nl e s smone yt os a v et owa r dsbuy i ngt he i rown homea nds t uc ki nt her e nt a l ma r k e tf or e v e r …orwor s e , l a ndl or ds ma yc hoos et oe v i c tt e na nt st os e l l t he i rpr ope r t i e si ns t e a da st he y wi l l nol onge rbema k i ngmuc hofapr ot .

I ta l l bega nwhenanumberofunha ppyl a ndl or dsdec i dedt hey wa nt edt oc ha l l enget henewpol i c yf orbr ea c hi nghuma nr i ght s ont hegr oundst ha tt hepol i c ydi s c r i mi na t esa ga i ns ti ndi v i dua l buy t ol eti nv es t or sbydeny i ngt hem t hes a mer i ght sa sot her bus i nes sowner s .

T hi si nc l udesc or por a t el a ndl or dss uc ha spens i onf undsa nd i ns ur a nc ec ompa ni es , whoc a nc ont i nuet o" s ett hei r na nc e c os t soffa ga i ns tt hei ri nc omea ndbet a x edonl yont hei rpr ot " .

Omni ac l a i mst ha tt hi sdi s pa r i t ybr ea c hesa r t i c l e1oft heE ur opea nConv ent i ononHuma nRi ght s .

I na not herr ef er enc et oE ur opea nl a w, Omni aa r guest ha tby f a v our i ngc or por a t el a ndl or dst het a x" di s t or t sc ompet i t i on"a nd c ons t i t ut esaf or m ofa i dwhi c hs houl dnotbegr a nt ed" unl es si t ha sbeena ppr ov edi na dv a nc ebyt heE ur opea nCommi s s i on. " T hegr oupofl a ndl or dsr a i s edmoneyf ort hel ega l c a s eus i nga c r owdf undi ngpa gewhi c hr a i s edmor et ha n£50, 000wi t h741 ba c k er si nc l udi ngl a ndl or dsa ndl et t i nga gent s !

T hec r owdf undi ngpa gewa ss etupa ndmov ementdr i v en f or wa r dbyt wopr i v a t el a ndl or ds , S t ev eBol t ona ndChr i sCooper whobot hownma nybuy t ol etpr oper t i es .

Af t err a i s i ngt he f undst het wohi r edl a w r m‘ Omni a ’ a ndHuma nRi ght sL a wy er ‘ Ada mS mi t hAnt ony’ t ohel pt a k edownt heoppos i t i on!

T hel ega l ba t t l ei snowbei ngl eda nddr i v enbyCher i eBl a i ra nd Ada mS mi t hAnt onywhoha sk i c k edofft hec a s ewi t hapr ea c t i onl et t ert ot heGov er nment .

T heGov er nmentha sf our t een da y st or es pondt ot hi sbef or et hec a s egoest oj udi c i a l r ev i ew.

Unf or t una t el y , t hi si snott he r s tt i mel a ndl or dsha v ebeen t a r get edbyHMRC! T het a x ma ni sa l s oc ur r ent l yt a r get i ngl a ndl or dst hr ought hel etpr oper t yc a mpa i gnwhi c hpr ov i desa n oppor t uni t yf orl a ndl or dst ov ol unt a r i l ydi s c l os ea nyundec l a r ed r ent a l i nc omet oHMRC. I noure x per i enc ema nyl a ndl or dsha v eundec l a r edpr oper t y i nc omea sar es ul tofal a c kofunder s t a ndi ngoft het a xr ul esf or l a ndl or ds .

E ns ur i ngt hepur c ha s eri na l l r es i dent i a l pr oper t y t r a ns a c t i onsi sma dea wa r eoft hei robl i ga t i onsi nr es pec toft a x woul dnotbeadi ffic ul ts t ept oi mpl ement .

I twoul da l s obec os t effec t i v ea st her es pons i bi l i t yc oul dbel ef ta tt hec onv ey a nc eror s ol i c i t ort opr ov i des omes t a nda r dwor di ngt oea c hpur c ha s er .

S omet i mesHMR M C, s eem mor ei nt entonpuni s hi ngr a t hert ha n educ a t i ng.

I ts eemsl a ndl or dsa r ei nal os el os es i t ua t i ona ndi ft hec ha nges a r enotov er t ur nedwec oul dpot ent i a l l ys eet hebuy t ol et ma r k etgoi ngdownhi l l f a s t !

I fy oua r eal a ndl or dwhoha sa nyc onc er nsa bouty ourhi s t or i c t a xa ffa i r sorpl a nni ngf ort hef ut ur e , pl ea s edonothes i t a t et o Announc i ngt hec ha nge s , Os bor nec l e v e r l yma dei ts ounda si fi t ont a c tusf ora dv i c e . wi l l onl ya ffe c tt hewe a l t hi e s tl a ndl or ds ; howe v e rt hi si sunt r uea si t c wi l l a ffe c ta l l l a ndl or dswhoha v ebi gmor t ga ge s .

F ormor ei nf or ma t i onont hel etpr oper t yc a mpa i gnpl ea s ec l i c k her e .

S oi nabi dt os t a ndupf orl a ndl or dsr i ght sa ndov e r t ur nt hene w c ha nge s , Che r i eBl a i r , ba c k e dbyov e r700l a ndl or dsha v ec ommi t S t a yt unedt os eewha tha ppensne x t ! t e dt ounde r t a k eal e ga l ba t t l ec a s ea ga i ns tt heGov e r nme nt !

4

Ne ws l e t t e r NoLoCons i der s HMRC’ s“ T ent hi ngs aboutc ont r ac t orl oan s c hemes ”gui danc e F orde c a de s , c ont r a c t or sa ndf r e e l a nc ewor k e r sha v ebe e nt a r ge t e dbypr omot e r sof t a xa v oi da nc es c he me s .

T y pi c a l l y , t hes c he me s a t t e mptt ot ur nwha ta nobj e c t i v epe r s onmi ghtr e ga r da sc ont r a c t or se a r ni ngsi nt os omeot he rf or m of unt a x a bl er e wa r dt ha tt he c ont r a c t ors t i l l r e c e i v e st hebe netof .

HMRCr e f e rt ot hes c he me sa sc ont r a c t orl oa ns c he me s , a l t hough wet hi nkt ha tawi de rdeni t i oni sr e qui r e ds i nc es omes c he me sa r e c onv ol ut e de nought ot r ya nda v oi di nv ol v i ngl oa ns .

L a s twe e k , on5F e br ua r y2016, HMRCpos t e df ur t he rgui da nc eon t he i rwe bs i t ee nt i t l e d“ T e nt hi ngsa boutc ont r a c t orl oa ns c he me s ” a i me da tt hos ewhoma ybei nv ol v e di nt a xa v oi da nc es c he me sor c ons i de r i nge nt e r i ngt he m.

T heupda t e dgui da nc ea ppe a r st obeac l e a ri ndi c a t i ont ha t de s pi t et hemuc hpubl i c i s e dE mpl oy e eBe net T r us tS e t t l e me nt Oppor t uni t y( “ E BT S O” ) a ndCont r a c t orL oa nS e t t l e me ntOppor t uni t y( CL S O) , t he s es c he me sa r es t i l l be i nghe a v i l ypr omot e d.

I n t ur n, c ont r a c t or sc ont i nuet obet e mpt e di nt ot he m, wi t ha t t r a c t i v e offe r sof r e c e i v i ngupt ot y pi c a l l y80%of gr os si nc ome ( i r r e s pe c t i v eof t ur nov e r ) .

Unde r t a k i ngas e a r c honwha tpr oba bl yi s , c ons i de r i ngar e c e ntt a x ba c kpa yde a l , HMRC’ spr e f e r r e ds e a r c he ngi nequi c k l yr e v e a l st ha t e x a c t l yt het y pe sof s c he meHMRCa r et r y i ngt oc l os edowna r es t i l l pr e v a l e nt .

Asa l wa y s , wea r ea v a i l a bl ef orac on dent i a l noobl i ga t i on di s c us s i oni fy ouora ny oney oua r ea wa r eofwi s hest odi s c us s t hei rc i r c ums t a nc es .

TheGui danc e Wet houghti tmi ghtbeus ef ul t oc ons i dera ndembel l i s hal i t t l e onHMRC’ sT ent hi ngsa boutc ont r a c t orl oa ns c hemesus i ngour e x per i enc ei ndea l i ngwi t hbot hc ont r a c t or sa ndpr omot er si nv ol v edi nt hes es c hemes .

1. Thel oansar et axabl e HMRCt a k et hes i mpl epr a gma t i cv i ewt ha ti fa na mount pa y a bl ea sea r ni ngsi ss omehowc onv er t edt oa not herf or m( i . e . l oa ns ) , t hent hes t epst a k ent oc onv er tt hei nc omes houl dbe r emov eda ndi nc omet a xa ndNI Cwoul dbeduea sa ppr opr i a t e .

S eemsf a i renough…

HMRCr ef ert ot heBoy l ec a s ewhi c huns uc c es s f ul l ya t t empt edt o us el oa nsc ombi nedwi t hc ur r enc yt r a dest oa v oi dat a xl i a bi l i t y onea r ni ngs .

Pr omot er soft hes c hemeswi l l a r guet ha tal ega l l ydoc ument ed c ommer c i a l l oa nors omeot hermec ha ni s mt oc a nnotpos s i bl y bet a x eda si nc ome .

T hel oa nmi ghtbef r om as eemi ngl yunc onnec t edpa r t yt oa t t emptt ogeta r oundempl oy edi nc ome pr ov i dedt hr ought hi r dpa r t i esa nt i a v oi da nc el egi s l a t i on.

I nc r ea s i ngl yc onv ol ut eds c hemess eekt odi s gui s ewha ti n es s enc ea r eea r ni ngsi nt oa l l ma nneroff or ms .

I nourv i ewa nda sas t a r t i ngpoi nt , onl yi nac i r c ums t a nc ewher e ac ont r a c t orc ons i der st heyha v enoa c t ua l ent i t l ementt o unt a x edf unds( i . e . t hey’ r enoti na ny wa yi nr es pec tofs er v i c es pr ov i ded) a ndwher ea nobl i ga t i onc r ea t ed( i . e . al oa n) i s c ommer c i a l ( i . e . ont er mss i mi l a rt ot ha ta v a i l a bl eont heHi gh S t r eet ) , c oul da ny ones t a r tt hi nk i ngt heyha v eac a s et odef end i nt hec ur r entenv i r onment .

I noure x pe r i e nc e , c ont r a c t or sa r ei nv a r i a bl yi l l i nf or me da ndt he pr omot e r sof t he s es c he me sa r eof t e ns hoc k i ngl ya r r oga nti nt he i r v i e wt ha tt hes c he mewor k sa ndc a nnotpos s i bl ybede f e a t e di n c our t .

Pe r ha pst het r ut hi st ha tt he ypr oba bl yr e a l i s et he i rda y sa r e numbe r e d, t he i rr i s ki sl i mi t e da nds ot he ys houl dma x i mi s et he i r i nc omebe f or et hepr ov e r bi a l ba r ndoorge t sc l os e d.

T he r ei sobv i ous l ys t i l l ane e dt oc ha nget hebe ha v i ourof bot ht a x pa y e ra nd pr omot e r .

Atl e a s t , i tdoe sa ppe a rt ha tt hi si swha tHMRCa r et r y i ng t oa c hi e v e .

Pe r ha psmor ec a nbedonet oe ns ur eCont r a c t or sa r e ma dea wa r eof t her i s k sa ndl a w?

Des pi t ewha tpr omot er sma ya dv i s e , t her ea l i t yi st ha tCont r a c t or sa r eof t enl ef twi t ht her i s k sa s s oc i a t edt ol ega l l yenf or c ea bl e l i a bi l i t i es( e . g. l oa nst ot r us t ees ) a swel l a se x pos ur et oa nHMRC enqui r y , t a x , i nt er es ta ndpena l t i es .

I ti sa r gua bl ynowi na c ont r a c t or sbes ti nt er es tt oc omef or wa r da ndnegot i a t ea s et t l ementbef or et hel a nds c a pebec omesmor er es t r i c t i v e .

T heupda t e dgui da nc ei sa l s opos s i bl ya ni ndi c a t i ont ha tHMRCa r e s t i l l wi l l i ngt ot r e a tc ont r a c t or sc omi ngf or wa r dunde rl e s spuni t i v e t e r mst ha nt hos ewhoc hoos et odonot hi ng.

Wes i nc e r e l yhopet hi s i st hec a s e , a swes e ema nypr omot e r ss t i l l a dv i s i ngc ont r a c t or s wi t hi nt he i rs c he me st ha tt hepl a nni ngi sr obus ta ndt he ys houl d r e butHMRC’ sa t t e mpt st ooffe rac ha nc et os e t t l e .

2. HMRCneverappr ovess c hemes As c hemewi t haDi s c l os ur eof T a xAv oi da nc eS c heme( DOT AS ) r ef er enc enumberdoes n’ tmea ni ti sHMRCa ppr ov ed; i ts i mpl y mea nsHMRCha v ebeenma dea wa r eoft hes c heme .

I tof t enj us t mea nsat a x pa y eri sa ut oma t i c a l l ymov edi nt oa nel ev a t edr i s k c a t egor y .

T her e l e a s e dgui da nc ei sa l s oa r ma ffir ma t i onoft hegov e r nme nt ’ s i nt e nt i ont oc l os edownt he s et y pe sofs c he me s , wi t hr e t r os pe c t i v e l ya ppl i c a bl el e gi s l a t i onpos s i bl yt obea nnounc e di nt hene x t budge t .

Per ha psHMRCc oul ddomor edoeduc a t epeopl ea st owha ti s a c c ept a bl e , a ndi ns er tmet hodsofpr ev ent i ngt hei l l a dv i s edof bec omi ngembr oi l edi nt a xa v oi da nc es c hemest ha tdon’ twor k .

5

Whywoul da ny onebor r owwha tt hey’ v ea l r ea dywor k edf or ?

Per ha pst hi ss t a t ements houl ds a yi fyouear nedi t , makes ur e i t ’ syour s !

Ne ws l e t t e r Wea r es t i l l s eei ngc ont r a c t or sc omi ngf or wa r dwhoa r e genui nel ys hoc k edt ha tt hes c hemet heywer es ol d doesnotwor ka si nt endeda ndt hepr omot er sa r enow l onggonea f t eri ni t i a l l yt el l i ngt hem t oi gnor eei t her t heE BT S OorCL S O. Wes us pec tt ha tt her el ea s eoft hi sgui da nc ei sper ha ps a ni nf or ma l i nv i t a t i onf orc ont r a c t or st oc ont i nuet o c omef or wa r da ndpos s i bl ya c hi ev es omepr ot ec t i on f r om pot ent i a l l yl i f ec ha ngi ng na nc i a l pena l t i esor ev enpr os ec ut i on.

I nourv i e w, t he r es houl dbeabe t t e rs uppor ts e r v i c ef ort hos e l e a v i ngt her e l a t i v e l ys a f er e a l msof e mpl oy me nt , whi c he na bl e s t he mt os pe a konanona me sba s i st oi mpa r t i a l a dv i s or st oe ns ur e t he ya r ea wa r eof a l l t her i s k s .

3.HMRCc hal l engesundi s c l os edt axs c hemest oo Anundi s c l os e ds c he me , oroneout s i deof DOT AS , doe s n’ tme a n HMRCa gr e et hepl a nni ngc onc e ptwor k s .

F orbot hpoi nt s2a nd3, ma nypr omot e r swi l l us ewor dsde s i gne d t opr ov i dec omf or tt ha tt hea v oi da nc es c he mei sl e ga l l ya nd t e c hni c a l l yr obus tt ot hepoi ntt ha ti ti sgov e r nme nta ppr ov e d.

T hi si ss i mpl ynott hec a s e .

Note v e nMP’ sa r ea ffor de dt ha tl ux ur y a ny mor e !

4.Ours uc c es sr at ei nl i t i gat i onmeanst hatyous houl dget outofavoi danc e Ok a y , we ’ l l s k i pt hi sonewi t hawr ys mi l e .

Wea l l k now gur e sa r e e a s i l yma ni pul a t e d!

HMRCmi ghtc l a i mt owi n80%of c a s e s , but wha tpe r c e nt a geof t he s edon’ tge tt oc our tors e t t l ea taf r a c t i on of t het a xt ha tc oul dbec ol l e c t e d?I tt a k e shugea mount sof t i me a ndmone yt obui l dorde f e ndac a s e .

Ma nyc a s e sdon’ tgot o c our tf oras ma l l a gea ndt he r ea r ema nys ur pr i s e sa ndc on i c t i ng de c i s i onswi t hi nt hec our ts y s t e m.

I nourv i e w, t heunc e r t a i nl ya nde v e rl oomi ngpr os pe c tof c i v i l or c r i mi na l pr oc e e di ngsi se noughof ade t e r r e ntf ora ny one .

Pe r ha ps , t hi spoi nts houl ds i mpl ys a yS l e e pwe l l a tni ght !

5.Y oumayr ec ei veanac c el er at edpaymentnot i c e( APN) APN’ sa r ei s s ue dt ous e r sof s c he me swi t hi nDOT AS .

I ti sr e l a t i v e l y e a s yt ode duc et ha tAPN’ sc a mei nt oe x i s t e nc ebe c a us eof i s s ue s hi ghl i ght e di nourc omme nt sa t4a bov e .

Wea r ea wa r eof pr omot e r spr oudl ya nnounc i ngt he ya r eout s i de of DOT ASa ndt he r e f or eAPN’ s .

Howe v e r , APN’ sc a nbei s s ue d whe r et heGe ne r a l Ant i Abus eRul e( “ GAAR” ) i si npoi nt .

I nour v i e w, t heGAARma ywe l l s e ei t smus c l e se x e di nt henott oo di s t a ntf ut ur ea ndAPN’ sc oul dr e a c ht hedoor ma t sof t hos ea dv i s e dt he ywoul dne v e rr e c e i v eone .

F ori ns t a nc e , agenui nec ont r a c t orout s i deofI R35oper a t i ng t hei rownl i mi t edc ompa nys houl dha v ewi des c opet oma na ge t hei rt a xl i a bi l i t i esmor eeffec t i v el yt ha ns c hemepr omot er sa nd wi t hi nt hel et t eroft hel a w.

I nourv i ew, t hi ss houl ds t a t e , youmi ghtenduppayi ngmor e t hanyouneedt o!

7.Y oumayendupdamagi ngyourwor ki ngr el at i ons hi ps HMR M Cr i ght l ypoi ntoutt ha tt hel ongev i t yofwor k i ngr el a t i ons hi psc oul dbej eopa r di s edi fendc l i ent sbec omet hef oc usof a t t ent i on.

Of t en, t heendc l i enti suna wa r eofas pec ics c heme ent er edi nt oa sanumberofi nt er medi a r i es( whi c ha l l a ddt ot he f eespa y a bl et ot hi r dpa r t i esi nr es pec toft ha tc ont r a c t ) a r e i nt er j ec t ed.

T r a ns pa r enc yi si mpor t a nt !

8.Wemayneedt oc ont ac tyourmor t gagepr ovi derand ot herc r edi t or s HMRCha v ewi depower st oc ol l ec ti nf or ma t i onf r om t hi r dpa r t i esa ndev eni ns i s tt a x pa y er spr ov i det hem wi t hpr i ma r yi nf or ma t i ont heyr ega r da snec es s a r yt oc onc l udet hei renqui r i es .

HMRCa l l udet ous i ngi nf or ma t i ononmor t ga gea ppl i c a t i onst o det er mi net hel ev el ofpena l t ywhenc ons i der i ngi ft a x pa y er s ha v edel i ber a t el yc onc ea l edi nc ome .

T hel ongdea dgol dena ge ofs el fc er t ic a t i onofi nc omef ormor t ga gea ppl i c a t i onsc oul d ha v ewi derr a mic a t i onst ha npeopl ee x pec t !

9.Ther i s ki sal l yourown I nourv i ew, t hi ss houl dbea tt het opoft hel i s t !

Al l t ooof t enwe hea rs t or i esf r om c ont r a c t or swhower es i mpl ynotma dea wa r e oft hi sha r s hf a c t !

F ew( a c t ua l l y , ma k et ha tno) c ont r a c t or st ha twes pea kt oa r e ma dea dequa t el ya wa r eoft her i s k st ha tc oul da ppl yt ot he s c hemest heya r ei nt r oduc edt o.

Pr omot er sa r er a r el ya r oundt opi c kupt hepi ec esonc es c hemes f a i l i nc our t , a nda l l t ooof t ena nyf undss eta s i def orl ega l def enc eoft hes c hemea r el onge x ha us t edbef or et hec a s ei s hea r d.

Ma nyc ont r a c t or sent er eds c hemesont hea dv i c eoft r us t ed pr of es s i ona l s , s uc ha st hei ra c c ount a nt s , dur i ngat i mewhen s uc hpl a nni ngwa sa l mos tc ons i der edwi del ya c c ept ed.

E v en s omeoft hepr of es s i ona l sa r eunwi t t i ngv i c t i msoft hes c hemes , wi t ht hei rbus i nes s esr ui nedbyt hea f t ereffec t sofdi s gr unt l ed c l i ent s .

10.Don’ tbet empt edbyanynewt ypesofs c hemes T heCha nc el l or , Geor geOs bor ne , a nnounc edi nt he2015 a ut umns t a t ementt ha tt hegov er nmenti nt endsa ddr es s i ngt he c ont i nueda v oi da nc eoft a xonwha ti tr ega r dsa sea r ned i nc ome .

T heundi s c l os edl egi s l a t i on, i fena c t ed, wi l l ha v ear et r os pec t i v eeffec tf r om Nov ember2015.

F ort hos es t i l l i nv ol v edi n s c hemesornott a k i nga c t i on, per ha pst hewor s ti sy ett o c ome ….

6.Y oumi ghthavet opayI nher i t anc eT axt oo L oa nsf r om t r us t sma ygi v er i s et oa ddi t i ona l i nhe r i t a nc et a x ( “ I HT” ) l i a bi l i t i e s .

T hi si sof t e ns ome t hi ngc ont r a c t or sa r enot ma dea wa r eof .

I twoul dde pe ndont hepa r t i c ul a rc i r c ums t a nc e s .

T he r ea r eot he rs i t ua t i onswhe r eat a x pa y e r( ore v e na ne nd T os eet heoffic i a l gui da nc er el ea s edbyHMRCc l i c kher e . c l i e nt ) ma y ndt he ms e l v e sf a c i nga ddi t i ona l t a xl i a bi l i t i e st he y ma ynotha v ebe e ne x pos e dt o.

6

Ne ws l e t t e r Pl ot t i ngapat ht hr ough t heoffs hor ej ungl e Ass e e ni nt heBr i s t ol P os t andonS out hWe s t Bus i ne s s . c om

Ant onLaneofEdgeT axl ooksatHMRC' sappr oac ht oi ns pec t i ng offs hor et axs t r uc t ur es , f ol l owi ngr ec entnewswhi c hhasbr ought t hei rus ebyc ompani esandi ndi vi dual si nt os har pf oc us T her ec entf ur or eov erGoogl e' st a xs et t l ementwi t hHMRCi l l us t r a t es t hedept hofpubl i cf eel i nga r oundt heus eofoffs hor es t r uc t ur est o mi ni mi s et a xl i a bi l i t i es .

T het ec hgi a ntr ea c hedadea l wi t hHMRCt opa ya r ound£130mi l l i on i nba c kt a x es , a gur ewhi c hs omec r i t i c sa l l egedwa sf a rt ool ow, gi v ent ha tt hec ompa ny’ sv eBr i t i s hoffic eshel pedgener a t epr ot sof £6bi l l i onov er10y ea r s .

T heCha nc el l orha sdef endedt hedea l howev er , poi nt i ngoutt ha ti t wa sc ons i der a bl ymor et ha nwha tGoogl epr ev i ous l ypa i d, a ndHMRC ha sa gr eedt ha tt hec ompa ny’ st a xa ffa i r sa r eent i r el yl ega l .

Googl eus esa na r r a ngementwher ei t sUKoffic eeffec t i v el ywor k sf or t heDubl i noffic e , t a k i nga dv a nt a geofI r el a nd’ sl owerr a t eofc or por a t i ont a x , t her ebyr educ i ngi t sUKt a xl i a bi l i t i es .

Y ett hi sa ppr oa c hha spr ov edc ont r ov er s i a l , whi l eGoogl eha sa l s o a t t r a c t edc r i t i c i s mf ori t sa l l egedus eofoffs hor et a xha v enst odi v er t pr ot s .

T hi sc a s ei sbynomea nsuni quet hough–s ev er a l ot herc ount r i esa r el ook i ngi nt ot het a xa ffa i r sofl a r gemul t i na t i ona l s , whi l e t her eha v ea l s obeenc a l l st oes t a bl i s has i ngl eE ur opea nt a xr et ur n.

L ea v i nga s i det her i ght sa ndwr ongsoft hedea l wi t hGoogl e , how doesHMRCa ppr oa c hi nv es t i ga t i ngoffs hor es t r uc t ur es , whet her t hey’ r eus edbya nAmer i c a nt ec hgi a nt , agr owi ngS ME , ora ni ndi v i dua l s eek i ngt oma x i mi s et hei rwea l t h?Wel l , HMRCha saf ewt ool sa t t hei rdi s pos a l t oga t herr el ev a nti nf or ma t i on, i nv es t i ga t eoffs hor e s t r uc t ur esa ndr ec oupunpa i dt a x .

I nf or mat i ons har i ng T hebedr oc koft hi swor ki seffic i enti nf or ma t i ons ha r i ngbet ween HMRCa ndot hert a xa ut hor i t i es .

AnI nt er Gov er nment a l Agr eement ( I GA) ha sbeenes t a bl i s hedt oa ut oma t i c a l l ye x c ha ngei nf or ma t i on a boutUKr es i dent swi t ha c c ount si nt heCr ownDependenc i es , whi c h ha ss i nc ebeenbol s t er edbyf ur t hera gr eement s .

Anumberof T a xI nf or ma t i onE x c ha ngeAgr eement s( T I E As ) ha v e beens i gnedbet weenHMRCa ndot hert a xa ut hor i t i es , enha nc i ng c ooper a t i ona ndhel pi nggov er nment st oenf or c et hei rdomes t i ct a x l a ws .

T heUKa l s oe x c ha ngest a xi nf or ma t i onwi t hot herc ount r i esundera j oi ntOE CD/ Counc i l ofE ur opec onv ent i ononmut ua l a dmi ni s t r a t i v e a s s i s t a nc ei nt a xma t t er s .

T hes ea gr eement spr ov i det heba s i sf ori nf or ma t i ons ha r i ngon na nc i a l a c c ount shel dbyUKr es i dent s , pa r t ner s hi psa ndc ompa ni es .

Undert het er msoft heI GA, t a xa ut hor i t i esi nt heCr ownDependenc i esha v eunt i l 30S ept ember2016t oe x c ha ngei nf or ma t i onwi t h HMRCf ort hec a l enda ry ea r s2014a nd2015.

T heI GAi npa r t i c ul a rwi l l gr ea t l ya i dt hea ut hor i t i esi nov er c omi ng enf or c ementi s s ues , wi t hl oc a l t a xa ut hor i t i esa gr eei ngt oa c ta st he i nt er medi a r yf ort hepr ov i s i onofi nf or ma t i on, f r om whi c hHMRCc a n t heni dent i f yc ompa ni esa ndi ndi v i dua l swhi c hwa r r a ntf ur t heri nv es t i ga t i on.

HMRC' sRi s ka ndI nt el l i genc eS er v i c e( RI S ) pl a y sak eyr ol ei n t hes et er ms .

T heRI Sus ess ophi s t i c a t edda t aa na l y s i st ool st oma t c ht hei dent i t yof na medi ndi v i dua l sf r om t heCr ownDependenc i est ot hei rUKt a x pr ol e , t hens or tt hem i nt os pec ict a r getgr oups , s uc ha shi ghnet wor t hi ndi v i dua l s , orbus i nes sowner s .

F r om t her e , t heRI Sc a nl ookt o i dent i f yt hos ewhoma yha v eus edoffs hor es t r uc t ur est ohi des ome oft hei ri nc ome .

Av a r i et yofa ppr oa c hesha v ebeenus edbyHMRCa tt hi spoi nt .

I n s omec a s es , offic er sha v es i mpl ywr i t t ent ot a x pa y er s , i nv i t i ngt hem t oma k eadi s c l os ur e , whi l ei not her senqui r i esha v ebeeni ns t i ga t ed, t hr oughempl oy erc ompl i a nc e , VATi ns pec t i ons , ori nt oac or por a t i on ora ni ndi v i dua l ' ss el f a s s es s mentoft hei rt a x .

Compa ni esa ndi ndi v i dua l ss houl dens ur et ha ta nys t r uc t ur est hey ha v ei npl a c ea r el ega l , a ndwa t er t i ght , a si nt hec ur r entenv i r onment t heyc a ne x pec tt obes c r ut i ni s edl i k enev erbef or e .

Domi c i l es t at us T her ea r eanumberofa r ea sonwhi c hHMRCma yques t i ona ni ndi v i dua l orc or por a t i on’ sus eofa noffs hor es t r uc t ur e , a mongt hemos t pr omi nentofwhi c hi st hei rdomi c i l es t a t us .

Whi l et her ul esi nt hi s a r eaa r ec ompl e x , t hos eUKr es i dent swi t haper ma nenthomeout s i det heUK–t hes oc a l l ed‘ nondoms ’ –hi s t or i c a l l yha v ebeena bl et o a v oi dpa y i ngt a xonf or ei gnea r nedi nc ome .

T het a xt r ea t mentofoffs hor es t r uc t ur esha sbeens i gnic a nt l ymor e a dv a nt a geousf ornonUKdomi c i l edper s ons , whet hers et t l or sor benec i a r i es .

Howev er , HMRCma yc a l l t hei rnondomi c i l es t a t usi nt o ques t i oni ft heyv i ewi ta smea nsoft a xa v oi da nc e , a ndt hegov er nmentha sr ec ent l ya nnounc edpl a nst ot i ght ent her ul esi nt hi sa r ea .

Undert henewr ul es , whi c hwi l l t a k eeffec tf r om Apr i l 2017, nondom s t a t uswi l l bet a k ena wa yf r om t hos ewhoha v el i v edi nt heUKf or mor et ha n15oft hel a s t20y ea r s .

Gi v ent hi sba c k dr opa ndt hegener a l di r ec t i onofpubl i cs ent i ment , t r us t ees , s et t l or sa ndbenec i a r i eswoul dbewel l a dv i s edt opr epa r e ev i denc edemons t r a t i ngt hei rdomi c i l es t a t us .

I fy ouneeda dv i c eont heus eofoffs hor es t r uc t ur es , orondomi c i l e s t a t us , pl ea s ec ont a c tusf oranoobl i ga t i ondi s c us s i onofy ouror y ourc l i ent ’ ss i t ua t i on.

7

Ne ws l e t t e r Payr ol l i ngBene t si nKi nd

I tma ys eem t ha tent er i nga ni nf or ma l a gr eementpos tr egi s t r a t i ondea dl i neha snoa dv a nt a ges , a l t houghi twoul dgi v et he empl oy ees omec omf or tt ha tt heya r epa y i ngt her i ghtt a x Af t e rar e v i e wbyt heOffic eof T a xS i mpl ic a t i on( OT S ) , t heCha nc e l - t hr ought hey ea ra ndt heempl oy ert i met obec omef a mi l i a r l orof t heE x c he que r , Ge or geOs bor ne , out l i ne danumbe rof me a wi t hoper a t i nganews y s t em. s ur e sa i me da ts i mpl i f y i ngt hea dmi ni s t r a t i onof e mpl oy e ebe net s a nde x pe ns e si nt he2014Budge t .

Ac ons ul t a t i onf ol l owe da ndon5 Onc er egi s t er ed, t heempl oy ermus tpa y r ol l benet sf ort he F e br ua r y2015, t heGov e r nme ntr e l e a s e dgui da nc ef orpa y r ol l i ng ent i r ey ea r , unl es sbenet sc ea s eort het a xonbenet se x c eed t a x a bl ebe net sf r om 6Apr i l 2016. t he

empl oy eesi nc ome .

Pena l t i eswi l l a ppl ywher ea nempl oy eei s E mpl oy e r sc a nc hoos et opa y r ol l be net sa ndt a k i ngt hi sopt i on r emov edf r om pa y r ol l i ngbenet swi t houtav a l i dr ea s on.

Regi s s houl dme a nr e duc e da dmi ni s t r a t i ons i nc enoP11Dma ybe t r a t i onc ont i nuesa ut oma t i c a l l yunl es sempl oy er sder egi s t er . r e qui r e df ort ha te mpl oy e e .

T her ul e sf orr e por t i nga ndpa y i ngCl a s s 1ANa t i ona l I ns ur a nc er e ma i nsunc ha nge d.

Onc ea nempl oy err egi s t er s , t heymus ti nf or mt hei rempl oy ees i nwr i t i ng.

E a c hempl oy ees houl dbepr ov i dedwi t has umma r y Ane mpl oy e rmus tr e gi s t e rbe f or e6Apr i l 2016not i f y i ngHMRC ofpa y r ol l ede x pens esby1J unef ol l owi ngt heendofea c ht a x whi c hbe net st he ya r epa y r ol l i ng, i nor de rt oa c c ountf ort a xon y ea r .

Wher ee x pens est ha ta r enotel i gi bl et obepa y r ol l eda r e e mpl oy e e sbe net sf ort he201617t a xy e a r .

E mpl oy e e st a xc ode s pa i d, aP11Dmus ts t i l l bepr ov i dedby11J ul yf ol l owi ngt heend wi l l bea me nde dbyHMRCa c c or di ngl y .

I ns ubs e que nty e a r s , oft het a xy ea r .

Benet st ha tc a nnotbepa y r ol l eda r e: e mpl oy e r swi l l ber e qui r e dt or e gi s t e rwe l l be f or et he6Apr i l i n or de rt ogi v eHMRCt i met oa dj us te mpl oy e e sP AYEc odi ngnot i c e s -Benec i a l L oa ns ; whe r ene c e s s a r y .

-E mpl oy erpr ov i dedl i v i nga c c ommoda t i ons ; a nd Anye mpl oy e rwhomi s s e st her e gi s t r a t i onde a dl i newi l l notbea bl e t opa y r ol l be net sa l t houghHMRCha v ei ndi c a t e dt he yma yi nf or ma l l ya gr e et oa l l owa ne mpl oy e rt opa y r ol l be net sf ort he201617 y e a r .

HMRCwoul dne e dt obes a t i se dt ha tt he r ewa sagood r e a s onf ormi s s i ngt hede a dl i ne .

Wes us pe c tt ha te mpl oy e r swi l l be e nc our a ge dt opa y r ol l be net sa tt hee a r l i e s toppor t uni t y .

I f be net sa r epa y r ol l e da spa r tof a ni nf or ma l a gr e e me ntbe c a us e t her e gi s t e r i ngde a dl i neha dbe e nmi s s e d, P11D’ swoul ds t i l l be r e qui r e d, a l t hought he yc a nbema r k e d“ pa y r ol l e d” t opr e v e nt HMRCc ol l e c t i ngt a xt wi c e .

-Vouc her sa ndc r edi tt ok ens .

Ma nyempl oy er swi l l pr ov i det hes ebenet sa swel l a sones el i gi bl et obepa y r ol l ed, a ndma ywi s ht oc ons ul twi t ht hei r empl oy eesa st owhet heri twoul dbebenec i a l f ort hem t o s t a r tpa y r ol l i ngc er t a i ne x pens es .

I fa ny oner equi r esa ny s uppor ti ndec i di ngt heopt i ont ot a k e , pl ea s ec ont a c tusbef or e t heendofF ebr ua r y2016.

8

Ne ws l e t t e r Nont axadvant aged Shar ePl ans Aswi t ha nyot hers ha r epl a n, anont a x a dv a nt a geds ha r eopt i on pl a ni nv ol v est hegr a ntofas pec icnumberofopt i onst oa ni ndi v i dua l .T hes eopt i onsa l l owt hei ndi v i dua l ( a f t era na gr eedt i me per i odoronas pec icda t e) t oa c qui r eagi v ennumberofs ha r es f ora x edpr i c e .

Gi v ent ha tt her ei sbot hnoupf r ontc os ti na c qui r i ngt heopt i ons a nd( unl es st heunder l y i ngs ha r esi nc r ea s ei nv a l ue) nor equi r ementf ort hei ndi v i dua l ma k ea nypa y menti ne x c ha ngef ort he s ha r est her ei sl i t t l er i s ka t t a c hedt ot her ec ei ptofopt i ons .

Aswi t ha l l s ha r es c hemest het er msoft heopt i onsneedt obes et outi nas ui t a bl el ega l doc ument( “ t heRul es ” ) deni nga l l r el ev a ntma t t er sbet weent hec ompa nya ndempl oy ee .

Underanont a x a dv a nt a gedpl a n, t her ei snor es t r i c t i ononhow ma nyopt i onsa r egr a nt edort hepr i c ewhi c ht hei ndi v i dua l s houl dpa yone x er c i s e , a nda ss uc h, t hePl a nc a nbemor ewi del y dr a f t edt obet t err eec tt hec ommer c i a l t er msoft hei s s ui ng c ompa ny .Whi l s tea c hs etofRul eswi l l c ont a i ni t sownuni que t er ms , t her ea r eanumberofi mpor t a ntc ommona r ea swhi c h s houl dbei nc l udedi na nygi v endoc ument , na mel y : -T hel engt hoft heopt i onper i od-f r om t heda t et heopt i ons a r egr a nt edunt i l a na gr eedda t ei nt hef ut ur ewhent he opt i oni se x er c i s ed.

-T hev es t i ngc ondi t i ons-s pec icr equi r ement st ha tmus tbe metbef or eopt i onsc a nbee x er c i s edi . e . mi ni mum t i mea nd i ndi v i dua l / c ompa nyper f or ma nc ec ondi t i ons .

-L ea v erpr ov i s i ons-opt i onsa r et y pi c a l l yoffer eda spa r tofa r et ent i onpa c k a gea nda ss uc hl ea v erpr ov i s i onss t i pul a t e t ha ta l l t heopt i onsl a ps eonempl oy mentc ea s i ng.

Fort heI ndi vi dual Gi v ent ha tt her ei snoupf r ontc os tt ot heempl oy eeont hegr a nt ofopt i ons , t her ei snoc ha r get ot a x .Howev er , one x er c i s e , t he c ha r gei sc a l c ul a t edont hedi ffer enc ebet weent hema r k etv a l ue oft heunder l y i ngs ha r esa ndt hepr i c ea c t ua l l ypa i d, t hi ss houl d ber epor t edi nt heempl oy ee ’ st a xr et ur n.

I tt her ef or ef ol l owst ha ti na ddi t i ont opa y i ngt hee x er c i s epr i c e t heempl oy eema yneedt opa yi nc omet a x , des pi t et hef a c tt ha t t het er msoft hePl a nma ynota l l ows a l eoft hes ha r esbef or et he t a xbec omesdue–mea ni ngt heempl oy eewi l l ha v et o ndt he nec es s a r yf undsf r om ot hers our c es .

Whe r ea nNI Cl i a bi l i t ya r i s e si nc onne c t i onwi t ht hee x e r c i s eof nont a x a dv a nt a ge ds ha r eopt i ons , t hee mpl oy e ra nde mpl oy e e c a nj oi nt l ya gr e et ha tt hee mpl oy e ewi l l s e t t l et hee mpl oy e r ’ s NI Ci nwhi c hc a s et hee mpl oy e ei se nt i t l e dt or e l i e f a ga i ns t e mpl oy me nti nc ome .

S ubj e c tt oa nypr ov i s i onsorr e s t r i c t i onswhi c hma yge ne r a t e i nc omet a xa ndna t i ona l i ns ur a nc ec ha r ge sov e rt hes ha r e s , a ny pr o tont hes a l eof t hes ha r e ss houl dbes ubj e c tt oc a pi t a l ga i ns t a x( CGT) a ndr e por t e dont hee mpl oy e e ' sT a xRe t ur n.I nc a l c ul a t i ngt hec ha r ge a bl ega i n, t heba s ec os tof t hes ha r e swi l l i nc l udet hec ons i de r a t i onpa i dbyt hee mpl oy e e , wi t ha n e nha nc e me nte qua l t ot hea nya mounta l r e a dyt a x e da si nc ome a te x e r c i s e .

F r om 23J une2010, CGTi sc ha r ge da ta a tr a t eof e i t he r28%or 18%unl e s st hes ha r e hol di ngqua l ie sf ore nt r e pr e ne ur s ’ r e l i e f i n whi c hc a s eCGTi sc ha r ge da t10%.Whe r eopt i onswe r er e c e i v e d a nde x e r c i s e dpr i ort o10Apr i l 2003, ac a pi t a l l os swa se ffe c t i v e l y c r e a t e dont hee x e r c i s eof t heopt i ons .

T hi sc a pi t a l l os sc oul d t he nbeus e da ga i ns ta nyc a pi t a l ga i nsi nt henor ma l ma nne r .

Whi l s tt hee x e r c i s eof nont a x a dv a nt a ge dopt i onsc oul dno l onge rc r e a t eal os si nt hi sma nne r , a dv i s e r ss houl dbea wa r et ha t s omec l i e nt sma yha v ec a r r i e df or wa r dl os s e sf r om 10Apr i l 2003.

HMRCpr e v i ous l ya c c e pt e dt ha tt he s el os s e sc oul dbeus e d, howe v e ri t spos i t i onwa sr e v i s e da nda sar e s ul t , a nyus eof t he m i sunde r t a k e nont heba s i st ha tHMRCma ys e e kt oc ha l l e nget he pos i t i on.

F ort heCompany T hegr a ntof nont a x a dv a nt a ge ds ha r eopt i onsi snotat a x a bl e e v e ntf ort hec ompa ny .

Onc et heopt i onsa r ee x e r c i s e dbyt hee mpl oy e e , i nc omet a xa nd NI Cmus tbepa i dt oHMRCwi t ht heP AYEpa y me ntwhi c hr e l a t e s t ot het a xmont hi nwhi c ht heopt i oni se x e r c i s e d.Ac or por a t i on t a xde duc t i ons houl dbea v a i l a bl ef ort hec ompa ny , whi c hi s e qua l t o: -br oa dl yt hea mountof t hei nc omea s s e s s e dont he e mpl oy e e , pl us -a nys e c onda r yCl a s s1na t i ona l i ns ur a nc epa i d T hegr a ntof t heopt i ons , a swe l l a st hes ubs e que nte x e r c i s e , ne e dst ober e c or de dona na nnua l onl i ner e t ur na nds ubmi t t e d byt hec ompa nyby6J ul yf ol l owi ngt hee ndof t het a xy e a ri n whi c ht hee v e nt soc c ur r e d.

9

Ne ws l e t t e r Openi ngandCl os i ngY ear Rul esf ors ol et r ader sor par t ner s hi ps Whens t a r t i ngupy ourownbus i nes sa sas ol et r a derorpa r t ner s hi py oua r er equi r edt odr a wupas etofa c c ount spr es ent i ng pr ot sorl os s esma dedur i ngaper i odr ef er r edt oa st he‘ a c c ount i ngper i od’ .T hes t a nda r da c c ount i ngper i odi s12mont hs , but y oua r ea bl et oc hoos e( a ndc ha nge) t he‘ y ea rend’ da t e .

Mos ta c c ount a nt swi l l s ugges tay ea rendda t eof31s tMa r c ha s t hi sr educ est he‘ ov er l a ppr ot s ’ whi c hy ouc a nbet a x edona nd s i mpl iest heba s i sper i odwhena s s es s i ngt a x a bl epr ot s .T her e a r eanumberoft hi ngst oc ons i derwhenc hoos i ngy oura c c ount i ngper i ods uc ha sc a s h ow; a dmi ni s t r a t i on; a nddef er r edt a x .

T heper i odf orwhi c hs ol et r a der sorpa r t ner s hi psa r et a x edoni n agi v eny ea ri sk nowna st hei rba s i sper i od.At r s tgl a nc e , t he c a l c ul a t i onoft hi sper i odma ya ppea rs i mpl e .Howev er , t heba s i s per i od, whi c ha ppl i esi nagi v eny ea r , dependsonanumberof f a c t or ss uc ha st heper i odofa c c ount ; a ndwhet hert het r a dei si n t he r s tf ewy ea r sofe x i s t enc e; i sac ont i nui ngt r a de; orha s c ea s ed.

T heba s i sper i odf ort he r s ty ea roft r a dei st hes i mpl es tt odet er mi ne: f r om t heda t et r a di ngc ommenc edt ot hef ol l owi ng5Apr i l e . g. i ft r a di ngs t a r t edon1Oc t ober2014t heba s i sper i odf ort he 14/ 15t a xy ea rwoul dbe1Dec ember2014t o5Apr i l 2015–t he a c c ount i ngper i od( y ea rend) da t ewoul dbe30Nov ember2015 a ndpr ot sorl os s ess hownont hea c c ount sa r et a x a dj us t eda nd a ppor t i onedi nl i newi t ht heba s i sper i odi . e .

4mont hs .

F ort hes ec ondt a xy ea r( i nt hi se x a mpl e15/ 16) pr ot sorl os s es mus tbea s s es s edov era12mont hper i od, t her ea r eanumberof wa y sofdet er mi ni ngt heper i odt obea s s es s eddependi ngon wher et hea c c ount i ngper i odends : I ft her ei saper i odofa c c ountendi ngi nt hes ec ondt a xy ea r whi c hi s12mont hsl ongormor e , t hent hepr ot st obet a x edf or t hes ec ondy ea ra r et he12mont hsupt ot hea c c ount i ngda t ei . e . i ft hea c c ountper i odi s1Dec ember2014–30Nov ember2015 t heendda t ef a l l si nt het a xy ea r15/ 16a ndi s12mont hsl ong, t her ef or et hewhol ea c c ount i ngper i odi sa s s es s ed.

Byt het hi r dy e a rof t r a di ng, t henor ma l c ur r e nty e a rba s i sr ul e s ( CYB) a ppl y ; t hea mounta s s e s s e di st hepr o tf ort he12mont hs t ot hea c c ount i ngpe r i ode ndi ngi nt het a xy e a r .

T hi si st hec a s ef or a l l s ubs e que nty e a r sof t r a di ngunl e s se i t he rt hea c c ount i ngda t e c ha nge sort r a dec e a s e se . g. pr ot sorl os s e sf ort hepe r i od1 De c e mbe r2016t o30Nov e mbe r2017woul dbea s s e s s e di nt he t a xy e a r17/ 18.

I ts houl dbenot e df r om t hea bov et ha ti nanumbe rof c a s e st r a di ngi nc omef r om t hes a mepe r i odwi l l bet a x e dt wi c e .I nde e dt hi s i st hec a s ef ora nys ol et r a deorpa r t ne r s hi pwhoc hos e st opr e pa r e t he i ra c c ount st oada t enotf a l l i ngbe t we e n31Ma r c ha nd5Apr i l .

Anypr ot swhi c ha r et a x e dmor et ha nonc ea r ek nowna s‘ Ov e r l a p Pr ot s . ’ Ov e r l a ppr ot sc a nber e l i e v e dwhe ne i t he r : -T hea c c ountpe r i odi smov e dc l os e rt ot het a xy e a re ndda t e ; or -T hebus i ne s spe r ma ne nt l yc e a s e st r a de .

F r om t hea bov e , i ta l s of ol l owst ha ta ddi t i ona l ov e r l a ppr ot sc a n a l s obec r e a t e dbyc ha nge st oabus i ne s s e s ’ a c c ount i ngpe r i od.I t i st he r e f or ei mpor t a ntt os e e ka dv i c ewhe nc ont e mpl a t i ngt hi s t y peof c ha nge .

I nt he na l t a xy e a rwhe nabus i ne s spe r ma ne nt l yc e a s e st ot r a de , t heba s i spe r i odf ora s s e s s me nti sda ya f t e rt hepr e v i ousba s i s pe r i ode nde dt ot heda t eof c e s s a t i on.

Anyr e ma i ni ngov e r l a p pr o twhi c hha sbe e nbr oughtf or wa r di st he nde duc t e dt oge t t a xa bl epr o t gur e s .

I f t hebus i ne s sha si nc ur r e dal os si nt he12mont hspr i ort oc e s s a t i on, i tc a nbede duc t e df r om a nyt r a di ngpr ot si nt het a xy e a rof c e s s a t i ona ndc a r r i e dba c kt ot het hr e epr e c e di ngt a xy e a r s ( k nowna sT e r mi na l L os sors e c t i on89Re l i e f ) .L os s e smus tber e l i e v e dwor k i ngba c k wa r dsf r om t het a xy e a ri nwhi c ht hebus i ne s s c e a s e dt r a di nga nda r eoffs e ta ga i ns tt he r s ta v a i l a bl epr ot sof t ha tt r a deonl ya ndnotot he ri nc ome .Re l i e f i snotgi v e na ut oma t i c a l l y ; ac l a i m mus tbema dewi t hi nf oury e a r sof t hee ndof t het a x y e a ri nwhi c ht hel os sa r os e .

I ft her ei saper i odofa c c ountendi ngi nt hes ec ondt a xy ea r whi c hi sl es st ha n12mont hsl ongi . e .

1Dec ember2014–31Ma y 2015, t hent hepr ot st obet a x edf ort hes ec ondy ea ra r et he r s t 12mont hsoft r a di ng–f r om 1Dec ember2014t o30Nov ember 2015.

I ft her ei snoper i odofa c c ountendi ngi nt hes ec ondt a xy ea rof t r a di ngi . e . t he r s ta c c ount i ngper i odr unsf or18mont hs( f r om 1 Dec ember2014t o31Ma y2016) , t hent heba s i sper i odf ort he s ec ondt a xy ea ri st ha ta c t ua l t a xy ea r , i ef r om 6Apr i l 2015t o5 Apr i l 2016.

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Ne ws l e t t e r ATED-AnUpdat e

T hea mount sdueunderAT E Dha v ea l s odr a ma t i c a l l yi nc r ea s ed, wi t h t hea nnua l c ha r gei nr es pec toft hehi ghes tba ndi nc r ea s i ngby £78, 200i nj us tt hr eey ea r s .

T heba ndsa nda nnua l c ha r gesha v edev el opeda sf ol l ows :

KeyPoi nt s -T heAnnua l T a xonE nv el opedDwel l i ngs( ” AT E D” ) i sat i er ed a nnua l c ha r geonhi ghv a l uepr oper t i eshel dbynonna t ur a l per s ons( “ NNP’ s ” ) ; -T hema x i mum 15%S DL Tr a t ea ppl i est oenv el opeddwel l i ngs wher enor el i efa ppl i es ; -S i nc e6Apr i l 2013, AT E Dr el a t edCa pi t a l Ga i nsT a x( “ CGT” ) a ppl i est oa l l di s pos a l sofhi ghv a l uepr oper t i es ; -F i na nc eAc t2014i nt r oduc eds ev er a l c ha ngest ot heAT E D; -F r om 1Apr i l 2016, AT E Da ppl i est oenv el opedpr oper t i es wor t h£500, 000ormor e; -F ur t hernewr el i ef swi l l bei nt r oduc edf orc er t a i nc ommer c i a l a r r a ngement sf r om 1Apr i l 2016.

Bac kgr ound T hema j or i t yofpr oper t i esa r edi r ec t l yownedbypr i v a t ei ndi v i dua l s .

Howev er , whenadwel l i ngi sownedbyac ompa nyorot her” non na t ur a l per s on” i ts i t swi t hi nawr a ppera ndi st her ef or es a i dt obe ‘ env el oped’ .

Hol di ngpr oper t yac or por a t es t r uc t ur eha s , hi s t or i c a l l y , c onf er r edanumberofbenet s ;i nc l udi ng: -l i mi t edl i a bi l i t y ; -a nony mi t y ; - e x i bi l i t yf ores t a t epl a nni ng; a nd -a bi l i t yt ot r a ns f eri nt er es t si npr oper t yt hr oughs ha r e t r a ns f er si ns t ea dofl a ndr egi s t r yt r a ns a c t i ons .

I nt hec a s eofnondomi c i l edper s ons( i nc l udi ngc ompa ni es ) , env el opedowner s hi pa l s ooffer edt hepot ent i a l t oa v oi ds t a mp t a x esa l t oget hera swel l a smi t i ga t ef ut ur ei nher i t a nc et a xe x pos ur e orc a pi t a l ga i nst a xondi s pos a l s .

I nor dert odet r a c tf r om t hes ea dv a nt a ges , t heRev enuei nt r oduc ed t heAnnua l T a xonE nv el opedDwel l i ngs( AT E D) f r om 1Apr i l 2013.

T hi sha sa l l owedt heRev enuet oa ppl yat a xdi r ec t l yt opr oper t i es hel dwi t hi nc or por a t es t r uc t ur esorbynonna t ur a l per s ons , wi t hout t heneedt oc ha l l enget a xpl a nni nga r r a ngement s .

TheChar ge I ni t si ni t i a l f or m, t heAT E Di mpos eda na nnua l c ha r geondwel l i ngs wi t hav a l uei ne x c es sof£2mi l l i onon1Apr i l 2012.Howev er , ov er t i met her eha sbeenagr a dua l i nc r ea s ei nt hes c opeoft hi st a xa nd a sof1Apr i l 2016t het a xwi l l a ppl yt oa l l pr oper t i esv a l ueda tmor e t ha n£500, 000on1Apr i l 2012.

F ur t herCons i der at i ons T her ea r eanumberofpot ent i a l pi t f a l l si nher entt oAT E Da ndi ti s qui t epos s i bl et ha tpr oper t i eswhi c hwer epr ev i ous l yout s i det he s c opeoft hi st a xc oul ds ubs equent l yf a l l wi t hi ni t .

At r s tgl a nc ei twoul da ppea rt ha ti ti smer el ynec es s a r yt or ev i ew apr oper t y’ sel i gi bi l i t yea c ht i met heba ndsha v ebeene x pa nded.

Howev er , t her ea r es ev er a l ot herev ent swhi c hc a ngi v er i s et o i nc l us i onwi t hi nAT E D.Anumberoft hes ea r eout l i nedi nt ur n bel ow: Reval uat i onPer i ods Whent her egi mewa si ni t i a t edi twa sba s edonv a l uesa t1Apr i l 2012, howev erev er yv ey ea r spr oper t i esa r er ev a l ued, t her ef or e on1Apr i l 2017a l l env el opedpr oper t i eswi l l needt ober ea s s es s ed. ‘ Subs t ant i al ’ Ac qui s i t i onsorDi s pos al s I fpa r toft hepr oper t yi sdi s pos edof , ori fi ti si nc r ea s ed( per ha psby s el l i ngora c qui r i ngs omel a ndorbui l di ngs ) a ndt hec ha r gea bl e c ons i der a t i onoft hea c qui s i t i onordi s pos a l e x c eeds£40, 000i twi l l a ut oma t i c a l l yt r i ggerar ev a l ua t i onf orAT E Dpur pos es .

T her ev a l ua t i oni t s el fi sba s edont hema r k etv a l ueoft her ev i s ed i nt er es ta tt heda t eoft hedi s pos a l ora c qui s i t i on.

Li nkedPr oper t i es Wher emul t i pl edwel l i ngsa r eownedbyt hes a mec ompa nywi t hi n as i ngl ebui l di ng, s uc ha sabl oc kofa t sort er r a c edhous es , ea c h i nt er es ti sc ons i der eds epa r a t el y .I ti st her ef or equi t epos s i bl et ha t ac ompa nyc oul dhol ds ev er a l dwel l i ngswi t hi nas i ngl ebui l di ng wi t houtf a l l i ngwi t hi nt hec ha r geofAT E D.

Howev er , i foneormor eoft hos edwel l i ngsi sl i nk edt heywi l l c ounta sas i ngl edwel l i ngf orAT E D. T hi sc oul da ga i nt r i ggeranew v a l ua t i onda t e , wi t ht hema r k etv a l uebei ngba s edont he c ombi nedv a l ueoft het wopr oper t i es .

I nor dert obel i nk edt her emus tbepr i v a t ea c c es sbet weent he t wobui l di ngs .Pr i v a t ea c c es si sc ons i der edt oe x i s twher ea per s onwhoi sent i t l edt opos s es s i onofonedwel l i ngha sar i ghtof a c c es st ot heot herwi t houtpa s s i ngov era nypa r toft hebui l di ng t owhi c hat hi r dpa r t yha sa c c es s .

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Ne ws l e t t e r I tt her ef or ef ol l owst ha tadwel l i ngc oul dbel i nk edbyv i r t ueofa numberofc i r c ums t a nc es , r a ngi ngf r om s omet hi nga sdr a ma t i ca s k noc k i ngt wo a t si nt oone , t os omet hi nga smunda nea st he i ns t a l l a t i onofaga t ebet weent woga r densofa dj a c entt er r a c ed hous es .

Rel i ef s Anumberofr el i ef sa r ea v a i l a bl ei nr es pec tofAT E D. Howev er t hes ea r enota ut oma t i c a l l ya ppl i eda ndmus tbec l a i medbys ubmi s s i onoft hea ppr opr i a t ef or m ea c hy ea r .S ubj ec tt ov a r i ous c ondi t i ons , t hema i nr el i ef sma ybec l a i medi nr es pec toft he f ol l owi ng: •Pr oper t yr ent a l bus i nes s es •Dwel l i ngsopenedt ot hepubl i c •Pr oper t ydev el oper s •Pr oper t yt r a der s •F i na nc i a l i ns t i t ut i onsa c qui r i ngdwel l i ngsi nt hec our s eof l endi ng •Oc c upa t i onbyc er t a i nempl oy ees •F a r mhous es •Pr ov i der sofs oc i a l hous i ng I fr el i ef sa r ea v a i l a bl ei nr es pec tofagi v enpr oper t y , i ti sa l s o i mpor t a ntt oc ons i derwhoi soc c upy i ngt hepr oper t ya sma nyof t hem a r er es t r i c t edwher eanonqua l i f y i ngi ndi v i dua l i si noc c upa t i on.Awi der a ngeofi ndi v i dua l sa r ec ons i der edt obe nonqua l i f y i ng.

E x empt i onsa r ei npl a c ef ort hef ol l owi ngc i r c ums t a nc es : •Pr oper t i eshel dbyc ha r i t a bl ec ompa ni es , f orqua l i f yc ha r i t a bl e pur pos es .

•Pr oper t i eshel dbypubl i cbodi es .

•Pr oper t i eshel dby‘ bodi eses t a bl i s hedf orna t i ona l pur pos es ’ .

•Dwel l i ngsc ondi t i ona l l ye x emptf r om i nher i t a nc et a x .

Wi t hF i na nc eAc t2014r educ i ngt heAT E Dt hr es hol df orenv el oped dwel l i ngst o£500, 000, anumberoff ur t herr el i ef swer ei nt r oduc edt opr ev ents i t ua t i onswher ea nuni nt endedc ha r gec oul d a ppl y .

Rel i eff orE qui t yRel ea s es c hemes , pr oper t i esoc c upi edbyc er t a i n empl oy ees , a ndpur c ha s eswher et heul t i ma t eus eoft hepr oper t y wi l l bef ornonr es i dent i a l pur pos eswi l l bei nt r oduc edf r om 1 Apr i l 2016.

Wher eadwel l i ngi sdi s pos edoff orov er£2mi l l i ona ndAT E D wa sc ha r gea bl ef ors omeora l l oft heper i odofowner s hi p, CGT wi l l bec ha r gea bl ea t28%, ev eni ft hec ompa nyi snonr es i dent .

T heba ndsa ppl i c a bl et ot hi sc ha r geha v ebeene x t endedi nl i ne wi t ht heAT E D, s of r om 6Apr i l 2016i twi l l a ppl yt oa l l env el oped pr oper t i eswor t hmor et ha n£500, 000.

Gi v ent hei rev erwi deni ngna t ur ea ndt hepot ent i a l f orr ev a l ua t i onev ent soroc c upa t i onbynonqua l i f y i ngi ndi v i dua l st obr i ng dwel l i ngswi t hi nt hes c opeofAT E Dma nyc ompa ni esmus tnow r ev i ewt hei rpr oper t i esel i gi bi l i t yona nongoi ngba s i s .Ot her s wi l l dowel l t oc ons i dera l t er na t epl a nni nga r r a ngement s .

Keydat esf oryourdi ar y: 16t hMar c h2016 •Cha nc el l orGeor geOs bor ne ’ sBudgets peec h!

Wha twi l l hea nnounc et hi st i me? !

5t hApr i l •L a s tda yoft he2015/ 16t a xy ea r .

6t hApr i l •T he r s tda yoft he2016/ 17t a xy ea r .

5t hOc t ober2016 •Dea dl i net oa dv i s eHMRCt ha ty ouneedt or egi s t erf or S el f As s es s mentf ort he2015/ 16T a xY ea r .

31s tOc t ober2016 •Dea dl i nef or l i ngpa pers el f a s s es s mentt a xr et ur nwi t h HMRC •Dea dl i nef ors ubmi t t i ngt a xr et ur ni fy ouwa ntHMRCt o c a l c ul a t ey ourt a xl i a bi l i t y 30t hDec ember2016 •Dea dl i nef or l i ngy ourt a xr et ur nonl i nei fy ouwa nt HMRCt oc ol l ec tt a xt hr oughy ourt a xc ode .

CI S Ret ur nsmus tr ea c hHMRCbyt he19t hofea c hmont he . g. per i od6F ebr ua r yt o5Ma r c hmus tbe l edby19t hMa r c h.

I nt er ac t i onwi t hot herT ax es F i na l l y , i ts houl dbenot edt ha tanumberofot herpuni t i v e mea s ur eswer ei nt r oduc edi na ddi t i ont ot hei nt r oduc t i onof AT E D. S t a mpDut yL a ndT a xa ppl i esa tar a t eof15%t ot hepur c ha s eof env el opedpr oper t i es–t hi sr epr es ent sas ubs t a nt i a l i nc r ea s eov er t her a t esa ppl i c a bl et opr oper t i esownedbyna t ur a l per s ons , es pec i a l l ya tt hel owerendoft heba ndi ngs .

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Ne ws l e t t e r Rec r ui t ment Wea r enowl ook i ngf ormor ea ma z i ngpeopl et oj oi nour t ea ma ndha v ema nynewa nde x c i t i ngoppor t uni t i es a v a i l a bl e!

Wea r ec ur r ent l yl ook i ngf ora nAc c ount a nt , aT a xMa na ger a nda nOďŹƒc eAdmi ni s t r a t or .

I fy oua r ei nt er es t edi na nyof t hes epos i t i onspl ea s ev i s i tourc a r eer spa geher e .

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Foryourc hanc et owi naf r eel unc hwi t hus , c ompl et et he wor ds ear c hbel ow.

Sendyourc ompl et edwor ds ear c ht o i nf o@edget ax. c om.

Thewi nnerwi l l beannounc edi nt he nextnews l et t er .

Wor ds : 1. I nv es t i ga t i on 2. I ns pec t or 3. HMRC 4. Di s c l os ur e 5. T a xa v oi da nc e 6. E v a s i on 7. F r a ud 8. Ri s k 9. Pena l t y 10.L a w

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