1. Jones v Garnett (Artic Systems Ltd)
The House of Lords will hear the appeal from 5 to 7 June. This is the case where HMRC argued that dividends paid to Mrs Jones were assessable on Mr Jones under the settlement legislation.
2. Buy-to-let
HMRC has commented on the recent Times article: "Thousands of buy-to-let families face tax shock":
"Many of you will have seen the article in The Times on 29th May - "Thousands of buy-to-let families face tax shock" and you may be receiving queries from your clients about this.
By way of background, HMRC is not planning a tax crackdown in the way implied by the Times article. HMRC is planning to take a concerted approach to helping landlords of all descriptions (not just in the buy to let market) to understand and comply with their tax obligations in what they recognise to be a complex area. In taking this approach the explicit presumption will be that the majority of landlords want to make a correct return but that many may need some help to understand exactly how to do so. The approach, which was outlined to agent representatives in a recent workshop, will focus on giving landlords improved access to guidance and support so that they can understand how to calculate their own tax liabilities and, where there is tax to pay, using the lightest possible touch to ensure that the correct amount is paid.
Landlords can already obtain more detailed guidance to help them understand their own tax position."
www.hmrc.gov.uk
3. Share Focus – Issue 5
Share Focus is the newsletter of the Employee Shares and Securities Unit and Issue 5 covers the provisions in Finance Bill 2007 plus how to value quoted and unquoted shares.
http://www.hmrc.gov. uk/shareschemes/news/share-focus5.pdf
HMRC 27/5/07
4. Attempted fraud
HMRC are aware of a number of scams aimed at persuading customers to complete a form revealing their bank details, on the pretext that a large payment of tax will be paid directly into their bank account. Full details can be found at http://www.hmrc.gov.uk/security/fraudattempts.htm
5. CGT TAAR
The Chartered Institute of Taxation have published their comments on the targeted anti-avoidance rule for Capital Losses. They are concerned that the proposal guidance is not in line with the legislation and do not themselves have the force of law.
http://www.tax.org.uk/showarticle. pl?id=5585&n=3794
6. Revenue & Customs Brief 41/07
HMRC released Brief 41/07 on 1 June 2007. This follows up on the Budget announcement that a clearance procedure would be reintroduced for the purposes of the substantial shareholding exemption with effect from 1 June 2007. The full brief can be found at http://www.hmrc. gov.uk/briefs/company-tax/brief4107.htm
These notes have been produced for the information of clients, staff and contacts of Smith & Williamson. It is not possible to give exhaustive details of each subject in a brief publication, and detailed advice should be obtained before entering into any transaction. No responsibility can be taken for any loss arising from action taken or refrained from on the basis of this publication. © Smith & Williamson Limited 2007
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.