Welcome to this month’s Tax Bite Sized.
I hope everyone is keeping well and looking forward to a well-earned summer holiday. The UK basks in a glorious heatwave this summer and yet again a nation dared to dream that football might… just might… be coming home!
Inheritance Tax (IHT) boosts HMRC’s coffers
The single most hated tax in the land (followed closely by the ever popular Stamp Duty Land Tax (SDLT)) has boosted HMRC’s revenue during 2017/18 by £5.2 billion.
The 2017/18 figures show an increase of £388 million on HMRC’s 2016/17 IHT receipts.
The South of England still provided the lion’s share of IHT receipts with the rise in property prices and frozen allowances providing the perfect storm for record receipts of IHT.
Whilst IHT is universally despised by all (except HMRC and the Treasury) steps can be taken to mitigate the extent to which IHT can diminish the value of Estates. The scope of IHT has been extended in recent years, hence it is imperative for RND taxpayers who expect to remain for an extended period of time in the UK or for non-residents who hold UK assets to review their position. The Edwin Coe Tax team have extensive experience in advising these types of clients.
Non-resident Capital Gains Tax (NRCGT) return penalties
Another non-resident CGT return penalty case has been before the First Tier Tribunal (FTT). This time the FTT found in favour of the taxpayer. Bradshaw  TC 06582 was interesting for the fact that the Judge made the following comments, ‘On a further note, I have recently been advised a review has taken place regarding the issue of daily penalties for late non-resident capital gains tax returns (NRCGT), which are raised at HMRC’s discretion. I can advise the position has changed following a review of representations from a number of customers and agents. I can confirm HMRC will no longer be issuing daily penalties for late NRCGT returns and all daily penalties raised for NRCGT are being withdrawn’.
Requirement to Correct (RTC)
If you haven’t, or aren’t in the process of addressing any RTC concerns then time is running out. I won’t repeat the details of my colleague, Bill Duggan’s blog here (link is enclosed below) but HMRC has finally provided some further guidance in terms of the practicalities of disclosing outstanding matters.
The wider reaching ramifications of RTC are starting to raise serious concerns in the offshore service provider profession but RTC catches UK residents too. So many people are going to be caught up in the RTC dragnet post 1 October 2018, yet HMRC marketing in the UK on RTC is literally non-existent.
For those of you who haven’t read Bill’s blog yet, please click here.
We remain ready to assist anyone who thinks either they or perhaps their clients might have an issue – pick up the phone and call any of the team for a confidential discussion to see whether you might have legitimate concerns or not.
Thank you for reading!
Partner | Head of Tax
For Edwin Coe LLP
d: +44 (0)20 7691 4136 | e: firstname.lastname@example.org
For further information regarding this topic, please contact Frank Strachan, Head of Tax, or a member of the Tax team:
Edwin Coe LLP is a Limited Liability Partnership, registered in England & Wales (No.OC326366). The Firm is authorised and regulated by the Solicitors Regulation Authority. A list of members of the LLP is available for inspection at our registered office address: 2 Stone Buildings, Lincoln’s Inn, London, WC2A 3TH. “Partner” denotes a member of the LLP or an employee or consultant with the equivalent standing. This guide concerns the law in England and Wales and is intended for general guidance purposes only. It is essential to take specific legal advice before taking any action.