Review of Tax Affairs
On receipt by our client of a generalised letter of enquiry from HMRC (of a type often described by HMRC as a ‘nudge letter’) we undertook a comprehensive review of the tax affairs of a UK resident, non-domiciled individual identifying unusual income receipts and capital gains, determining their tax treatment, advising on their disclosure to HMRC and representing the client in discussions concerning the imposition of penalties. The matter was concluded without HMRC imposing any penalties.
Capital Gains Tax on the disposal of a main residence
We advised a client on the availability of main residence relief on the disposal of his home. This involved a detailed analysis of statute and case law and their application to an unusual factual background and some very confused trust documentation, advice on the disclosure to HMRC and agreeing the tax treatment with HMRC.
Business investment relief
We advised a non-domiciled couple on the availability of business investment relief on an investment in a UK company and making a clearance application to HMRC.
We advised members of a wealthy Indian family on their domicile status. This included making a multi-factorial enquiry into their personal history and the making of full disclosure to HMRC.
Moving to the UK
The members of an ultra high net worth family engaged our advice on their proposed move to the UK. This involved advising on the action to be taken prior to their move to the UK and liaising with their other advisers to solve various cross border issues.
Stamp Duty Land Tax
We advised as to the potential SDLT liability on the purchase of a high-value property by a non-resident who was planning to become UK resident.
Effect of Covid-19 on Residence
We advised on the UK residence status of a US resident individual who had worked in the UK because of the border closures caused by the Coronavirus pandemic.
Large farming and entrepreneurial family
We reviewed the existing estate and succession planning for a large farming and entrepreneurial family. This involved a comprehensive review of both agricultural property relief and business property relief highlighting areas of concern and how the family’s situation could be improved.
We advised a UK resident and domiciled individual on becoming non-UK resident on his move to Spain before making a significant capital gain. This included liaising with Spanish advisers, advising on the practicalities of the move and providing continuing advice on subsequent UK investments.
We devised an estate planning strategy for the owners of a family business to reduce the family’s Inheritance Tax exposure. This involved liaising with overseas advisers to deal with various cross border tax and trust issues which we had identified.
UK Residence Status
We advised a Kuwaiti resident individual on his UK residence status taking account of the exceptional circumstances exception. After a short visit to the UK he had been unable to leave for many months because of the Covid-19 pandemic.
We advised a client on the imposition of the ATED Charge following his acquisition of a company owning a residential property which had originally been held as trading stock but was later to be let. This included advice on the availability of property rental business relief including the practical steps to be taken by the company. Advice was also provided on the filing of a Relief Declaration Return and an amended return for a previous chargeable period.
Planning for a wealthy farmer with a US dimension
Advising a wealthy farmer on his withdrawal from farming activities and on the establishment of a family investment company taking account of various US cross-border issues relating to his son.
Main residence relief where a residence is demolished and a new one built
Advising a wealthy couple on Inheritance Tax and Capital Gains Tax planning which included advising on a proposal for the termination of a discretionary trust, cross-border US issues, the application of Main Residence Relief where an original residence on a plot of land has been demolished and a new residence built and on disclosure to HMRC of past errors in the clients’ returns which were discovered during the process ascertaining the relevant facts for the purposes of our Report.
Residence and situs of a professional practice
Advising a Barrister, who practised as a member of a UK Chambers whilst living peripatetically in several different European countries, on her UK residence status the situs of her practice and the application of UK tax to her professional profits.
Tax planning for a property investment portfolio
Advising a family who owned a large actively managed portfolio of UK residential properties and were considering the possibility of withdrawing from the UK residential property market in response to the Government’s proposed changes to the law of landlord and tenant. This advice included a consideration of the taxation of the capital gains of partnerships, of the CGT effects of prior lease extensions and of a proposal for the incorporation of the activity.
What is a Home for the purposes of the SRT?
A client and his wife had decided to base themselves primarily in Antwerp because of the wife’s substantial connections with Belgium. By doing so, however, they would also obtain a substantial tax advantage on the disposal of certain shares if they were non-resident for UK fiscal purposes at the time of the disposal and the disposal was not made in a period of temporary non-residence. The client had taken advice from well-respected UK and Belgian advisers but wished to receive a second opinion on one specific question. Would they satisfy the Second Automatic UK Test, the UK Home Test? If they did, they would not cease to be UK resident and would not obtain the anticipated tax advantage.
IHT planning and stockpiled gains
The trustee and settlor of a UK resident trust which previously had been non-resident asked for our advice in respect of IHT planning. The Trust had very substantial gains stockpiled under TCGA 1992 s.87 and an overseas asset with significant unrealised capital gains. Without making suggestions likely to antagonise HMRC, we made recommendations which reduced the IHT likely to be charged on his, and his wife’s, estates by 43%.
Initial Expert Report on Fiscal Element of Investment Advice which a client considered negligent
Trustees had been advised to invest in insurance bonds linked to the same equity investments that were held in unit trusts in which the Trustees might have invested. We were asked to advise as experts on whether, due to the differing fiscal effects of the two forms of investment, the advice to invest in bonds rather than unit trusts was negligent.
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