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Accountancy magazine

The magazine Accountancy ceases to be a print magazine after the December 2018. This was once the house magazine for the Institute of Chartered Accountants in England and Wales. It was first published on 24 June 1889 as the Incorporated Accountants' Journal and was the official organ of the Society of Accountants and Auditors. In that first issue, the lead article was ‘The Finance of Lif...
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Mortgages at six times salary

Darlington Building Society is offering mortgages up to six times a person's salary, according to Moneyfacts in November 2018. Lenders are typically lending up to 4.75 times salary. Heavily indebted borrowers are vulnerable to sharp rises in interest rates. Since 2014, lenders have not been allowed to agree more than 15% of a loan at a rate above 4.5 times salary. [18.11]
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X Factor single VAT

The Chancellor has announced that the Treasury will make a donation equal to the VAT on the 2018 X Factor's winning Christmas single. The single is a cover version of The Power of Love recorded by Dalton Harris. Proceeds go to Together for Short Lives and Shooting Star Chase. Various charity recordings have had similar treatment. [18.12]
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IHT on donations to UKIP

Arron Banks lost a case which held that he was liable to inheritance tax on £976,781 that he donated to the political party UKIP, and related bodies, between 7 October 2014 and 31 March 2015. A donation to a political party is exempt from inheritance tax, only if that party secures sufficient votes and at least one seat in the House of Commons at the last general election. This UKIP failed to d...
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Crown preference in insolvency

The reinstatement of Crown preference in insolvency could lead to cashflow pressure for unsecured creditors, accoding to Nucleus Commercial Finance. The 2018 Budget announced a limited return of Crown preference, whereby a tax debt is given preference over other debts in an insolvency. This change is due from April 2020. This reverts to the pre-2003 position when the tax authorities could, b...
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Denaturing alcohol

On 30 November 2018, the EU amended regulation 3199/93 on the mutual recognition of alcohol denaturing procedures for exemption from excise duty. The amendment can be downloaded from here. [18.12]
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Subcontractor liable for VAT

A subcontractor was held liable to account for VAT when building work had wrongly been zero-rated and the contractor had gone into liquidation. The main contractor's supply for a construction project was zero-rated because the end customer was a charity. A subcontractor incorrectly treated its services to the contractor as zero-rated. By the time this was realised, the contractor had gone...
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Interest and repayment supplement

An appeal regarding interest and repayment failed in the upper tribunal as it did not disclose any grounds for appeal. HMRC failed to repay VAT on a return within the time limits. As a consequence, the business became entitled to repayment supplement and interest. The first tier tribunal ruled that: interest was payable at base rate plus 1.75%, and the amount of repayment supplement ...
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