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Substantial property transaction

An indemnity granted by a company to a director was not within the scope of a substantial property transaction. The High Court so held. Such a transaction is one involving a non-cash asset which is worth at least either: £100,000 or £5,000 AND 10% of the company's asset value. Such a transaction requires prior approval from shareholders under Companies Act 2006 s190. A director an...
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Pension input statement issue

A taxpayer could overclaim for pensions without realising it. This became apparent in September 2019. A person can claim tax relief up to £40,000 a year until their income exceeds £150,000. The relief is then reduced by £1 for each £2 above this limit until it falls to £10,000 at incomes above £210,000. The pension scheme is required to issue a pension allowance statement to a taxpayer whose...
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Clampdown on private residence relief

HMRC is clamping down on private residence relief (PRR), according to Neil Tipping, writing for Croner Taxwise. PRR is the exemption from capital gains tax for a taxpayer's main residence. Tipping reports that there have been more contentious cases in the last two years than in the previous 15 years. Points to watch include: having too much land. Up to half a hectare (1.2 acres) is a...
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Record money-laundering fine

A record £7.8 million fine for money laundering was imposed on Touma Foreign Exchange Ltd, it was announced on 4 September 2019. The fine relates to failures between June 2017 and September 2018. Mr Hassanien Touma was banned on 20 May 2019 from involvement in any money services business (MSB). The fine arose from action by HMRC, Metropolitan Police and Financial Conduct Authority (FCA). ...
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Struggling taxpayers

Honest taxpayers who are struggling to pay their tax believe HMRC should offer more support, according to HMRC's own research published in September 2019. Such taxpayers look for simplicity, flexibility and accessibility. HMRC offers two schemes to assist: HMRC Budget Repayment Plan, and Ready Reckoner. Ready Reckoner was the better received option. Details of the research can ...
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LBTT penalty procedure changes

Revenue Scotland has said it will change its penalty notice procedure for Land and Buildings Transactoon Tax (LBTT) after losing two appeals. The two cases are Michael Robert Harrison & Sharon Ross (UTS/AP/18/0015) and Begbies Taylor (Central). In each case, the LBTT return was filed more than six months late. The Upper Tribunal for Scotland (UTS) said that Revenue Scotland failed to pro...
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Discount for electronic payment of electricity bill

It is legal under EU law to give a discount to customers who pay their electricity bills electronically. The European Court so held on 2 May 2019 in a Finnish case. The Finnish electricity company gave a $1 a month discount for customers who were billed electronically. The Finnish Energy Agency told the company to end the practice. It argued that EU law requires customers to receive bills witho...
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Restrictive covenant enforceable if words removed

An otherwise unenforceable restrictive covenant can be enforceable if words can be deleted without changing the overall meaning. The Supreme Court so ruled on 3 July 2019. An employee had a provision in her contract of employment which said that, for six months after leaving, he could not be "concerned or interested in any business carried on in competition with" the employer's business. The...
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