Arthur TC 06847  – Penalties and Information Notices
The First Tier Tribunal has decided that the delays by the Appellant in providing the required information had been fairly serious and significant without a valid reason. The Tribunal also decided the other appeals were not valid as they lacked the required information and therefore could not be heard.
Tax cheat and racing driver jailed after tax investigation
Simon Atkinson from Hemel Hempstead has been jailed for a £450,000 tax fraud. He ran a halal poultry business where he had not been complying with money laundering regulations. During their investigation, HMRC officers discovered Mr. Atkinson had used fake invoices to fund his passion for racing sports cars. He claimed invoices for racing as his business costs under plant and machinery. Read more..
Churchill Tax Advisers have helped a large number of clients come forward and make a voluntary disclosure of undeclared income to set their affairs right. Our advice is that tax fraud will ultimately get caught. Living constantly with the fear of ultimately getting caught can be psychologically damaging and can impact personal life. We specialise in voluntary disclosures and will ensure that the process is as pain free as possible for our clients.
Restaurant owner jailed following complex HMRC investigation
Chin Seong Lam, aged 60 of Barnet in London, has been jailed for three years following a complex HMRC Fraud Investigation involving £1 million tax scam. Mr. Lam owned two successful Chinese restaurants in London and Portsmouth. He under-declared his sales and as a consequence did not pay tax (VAT, income and corporation tax) of £1 million. At the time of VAT registration, he described his business as “manufacturing pottery” with projected turnover of £10,000. HMRC investigations revealed that the actual turnover was £5.1 million. Read more…
Inheritance tax advice for wealthy landlords
This client was referred to us by another firm of accountants in London. The client is a retired medical professional with a large portfolio of properties that had been acquired over the past 20-25 years at considerably low value but are now worth significantly higher. The client’s estate was in excess of £6 million which meant there was a potential inheritance tax liability at 40%. Our tax specialists were able to suggest tax planning structure that allowed for the properties to be effectively passed onto the children via a partnership without having to pay capital gains or inheritance tax as well as stamp duty. The tax planning structure is complex and not effective overnight. Instead in line with the legislation and HMRC guidance, the structure takes several years to take full effect but the end result is that the inheritance tax liability is either eliminated or substantially reduced.
Tax Seminar for Landlords (Edinburgh) – Wednesday 27th February 2019
Our popular seminar on “How to Increase Your Wealth Through Tax Planning” will also be held in Edinburgh to celebrate the opening of our new branch. The venue is to be confirmed. Please send your booking request to firstname.lastname@example.org
Tax Seminar for Landlords – “How to Increase Your Wealth Through Tax Planning”
Tuesday 12th February 2019 (London)
Following the success of our previous seminars in London and Glasgow, we will be hosting our next “FREE” seminar focusing on landlords / developers and buy to let investors. The seminar will focus on the following areas:
1- Current tax climate and challenges for landlords
2- How tax planning can increase your wealth
3- Inheritance tax planning
4- Capital gains tax planning
5- Section 24 (tax relief on mortgage interest) and how to avoid it
6- HMRC tax investigations on landlords and how to stay safe
The seminar will be based at our new offices very near to Holborn station at 125 Kingsway, London, WC2B 6NH and will run from 5:30pm to 7:30pm.
This seminar is focused on landlords and property investors and is expected to be fully sold out soon so please book your place as soon as possible. Spaces are limited and bookings will be allocated on a first come first serve basis.
Please register for the complimentary seminar on our website www.churchill-tax-advisers.co.uk/seminar. Refreshments will be provided.
The seminar will qualify for CPD points if this is relevant to you.
Tax planning for landlords
This case involved a group of new potential landlords / developers that needed tax advice on setting up a tax efficient structure for their future ventures. This was a wise decision as we have come across landlords and developers who do not think about tax advice until they have acquired the properties or in worst cases, until they have sold the property. Our team of tax specialists were able to put together an acquisition structure that prevents the new rules on tax relief on interest restriction from applying. In addition, as for the acquisition, we were able to suggest some reliefs that allowed a substantial reduction on stamp duty land tax (SDLT). The tax planning advice involved a holding company and subsidiaries and special purpose vehicles (SPVs) that can be used for different types of development / buy to let projects.
This tax planning implemented in advance can save significant tax liabilities in the coming years allowing the clients to use the excess cash (as a result of the tax planning) to be used in further acquisition / development projects.
Soleimani Mafi TC 0451  – Penalties
The First Tier Tribunal has decided that the tax payer should have taken professional advice on tax implications resulting from a declaration of trust for the benefit of his sister. The tax payer did not disclose the sale of a property for £1.8m. HMRC raised discovery assessments outside the usual time limits. HMRC also issued penalties for deliberate and fraudulent behaviour. The First Tier accepted that there was no evidence to support the declaration of trust actually existed. The judges also concluded that the tax payer should have known that there would be tax implications of entering into such declaration of trust and therefore was liable for higher penalties under the deliberate behaviour.
Our analysis: This is an unusual decision as the judges have decided that failure to take professional advice amounted to deliberate/ fraudulent behaviour.
George – 0509  – Entrepreneurs’ relief
The appellant owned 6.9% of the ordinary share capital in a company but without right to vote. The tax payer had been promised voting rights in early 2012 but the necessary resolutions had not been passed until a year later in January 2013. The company was later bought out in August 2013. The First Tier Tribunal held that any voting rights or right to acquire voting rights owned by the appellant did not satisfy the criteria for entrepreneurs’ relief on the basis that voting rights were due to the holding of the stated shares.
Certificates of Tax Residence
HMRC have updated their guidance on how to apply for certificates on tax residence which is applicable for individuals and companies that have overseas income. In order to be taxed in the UK, the overseas tax authority will ask for proof of UK tax residence which is in the form of a “Certificate of Residence” issued by HMRC. Here is a link to the updated guidance on tax residence on HMRC’s website.