Archives by: Sophia Passingham

HMRC publishes guidance on cryptoasset investments

HMRC has recently published guidance for UK resident individuals on the potential liability to UK taxes that may arise on receipt or disposal of cryptoassets. The guidance is mainly concerned with cryptoassets held as investments. It is expected that HMRC will publish separate guidance for those trading cryptoassets and for companies but traders can expect to be chargeable to income tax or corporation tax (if a UK taxable company) on profits. Other taxes may apply if an individual receives cryptoassets as ... Read More

Update on Tier 1 (Investor) visa program

On Friday 7 December 2018 the UK Government suspended the UK Tier 1 (investor) Visa regime at very short notice. These visas allow the right to live in the UK in exchange for investing at least £2m into the UK for a period of 5 years, after which the individual may be eligible for indefinite leave to remain in the UK. The visas have been popular with wealthy individuals from outside the EU and have brought significant funds into the UK ... Read More

UK Investor visa regime suddenly suspended

This article has been superseded by a government U-turn, follow this link for further information.     The UK’s Tier 1 (Investor) Visa scheme which allows foreign investors to live in the UK is to be suddenly suspended from midnight on Friday 7 December 2018, with the UK Government saying they have concerns that the Visa route has been used for money laundering. Tier 1 (Investor) Visas were introduced in 2008 with some reforms made in 2014. Broadly, they require the holder to invest a ... Read More

House of Lords criticises HMRC powers

Yesterday, the House of Lords’ Economic Affairs Committee has published a highly critical report on HMRC powers, describing some as “broad, disproportionate powers without effective taxpayer safeguards”. The report concludes that whilst the Committee is fully supportive of the aim to prevent deliberate evasion and aggressive tax avoidance, some recent powers given to HMRC within legislation “undermine the rule of law” and hinder taxpayers’ access to justice. In recent years HMRC have been given a number of new powers by Government to ... Read More

Probate fee increase dubbed a stealth death tax by the House of Lords

  The UK Government recently published law which, from April 2019, will increase probate fees from £155 to £6,000 for estates valued over £2 million. A Statutory Instrument is a legal mechanism with allows the Government to change a law without that change being fully scrutinised in Parliament. The House of Lords’ Legislation Scrutiny Committee has described this change as a “stealth tax” and an “abuse of power” by the Government. The fees have also been described as a de facto additional inheritance ... Read More

HMRC confirms no trust protection for offshore income gains

In April 2017 significant changes were made to the way in which UK resident but non-UK domiciled individuals (“non-doms”) are taxed in the UK. Broadly, non doms who have been resident in the UK for 15 of the previous 20 tax years are now taxable in the UK on their worldwide income and gains, as well and to inheritance tax on their worldwide assets. The changes to the income tax and capital gains tax rules would, without specific legislation in place, ... Read More

Budget 2018 – summary of key tax announcements

The Chancellor of the Exchequer today announced his final post-Brexit budget. From a personal tax perspective, the Budget contained a number of small changes to existing rules and confirmation of policies already announced but not much new of major significance. As expected, the key announcement in terms of business taxation is the introduction of a Digital Services Tax on very large businesses and partial relief from business rates at the other end of the scale. The key issues are summarised as follows: Rates and ... Read More

HMRC shown red card in referees’ employment taxes case

English football referees have won a First Tier Tribunal case against HMRC’s attempt to classify them as employees rather than self-employed for the purposes of Pay As You Earn (PAYE) and National Insurance Contributions (NICs). The case highlights the complexity that can exist in determining a person’s employment or self-employment status. Whilst a select group of the top English football referees are employed full-time by PGMOL (the Professional Game Match Officials Limited) most referees in professional English football referee in their spare ... Read More