Additional Information
Book Details
Abstract
This edition brings the book completely up to date with the provisions of Finance (No.2) Act 2017 and Finance Act 2018, including:
• Making Tax Digital (MTD) developments
• Scottish rates of income tax
• Reduction in the dividend allowance
• Gift Aid donor benefit rules
• Cash basis for property income
• Mileage rates for landlords
• Reforms to venture capital schemes
• Increase in the diesel supplement
• Increase in R&D expenditure credit
• Freezing of indexation allowance
• Reform of corporation tax loss relief
• Freezing of VAT registration threshold
Table of Contents
| Section Title | Page | Action | Price |
|---|---|---|---|
| Front Cover | Front Cover | ||
| Title Page | iii | ||
| Copyright Page | iv | ||
| Contents | v | ||
| Preface | ix | ||
| Acknowledgements | x | ||
| Summary of Tax Data | xi | ||
| Part 1 Income Tax and National Insurance | 1 | ||
| Chapter 1: Introduction to the UK tax system | 3 | ||
| UK taxes | 3 | ||
| Sources of tax law | 4 | ||
| The tax year | 6 | ||
| Structure of HM Revenue and Customs | 6 | ||
| Administration of the tax system | 7 | ||
| Self Assessment | 7 | ||
| Appeals | 11 | ||
| Tax evasion and avoidance | 12 | ||
| Making Tax Digital | 14 | ||
| The HMRC Charter | 14 | ||
| Chapter 2: Introduction to income tax | 16 | ||
| Taxable persons | 16 | ||
| Classification of income | 17 | ||
| Exempt income | 18 | ||
| Structure of an income tax computation | 19 | ||
| Married couples and civil partners | 20 | ||
| Rates of income tax for 2018-19 | 20 | ||
| Income taxed at source | 23 | ||
| Savings income | 24 | ||
| Dividend income | 31 | ||
| Allocation of the personal allowance | 34 | ||
| Chapter 3: Personal allowances | 38 | ||
| Personal allowances for 2018-19 | 38 | ||
| The personal allowance | 39 | ||
| Blind person's allowance | 42 | ||
| Tax reducers | 42 | ||
| Married couple's allowance | 42 | ||
| Chapter 4: Payments and gifts eligiblefor tax relief | 49 | ||
| Payments and gifts deductible fromtotal income | 49 | ||
| Eligible interest payments | 54 | ||
| Annual payments | 55 | ||
| Gifts of shares or property to charity | 55 | ||
| Payments which are tax reducers | 56 | ||
| Maintenance payments | 56 | ||
| Loans used to purchase a life annuity | 57 | ||
| Gifts of pre-eminent property tothe nation | 57 | ||
| Gift Aid | 58 | ||
| Chapter 5: Income from property | 62 | ||
| Definition of property income | 62 | ||
| Basis of assessment and allowable expenditure | 63 | ||
| Capital expenditure | 64 | ||
| Losses | 66 | ||
| Lease premiums | 67 | ||
| Rent-a-room\" relief | 69 | ||
| Furnished holiday lettings | 69 | ||
| Chapter 6: Income from savings and investments | 74 | ||
| Interest received | 74 | ||
| Dividends received | 76 | ||
| Tax-efficient investments | 76 | ||
| Individual Savings Accounts | 77 | ||
| Enterprise Investment Scheme | 79 | ||
| Venture Capital Trusts | 80 | ||
| Child Trust Funds | 81 | ||
| Income from trusts and settlements | 82 | ||
| Miscellaneous income | 85 | ||
| Chapter 7: Income from employment (1) | 88 | ||
| Employment and self-employment | 88 | ||
| Basis of assessment | 91 | ||
| Employment income | 91 | ||
| Non-taxable employment income | 92 | ||
| Deductible expenses | 94 | ||
| Termination payments | 97 | ||
| The PAYE system | 99 | ||
| Construction industry scheme | 103 | ||
| Employee incentive schemes | 104 | ||
| Chapter 8: Income from employment (2) | 109 | ||
| Benefits in kind | 109 | ||
| Living accommodation | 111 | ||
| Cars provided for private use | 114 | ||
| Beneficial loans | 118 | ||
| Salary sacrifice | 120 | ||
| Chapter 9: Income from self-employment:Computation of income | 122 | ||
| The badges of trade | 122 | ||
| The calculation of trading profits | 124 | ||
| Deductibility of expenditure | 125 | ||
| Disallowed expenditure | 125 | ||
| Allowable expenditure | 128 | ||
| Adjustments relating to income | 130 | ||
| Trading income allowance | 131 | ||
| Cash basis and simplified expenses | 132 | ||
| Chapter 10: Income from self-employment: Basis periods | 138 | ||
| The current year basis | 138 | ||
| Commencement of trade | 139 | ||
| Cessation of trade | 142 | ||
| Change of accounting date | 144 | ||
| Averaging of trading profits for farmers and creative artists | 149 | ||
| Chapter 11: Income from self-employment: Capital allowances | 155 | ||
| Eligible expenditure | 155 | ||
| Chargeable periods | 155 | ||
| Plant and machinery | 156 | ||
| Capital allowances on plant and machinery | 158 | ||
| Writing down allowance | 159 | ||
| Annual investment allowance | 162 | ||
| First year allowance | 165 | ||
| Balancing allowances and charges | 167 | ||
| Non-pooled assets | 167 | ||
| Allowances on cessation of trade | 172 | ||
| Miscellaneous capital allowances | 173 | ||
| Chapter 12: Income from self-employment: Trading losses | 178 | ||
| Relief for trading losses | 178 | ||
| Carry-forward trade loss relief | 179 | ||
| Trade loss relief against total income | 181 | ||
| Early trade losses relief | 184 | ||
| Terminal trade loss relief | 186 | ||
| Post-cessation trade relief | 188 | ||
| Transfer of a business to a company | 188 | ||
| Losses on shares in unlisted trading companies | 188 | ||
| Limit on income tax reliefs | 189 | ||
| Chapter 13: Income from self-employment: Partnerships | 192 | ||
| Principles of partnership taxation | 192 | ||
| Notional profits and losses | 195 | ||
| Change in partnership composition | 196 | ||
| Non-trading income | 198 | ||
| Trading losses | 199 | ||
| Chapter 14: Pension contributions | 204 | ||
| Registered pension schemes | 204 | ||
| Tax relief for contributionsby scheme members | 206 | ||
| Tax relief for contributions by employers | 209 | ||
| Annual allowance charge | 211 | ||
| Lifetime allowance charge | 214 | ||
| Chapter 15: Payment of income tax, interestand penalties | 219 | ||
| Payment of income tax | 219 | ||
| Late payment penalties | 222 | ||
| Interest on overdue income tax | 223 | ||
| Interest on overpaid income tax | 224 | ||
| Penalties | 224 | ||
| Proposed points-based penalty system | 226 | ||
| Chapter 16: National Insurance contributions | 229 | ||
| Class 1 | 229 | ||
| Class 1A | 235 | ||
| Class 1B | 235 | ||
| Class 2 | 236 | ||
| Class 3 | 236 | ||
| Class 4 | 237 | ||
| Annual maximum contributions | 238 | ||
| Review questions (Set A) | 242 | ||
| Part 2 Capital Gains Tax | 251 | ||
| Chapter 17: Introduction to capital gains tax | 253 | ||
| Chargeable persons | 253 | ||
| Chargeable assets | 254 | ||
| Chargeable disposals | 255 | ||
| Basis of assessment | 256 | ||
| Rates of CGT | 257 | ||
| Relief for capital losses | 259 | ||
| Relief for trading losses | 261 | ||
| Administration of CGT | 263 | ||
| Chapter 18: Computation of gains and losses | 267 | ||
| Layout of a CGT computation | 267 | ||
| Disposal value | 268 | ||
| Allowable expenditure | 268 | ||
| Part disposals | 270 | ||
| Assets with negligible value | 272 | ||
| Assets held on 31 March 1982 | 273 | ||
| Chapter 19: Chattels and wasting assets | 277 | ||
| The chattels exemption | 277 | ||
| Chattels disposed of at a loss | 279 | ||
| Part disposals of chattels | 279 | ||
| Wasting chattels | 282 | ||
| Wasting assets | 283 | ||
| Leases | 285 | ||
| Chapter 20: Shares and securities | 294 | ||
| The share matching rules | 294 | ||
| The Section 104 holding | 296 | ||
| Bonus issues | 298 | ||
| Rights issues | 300 | ||
| Capital distributions | 302 | ||
| Takeovers | 304 | ||
| Gilts and qualifying corporate bonds | 306 | ||
| Chapter 21: Principal private residence | 310 | ||
| Principal private residence | 310 | ||
| Partial exemption | 311 | ||
| Deemed residence | 312 | ||
| Letting relief | 314 | ||
| Business use | 316 | ||
| Chapter 22: CGT reliefs | 319 | ||
| Damaged assets | 319 | ||
| Destroyed assets | 322 | ||
| Replacement of business assets | 323 | ||
| Gift of business assets | 326 | ||
| Transfer of a business to a limited company | 328 | ||
| Entrepreneurs' relief | 329 | ||
| Reinvestment into EIS shares | 332 | ||
| Loans to traders | 333 | ||
| Review questions (Set B) | 336 | ||
| Part 3 Corporation Tax | 341 | ||
| Chapter 23: Introduction to corporation tax | 343 | ||
| Scope of corporation tax | 343 | ||
| Accounting periods | 344 | ||
| Taxable total profits | 345 | ||
| Trading income | 346 | ||
| Income from property | 351 | ||
| Income from non-trading loan relationships | 351 | ||
| Dividends received | 353 | ||
| Relief for charitable donations | 353 | ||
| Loan relationships | 354 | ||
| Long periods of account | 358 | ||
| Research and development tax relief | 360 | ||
| Intangible fixed assets | 361 | ||
| Chapter 24: Corporate chargeable gains | 365 | ||
| Chargeable disposals and chargeable assets | 365 | ||
| Basis of assessment | 366 | ||
| Computation of gains and losses | 366 | ||
| Indexation allowance | 367 | ||
| Assets held on 31 March 1982 | 370 | ||
| The rebasing election | 373 | ||
| Assets acquired before 6 April 1965 | 373 | ||
| Disposals of shares or securities | 374 | ||
| Disincorporation relief | 382 | ||
| Chapter 25: Computation and payment of the corporation tax liability | 387 | ||
| Corporation tax financial years | 387 | ||
| Rates of corporation tax | 388 | ||
| Due date of payment | 389 | ||
| Accounting for income tax deducted at source | 392 | ||
| Shadow ACT | 392 | ||
| Self Assessment | 393 | ||
| Interest on underpaid and overpaid corporation tax | 394 | ||
| Penalties | 396 | ||
| Chapter 26: Corporation tax losses | 400 | ||
| Relief for trading losses | 400 | ||
| Carry forward of trade loss relief | 401 | ||
| Unrelieved qualifying charitable donations | 403 | ||
| Trade loss relief against total profits | 404 | ||
| Repayments of corporation tax | 408 | ||
| Anti-avoidance legislation | 409 | ||
| Choice of loss relief | 410 | ||
| Non-trading losses | 410 | ||
| Chapter 27: Close companies and investment companies | 414 | ||
| Close companies | 414 | ||
| Definition of a close company | 414 | ||
| Exceptions | 417 | ||
| Consequences of close company status | 418 | ||
| Companies with investment business | 421 | ||
| Choice of business medium | 422 | ||
| Incorporation | 427 | ||
| Chapter 28: Groups of companies and reconstructions | 430 | ||
| Related 51% group companies | 430 | ||
| Group payment arrangements | 433 | ||
| Transfer pricing | 433 | ||
| 75% groups | 434 | ||
| Group relief | 435 | ||
| Transfer of chargeable assets withina group | 438 | ||
| Capital losses | 440 | ||
| Consortia | 441 | ||
| Corporate interest restriction | 443 | ||
| Company reconstructions | 443 | ||
| Review questions (Set C) | 446 | ||
| Part 4 Miscellaneous | 453 | ||
| Chapter 29: Value added tax (1) | 455 | ||
| The principle of VAT | 455 | ||
| Taxable persons | 456 | ||
| Taxable supplies | 456 | ||
| Exempt supplies | 458 | ||
| Reduced rate supplies | 459 | ||
| Zero rate supplies | 459 | ||
| The value of a supply | 460 | ||
| Imports and exports | 462 | ||
| Registration | 465 | ||
| Deregistration | 470 | ||
| Chapter 30: Value added tax (2) | 473 | ||
| Accounting for VAT | 473 | ||
| The tax point | 474 | ||
| Tax invoices | 474 | ||
| Accounting records | 475 | ||
| Special schemes | 476 | ||
| Retail schemes | 479 | ||
| Bad debts | 480 | ||
| Non-deductible input tax | 481 | ||
| Partial exemption | 483 | ||
| Administration of VAT | 485 | ||
| Penalties, surcharges and interest | 487 | ||
| Chapter 31: Inheritance tax | 492 | ||
| Transfers of value | 492 | ||
| Exempt transfers | 494 | ||
| Potentially exempt transfers | 496 | ||
| IHT payable on chargeable lifetime transfers | 498 | ||
| IHT payable on death | 500 | ||
| Valuation | 506 | ||
| Business property relief | 508 | ||
| Agricultural property relief | 509 | ||
| Administration of IHT | 509 | ||
| Chapter 32: Overseas aspects of taxation | 513 | ||
| Residence and domicile | 513 | ||
| Income tax - general rules | 516 | ||
| Double taxation relief | 517 | ||
| Income from employment | 518 | ||
| Trading income | 520 | ||
| Income from property and investments | 521 | ||
| Capital gains tax - general rules | 521 | ||
| Inheritance tax - general rules | 522 | ||
| Corporation tax - general rules | 523 | ||
| Controlled foreign companies | 525 | ||
| Transfer pricing | 526 | ||
| Double taxation relief for companies | 526 | ||
| Diverted profits tax | 530 | ||
| Review questions (Set D) | 533 | ||
| Part 5 Answers | 539 | ||
| Answers to exercises | 541 | ||
| Answers to review questions | 593 | ||
| Index | 605 | ||
| Back Cover | Back Cover |