Pensions Tax Relief

The Treasury and HMRC have published a discussion document on the restriction of pensions tax relief. The current rules on limiting pensions contributions, introduced by the last government, are complex and universally unpopular. The alternative approach may introduce a significantly reduced annual allowance (down to £30,000 or £45,000 from the current £255,000).

Making a Will

If you’re living with someone, but don’t have a Will, your partner won’t automatically inherit your assets even if you have lived together for many years. Having a well-drafted Will is the only way to ensure that, after your death, the right people inherit your assets. Please get in touch for further information.

New CGT Rate

The new capital gains tax rate of 28% doesn’t just apply to high earners. It also applies to trusts, including will trusts created by parents of young children or vulnerable adults. If you are a trustee you should urgently seek advice on the trust’s liability to capital gains tax at the new higher rate.

Hastings-Bass Principle

The High Court has again applied the Hastings-Bass principle, in the recent Jiggens case. This principle allows trustees to set aside a transaction if they failed to take something relevant into consideration, such as the tax consequences of what they were doing. The judge decided the appointment signed by the trustees was void meaning it never had any effect. The result was to ‘remove’ the tax liability that had been inadvertently created.

Office Tax Simplification

The Office of Tax Simplification was launched on 20 July. Its aim is to provide the Government with independent advice on simplifying the UK tax system, to reduce compliance burdens on both businesses and individuals. The first two reviews will cover Tax Reliefs and Small Business Tax. Reports are expected ahead of Budget 2011.

The adage has it that ‘hard cases make bad law’, meaning cases decided on their individual merits can create bad precedents. Mulbury Hamilton looks at two recent cases in which this might be thought to have happened. In Atkinson, agricultural property relief was granted even though the property had been empty for some years, while Talentcore concerned workers who were not considered to fall within the agency rules. MHTS argues that both areas need the intervention of legislation.