Tax Systems Share Discussion Threads

[dcarn] 19/10/2018 23:26

Hi,

I've a question with regards to section 104 holding, share purchase and subsequent sale.

Scenario being I have section 104 holding in share xyz with no purchases being made since 2015. I then purchase 10000 xyz shares on 15-10-18 for a short term trade and then sell 10000 xyz shares two weeks later on 29-10-18 for a small profit.

Question, does the 10000 purchase have to be added to the section 104 holding before calculating any gain / loss or is this treated as a matched trade under the 30 day rule?

HMRC HS284 is clear enough for disposal then acquisition within 30 days but it does clarify for acquisition and the disposal within 30 days.

[ariane] 04/9/2018 09:36

Wetherspoon backing Tax Equality Day

by Darren | Tuesday, July 31, 2018 | PUBS AND BARS |

J D Wetherspoon says it will be supporting Tax Equality Day on September 13 by discounting food and drink by 7.5% for 24 hours.

J D WetherspoonThe day is aimed at highlighting the benefit of a VAT reduction in the hospitality industry and is being backed by UK Hospitality and the British Beer and Pub Association, who are urging other venue owners to join in.

Food in pubs, for instance, has VAT at 20%, while much is zero rated in supermarkets.

Wetherspoon chairman, Tim Martin, said: “Pubs suffer a huge disadvantage, paying about 16p in business rates per pint versus about 2p for supermarkets. In addition, there is a huge VAT inequality and unfairness.

“A reduction in the level of VAT on a long-term basis will create a level playing field and generate growth and jobs in an important and vital industry — especially in beleaguered high streets.”

[chimers] 03/9/2018 10:49

Tax Systems plc, now 25.6% owned by AIM-listed MXC Capital, is continuing to make good progress as it helps businesses with their Corporation Tax compliance. Organic revenue growth of 9% for the six months to June almost kept pace with 2017’s 10% advance. Overall revenue growth was 14% (to £8m), with Adjusted EBITDA growing at 9%, to £3.7m. EBITDA margins were a healthy 46%. Order intake showed a 22% increase over the level of 2017 H1 with annuity licence orders growing by 11%. Pre-tax losses came in at £0.8m, roughly half the level at the previous interims.

Over the past couple of years, Tax Systems management has worked hard to improve the company’s processes; upgrading infrastructure, introducing several support systems and setting clear targets. The company is working towards the development of a single integrated platform to deliver its solutions and the integration of the OSMO capabilities to improve data collection and management has provided a major step forward.

Growth by acquisition has played a significant part in the Group’s growth strategy with the purchase of TCSL in 2016 and of Little British Battler OSMO in 2017. Management is also active in seeking new targets to address adjacent markets in tax and regulatory compliance, with a key focus being VAT compliance.

HMRC and other tax authorities are consistently setting businesses ever higher requirements for reporting and data management, with major initiatives such as HMRC’s “Making Tax Digital”. As a result, the demand for Tax Systems’ solutions should continue to grow strongly.

Tax Systems under CEO Gavin Lyons has momentum and appears to have a clear strategy to grow and drive excellent returns in both existing and new markets. Worth watching.

[the grumpy old men] 28/8/2018 15:53

Appropriate tax systems – taxation in the ‘Fourth Industrial Revolution’
Appropriate tax systems – taxation in the ‘Fourth Industrial Revolution’

With proposals for an Amazon tax on the table, how can the UK tax system catch up with the implication of the Fourth Industrial Revolution?
Author
Jane Mackay
Crowe
Date published
August 28, 2018
Categories

Corporate Tax

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Proposals for tax changes are now routinely given the names of companies that have been global disruptors. This naming practice recognises that the debate around an appropriate tax system revolves around how tax systems can catch up with the implications of the “Fourth Industrial Revolution”.

Retail

The retail sector is one of the sectors most affected to date by technological change. The statistics clearly indicate that the move from “bricks and mortar” to online shopping has been significant and Philip Hammond’s statement about an “Amazon tax” is just one more acknowledgement that the tax system has not kept up with changes to consumer habits. The idea of an “Amazon tax” is around making sure that the tax take reflects the location of the customer in the territory in which large values of sales are generated.

Our current tax system has developed over the last few decades and is designed for simpler transactions and a more local world than the one in which we operate today. While the increase in online retail has generally been blamed for the number of recent failures of big name high street retailers, many argue that our tax system has played a critical role in putting “bricks and mortar” retailers at a disadvantage compared with their online rivals.

There are a number of taxes that disproportionately affect UK “bricks and mortar” retailers. These include property taxes (business rates in particular but also Stamp Duty Land Tax) and corporation tax on profits. Changes to property taxes are matters for the UK to decide and, after much lobbying by the retail sector, further business rate reductions should go some way to helping UK retailers.

[maywillow] 21/8/2018 11:22

Changes to tax rules on overseas assets
20 August 2018

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Changes to tax rules on overseas assetsTaxpayers could face tough penalties if they fail to declare their income on foreign assets before new legislation comes into force.

HMRC is urging UK taxpayers to declare any foreign income or profits on offshore assets before 30 September to avoid higher tax penalties.

New legislation, called Requirement to Correct, requires UK taxpayers to notify HMRC about any offshore tax liabilities relating to UK income tax, capital gains tax or inheritance tax.

Experts are warning that some UK taxpayers may not realise they have a requirement to declare their overseas financial interests. Under the rules, actions like renting out a property abroad, transferring income and assets from one country to another or even renting out a UK property when living abroad could mean taxpayers face a tax bill in the UK.

Mel Stride, financial secretary to the Treasury, said: "This new measure will place higher penalties on those who do not contact HMRC and ensure their offshore tax liabilities are correct. I urge anyone affected to get in touch with HMRC now."

From 1 October more than 100 countries, including the UK, will be able to exchange data on financial accounts under the Common Reporting Standard (CRS). CRS data will enhance HMRC's ability to detect offshore non-compliance.

The most common reasons for declaring offshore tax are in relation to foreign property, investment income and moving money into the UK from abroad. Over 17,000 people have already contacted HMRC to notify the department about tax due from sources of foreign income. Customers can correct their tax liabilities by using HMRC's digital disclosure service.

Once a customer has notified HMRC by 30 September of their intention to make a declaration, they will have 90 days to make the full disclosure and pay any tax owed.

Paul Morris, tax partner at Bishop Fleming, said: "If you have overseas income and assets that have not previously been declared to the UK tax office, there is an opportunity to disclose these before 1 October 2018 to avoid much higher penalties than will be the case after that date.

"From 1 October 2018 there will be eye-watering penalties of up to 200% (double the current amount) on any tax not declared, plus asset-geared penalties of a further 10%. There will be extra penalties where assets or funds are hidden to avoid detection. Taxpayers can also be 'named and shamed'. But with the right advice, these sanctions can be reduced."

[sarkasm] 12/8/2018 15:17

YER abolish stamp duty for all purchases under sterling 2 million for starters

[montyhedge] 12/8/2018 13:58

Stamp duty killed the property market over 1 million.

[la forge] 12/8/2018 08:20

Why are the changes being made? Currently, there’s a discrepancy between the date when people who file tax returns need to pay their bills for income tax and when they pay capital gains tax. Though the deadline for online tax returns is 31 January after the end of the tax year, self-assessment taxpayers need to make advance payments for income tax and national insurance, known as payments on account. By contrast, CGT won’t be due until the final deadline, potentially meaning capital gains tax can be paid up to a year later than income taxes. Other forms of tax on property, such as stamp duty, are also due within 30 days of the property sale being completed. From the government’s perspective, the change would mean that HMRC will receive CGT receipts earlier. But landlords may feel the pinch in their cash flow. The move follows a number of other tax reforms that have pushed up bills for landlords, including the scaling back of mortgage interest relief, and the introduction of a stamp duty surcharge on buy-to-let and second homes. Get a head start on your 2017-18 tax return with the Which? tax calculator When will the new rules come into effect? The new rules have not yet been confirmed, as the draft legislation is currently passing through Parliament. If there are no changes to the policy, the bill could pass into law this summer. The change was originally due to come into effect in April 2019, but the proposals have been delayed and are likely take effect for property disposals on or after 6 April 2020. At this stage, there are no plans to change the deadline for other forms of CGT – though if the change is successful, it’s possible the deadline for paying CGT on shares, funds or other investments could be brought forward, too.

Read more: - Which?

[adrian j boris] 29/7/2018 18:04

Tax Systems was tipped as a 'buy' by Midas in the Mail on Sunday. The company provides software to help large firms navigate increasingly complex demands, with a customer list that includes more than 100 firms in the FTSE 250 index and 19 out of the UK's top 20 accountants. Chief executive Gavin Lyons is determined to expand the firm after buying its from retiring owners in 2016 and listing it on AIM.

In April, the new 'Making Tax Digital' policy comes into force, forcing firms to first file VAT returns online. Tax Systems helps customers collect data, helps them comply with regulations and manage the process so they pay the right amount of tax at the right time. A recent trading update revealed that revenues are expected to be up 14% in the first half of the year, with Lyons confident about full year earnings targets.

For the full year, profits are estimated to grow at least 18% to £5.8m.