UK Tax System
An Introduction
By Malcolm James
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Category: Tax |
In recent years we have seen significant developments in the UK tax, including the restructuring of the tax courts and rewriting the tax law so that it is more understandable for taxpayers in the 21st century. However, it is still complex. This book will provide a guide to the structure of the tax system and its application to various classes of taxpayer, as well as explaining the roles of the government departments who administer it and the full range of taxpayers rights and obligations. New for the second edition are chapters on the principles of trading and employment income, national insurance, and VAT. The book is for anyone advising on UK tax, from the experienced practitioner to the newly-qualified professional coming to tax advice for the first time, as well as being an ideal starting point for any students of the UK tax system.
Contents
Preface iii
About the author. iv
Tables of authorities. v
Contents vii
Chapter 1. The Legal Framework of Taxation. 1
1.1. Sources of Tax Legislation and Practice. 1
1.2. Statute Law... 1
1.3. Secondary Sources of Tax Legislation and Practice. 3
1.4. European Sources. 5
1.5. Case Law... 6
1.6. Classifications of Income. 6
1.7. Tax Years and Financial Years. 7
Chapter 2. Income Tax Computation. 9
2.1. Aggregation of Taxpayer’s Income. 9
2.2. Interest 9
2.3. Payments to Charities. 9
2.4. Personal Allowances Deducted from Net Income. 10
2.5. Computation of Tax. 11
2.6. Tax Reducers. 12
2.7. Tax Retained on Interest, Royalties and Gift Aid Donations. 13
2.8. Comprehensive Example. 14
2.9. Tax-free Sources of Income. 15
2.10. Death and Separation.. 15
2.11. Married Couples – Joint Property. 15
2.12. Minor Children.. 16
Chapter 3. Principles of Trading Income. 17
3.1. Introduction.. 17
3.2. Definitions of Trading. 17
3.3. Capital and Revenue Receipts. 18
3.4. Deductible Expenditure –a Summary. 20
3.5. Capital Allowances. 21
3.6. Basis Periods. 23
3.7. Losses. 23
Chapter 4. Principles of Employment Income. 25
4.1. Distinction between Employment and Self-employment 25
4.2. Provision of Services Through an Intermediary. 26
4.3. Managed Service Companies. 26
4.4. Scope of Employment Income. 27
4.5. Time of Receipt 27
4.6. Deduction of Expenses. 27
4.7. Benefits in Kind.. 28
Chapter 5. Property Income. 31
5.1. Introduction.. 31
5.2. Expenditure Deductible. 31
5.3. Relief for Capital Expenditure. 32
5.4. Losses. 32
5.5. Furnished Holiday Lettings. 33
Chapter 6. Corporation Tax. 35
6.1. Scope of Corporation Tax. 35
6.2. Basis of Assessment 35
6.3. Computation of Liability. 35
6.4. Computation of Trading Income. 37
6.5. Losses and Corporation Tax. 39
6.6. Groups and Consortia. 40
6.7. Close Companies. 42
Chapter 7. Capital Gains Tax. 45
7.1. Scope of Capital Gains Tax (CGT) 45
7.2. Exemptions. 45
7.3. Residence and Domicile. 45
7.4. Annual Exemption and Losses. 46
7.5. Capital Gains Tax Rate. 46
7.6. Disposal Consideration.. 46
7.7. Date of Disposal 47
7.8. Allowable Costs. 47
7.9. Indexation Allowance. 47
7.10. Taper Relief 47
7.11. Assets Owned at 31 March 1982. 47
7.12. Married Couples. 48
7.13. Disposal to Connected Parties. 48
7.14. Part Disposals. 48
7.15. Shares. 48
7.16. Capital Gains Tax Reliefs. 49
Chapter 8. National Insurance Contributions. 51
8.1. Introduction.. 51
8.2. National Insurance Contributions and Employees. 51
8.3. Notional Payments of Class 1 Contributions. 52
8.4. Annual Maximum Contributions. 52
8.5. National Insurance Contributions and the Self-Employed.. 53
Chapter 9. Value Added Tax. 55
9.1. Scope of Value Added Tax (VAT) 55
9.2. Rates of VAT.. 55
9.3. Accounting for VAT.. 55
9.4. Records and Invoices etc. 57
9.5. Valuation of Supplies. 59
9.6. Tax Point 59
9.7. Place of Supply. 60
9.8. Special Types of Supply. 60
9.9. Input Tax on Special Types of Inputs. 62
9.10. Registration and De-registration.. 63
9.11. Bad Debt Relief 65
9.12. Special Schemes. 65
Chapter 10. Stamp Duty Land Tax. 67
10.1. Scope of Tax. 67
10.2. Substantial Performance. 67
10.3. Date of Transaction.. 67
10.4. Chargeable Consideration.. 68
10.5. Transfer of Land and Building at Market Value. 68
10.6. Surrender and Re-grant of Lease. 68
10.7. Exchange of Properties. 68
10.8. Options. 69
10.9. Reliefs. 69
10.10. Notification of Transactions. 69
10.11. Records and Enquiries. 70
10.12. Payment of Tax. 70
10.13. Interest and Penalties. 71
Chapter 11. Inheritance Tax. 73
11.1. Introduction.. 73
11.2. Valuation of Transfer. 73
11.3. Lifetime Transfers. 74
11.4. Inheritance Tax Payable on Death.. 74
11.5. Gifts with Reservations. 74
11.6. Reliefs. 74
11.7. Payment of Tax. 75
Chapter 12. Tax Administration and Appeals. 77
12.1. Introduction.. 77
12.2. Taxpayer’s Charter and Taxpayer’s Rights. 78
12.3. Obtaining Advice from HM Revenue & Customs. 79
12.4. Errors by HM Revenue & Customs. 79
12.5. Arrears of Tax Due to HMRC Delay. 79
12.6. Self-assessment 80
12.7. Payment of Tax. 81
12.8. Records which Taxpayer is Required to Keep.. 83
12.9. Claims. 83
12.10. Self-assessment – Companies. 84
12.11. Interest and Penalties. 84
12.12. Penalties. 86
12.13. Criminal Offences. 88
12.14. Appeals. 90
Chapter 13. Pay as You Earn (PAYE) and Collection of National Insurance Contributions 93
13.1. Liability to Deduct PAYE and NIC.. 93
13.2. PAYE Forms and Procedures. 93
13.3. Payment of PAYE and NIC.. 96
13.4. Penalties and Interest 96
Chapter 14. VAT Administration, Appeals, Interest, Penalties and Surcharges. 99
14.1. Control Visits. 99
14.2. Assessment 99
14.3. Appeals and Tribunals. 99
14.4. Interest, Repayment Supplements and Compensation.. 99
14.5. Penalties and Surcharges. 101
Chapter 15. Self-assessment Enquiries, Discovery Assessments and Investigations 105
15.1. Introduction.. 105
15.2. Enquiries under Self-assessment 105
15.3. Discovery Assessments and Investigations. 107
15.4. Settlements. 111
15.5. Penalties. 111
15.6. Criminal Proceedings. 112
Chapter 16. Overseas Aspects of Taxation. 115
16.1. Residence and Domicile – Introduction.. 115
16.2. Residence – Statutory Definition.. 115
16.3. Ordinary Residence. 116
16.4. HM Revenue & Customs’ Practice. 116
16.5. Domicile. 117
16.6. Remittance Basis. 118
16.7. Unremittable Income. 118
16.8. Personal Allowances. 118
16.9. Transfer of Assets Abroad.. 119
16.10. Double Tax Relief 119
16.11. Double Tax Agreements. 120
Chapter 17. Pensions. 125
17.1. Introduction.. 125
17.2. Scope of Regime. 125
17.3. Payments by Registered Pension Schemes. 127
17.4. Contributions. 127
17.5. Unauthorised Payments Charge. 128
17.6. Special Annual Allowance Charge. 128
Chapter 18. Anti-avoidance. 129
18.1. Introduction.. 129
18.2. General and Targeted Anti-avoidance Rules. 130
18.3. Transfer Pricing. 130
18.4. Disclosure of Tax Avoidance Schemes. 131
Index 135
UK Tax System - An Introduction - Hardback cover
Publication Details:
Binding: Paperback, 160 pages
ISBN: 9781904905950
Format: 230mm x 156mm
Binding: Hardback
ISBN: 9781904905967
Binding: Electronic book text
ISBN: 9781904905978
Imprint: Spiramus Press
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