CAAV Tax Tutorial July 2011
Upcoming SlideShare
Loading in...5
×
 

CAAV Tax Tutorial July 2011

on

  • 1,161 views

CAAV tax update for examination candidates, 27 July 2011, Rodbaston College, Staffs, covering Budget 2011, Capital Allowances, Furnished Holiday Lets, Farmhouses and Inheritance Tax, and Stamp Duty ...

CAAV tax update for examination candidates, 27 July 2011, Rodbaston College, Staffs, covering Budget 2011, Capital Allowances, Furnished Holiday Lets, Farmhouses and Inheritance Tax, and Stamp Duty Land Tax

Statistics

Views

Total Views
1,161
Views on SlideShare
1,160
Embed Views
1

Actions

Likes
1
Downloads
25
Comments
0

1 Embed 1

http://www.linkedin.com 1

Accessibility

Upload Details

Uploaded via as Microsoft PowerPoint

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

CAAV Tax Tutorial July 2011 CAAV Tax Tutorial July 2011 Presentation Transcript

  • CAAV Staffordshire Taxation Update Rodbaston College Charles Cowap 27 July 2011 http://www.slideshare.net/cdcowap
  • Today:
    • Budget 2011
    • Business Travel
    • SDLT
    • Capital Allowances
    • FHLs
    • Farmhouses
    • http://www.hmrc.gov.uk/budget2011w.pdf
  •  
    • 2012-13
      • Personal Allowance to become £8,105
      • Higher Rate Threshold to become £34,370
  •  
  •  
  •  
  • Bulk Purchase Rules to change (Residential) Price averaged Min 1% rate
  • Business Travel
    • Approved Mileage Rate up to 45p/mile from April 2011 (was 40p)
    • First 10,000 miles
    • No change above 10,000, stays at 25p
    • Employer pays less than 45p?
      • Claim Mileage Allowance Relief on shortfall
  • Capital Allowances
  • Effects
    • Severe reduction of Annual Investment Allowance (down to £25,000 from £100,000) wef 2012
    • WDA also down by 2% wef 2012
    • But Good News:
    • Extension of Short Life Asset treatment from 4 to 8 years
  • Short Life Asset
    • Previously restricted to 4 yrs, now 8 yrs
    • Treatment
      • Treated separately from ‘pool’
      • Ordinary claims at 20% pa during ownership
      • Sell for LESS than balance  claim difference
      • Sell for MORE than balance  pay balancing charge
    • After 4 yrs/8 yrs, if not sold then transferred to general pool of P&M
    • £100,000 machine
    • Balance after 4 yrs @ 20% pa = £41,000
    • Balance after 8 yrs @ 20% pa = £17,000
    • So sell Yr 4 for £30,000, claim £11,000 balancing allowance
    • New approach extends availability to 8 yrs
    • See: http://bit.ly/lQ6K9n for more
  • Furnished Holiday Lettings
    • What was good for tax:
      • Claim Capital Allowances
      • Claim Loss Relief
      • Rollover Relief from CGT
      • Holdover Relief from CGT
      • Entrepreneurs’ Relief from CGT
      • Pension relief
      • Business Asset for IHT
    • Looked as if we were going to lose this ….
  • FHLs: the changes
    • Was
    • UK
    • Commercial, view to profit
    • Longer lettings no more than 155 days pa
    • No single let more than 31 days
    • Available for holiday letting 140 days
    • Actually let 70 days
    • Will be
    • UK and EEA
    • Same
    • ?
    • Available for 210 days from April 2012
    • 105 days from 4.12
    • Losses restricted to FHLs
  • Farmhouses …
    • Rachel Dixon and her Westmorland Damsons
    • The Rosser’s retirement home
    • Mr Higginson’s Irish shooting lodge
    • Rosemary Antrobus Cookhill Priority (I & II)
    • Sir Reginald McKenna, Rosteague House
    • Mr Farmer and his diversified farm
    • Ragley Hall’s business
    • Mrs McKenna’s Conacre Field
    • Brander (or Balfour), a Scottish business
    • Mr Atkinson’s partners in Lancashire
    • Mr Golding’s very small smallholding
    • http://bit.ly/n0Gdjq
  • Implications for Professional Practice and Instructions?
    • Market Valuation: s160, Red Book
    • Define Agricultural Property: s115
      • Land to which buildings and woods are ancillary
      • Tenure considerations
    • Define farmhouses, cottages, farm buildings (s115)
  • Advise on ‘character appropriate’ (s115)
    • Size, content and layout considering AREA of land
    • Size, content and layout considering FARMING ACTIVITIES
    • Elephant Test?!
    • House with land, or a farm?
    • History
    • NB Retirement Homes!
    • Opinion/evidence on satisfaction of occupation requirements: 2 years/7 years before death (s117)
    • Full Valuation Report: Valuation and Report for Inheritance Tax Purposes (but NOT a probate valuation)
  • Value this farm for IHT
    • 5 bedroom farmhouse
    • 3 cottages, 2 occupied by farmworkers, 1 let on AST
    • 200 ha: 50 ha Grade 2, 140 ha Grade 3, 4 ha yards and waste, 6 ha Grade 4
    • 200 dairy cows, followers, 80 ha arable
    • Ice cream business: 500 000 l pa @ £1/l
    • 5 000 sq m of ‘modern’ farm buildings
    • 500 sq m office conversion, fully let
    • 500 sq m with pp for holiday conversion
  • Contact Details
    • In-house CPD programmes, professional-technical updates, organisational consultancy, and more:
    •  [email_address]
    • 01952 815305
    •  07947 706505
    • Twitter: @charlescowap
    • Blog: http://charlescowap.wordpress.com/
  • Conclusions and Discussion