Archive:December 2022

Please find below all the articles from December 2022.

Letters about corporate losses

Thursday, December 1, 2022

When a company makes a loss after 1 April 2017, those losses can be set off in a far more flexible fashion than earlier losses, for example, trading losses may be used against property income. This means that the losses brought forward from earlier periods (before April 2017) need to be kept separate, so they don’t get mixed up with later losses.

Also, where losses arise within a group there are restrictions on whether certain non-trading losses can be surrendered to other companies in the group, which would include…

Corporate Landlords

Thursday, December 1, 2022

When a residential property is held through a company (or another non-natural person eg a trust) this potentially creates a liability to the Annual Tax on Enveloped Dwellings (ATED). This annual charge applies if the property is worth over £500,000.

There are several exemptions and reliefs for ATED, but those reliefs must be claimed each year for each property that falls within the ATED regime.

The property must be valued on acquisition to determine whether it is worth over £500,000. But it must also be revalued every five years after…

Letters to landlords

Thursday, December 1, 2022

As a landlord letting a residential property you are required by the Housing Act 2004 to protect deposits provided by tenants on assured shorthold tenancies, by using a deposit scheme.

The not-for-profit companies that run these schemes will provide details of their customers to HMRC or to any other Government department that requests the information.

HMRC has recently received a large sample of data from deposit schemes and has compared the information to the amounts of rent reported on landlords’ tax returns for 2020/21. As a deposit usually represents four…

VAT repayment evidence

Thursday, December 1, 2022

HMRC are always a little suspicious of businesses that claim a VAT repayment in their first VAT return, or a large refund in a later return. In such cases it will write to you asking for supporting evidence, such as copies of invoices, to be provided within 30 days.

You can now provide the requested information online, through a new portal HMRC has set up, especially for this purpose.

You need to quote the reference given in HMRC’s letter which will be in the format: CFSS-1234567, and supply other…