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Archive:July 2023

Please find below all the articles from July 2023.

How to claim the Marriage Allowance

The marriage allowance is £1,260 of the personal allowance which is available for transfer between spouses or civil partners. But this amount can only be transferred where the recipient is taxed at the basic rate (20%) or less (starter, basic or intermediate rates for Scottish-resident taxpayers).

The marriage allowance is given as a tax reducer in the hands of the recipient at 20%, so it worth £252 per year (£1,260 x 20%). This value is fixed until at least 6 April 2028, as the personal allowance has been frozen…

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HMRC nudges those named in Pandora Papers

The Pandora Papers consists of 11.9 million leaked documents from 14 offshore financial service companies. This information was gradually released by the International Consortium of Investigative Journalists from October 2021 onwards.
HMRC has been reviewing this data and is now writing to around 600 people named in those papers. This is only the first tranche of the total number of taxpayers who HMRC will contact as a result of this information coming to light.
The HMRC letter asks the taxpayer to review their disclosure of offshore income or gains on…

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Voluntary NIC payment deadline extended again

In April 2023, we gave you the good news that the government had extended the deadline for paying voluntary national insurance contributions (NIC) to fill gaps in an NIC record which arose in the years 2006/2007 to 2016/17, from 5 April 2023 to 31 July 2023. Now that later deadline is fast approaching the government has extended the payment period once more to 5 April 2025.

Voluntary NIC is usually paid as class 3 NIC, but where the taxpayer is self-employed or lives and works abroad, class 2 NIC…

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Corporation tax on capital gains

But what happens if the company makes a large profit (capital gain) on selling an asset in the accounting period that straddles 1 April 2023?
The corporation tax rules require the portions of the accounting year which fall in the two financial years: FY22 (commencing 1 April 2022) and FY23 (from 1 April 2023) to be treated as separate accounting periods.
The profits of the whole accounting year, including any capital gains, need to be apportioned between those periods falling in FY22 and in FY23.
The thresholds at which…

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