Tax Documents
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Elections and claims (53)

EIS qualifying company checklist
The enterprise investment scheme (EIS) is a good way to incentivise external investors to buy shares and provide much needed capital for your trading company. Use this handy document as a first step to check whether you can offer investors the lucrative EIS relief.When does a company qualify?There are... Read more
DOWNLOAD September 2019
Type: Checklist
Property rental business loss relief claim
Individuals, including members of business partnerships, can claim a deduction in the tax liability on general income where their property rental business has made a loss and all or part of that loss results from capital allowances.Amount of loss reliefProperty business loss relief is limited to the... Read more
DOWNLOAD June 2019
Type: Letter
Exchange of joint interest relief claim
If you swap a joint interest in land or buildings to rationalise your ownership for no proceeds, you may be able to defer a capital gains tax charge.ReliefWithout any form of relief on any reallocation of interests, capital gains tax would arise in respect of the interest given up, with the consideration... Read more
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Type: Letter
Social investment tax relief advance assurance letter
If you operate a qualifying social enterprise, you could attract potential investors using a government-approved tax relief.When can you request advance assurance?For social investment tax relief (SITR) to apply there are a number of conditions your company needs to meet under Chapter 5B Income Tax... Read more
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Type: Letter
Year-end tax planning checklist
tax planning checklist 2017/18Each tax year there are a number of tax allowances, exemptions and rate bands which if not utilised are essentially wasted as you cannot carry them forward. We've put together a handy checklist to help you avoid overlooking anything that might be available to you - particularly... Read more
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Type: Checklist
SEIS reinvestment relief claim
If you make a qualifying gain by investing in certain companies, you could enjoy a capital gains tax exemption.GainsCapital gains tax is payable when chargeable assets are sold, or otherwise disposed of, for proceeds or deemed proceeds that exceed their base cost. However, the seed enterprise investment... Read more
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Type: Key Data
Letter requesting pension charge payment
If you exceed the pensions annual allowance in any tax year, you will be subject to the annual allowance charge. But how can you get your pension provider to pay this?Annual allowanceThe amount of tax-relieved contributions you can make in any tax year is restricted further to the available amount of... Read more
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Type: Letter
Company terminal loss relief claim
If your company incurs a loss in its final twelve months of trading, you could make a claim for a special form of relief.Terminal lossesA company which suffers a loss in its final twelve months of trading can carry back certain losses for 36 months against profits of the same trade rather than the normal... Read more
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Type: Letter
Claim to carry back company trading loss
When your company makes a loss the amount is carried forward by default and will be used to offset total profits in the future. Use our claim to get immediate relief for company trading losses.CompaniesThere are a number of conditions that must be satisfied, including that the trade must continue, and... Read more
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Type: Letter
Pre-incorporation losses claim
As your business grows you will probably be advised to consider transferring it to a company at some stage. But what happens to any brought forward losses if you decide to incorporate?IncorporationDespite changes to dividend tax, it is still possible to achieve efficiency through incorporation, but the... Read more
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Type: Letter
SEIS advance assurance letter
EIS advance assurance letterIf you're looking to raise money from private investors, you may do this via a share issue. If your company is a trading company, you might be able to apply to have the shares issued under the enterprise investment scheme (EIS). This means the investors can access a number... Read more
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Type: Letter
Claim for s.243 small part disposal relief
If you are forced to sell your land to a local authority under a compulsory purchase order, you could benefit from an expanded form of small part disposal relief.Part disposals - generallyWhen you make a part disposal of land you usually work out the taxble gain by apportioning the base cost of the total... Read more
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Type: Letter
Election to aggregate loans
If you have a number of loans to and from your company, aggregating them can save you money.Loan benefitWhere your company lends you money on which you pay no interest, or interest below HMRC's official rate (2.5% since April 2017), it counts as a taxable benefit in kind. Because the official rate is... Read more
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Type: Letter
Share loss relief claim
Usually, capital losses can only be offset against other capital gains, but in some circumstances losses you incur on certain types of share can be offset against general income.Share lossesLosses incurred on certain qualifying company shares are eligible for special treatment. Provided the conditions... Read more
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Type: Letter
Election for alternative maximum age basis
Companies looking to raise finance via an enterprise investment scheme have to receive their first tranche of funding within seven years of their first commercial sale. However, if the company qualifies as a "knowledge intensive company", this is extended to ten years. In addition, it is possible to... Read more
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Type: Letter
Request to pay capital gains tax in instalments letter
For individuals, capital gains tax is payable by 31 January following the end of the tax year in which the gain occurred, e.g. 31 January 2019 for a gain made in 2017/18. Usually you'll have enough money from the transaction to pay the tax. However, proceeds may not be received all at once, for example,... Read more
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Type: Letter
Election for foreign losses
If you are non-UK domiciled but tax resident here, you may claim the remittance basis. To receive any kind of relief for foreign losses, an election must be made, but this shouldn't be done without careful consideration.DomicileIf you are UK resident, but not domiciled or deemed domiciled, then the availability... Read more
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Type: Letter
Election for pre-trading debits
Costs incurred on financing your company, e.g. loan interest, before it starts to trade are classed as non-trading debits. Normally, tax relief for these can only be  obtained by offsetting them against non-trading credits, e.g. interest received, receivable after trade commences. However, an election... Read more
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Type: Letter
Herd basis election
If you keep animals for production purposes, you might be able to take advantage of the "herd basis" to simplify calculating your taxable profits.ProductionFarm animals are treated as trading stock. For tax and accounting purposes these animals are more akin to capital assets than trading stock, and... Read more
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Type: Letter
Farmers' averaging election
If you carry on a farming or market gardening business, you can elect to average your profits over either two or five years.FarmingBusinesses that depend on a successful harvest are notoriously volatile in terms of profits. One bad crop can mean losing tens of thousands of pounds. Therefore, the Income... Read more
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Type: Letter
Claim for relief for damaged asset
Capital gains tax may be payable on capital sums which derive from assets. For example, compensation payable to you for damage to an asset. However, if you use the amount received to repair or restore the asset, you might be entitled to defer the tax.DamageWhen an asset is damaged or destroyed it may... Read more
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Type: Letter
Intangible assets rollover relief claim
Intangible asset rollover relief claimIf your company sells a chargeable intangible fixed asset, it can give rise to a gain which is subject to corporation tax. The gain cannot be deferred by purchasing tangible assets. However, if further intangibles are bought, rollover relief might be available.IntangiblesIntangible... Read more
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Type: Letter
Letter notifying reduction of EIS relief
Letter notifying EIS relief clawback eventIf you make a qualifying investment under the enterprise investment scheme (EIS), there are a number of things that can happen during the minimum holding period that lead to relief being reduced or fully withdrawn. You need to notify HMRC when this happens.EIS... Read more
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Type: Letter
Remittance basis election
If you live in the UK, but are not domiciled here, you may benefit from making a claim to be taxed on the remittance basis.Remittance basisA UK resident taxpayer is generally subject to UK tax on their worldwide income. Residence is determined using the statutory residence test. Where you are resident... Read more
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Type: Letter
Option for special method of cost apportionment
If you sell a piece of land which is part of a larger estate, a little known concession could save you some tax.General ruleThe general rule for any part disposal of an asset is that the amount of the original cost attributable to the part sold is determined by the following formula: Where:A = the proceeds... Read more
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Type: Letter
Election for rent-a-room relief alternative basis
If you let a room in your own home, the rent you receive is exempt from income tax if it is less than the rent-a-room limit of £7,500. If the rent exceeds the limit the relief doesn't apply and the taxable profits are equal to income less expenses. However, you can elect to use the "alternative basis".General... Read more
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Type: Letter
Election for land remediation relief
Land remediation relief gives an enhanced deduction for qualifying revenue expenditure spent on bringing land back into use in some circumstances. Use our template letter to treat capital costs as qualifying.ReliefLand remediation relief (LRR) is an enhanced deduction of 150% on expenditure related to... Read more
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Type: Letter
EIS relief claim
When you make a qualifying enterprise investment scheme (EIS) investment, you have the right to offset the income tax relief against your tax bill for the year before you made the investment. How can you make this claim?EIS relief - generallyWhen you make an investment that qualifies for EIS income tax... Read more
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Type: Letter
Notifying HMRC of a capital loss outside self-assessment
If you sell an asset for less than it cost you will have made a capital loss.Usually a capital loss is claimed on your self-assessment tax return. If you don't complete a tax return you can notify HMRC by letter.Losses - generallyWhen you sell capital assets - like shares - for less than you paid for... Read more
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Type: Letter
Disincorporation relief claim
Given repeated attacks on the tax benefits of running a business through a company, you might decide to disincorporate. disincorporating - tax chargesIf you decide to transfer your company business and assets to an unincorporated structure - a sole trade or partnership - corporation tax will be due on... Read more
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Type: Letter
Reducing self-assessment payments on account letter
If you're in the self-assessment system you might be required to make payments on account of each year's tax liability.  However, where you expect your tax liability to be lower than the payments on account you can write to HMRC to ask for them to be reduced.ClaimHMRC automatically calculates each payment... Read more
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Type: Letter
Claim for private residence relief to apply to a former home
When a marriage fails, tax planning is vital and sometimes urgent or avoidable tax liabilities can arise. An example of this is capital gains tax and the matrimonial home. Where one spouse (or civil partner) moves out and transfers their interest to the other as part of the financial settlement, private... Read more
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Type: Letter
Claim to adjust base cost for part disposal of land
When selling a small part of a piece of land you are still liable for capital gains tax (CGT). However, if conditions are met, you can make a claim under s.242 Taxation of Chargeable Gains Act 1992 to deduct the sale proceeds from the base cost of the land instead of treating it as a sale of CGT purposes.Disposing... Read more
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Type: Letter
Election to be treated as domiciled in the UK
Where a married couple or civil partners consist of a UK domiciled individual (UK-dom) and a non-UK domiciled (non-dom) individual, there is a restriction on the amount that any transfers between them will benefit from the spouse exemption for inheritance tax (IHT). An election can be made to be treated... Read more
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Type: Letter
Pension premium record
Knowing how much has been contributed to your pension plan in any tax year is important so that you can calculate any higher or additional rate tax relief you're entitled to and check that you've not exceeded the maximum for which tax relief is allowed (the annual allowance).Keeping tabs on your contributionsFor... Read more
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Type: Form
EIS advance assurance letter
If you're looking to raise money from private investors, you may do this via a share issue. If your company is a trading company, you might be able to apply to have the shares issued under the enterprise investment scheme (EIS). This means the investors can access a number of tax reliefs which act as... Read more
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Type: Letter
Election to carry back earn out loss
If you sell a business, an earn-out arrangement might be used to determine the sale price. For example, the buyer might offer the majority of the purchase price on completion of the contract plus more over three years if the business hits turnover or profit targets. You must pay tax on the amount you... Read more
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Type: Letter
Claim for special relief
If you fail to submit a tax return HMRC may estimate the tax payable and notify you of this on determination notice. The tax determined cannot be appealed against and is legally enforceable. The only way to overturn the determination is to submit your self-assessment tax return for the year in question.... Read more
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Type: Letter
Election to transfer stock at less than market value
When an unincorporated business is transferred to a company, any stock (or works in progress for service businesses) is deemed to be sold to the company at market value (MV). This will usually be higher than the original cost, and so a notional profit can arise. This has to be included in the final accounts... Read more
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Type: Letter
Election to transfer assets at written down value
Where you transfer your sole trader or partnership business to a company, plant and machinery or other tangible fixed assets are often transferred too. Strictly, these assets have to be transferred at market value. Provided certain conditions are met, you can make an election (jointly with the successor... Read more
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Type: Letter
Election for a period of grace to apply to FHLs
Where you own a property which you let furnished as holiday accommodation it can qualify for preferential tax treatment where various conditions are met.When can you use the election?To count as an FLH the property must during a twelve-month period:have been available for letting to the public for 210... Read more
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Type: Letter
Election to disapply incorporation relief
Where you transfer your sole trader or partnership business to a company, this process is often referred to as incorporating your business and it counts for capital gains tax purposes as if you had sold it.When can you use the election?This means that if the assets to which CGT applies, e.g. goodwill,... Read more
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Type: Letter
Election for entrepreneurs' relief to apply to QCBs
When you sell a business the purchasing company might offer to pay you with loan notes. This is a loan arrangement but in the form of a security, i.e. like shares. The loan notes pay interest usually at a fixed rate on a fixed amount of capital. They will usually have a redemption date on which the issuing... Read more
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Type: Letter
Election to average occupation of FHLs
Where you own a property which you let furnished as holiday accommodation it can qualify for preferential tax treatment if various conditions are met.When can you use the election?To count as a furnished holiday let (FHL) the property must, during a twelve-month period:have been available for letting... Read more
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Type: Letter
Official error claim for tax not to be collected
If HMRC has delayed using information in its possession and this results in you paying too little tax, it can write off the arrears of tax under extra-statutory concession (ESC) A19. However, despite being fully aware of this concession, you may need to "remind" HMRC of it in writing.Extra-statutory... Read more
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Type: Letter
Purchase of own shares clearance letter
For unquoted trading companies, the amount received by a shareholder on selling their shares back to the company may be treated as capital rather than as a distribution provided certain conditions are met. To prevent any nasty surprises later on, you can apply for advance clearance to determine the correct... Read more
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Type: Letter
Purchase of own shares reporting letter
Regardless of whether you have applied for advance clearance, where capital treatment has been applied to a share buy-back, you must report the transaction to HMRC.Reporting to HMRCOnce a share buy-back has taken place and capital treatment has been applied, the company is required to make a return of... Read more
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Type: Letter
In-year pension contribution - claim for tax relief
Anyone who pays tax through PAYE can obtain tax relief for pension contributions by an adjustment to their tax code. One way to achieve this is to write to HMRC.When to use this formIf you pay contributions to a:pension plan, e.g. a personal pension plan or similar pension arrangement, and pay tax at... Read more
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Type: Letter
Capital allowances short-life asset election
Tax relief on the cost of equipment you buy for your business is spread over decades unless your purchases are covered by the annual investment allowance. The good news is you can accelerate this dramatically with a simple election.When can you use an election?Businesses are allowed tax relief... Read more
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Type: Letter
Allocation of savings interest agreement
If spouses or civil partners do not want a 50/50 split of savings interest, they can declare that income be split according to each person's beneficial entitlement as detailed in a written agreement.Beneficial ownership of bank account fundsAs a general rule, assets owned by spouses in joint names are... Read more
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Type: Agreement
Overpayment relief claim checksheet
Where you make a mistake in your individual, company or partnership, tax return and the time limit for correcting this under the self-assessment rules has passed, you can submit an "overpayment claim" to recover any tax overpaid. But HMRC isn't obliged to accept every claim.What are the rules?There... Read more
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Type: Checklist
Overpayment relief claim
Where you discover a mistake in your tax return which resulted in you paying or owing more tax than was properly payable, and it's too late to correct under self-assessment rules, you can make an overpayment relief claim. The claim must include the right information or HMRC will reject it. Letter... Read more
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Type: Letter
Letter to chase a tax repayment
Repayments arising from online filing of self assessment tax returns may be stopped for a variety of reasons, and HMRC staff have to look at them before they can be released. Contacting HMRC should help to speed up your repayment.Write or phone?Telephone contact is often the quickest way to get things... Read more
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Type: Letter