TPP your Q replied
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TPP your Q replied


Q

I have a client who receives a pension here in the United Kingdom but who lives and who is a tax resident in Portugal. It also rents a property here in the United Kingdom

Does she need to make a income declaration here in the United Kingdom concerning property income?

A

Yes, as the customer receives income of British origin, this is taxable in the United Kingdom and to be reported on their declaration of self-assessment income.

As a non -resident owner, the customer must register for the program of non -resident owners (NRLS). Within the framework of this regime, agents or tenants to leave are required to deduct a tax of 20% of rental income before paying it to the owner unless HMRC approves their request to receive the rent without tax deductions.

To receive gross rental income, your customer must complete the NRL1 form and submit it to HMRC.

Even if the tax is deducted under the NRLS, your customer must report his rental income each year through a declaration of self-assessment income in the United Kingdom.

Q

I saw this online under “can you declare a dividend and not pay it”. Preserved generations – Companies can work on non -distributed profits. No need to pay money accordingly without tax implications

Can you explain what it means?

A

In general, the tax treatment of the dividend depends on the type which is paid / declared:

  1. Provisional dividends are due and payable when they are physically paid. A resolution to pay a provisional dividend does not create a debt as long as the dividend is paid. The shareholder is imposed when dividends are received physically.
  1. The final dividends are legally due when declared, unless a subsequent date of payment is specified, in which case they are due on this date of payment.

If the customer has already taken the company’s funds during the year and this has initially been treated as a loan of administrators, but now treated as a distribution, this is signable as a dividend.

If the customer has what is simply a refund of a loan, there are no tax consequences.

Q

We have a customer who has a survey opened by the HMRC in their personal income tax return for 2022/23 due to a request for elimination relief. We are satisfied to answer most of the questions, but a question asked that HMRC asked the following:

“Provide the full name and address of each company in which you were a shareholder”.

I suspect that this is HMRC fishing for more information, but I am inclined not to provide this information because it has no effect on the elimination claimed during the year, any dividend of All actions would be declared as received, and any CGT declared if there has been a sale in the future.

I would be interested in hearing your thoughts if you think this information would be necessary or not.

A

The HMRC should only request information where the agent is reasonably required in order to verify the taxpayer’s tax position.

The definition of what is “reasonably required” will vary from person to person, and HMRC provides advice to its staff who are accessible to the public in CH21620.

In your situation, is a list of all participations belonging to your customer reasonably required to determine their tax position? You can say it no, because the holding of shares in a company does not have an impact on someone’s tax position until income or gains occur in regard to these actions.

If you think the HMRC is on a fishing trip looking for additional information, you are right to postpone and refuse to provide the information requested on the grounds that you do not believe that it is reasonably necessary. If the HMRC does not agree, they can issue an official opinion under appendix 36 FA2008 requesting the information, which gives your customer the right of appeal to HMRC in the first case and thereafter at the first level court.

Following steps

Can you relate to the questions above? Remember that membership of each tax partner is delivered with 30 minutes free per month, so send your questions to [email protected]



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