Making the most of the 36 per cent IHT rate

Solicitors Journal: The planning potential of the lower rate of inheritance tax (IHT), introduced in 2012, has often been under estimated. Two key issues are variations within two years of death and merger of components.

Full story: http://www.solicitorsjournal.com/private-client/estate-planning/making-most-36-cent-iht-rate?

High net worth unit is five years old

ICAEW: HMRC’s High Net Worth Unit (HNWU) was set up in 2009 and guidance was issued at the time. Since then HMRC has developed specialist teams in the HNWU, which aim to give the unit a better understanding of different customers.

Full story: http://www.ion.icaew.com/TaxFaculty/post/High-net-worth-unit-is-five-years-old?

More Scottish tax powers could create loopholes, accountants say

Reuters: Giving Scotland more tax-raising powers would increase the complexity of Britain's already-lengthy tax code and may create new loopholes for tax avoidance, accountants and tax advisors told British legislators on Tuesday.

Full story: http://uk.reuters.com/article/2014/10/28/uk-britain-scotland-tax-idUKKBN0IH1F720141028?rpc=401

Divorcees top list of paid tax evasion informants

International Advisor: The number of informants being paid by HMRC to provide information about tax evasion has reached a record high, with former spouses coming top of the list for tip-offs, according to City law firm, RPC.

Full story: http://www.international-adviser.com/news/tax-regulation/tax-evasion-informants-increasingly-paid-by-hmrc?

Net draws tighter around tax evaders as age of secrecy ends

The Times: Tax evaders will have fewer places to hide as an era of banking secrecy comes to an end with the signing of an international agreement to disclose non-resident accounts, the German finance minister has told The Times.

Full story: http://www.thetimes.co.uk/tto/business/industries/banking/article4248660.ece

Swiss banks urge US government to amend conditions to bank amnesty

STEP: The US Justice Department (USDoJ) has added new conditions to the amnesty programme offered to Swiss banks suspected of helping their clients evade US tax.

Full story: http://www.step.org/swiss-banks-urge-us-government-amend-conditions-bank-amnesty

FATCA leads 75% of US expats to consider dropping citizenship

International Adviser: Nearly three quarters of American expats are considering the renouncement of their citizenship following July’s introduction of the “absurd” Foreign Account Tax Compliance Act (FATCA).

Full story: http://www.international-adviser.com/news/tax-regulation/fatca-leads-75-of-us-expats-to?

Tax avoidance scheme: we will win court battle over HMRC

CityWire: An alleged tax avoidance scheme used by a string of celebrities has declared it is ‘confident of success’ ahead of its court battle with HM Revenue & Customs (HMRC).

Full story: http://citywire.co.uk/new-model-adviser/news/tax-avoidance-scheme-we-will-win-court-battle-over-hmrc/a780120?ref=new-model-adviser-latest-news-list

HMRC pays out £400k to tax-dodge informants

Investment Week: HMRC paid out a record £400,000 in 2013 to people whistleblowing on tax avoidance activities, a Freedom of Information (FoI) request has revealed.

Full story: http://www.investmentweek.co.uk/investment-week/news/2377783/hmrc-pays-out-gbp400k-to-tax-dodge-informants

Tony Benn's inheritance tax dodge: how it works (and how you can use it too)

Daily Telegraph: The former Labour minister left an estate worth £5m to his children, but official documents suggest he used legitimate tax planning strategies to reduce death duties. 

Full story: http://www.telegraph.co.uk/finance/personalfinance/tax/11189430/Tony-Benns-inheritance-tax-dodge-how-it-works-and-how-you-can-use-it-too.html

Cannavaro in “massive” tax fraud

ICAEW: Former Italy World Cup winning captain Fabio Cannavaro is being investigated for a €900,000 tax fraud.

Full story: http://economia.icaew.com/news/october-2014/cannavaro-in-massive-tax-fraud

Baby boomers prefer to spend wealth than pass it on

CityWire: Two thirds of a sample of baby boomers would rather spend their money than pass it on to their children, according to a survey.

Full story: http://citywire.co.uk/wealth-manager/news/baby-boomers-prefer-to-spend-wealth-than-pass-it-on/a779353?ref=wealth-manager-new-latest-news-test1-list

Lib Dem leak leans toward mansion tax pledge

ICAEW: A leaked photo, believed to be an outline of the Liberal Democrats’ 2015 election manifesto, shows mansion tax is firmly on the party’s agenda.

Full story: http://economia.icaew.com/news/october-2014/lib-dem-leak-leans-toward-mansion-tax-pledge

Crowe Clark Whitehill strengthens capability with Tax Partner promotion in Manchester

Crowe Clark Whitehill: National audit, tax and advisory firm Crowe Clark Whitehill has promoted Rebecca Durrant to Head of Tax in its Manchester office, further strengthening the firm’s tax and advisory capabilities.  Rebecca brings a wealth of experience to the role, having advised individuals, owner-managed businesses and charities for over two decades.

Full story: http://www.crowehorwath.net/uk/news/crowe_clark_whitehill_strengthens_capability_with_tax_partner_promotion_in_manchester.aspx

Asia-Pacific leads world in wealth growth

WealthAdvisor: The Asia-Pacific region registered world-leading levels of high net worth individual (HNWI) population and wealth growth in 2013, according to the Asia-Pacific Wealth Report 2014 (APWR) by Capgemini and RBC Wealth Management.

Full story: http://www.wealthadviser.co/2014/10/22/211784/asia-pacific-leads-world-wealth-growth

Over 175,000 a year struggle to find true value of wills

WealthAdvisor: More than 175,000 people a year struggle to track down all the assets left by loved ones in wills, according to research from willsandassets.co.uk, a secure online service enabling people to store wills and register assets.

Full story: http://www.wealthadviser.co/2014/10/21/211701/over-175000-year-struggle-find-true-value-wills

Australia To Offer Permanent Residency Visa For Super Rich Investors From July Next Year

IBT: Australia has announced a new category of visa named "premium investor visa" with effect from July1, 2015, offering immigrants permanent residency if they invest A$15 million or more in the country. The new reform will be a logical extension to Australia's flagship "Significant Investor Programme," already in force. Under SIP, those investing A$5 million and above will be entitled for a four-year visa.

Full story: http://au.ibtimes.com/articles/569650/20141015/australia-investment-residency-china.htm#.VEgG1vnF98E

UK Tax Avoidance: HMRC Demands Will Hit 33,000 Britons by 2016

IBT: Around 33,000 Britons are likely to receive letters from the taxman telling them they owe the government, on average, £155,000 as the HMRC starts cracking down on tax avoidance in line with new powers granted under the Finance Act 2014.

Full story: http://www.ibtimes.co.uk/uk-tax-avoidance-hmrc-demands-will-hit-33000-britons-by-2016-1471082

Issue briefing: dealing with the tax affairs of wealthy individuals

HMRC: This briefing looks at how HMRC deals with wealthy individuals to help them comply with their tax obligations and to challenge those who don’t play by the rules.

Full story: https://www.gov.uk/government/publications/issue-briefing-dealing-with-the-tax-affairs-of-wealthy-individuals?

Charity loses challenge to executors' interpretation of nil-rate band

STEP: The executors of Valerie Smith were entitled to interpret the expression 'nil-rate band' (NRB) in her will to include the nil-rate band transferred from her predeceased husband, the England and Wales Court of Appeal has ruled. 

Full stop: http://www.step.org/charity-loses-challenge-executors-interpretation-nil-rate-band

Labour to hit £3m homes with £10k mansion tax

Accountancy Age: Those owning properties worth more than £3m will be hit with tax bills starting from £10,000 under a Labour government, according to research by the Institute for Fiscal Studies.

Full story: http://www.accountancyage.com/aa/news/2376792/labour-to-hit-gbp3m-homes-with-gbp10k-mansion-tax

HMRC ramps up tax avoidance clampdown in £250m bid

CityWire: HM Revenue and Customs (HMRC) has ramped up its crackdown on tax avoidance schemes by sending out 600 accelerated payment demands worth over £250 million of disputed tax.

Full story: http://citywire.co.uk/new-model-adviser/news/hmrc-ramps-up-tax-avoidance-clampdown-in-250m-bid/a779259?ref=new-model-adviser-latest-news-list

Farrer & Co welcomes back Marianne Kafena to Private Client Team

Farrer & Co: Farrer & Co has continued to invest in its international private client team with the re-appointment of Marianne Kafena, formerly of Kleinwort Benson.  

Full story: http://www.farrer.co.uk/News/press-releases/Farrer--Co-Welcomes-Back-Marianne-Kafena-to-Private-Client-Team/

Ed Balls: Mansion tax would start at £250 a month

BBC News: Ed Balls has said most people who own homes worth between £2m and £3m will pay £250 a month in "mansion tax" under a future Labour government.

Full story: http://www.bbc.co.uk/news/uk-politics-29691283

Multi-million pound divorce 'can be heard in England'

BBC News: A multi-million pound divorce between a wealthy Malaysian couple can be heard in an English court, a judge has ruled.

Full story: http://www.bbc.co.uk/news/uk-29657028

Falcao's great-grandfather a Yorkshire accountant

ICAEW: Manchester United’s major summer signing, the Colombian striker Radamel Falcao, is more similar to you and I than you may think.

Full story: http://economia.icaew.com/news/october-2014/falcaos-great-grandfather-a-yorkshire-accountant

Seven new partners at Mazars

ICAEW: The new partners are a mixture of internal and external appointments.

Full story: http://economia.icaew.com/news/october-2014/seven-new-partners-at-mazars

Legal ombudsman calls for regulation in will writing

PCA: The ombudsman has suggested a voluntary scheme as a short-term solution until a long-term alternative is found.

Full story: http://www.privateclientadviser.co.uk/news/wills/legal-ombudsman-calls-regulation-will-writing

PM calls for ‘fair’ inheritance tax system

The Lawyer: An increase in the inheritance tax threshold could be on the horizon, after David Cameron dropped a hint in the Commons that he might favour such a move.

Full story: http://www.thelawyer.com/briefings/pm-calls-for-fair-inheritance-tax-system/3027259.article?

The will to compete

Law Society Gazette: Lawyers’ grievances over accountants moving into probate work must be countered by a desire to fight the competition.

Full story: http://www.lawgazette.co.uk/analysis/comment-and-opinion/the-will-to-compete/5044354.article?

King & Wood Mallesons to ditch SJ Berwin name to mark first anniversary of merger

The Lawyer: King & Wood Mallesons SJ Berwin is set to scrap ‘SJ Berwin’ from its name on 1 November, as the firm celebrates the first anniversary of its record-breaking merger.

Full story: http://www.thelawyer.com/analysis/the-lawyer-management/management-news/king-and-wood-mallesons-to-ditch-sj-berwin-name-to-mark-first-anniversary-of-merger/3027084.article

Change rules on wills, government urged

BBC News: The regulation of wills should be reformed to prevent people being ripped off, the Legal Ombudsman has warned.

Full story: http://www.bbc.co.uk/news/uk-29634380?

Setback for HMRC, as 'tax gap' rises

BBC News: HM Revenue and Customs (HMRC) has announced a rise in the "tax gap" - the difference between the amount of tax it should collect in theory, and the actual total.

Full story: http://www.bbc.co.uk/news/business-29644274?

HMRC launches new FATCA online service

Accounting Web: HMRC has launched a new online service for UK financial institutions to register and report financial information on behalf of their US clients

Full story: http://www.accountingweb.co.uk/article/hmrc-launches-new-fatca-online-service/566743?

David Cameron's Inheritance Tax Cut Would Benefit The Rich, Says Research

Huffington Post: David Cameron's pledge to cut inheritance tax to help those who were not "in any way mega-rich" would also save the richest families hundreds of thousands of pounds, research suggests.

Full story: http://www.huffingtonpost.co.uk/2014/10/15/inheritance-tax-cut-david-cameron-richest_n_5988306.html?

David Cameron: inheritance tax cut 'will take some time'

Daily Telegraph: Prime Minister says raising the inheritance tax threshold to help middle-class families might have to wait until after the election next May.

Full story: http://www.telegraph.co.uk/finance/personalfinance/tax/11164236/David-Cameron-inheritance-tax-cut-will-take-some-time.html

PwC partner in £11m divorce battle

ICAEW: The former wife of a multimillionaire PwC partner has told an appeal court that wives in her position are “discriminated” against by divorce courts, as she battles for her share of an £11m family fortune.

Full story: http://economia.icaew.com/news/october-2014/pwc-partner-in-11mpound-divorce-battle

After years of pressure, Luxembourg drops bank secrecy rules

Reuters: Luxembourg agreed on Tuesday to end its bank secrecy rules from 2017, yielding to a decade of pressure from Germany and the United States and marking a breakthrough in global efforts to reduce tax evasion.

Full story: http://uk.reuters.com/article/2014/10/14/uk-eurozone-economy-banks-idUKKCN0I31SO20141014?rpc=401

Italy revives using art, archaeological goods to pay tax

Reuters: More Italians may pay their taxes using paintings and sculptures after moves by the government to revive a system of transferring cultural treasures to the state in lieu of tax payments.

Full story: http://uk.reuters.com/article/2014/10/13/uk-italy-tax-culture-idUKKCN0I218W20141013?rpc=401

Land and buildings transaction tax: rates and thresholds announced

The Lawyer: The land and buildings transaction tax (LBTT) will replace stamp-duty land tax (SDLT) in Scotland from 1 April 2015.

Full story: http://www.thelawyer.com/briefings/land-and-buildings-transaction-tax-rates-and-thresholds-announced/3027054.article?

Tax evasion prosections surge 29% as HMRC cracks down

CityWire: The number of criminal prosecutions for tax evasion has soared by 29% in the current tax year.

Full story: http://citywire.co.uk/wealth-manager/news/tax-evasion-prosections-surge-29-as-hmrc-cracks-down/a777512?ref=wealth_manager_all_stories_list

Restricting non-residents’ entitlement to the UK personal allowance

ICAEW: ICAEW says it should remain available; at least for now.

Full story: http://www.ion.icaew.com/TaxFaculty/post/Restricting-non-residents--entitlement-to-the-UK-personal-allowance?

McDermott Continues Expansion of International Private Client Group

McDermott Will & Emery: International law firm McDermott Will & Emery today announced that Nicholas Holland has joined as a partner in its international Private Client Practice Group, based in the Firm’s London office.  

Full story: http://www.mwe.com/McDermott-continues-expansion-of-International-Private-Client-Group-10-08-2014/

Baker Tilly's naming nerves

Accountancy Age: There's always a fad. Generally, they're pretty transient and meaningless, like football stickers, Pokémon cards and yo-yos.  Sometimes, though, they're a very big deal indeed. Last year, in accountancy, it was mergers and acquisitions, and this year, it is names and brands.

Full story: http://www.accountancyage.com/aa/opinion/2375106/leader-this-year-it-s-all-about-names

Dashwood: Taxing times for HMRC as finance chief exits after numbers blunder

Daily Telegraph: HMRC's finance chief, Simon Bowles, has decided not to serve another term, after the taxman totted up 5.5m tax bills incorrectly.

Full story: http://www.telegraph.co.uk/finance/comment/citydiary/11155149/Dashwood-Taxing-times-for-HMRC-as-finance-chief-exits-after-numbers-blunder.html

New lead partner at BDO Bristol

ICAEW: Andrea Bishop has been appointed as new lead partner in the South West.

Full story: http://economia.icaew.com/news/october-2014/new-lead-partner-at-bdo-bristol

Leases: a way round the Mansion Tax

Director of Finance: Big house owners are being advised to split their property into flats to avoid the proposed mansion tax.  Actually, dividing it into leasehold and freehold could be the far better solution.

Full story: http://www.dofonline.co.uk/index.php/edge-menu-item/8864-leases-a-way-round-the-mansion-tax?

Ed Miliband's mansion tax and death duties will eat up inheritances, Treasury aide says

Daily Telegraph: Pensioners with homes worth £2 million could leave their families a £300,000 tax bill when they die.

Full story: http://www.telegraph.co.uk/news/politics/ed-miliband/11147732/Ed-Milibands-mansion-tax-and-death-duties-will-eat-up-inheritances-Treasury-aide-says.html

Winston Churchill treasures to be sold at Sotheby's

Daily Telegraph: Winston's Churchill's paintings among 280 lots in Sotheby's sale of his daughter's belongings, while others will be offered to the nation in lieu of inheritance tax.

Full story: http://www.newsnow.co.uk/h/Business+&+Finance/Tax/Inheritance+Tax

Deutsche Bank's Swiss unit participating in U.S. tax probe

Reuters: Deutsche Bank 's Swiss unit is working with U.S. officials as part of a crackdown on wealthy Americans evading taxes through hidden offshore accounts, a spokeswoman for the bank said on Thursday.

Full story: http://uk.reuters.com/article/2014/10/09/tax-switzerland-deutsche-bank-idUKL6N0S44FN20141009?rpc=401

Thousands of people affected by HMRC mistake

Share Cast: Bills of more than five million people have been wrongly calculated twice, sources from HM Revenue and Customs said on Thursday.

Full story: http://sharecast.com/news/thousands-of-people-affected-by-hmrc-mistake/22120732.html?

End of 'death tax' means you may be able to ignore £1.25m lifetime pensions limit

Daily Telegraph: If your pension is worth more than £1.25m you face a penalty. But new rules on the 'death tax' mean you may be better off ignoring the limit.

Full story: http://www.telegraph.co.uk/finance/personalfinance/pensions/11148098/1.25m-lifetime-pensions-limit-End-of-death-tax-means-you-may-be-able-to-ignore-it.html

UK practitioners granted exemption from crackdown on tax scheme promoters

STEP: Tax practitioners who are not involved in the overall design of tax planning schemes will not be classed as promoters under the Finance Act 2014's Promoters of Tax Avoidance legislation.

Full story: http://www.step.org/uk-practitioners-granted-exemption-crackdown-tax-scheme-promoters

Switzerland prepares for vote on lump-sum taxation

STEP: The Swiss Federal Council has summarily rejected campaigners' demands to abolish the regime of forfait (lump-sum) tax concession for wealthy foreign residents. 

Full story: http://www.step.org/switzerland-prepares-vote-lump-sum-taxation

MHA MacIntyre Hudson Becomes UK Member Firm of Baker Tilly International

Baker Tilly: The Board of Baker Tilly International today announced that UK firm MHA MacIntyre Hudson will join its network, effective from 7 October 2014.

Full story: http://www.bakertillyinternational.com/web/news/2014/october/mha-macintyre-hudson-becomes-uk-member-firm-of-baker-tilly-international.aspx

Nick Clegg: Lib Dems would raise capital gains tax for the wealthiest

The Guardian: Deputy PM says rise in CGT for higher earners would pay for increase in personal allowance to £11,000.

Full story: http://www.theguardian.com/politics/2014/oct/07/nick-clegg-lib-dems-capital-gains-tax?

HMRC uses psychologists to up tax take

ICAEW: The Revenue is using psychologists and "behavioural economists" to make people feel guilty about not paying their tax.

Full story: http://economia.icaew.com/news/october-2014/hmrc-uses-psychologists-to-up-tax-take

KPMG ‘will not compete with big law practices’

Law Society Gazette: Accountancy giant KPMG has said it does not intend to compete with law firms despite gaining the right to provide reserved legal services.

Full story: http://www.lawgazette.co.uk/news/kpmg-will-not-compete-with-big-law-practices/5043837.article?

Additional UK tax take from well-paid foreign City workers jumps 27% in one year

Pinsent Masons: The amount of additional tax collected by a specialist HM Revenue and Customs (HMRC) team targeting wealthy foreigners living in the UK increased by 27% to reach a new record last year, according to figures obtained by Pinsent Masons, the law firm behind Out-Law.com.

Full story: http://www.out-law.com/en/articles/2014/october/additional-uk-tax-take-from-well-paid-foreign-city-workers-jumps-27-in-one-year/?

Liberal Democrats would raise taxes on the rich, Nick Clegg vows

The Guardian: Party leader says George Osborne’s plan to eliminate Britain’s structural deficit is to target the poor with ‘undisguised relish’.

Full story: http://www.theguardian.com/politics/2014/oct/05/liberal-democrats-raise-taxes-on-rich-nick-clegg?

Five tax stings you need to know about

Daily Telegraph: As the Tories promise to lift 800,000 out of the 40p tax rate, we look at five more tax traps set by the state.

Full story: http://www.telegraph.co.uk/finance/personalfinance/tax/11135986/Five-tax-stings-you-need-to-know-about.html

Glenda Jackson joins London Labour MPs opposed to mansion tax

The Guardian: MP for marginal Hampstead and Kilburn seat said policy would ‘impact disastrously on people who are asset rich but cash poor’.

Full story: http://www.theguardian.com/politics/2014/oct/02/glenda-jackson-london-labour-mps-opposed-mansion-tax?

Sol Campbell wades in on mansion tax debate

ICAEW: Former England footballer Sol Campbell has waded in on the debate over Labour’s mansion tax plan, branding the party as the “grim reaper” of entrepreneurship and success.

Full story: http://economia.icaew.com/news/october-2014/sol-campbell-wades-in-on-mansion-tax-debate

Kingston Smith granted license to undertake probate work

Private Client Adviser: Kingston Smith has become the first accountancy firm to be licenced as an Alternative Business Structure (ABS) by the Institute of Chartered Accountants in England and Wales (ICAEW) to carry out probate work.

Full story: http://www.privateclientadviser.co.uk/news/legal-practice/kingston-smith-granted-license-undertake-probate-work

Cameron pledges tax cuts if re-elected in 2015

Accountancy Age: The nation's tax bill will be cut if the party is re-elected at the polls next May, prime minister David Cameron has pledged. 

Full story: http://www.accountancyage.com/aa/news/2373352/cameron-pledges-tax-cuts-if-re-elected-in-2015