Steve Erickson

Am I correct in thinking that a company can use the HRMC online Corporation Tax return service for as long as the turnover in either the current reporting period or the previous one is less than £632k (the company has a balance sheet total of less than £250k and has less than 10 employees). So, for example, if current year turnover is £800k, but prior year was £500k, then the online service can still be used? Thanks very much.

Thanks Clive. I can see that https://www.gov.uk/inheritance-tax/gifts it mentions the phrase you quote. But I can't find this condition in the IHT Manual itself (https://www.gov.uk/hmrc-internal-manuals/inheritance-tax-manual/ihtm14000).The phrase "regular monthly income" appears to refer to the condition that, for any gift to be tax free, regular expenses must already have been covered. If a qualifying gift under this exemption was limited to "regular monthly income", then the phrase "There's no limit to how much you can give tax free" would seem to be ambiguous at least, if not contradictory. Another example might be where someone gets awarded a substantial annual bonus, maybe 50% of their annual salary. It's not part of "regular MONTHLY income", but it is clearly "income" as it comes from the same source as the person's salary, i.e. their overall remuneration from their employer. I guess the definition of the term "income" has never been tested under IHTA84/S21.

Thanks Clive, I can see that the gift from surplus income should be regular, maybe monthly by standing order for example, but where does the definition that a one-off income source, not related to the profit on a sale of a capital item, should be excluded in the scope of 'income'? IHT14250 it says "Income is not defined in the IHTA84 but should be determined for each year in accordance with normal accountancy rules. It is not necessarily the same as income for income tax purposes. Income is the net income after payment of income tax." Thanks.

I see that one of the exemptions for IHT are payments made out of 'surplus income'. Is this simply the excess of income over expenses, irrespective of what type of income it is? Obviously income includes salary, interest income, pension etc. But I'm also thinking about, for example, of where someone receives a one-off windfall, e.g. from an inheritance or from maybe a lottery win and then wants to pass that on to someone else as they have more than enough funds for themselves. Thanks very much.