HMRC Admin 32 Response

Hi Martinthefizzio,

Yes, as long as the general rules for reclaiming input tax are met you can reclaim this on your VAT return as normal.

Please see the following guidance for the rules.

10. Introduction to input tax

Thank you.

Hi,

Spouses are connected persons under TCGA92/S286 (2),  so transfers of assets between two spouses would normally be deemed to be considerations equal to market value at the date of transfer.

For a transfer that takes place in a tax year of assessment during which the spouses have lived together at some point, the Market Value rule is over ridden by TCGA92/S58. This means that  the transfer of the asset can be treated as having  taken place at no gain/no loss. CG10790 Provides the links to relevant guidance on this matter.

When spouses or civil partners separate, no gain or no loss treatment is only available in relation to any disposals for the remainder of the tax year in which the separation took place. After that, transfers are treated as normal disposals for Capital Gains Tax purposes.

CG22423 advises regarding the transfer of an asset in pursuance of a court/consent order made after the date of the decree absolute. The deemed date of disposal is the date of the order.  

Therefore, on the basis of the info provided, the date of disposal of the 2nd property would be the date of the consent order. If that is after 6 April 2023 then the new rules and extended time frame in which to apply No gain/ No loss will apply.                                                                                                                                                  
If it is before 6 April 2023 and not in the year in which they separated then normal CG rules will apply and you  will be deemed to have disposed of their 50% share of the property at market value on the date of the consent order.                                                                    
You can then apply the normal CGT calculation process and claim 50% of cost of acquisition, incidental costs of acquisition and sale and any Private Residence Relief due for any periods in which you resided in the property as your main residence.

New rules for disposals will be introduced  after 6 April 2023. The new rules will provide that:

1. separating spouses or civil partners will be given up to three years after the year they cease to live together in which to make no gain/no loss transfers
2. no gain or no loss treatment will also apply to assets that separating spouses or civil partners transfer between themselves as part of a formal divorce agreement
3. a spouse or civil partner who retains an interest in the former matrimonial home will be given the option to claim Private Residence Relief (PRR) when it is sold
4. individuals who have transferred their interest in the former matrimonial home to their ex-spouse or civil partner and are entitled to receive a percentage of the proceeds when that home is eventually sold, will be able to apply the same tax treatment to those proceeds received when they transferred their original interest in the home to their ex-spouse or civil partner

CG10790 - Spouses and civil partners: dealt with separately                                          

Thank you.
 

Hi Midsummer57,

The date that your payment is received in HMRC is the date used for any revised amounts of state pension awarded. 

Thank you.

Hi Wai Wai,

On the basis of the information provided, your understanding of the UK's residency rules (as detailed in the SRT) is correct.                                

RDR3 Statutory Residence Test  

Thank you.    

Hi Reb88,

An individual, resident and domiciled in the UK is taxable in the UK, on their world-wide income and gains, using the arising basis. This means they are taxable in the tax year in which the income or gain arises. You may be subject to Capital Gains Tax in the UK, on the disposal of the foreign property, using the arising basis, even if you have paid Capital Gains Tax on the disposal in the country the immoveable asset is located.  

If you dispose of the property you will need to work out if there is a gain arising from the inheritance value and the disposal value. Both values need to be converted to pounds sterling using the official exchange rate in use at the time of inheritance and disposal.  

The guidance below will help.

Tax when you sell property

The official exchange rates can be found at:

Exchange rates from HMRC in CSV and XML format 

The residence, domicile and remittance basis may also apply, depending on your circumstances.

Have a look at the guidance at:

Residence, domicile and the remittance basis: RDR1

Thank you.

Hi,

When we perform the end of year calculation the system will take into account the weekly rate and the start date to determine your entitlement for the tax year. This will be taken into account in your calculation. The tax code is used on an emergency basis, which means it only takes into account 1/12 of the yearly State Pension amount each month the new tax code is applied.

Thank you.

Hi,

No. This is an inheritance that you dont need to declare.

Thank you.

Hi,

We are sorry if you are having issues getting through. All our contact mehods are listed here:

Income Tax: general enquiries

Thank you.

Hi rl11,

The legislation is at:

Taxes Management Act 1970

Taxation of the interest is described in link below and in particular 'If an individual is unable to withdraw or have access to the interest when it is credited to their account, or has a specific product such as a bond, the interest will not arise and therefore they will not be taxable until they have access to the interest.' if this applies to you then the interest should be declared when you can access it(maturity).

SAIM2400 - Interest: taxation of interest: the tax charge

Thank you.

Hi Pronin,

There are no Income Tax implications on the receipt of a cash gift unless the cash gift generates interest or dividends. These would then potentially be subject to tax.  

Further guidance can be found here:

Tax on savings interest

Tax on dividends

Thank you.