HMRC Admin 19 Response

Hi,

The new rules take effect from 6 April 2025, which is the 2025 to 2026 tax year. This means that for the 2024 to 2025 tax year, the current rules on residence will continue to apply. You would need to review the guidance at RDR3 and take the statutory residence test, to determine your residence status.

RDR3: Statutory Residence Test (SRT) notes

You may also need to consider whether split year treatment applies. This will help you complete a Self Assessment tax return to declare UK and worldwide income.

Thank you.




 

Hi James Clark,

There is no distinction between you, the customer and your business if you are a sole trader. You cannot loan money to yourself. You have used your own money to buy equipment for your business.

In terms of the money going in and out, you can reflect this on the SA103 on the Capital Account section as 'Capital Introduced' & 'Drawings', this is optional however, but ultimately there are no tax implications either way.

Thank you.

Hi,

1. For advice on National Insurance (NI) you will need to contact our NI team. National Insurance: general enquiries
2. If non taxable it will not count towards adjusted net income.
3. Yes, the taxable element will be taxed as normal. 

Thank you.

Hi,

It is the grossed up pension contribution that is deducted for adjusted net income. In your example if it is £8000 net contributions, then the gross figure will be £10,000.

Thank you.

Hi,

Whilst in administration prior to the dissolution or striking off of a company does not preclude the use of alternative valuation procedures from the standard. You can see guidance here:

SVM107020 - Capital Gains Procedures: Valuation requests

The CG34 post transaction service (https://assets.publishing.service.gov.uk/media/626bc36ce90e0746cb4aff91/CG34.pdf) offers is an optional procedure applicable to disposals and deemed disposals prior to the submission of a tax return detailing the disposal.

CG34 — Post-transaction valuation checks for capital gains

Any share valuations related request would require full accounts for the 3 years up to the valuation date.

Valuation methods utilising the ‘quarter up’ price of shares, prescribed in statutory form, latterly at TCGA92/S272(3) for Capital Gains Tax (CGT) purposes. From 6 April 2015, the method of valuation for CGT was changed by The Market Value of Shares, Securities and Strips Regulations 2015 (SI 2015/616). The value used for most CGT purposes is the figure one-half of the way up from the lowest to the highest closing prices of the day. 

Thank you.

Hi,

Please contact the Inheritance Tax team for advice.

Inheritance Tax: general enquiries

Thank you.

Hi,

Please contact the Inheritance Tax team for advice.

Inheritance Tax: general enquiries

Thank you.

Hi,

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 seen here:

Tax on savings interest

Tax on dividends

Thank you.