Jul

HMRC perceptions, how many of these business hallmarks can you tick off the list?

admin

If you are hoping to incorporate your business and to roll CGT crystallised into shares in the company you are incorporating into then you will need to qualify for relief under s162 TCGA 1992. The main qualifying criteria for this relief is that HMRC accept that you are running a business.

How many of these questions would you feel comfortable answering if an HMRC inspector was to ask:-

What is your business name?

Does your business have its own Unique Tax Reference number “UTR”?

Do your have a bank account in your business name?

Do you have business letterhead?

Do you have a business telephone number?

Does your business have a website?

Do you have a business email address?

Does your business have an office?

Do you have business cards?

Does your business have any employees?

Does your business have a balance sheet produced regularly?

Does your business have management accounts?

You don’t have to have all of these things to qualify for incorporation relief but if you have none of them HMRC are more likely to consider that you are curating an investment portfolio than running a property rental business.

I’m not saying they are right but perceptions are important if you are hoping to incorporate your rental property portfolio and claim incorporation relief to roll CGT crystallised upon incorporation into shares in the company you are incorporating into.

Show Tax Consultation Booking Form

Tax Consultation Booking Form

Consultations include new client compliance checks, fact find via email with complimentary software, expert analysis, a detailed written report and recommendations and a 30 minute Q&A session via Skype or telephone.

Name*

First

Last
Email*
Phone*
Additional Message
Please provide an overview of your circumstances and what you are looking to achieve.
Property Portfolio Spreadsheet
If you have a spreadsheet with details of your properties please upload it here.
Property118 Tax Consultancy*

Price: £ 400.00
Total
£ 0.00
Credit Card

American Express

Discover

MasterCard

Visa

Card Number

Expiration Date

Month010203040506070809101112

Year20172018201920202021202220232024202520262027202820292030203120322033203420352036

Security Code

Cardholder Name

if(typeof gf_global == ‘undefined’) var gf_global = {“gf_currency_config”:{“name”:”Pound Sterling”,”symbol_left”:”£”,”symbol_right”:””,”symbol_padding”:” “,”thousand_separator”:”,”,”decimal_separator”:”.”,”decimals”:2},”base_url”:”https://www.property118.com/wp-content/plugins/gravityforms”,”number_formats”:[],”spinnerUrl”:”https://www.property118.com/wp-content/plugins/gravityforms/images/spinner.gif”};jQuery(document).bind(‘gform_post_render’, function(event, formId, currentPage){if(formId == 312) {gf_global[“number_formats”][312] = {“1″:{“price”:false,”value”:false},”2″:{“price”:false,”value”:false},”3″:{“price”:false,”value”:false},”5″:{“price”:false,”value”:false},”8″:{“price”:false,”value”:false},”4″:{“price”:”decimal_dot”,”value”:false},”6″:{“price”:false,”value”:false},”7″:{“price”:false,”value”:false}};if(window[“gformInitPriceFields”]) jQuery(document).ready(function(){gformInitPriceFields();} );if(!window[‘gf_cc_rules’]){window[‘gf_cc_rules’] = new Array(); } window[‘gf_cc_rules’] = {“amex”:[“34″,”37″],”discover”:[“6011″,”622″,”64″,”65″],”mastercard”:[“51″,”52″,”53″,”54″,”55″],”visa”:[“4″,”417500″,”4917″,”4913″,”4508″,”4844″],”jcb”:[“35″],”maestro”:[“5018″,”5020″,”5038″,”6304″,”6759″,”6761″]}; jQuery(document).ready(function(){ { gformMatchCard(“input_312_7_1″); } } );new GFStripe( {“apiKey”:”pk_live_88gbI6MTSx0mkOyA67c6c9Rz”,”formId”:312,”ccFieldId”:7,”ccPage”:1,”isAjax”:false,”cardLabels”:{“amex”:”American Express”,”discover”:”Discover”,”mastercard”:”MasterCard”,”visa”:”Visa”,”jcb”:”JCB”,”maestro”:”Maestro”}} );} } );jQuery(document).bind(‘gform_post_conditional_logic’, function(event, formId, fields, isInit){} ); jQuery(document).ready(function(){jQuery(document).trigger(‘gform_post_render’, [312, 1]) } );

The post HMRC perceptions, how many of these business hallmarks can you tick off the list? appeared first on Property118.

View Full Article: HMRC perceptions, how many of these business hallmarks can you tick off the list?