All posts by Graham Chase, Tax Partner, CMS

  The Government has confirmed that it will legislate in relation to the taxation treatment of partnerships. The proposed changes were originally published on 13th September and they mostly relate to administrative aspects. However, the original proposals also included changes in relation to profit allocation rules. These changes are designed to address HMRC concerns that … Continue reading Partnership taxation

Draft legislation published on Monday goes some way to address concerns raised during the consultation process. Importantly, the provisions have been limited to circumstances where there are abusive tax arrangements which are defeated.  Whether there are abusive tax arrangements is determined in accordance with the familiar GAAR criteria, under FA 2013.  For some reason the … Continue reading Penalties for tax avoidance enablers – Finance Bill provisions

The Finance Bill will include sanctions for enablers of tax avoidance. If the August 2016 consultation is a guide then this refers not merely to those who design, promote and market avoidance – but everyone in the supply chain who benefits from an end user implementing avoidance arrangements and without whom such arrangements could not … Continue reading Penalties for tax avoidance enablers

In March we provided an update on the Government’s announcement in Budget 2016 that it would bring the treatment of “free plays” for remote gaming duty purposes in line with the treatment of “free plays” for general betting duty purposes. Currently the use of “free plays” will not give rise to the receipt of a … Continue reading Consultation on the treatment of “freeplays” in remote gaming duty released

Termination payments The Government has announced changes to the way non-contractual termination payments will be taxed from April 2018. The position is complex, but very broadly certain payments which are non-contractual “ex gratia” in nature are tax free up to £30,000 upon termination of employment.  The excess is subject to income tax but is not … Continue reading Employment income – selective aspects

As previously announced, and following consultation, higher rates of SDLT are to be introduced for purchases of additional residential properties from 1 April 2016. The higher rates will be 3% above the current rates. SDLT will be calculated as follows: £0 – £125,000                3% £125,001 – £250,000       5% £250,001 – £925,000       8% £925,001 – … Continue reading SDLT and residential property – Update on the additional 3% charge

From and including 17 March 2016, the calculation of SDLT on freehold and leasehold transactions in non-residential properties is changing. Purchasers (above the value threshold below) will see increases. A new band system (mirroring the changes made in relation to residential property transactions) will apply. A different rate of charge will apply to the portion … Continue reading SDLT and commercial property – Still scope to exchange by midnight

Territorial limitations on the scope of UK taxes open up the possibility of tax free property development. At least this is the case for non-UK residents who can arrange matters such that they avoid a permanent establishment in the UK (for example, a site office or show-home) and are resident in a jurisdiction with a … Continue reading Profits from Trading in and Developing UK Land

Gains arising on or after today via carried interest are subject to new computational rules. Essentially, an affected individual will be taxed by reference to the full amount received less any sums actually invested by that individual. Whilst a capital gains treatment is preserved, it is intended that gains will be calculated in line with … Continue reading Carried interest – raising the effective rate of capital gains tax

For companies now subject to investigation from an EU State Aid perspective, the potential for repayment obligations are likely to be an unexpected outcome from what many may have regarded as mainstream tax structuring. An outline of the current position is available here.