A lot of real estate transactions. There are always multiple taxes to consider and for many of my clients, I advise on not only the corporate implications but also the implications for the individual or the trust owning and funding the structure. It is not possible to advise on the corporate implications without also considering the impact on the shareholders and I particularly enjoy figuring out the interactions.
If you could make one change to a tax, what would it be?
It is cliché but I would welcome simplification across all aspects of tax. The legislation is significantly more complex than it was 20 years ago, which makes it more likely for taxpayers (and sometimes their advisers) to get things wrong. A key contributor to this is when new legislation is introduced, the legislation it replaces is retained and grandfathered. Complexity also encourages narrow specialisation and makes it more difficult for tax advisers to give broader holistic advice.
What do you know now that you wish you’d known at the start of your career?
Be more confident in my ability to read the legislation and commentaries. Although there is a lot to be said for experience and familiarity, the answers are all there if you take the time to look for them.
Are there any new rules that are causing a particular problem?
Having just been through the 31 January filing deadline, the new basis period rules are causing problems when calculating payments on account. For some clients with a 31 December 2023 year end, it was already difficult to accurately determine the likely profits taxable the 2024/25 tax year, but now we also need to estimate the profits for the 31 December 2024 period in order to take a time apportionment. This isn’t just a transitional issue: it will be a permanent feature of the new basis period rules.
Has a recent tax case caught your eye?
It is not a recent case but there is recent guidance on Anson [2015] UKSC 44, a case which still causes significant problems. The recently published guidance in HMRC’s International Manual at INTM180050 is helpful, but reinforces that in almost all cases UK individuals investing in US LLCs will be subject to double tax.
What should we look out for later this year?
The General Election is likely to have a big impact on many of my clients, with the Labour party rumoured to want changes to the taxation of non-doms and private equity. However, in advance of that, there is also the risk of ‘headline grabbing’ policies around capital gains tax or inheritance tax which will mean structures need to be reviewed.
Finally, you might not know this about me but...
I love books and reading, but also bookbinding and restoring antiquarian books – a physical and creative activity which provides a contrast to the mental activity on which I spend most of my working day.
A lot of real estate transactions. There are always multiple taxes to consider and for many of my clients, I advise on not only the corporate implications but also the implications for the individual or the trust owning and funding the structure. It is not possible to advise on the corporate implications without also considering the impact on the shareholders and I particularly enjoy figuring out the interactions.
If you could make one change to a tax, what would it be?
It is cliché but I would welcome simplification across all aspects of tax. The legislation is significantly more complex than it was 20 years ago, which makes it more likely for taxpayers (and sometimes their advisers) to get things wrong. A key contributor to this is when new legislation is introduced, the legislation it replaces is retained and grandfathered. Complexity also encourages narrow specialisation and makes it more difficult for tax advisers to give broader holistic advice.
What do you know now that you wish you’d known at the start of your career?
Be more confident in my ability to read the legislation and commentaries. Although there is a lot to be said for experience and familiarity, the answers are all there if you take the time to look for them.
Are there any new rules that are causing a particular problem?
Having just been through the 31 January filing deadline, the new basis period rules are causing problems when calculating payments on account. For some clients with a 31 December 2023 year end, it was already difficult to accurately determine the likely profits taxable the 2024/25 tax year, but now we also need to estimate the profits for the 31 December 2024 period in order to take a time apportionment. This isn’t just a transitional issue: it will be a permanent feature of the new basis period rules.
Has a recent tax case caught your eye?
It is not a recent case but there is recent guidance on Anson [2015] UKSC 44, a case which still causes significant problems. The recently published guidance in HMRC’s International Manual at INTM180050 is helpful, but reinforces that in almost all cases UK individuals investing in US LLCs will be subject to double tax.
What should we look out for later this year?
The General Election is likely to have a big impact on many of my clients, with the Labour party rumoured to want changes to the taxation of non-doms and private equity. However, in advance of that, there is also the risk of ‘headline grabbing’ policies around capital gains tax or inheritance tax which will mean structures need to be reviewed.
Finally, you might not know this about me but...
I love books and reading, but also bookbinding and restoring antiquarian books – a physical and creative activity which provides a contrast to the mental activity on which I spend most of my working day.
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