21:05 PM, 10th May 2017, About 5 years ago
Tax planning is perfectly legal providing you follow the rules, including legislation known as GAAR which is an abbreviation for General Anti Abuse Rules.
Famously, Lord Tomlin said on behalf of the highest Court of the land …
Every man is entitled if he can to order his affairs so that the tax attaching under the appropriate Acts is less than it otherwise would be. If he succeeds in ordering them so as to secure this result, then, however unappreciative the Commissioners of Inland Revenue or his fellow tax-payers may be of his ingenuity, he cannot be compelled to pay an increased tax.
So how can you be certain the restructure you are contemplating or have been advised on is compliant with the appropriate Acts and provides the outcome you are seeking?
Actually, it can be a relatively painless process …
HMRC provide a non-statutory clearance service which allows you to check the legislation you are reliant upon is relevant to your specific circumstances and provides the outcome you are anticipating, BEFORE you commit.
Below is the HMRC checklist of all the information a non-statutory clearance request must contain.
Once clearance has been granted by HMRC there can be no come-backs unless the information you provided proves to be inaccurate.
At Property118 we have written about several tax planning opportunities involving incorporation and we also offer a consultancy service whereby we provide bespoke guidance on the restructuring of rental property businesses for optimal tax and other business reasons for a flat fee of £400.
As an add-on to our consultancy service we now offer to help our clients to write non-statutory clearance requests which they can submit directly to HMRC for themselves. We charge a flat fee of £1,500 plus VAT for this service and we are so confident in our own recommendations that we offer a total refund guarantee if clearance is declined. How many other advisers are prepared to offer such a commitment?
Non-statutory clearance isn’t compulsory but it certainly provides peace of mind.
Further details of this service and two of our most popular restructuring strategies are contained in our Landlord Tax Planning Presentation which is available for download at a price of just £20 – see below.