Melville's Taxation: Finance Act 2019

Part 1 Income Tax and National Insurance
1 Introduction to the UK tax system
UK taxes
Sources of tax law
The tax year
Structure of HM Revenue and Customs
Administration of the tax system
Self Assessment
Appeals
Tax evasion and avoidance
Making Tax Digital
The HMRC Charter
2 Introduction to income tax
Taxable persons
Classification of income
Exempt income
Structure of an income tax computation
Married couples and civil partners
Rates of income tax for 2019-20
Income taxed at source
Savings income
Dividend income
Allocation of the personal allowance
3 Personal allowances
Personal allowances for 2019-20
The personal allowance
Blind person's allowance
Tax reducers
Married couple's allowance
4 Payments and gifts eligible for tax relief
Payments and gifts deductible from total income
Eligible interest payments
Annual payments
Gifts of shares or property to charity
Payments which are tax reducers
Maintenance payments
Loans used to purchase a life annuity
Gifts of pre-eminent property to the nation
Gift Aid
5 Income from property
Definition of property income
Basis of assessment and allowable expenditure
Capital expenditure
Losses
Lease premiums
"Rent-a-room" relief
Furnished holiday lettings
6 Income from savings and investments
Interest received
Dividends received
Tax-efficient investments
Individual Savings Accounts
Enterprise Investment Scheme
Venture Capital Trusts
Child Trust Funds
Income from trusts and settlements
Miscellaneous income
7 Income from employment (1)
Employment and self-employment
Basis of assessment
Employment income
Non-taxable employment income
Deductible expenses
Termination payments
The PAYE system
Construction industry scheme
Employee incentive schemes
8 Income from employment (2)
Benefits in kind
Living accommodation
Cars provided for private use
Beneficial loans
Salary sacrifice
9 Income from self-employment: Computation of income
The badges of trade
The calculation of trading profits
Deductibility of expenditure
Disallowed expenditure
Allowable expenditure
Adjustments relating to income
Trading income allowance
Cash basis and simplified expenses
10 Income from self-employment: Basis periods
The current year basis
Commencement of trade
Cessation of trade
Change of accounting date
Averaging of trading profits for farmers and creative artists
11 Income from self-employment: Capital allowances
Eligible expenditure
Chargeable periods
Plant and machinery
Capital allowances on plant and machinery
Writing down allowance
Annual investment allowance
First year allowance
Balancing allowances and charges
Non-pooled assets
Allowances on cessation of trade
Capital allowances for structures and buildings
Miscellaneous capital allowances
12 Income from self-employment: Trading losses
Relief for trading losses
Carry-forward trade loss relief
Trade loss relief against total income
Early trade losses relief
Terminal trade loss relief
Post-cessation trade relief
Transfer of a business to a company
Losses on shares in unlisted trading companies
Limit on income tax reliefs
13 Income from self-employment: Partnerships
Principles of partnership taxation
Notional profits and losses
Change in partnership composition
Non-trading income
Trading losses
14 Pension contributions
Registered pension schemes
Tax relief for contributions by scheme members
Tax relief for contributions by employers
Annual allowance charge
Lifetime allowance charge
15 Payment of income tax, interest and penalties
Payment of income tax
Late payment penalties
Interest on overdue income tax
Interest on overpaid income tax
Penalties
16 National Insurance contributions
Class 1
Class 1A
Class 1B
Class 2
Class 3
Class 4
Annual maximum contributions
Review questions (Set A)
Part 2 Capital Gains Tax
17 Introduction to capital gains tax
Chargeable persons
Chargeable assets
Chargeable disposals
Basis of assessment
Rates of CGT
Relief for capital losses
Relief for trading losses
Administration of CGT
18 Computation of gains and losses
Layout of a CGT computation
Disposal value
Allowable expenditure
Part disposals
Assets with negligible value
Assets held on 31 March 1982
19 Chattels and wasting assets
The chattels exemption
Chattels disposed of at a loss
Part disposals of chattels
Wasting chattels
Wasting assets
Leases
20 Shares and securities
The share matching rules
The Section 104 holding
Bonus issues
Rights issues
Capital distributions
Takeovers
Gilts and qualifying corporate bonds
21 Principal private residence
Principal private residence
Partial exemption
Deemed residence
Letting relief
Business use
22 CGT reliefs
Damaged assets
Destroyed assets
Replacement of business assets
Gift of business assets
Transfer of a business to a limited company
Entrepreneurs' relief
Reinvestment into EIS shares
Loans to traders
Review questions (Set B)
Part 3 Corporation Tax
23 Introduction to corporation tax
Scope of corporation tax
Accounting periods
Taxable total profits
Trading income
Income from property
Income from non-trading loan relationships
Dividends received
Relief for charitable donations
Loan relationships
Long periods of account
Research and development tax relief
Intangible fixed assets
24 Corporate chargeable gains
Chargeable disposals and chargeable assets
Basis of assessment
Computation of gains and losses
Indexation allowance
Assets held on 31 March 1982
The rebasing election
Assets acquired before 6 April 1965
Disposals of shares or securities
25 Computation and payment of the corporation tax liability
Corporation tax financial years
Rates of corporation tax
Due date of payment
Accounting for income tax deducted at source
Shadow ACT
Self Assessment
Interest on underpaid and overpaid corporation tax
Penalties
26 Corporation tax losses
Relief for trading losses
Carry forward of trade loss relief
Unrelieved qualifying charitable donations
Trade loss relief against total profits
Repayments of corporation tax
Anti-avoidance legislation
Choice of loss relief
Non-trading losses
Restriction on deduction of carried-forward losses
27 Close companies and investment companies
Close companies
Definition of a close company
Exceptions
Consequences of close company status
Companies with investment business
Choice of business medium
Incorporation
28 Groups of companies and reconstructions
Related 51% group companies
Group payment arrangements
Transfer pricing
75% groups
Group relief
Transfer of chargeable assets within a group
Capital losses
Consortia
Corporate interest restriction
Company reconstructions
Review questions (Set C)
Part 4 Miscellaneous
29 Value added tax (1)
The principle of VAT
Taxable persons
Taxable supplies
Exempt supplies
Reduced rate supplies
Zero rate supplies
The value of a supply
Imports and exports
Registration
Deregistration
30 Value added tax (2)
Accounting for VAT
The tax point
Tax invoices
Accounting records
Special schemes
Retail schemes
Bad debts
Non-deductible input tax
Partial exemption
Administration of VAT
Penalties, surcharges and interest
31 Inheritance tax
Transfers of value
Exempt transfers
Potentially exempt transfers
IHT payable on chargeable lifetime transfers
IHT payable on death
Valuation
Business property relief
Agricultural property relief
Administration of IHT
32 Overseas aspects of taxation
Residence and domicile
Income tax - general rules
Double taxation relief
Income from employment
Trading income
Income from property and investments
Capital gains tax - general rules
Inheritance tax - general rules
Corporation tax - general rules
Controlled foreign companies
Transfer pricing
Double taxation relief for companies
Diverted profits tax
Review questions (Set D)
Part 5 Answers
Answers to exercises
Answers to review questions
Index