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Weekly Technical Bulletin - 29th August 2008

FINANCIAL REPORTING

1. The Government has published its response to the consultation ‘Financial Thresholds in the Charities Acts – Proposals for Change’ this week. The consultation sought views on proposals to raise the income thresholds above which charities face more rigorous accounting and reporting requirements. It aims to reduce administrative burdens on charities. The recommendations will be introduced in secondary legislation by the end of the 2008/09 financial year. This will allow the measures to take effect from the beginning of the next financial year (i.e. from 1 April 2009).

DIRECT TAXES

1. TAX

Provisions in FA 2008 provide exception from a benefit charge on the directors where foreign property is held by a company and the company’s only activity is ownership of the property. HMRC is inviting refund applications where individuals think they have incorrectly paid tax in such circumstances in the past.

2. If you are stuck for light reading on your late summer holiday, you might care to try HMRC’s new guidance on agricultural property relief. Comments are invited by the end of September.

INDIRECT TAXES

1. VAT: we have heard that in cases where an option to tax is notified to HMRC within the required 30 day period, but due to postal delays the notification is not received until after the 30 days have expired, HMRC are now requiring the taxpayer to make a further option.

1. OTHER

1. The Office of Fair Trading (OFT) has launched an online version of its public register, making it quicker and easier for businesses and consumers to search information held on the Consumer Credit Register. The Consumer Credit Register currently has details of over 125,000 Consumer Credit Licence holders. Most businesses that offer goods or services on credit, lend money to consumers or provide debt solutions and advice to consumers must be licensed by the OFT. The Estate Agents’ Register is not currently online. Meanwhile the OFT is calling on businesses to take the necessary steps to be ready for changes to the consumer credit licensing regime that come into force in the autumn. From 1 October 2008, businesses offering debt administration or credit information services (which may include credit repair) will need to be appropriately licensed by the OFT.

Whilst every effort is made to ensure accuracy, information contained in this publication may not be comprehensive and recipients should not act solely on the basis of this information.