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