Revenue news

Pre-owned assets

Finally on 17 March 2005 the Revenue published guidance about how the pre-owned asset legislation will be operated (they come into effect from 6 April 2005). The guidance outlines the circumstances in which the charge to income tax arises explains how to calculate the benefit subject to the charge or elect for inheritance tax to apply and describes how the Revenue will approach certain issues and specific circumstances. The form IHT500 for making an election into inheritance tax and explanatory notes are also available. An article by Emma Chamberlain on the guidance and regulations will be appearing in a future issue of Taxation.
(www.inlandrevenue.gov.uk)

Beneficial loans

The official rate of interest is currently 5% and will be frozen for the 2005-06 tax year subject to review in the event of significant rate changes.
(www.inlandrevenue.gov.uk)

Finance Bill

The Finance Bill and explanatory notes...