The next stage

EMMA CHAMBERLAIN takes a practical look at the Revenue's guidance notes on pre-owned assets.

THE LONG AWAITED guidance notes on pre-owned assets income tax as well as the Regulations dealing with valuation issues were published in mid March. The guidance notes were subsequently amended in relation to partnership insurance policies in early April. They contain both good and bad news for taxpayers. This article summarises the main practical points arising out of both regulations and guidance notes for those clients who are caught by the charge. It also mentions some areas which continue to prove problematic.

Regulations

The regulations were issued on Budget day which allowed the minimum period of 21 days required for them to come into force on 6 April 2005. Curiously regulations 1 to 5 are made under the powers contained in FA 2004 Sch 15 while regulation 6 is...