Q:

We have a query please. One of our clients is selling a Dental Practice with share purchases (limited company) and would like to invest into another his business limited company with buying Air B and B.

Can they get rollover relief on Capital Gain Tax from the sale of a Dental Practice with share purchases (Limited company) and investing into another limited company purchasing Air B and B, please?

A:

“Rollover Relief under s152 TCGA 1992 is available if there is a disposal of a qualifying asset and an acquisition of a qualifying asset. Shares are not qualifying assets under s155 TCGA 1992. See CG60280.

Therefore, no Rollover Relief will be available.”

Q:

Please could you confirm if we had to enter Tax Avoidance Schemes on 22/23 tax return, do we have to enter the same numbers on 23/24 tax return for our clients?

A:

“Your clients will be required to enter the Scheme Reference Numbers for any years in which they expect to obtain a tax advantage from taking part in the scheme.

If they do not expect to obtain an advantage for the 2023-24 tax year, they do not need to include the SRN on their tax returns.”

Q:

Client has received US pension by virtue of his American wife. circa 19000 pounds.

Would I declare this in foreign pages under section 8.Can we reclaim any foreign tax paid. Is it at 30%

A:

“Article 17 of the DTA between US and UK governs the taxing rights of the two places.

If your client is UK resident then the agreement gives taxing rights to the UK only. Our legislation (S.33 TIOPA 2010) effectively prohibits credit of any overseas tax that is in excess of the other place’s entitlement under the treaty. Therefore, there is no relief in the UK for the US tax. The taxpayer might be able to get back some of the US from the US by filling in appropriate forms, but that is a matter for an adviser on US tax. The pension income needs to be included on pages 2 and 3 of the Foreign pages of the SATR but without a claim to credit US tax.”

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