With the announcement of a Conservative-Liberal Democrat coalition, the uncertainty as to who will govern the UK is over. However, what does this mean for taxpayers? Withers Worldwide looks at the likely changes under the new administration and the implications for taxpayers.
A short article from TaylorWessing highlights the benefits of a Liechtenstein Disclosure Facility, including a shorter taxable period, lesser tax penalties and the guarantee of no criminal prosecution than would be otherwise available within the UK tax regime. For an individual eligible for the LDF, in the great majority of cases the LDF will offer a lower-cost tax deal than he or she could otherwise get.
In this set of short articles, WTAS addresses topics ranging from the tax impact of employee bonuses to factors to consider in assessing the fair market value of alternative investments. The authors also discuss changes in state personal and corporate tax rates, the impact of widening state budget gaps on state taxes, and complications of the current estate and gift tax law.
The three taxpayers involved in the Gaines-Cooper case lost before the Court of Appeals because evaluating an individual's status of residence involves difficult questions of fact and judgment, and the taxpayers could not show that the Revenue and Customs Commission had applied guidance incorrectly. In this review of the decision, Deloitte recommends that UK residents seek professional tax advice and consider their positions carefully before leaving the UK.
Families who employ nannies may be violating federal and state tax and labor laws without even realizing it. And that includes nannies who are legal U.S. citizens, according to this article from Teresa Leigh Household Management. To stay in the clear, families need to collect and file appropriate payroll taxes, track hours worked, pay overtime and abide by minimum wage requirements.
The Court of Appeals' recent decision in the Robert Gaines-Cooper case does not represent a change in UK residency law, Withers Worldwide notes. Instead, the decision reinforces what has always been good advice for those seeking to lose UK residency: Make a complete break with the UK and keep visits to a bare minimum.
The unified managed household, the most recent extension of overlay portfolio management, extends overlay management services to households with multiple accounts, multiple individuals and multiple custodians. This paper from Natixis explains the evolution of overlay management and describes the benefits of the unified managed household, particularly for intergenerational wealth transfer.
Residency rules in the 1973 IR20 booklet were in question in the Gaines-Cooper case, but the HMRC6 guidance of April 2009 may be more relevant now to those wishing to lose UK residency, according to Macfarlanes. However, the new guidance has been described as deliberately vague and a work in progress. The authors argue that the time has come for a comprehensive statutory residence test like that of the United States.
Proposed changes to information reporting on IRS Form 1099 would place a greater burden on businesses to accurately identify income taxable to others and assess larger penalties on businesses that fail to do so. In this report, Vogel Consulting details the cost of non-compliance and offers suggestions of what businesses can do to be prepared.
Since 6 April 2008 non-UK domiciliaries have only been allowed to claim foreign losses if they make an election for such losses to be allowable. However, making the election without careful consideration could mean losses being absorbed against foreign gains that would not have been taxable in the UK. Withers Worldwide outlines these considerations and covers other useful information about claiming foreign losses.