Thursday, 17 September 2015

Losing the plot over CGT principal residence relief

In the UK, we take for granted that if we sell our main home, we don’t have to pay Capital Gains Tax (CGT).  Yet, selling a home is still a disposal for CGT purposes.  The main thing that prevents a CGT bill from being triggered by a sale of the home is CGT principal residence relief (PRR).  As it can prove to be such a valuable relief, it’s worth any homeowner getting to grips with PRR.  Otherwise, if your home comes with a bit of land for example, you could end up with an unwelcome CGT bill if you decide to sell up.  That was the fate of Mr and Mrs Fountain, in the recent case of Fountain v HMRC ([2015] UKFTT 0419 (TC)). 

Thursday, 3 September 2015

Calling all EU asset owners: you’ve got mail (from Brussels)

Finally, the EU Succession Regulation (Brussels IV) is fully in force.  It’s been a long time coming.  Part of it came into effect as long ago as 2012 but in recent months, as 17 August 2015 (‘coming into force’ day) approached, there has been much more discussion about what Brussels IV is going to mean in practice.  Essentially, if you or your clients hold assets in virtually any EU state, or have a residency or nationality connection with an EU state, Brussels IV affects you.  This blog does not attempt to explain what Brussels IV is (see my September 2013 blog for the basics).  Instead, it gives the latest thinking on how Brussels IV might apply in practice and what to do now.