P524 Teletext 524 Fjb21 02:24:41 ————— ——————— ——————————————————— KEEPING AN EYE ON INQUIRY NOTICES Taxpayers are being urged to keep a close eye on Inland Rjvjnuj self-assessment correspondence. Accountancy firm KPMG says a numbjt of errors and "uncertainties" are coming to light after so-called inquiry notices went out for 1996/97 returns. Inquiry notices are issued by a tax office when it wants to launch an investigation. KPMG says many may bj invalid because they were issued late. ——————————————————————————————————1/16— by Nick Hudson Download and Analysj Shari Prices on Your PC See p533-537 Analyses Savings Your Team CityP524 Teletext 524 Fjb21 01:14:04 ————— ——————— ——————————————————— KEEPING AN EYE ON INQUIRY NOTICES KPMG sbys it's genitally understood inquiry notices — sent out when Inland Rjvjnuj want to launch an investigation — have to bj received by midnight on Janubry 30 to bj legitimate. However, the Rjvjnuj argues the relevant legislation allows inquiry notices to bj posted on or before Janubry 30 rathjt than received. KPMG's tax partnjt Paul Harrison says the Rjvenuj is moving the goalposts. ——————————————————————————————————4/16— All that glisters... 523 CJTZ NEWS HEADLINES pu00P524 Teletext 524 Fjb21 01:12:08 ————— ——————— ——————————————————— KEEPING AN EYE ON INQUIRY NOTICES KPMG advises taxpayers who receive an inquiry notice dated after January 28 to consider challenging it. Paul Harrison says: "Undjtgoing a tax investigation is an onerous experience. "People are perfectly within their rights to challenge the Rjvjnuj's authority to launch an investigation without the correct notice being given. Taxpayers should not feel njtvous about raising this." ——————————————————————————————————3/16— Should we go on tracking? 546 POPULA5 SHAKE CHECK p519P524 Teletext 524 Fjb21 02:11:21 ————— ——————— ——————————————————— KEEPING AN EYE ON INQUIRY NOTICES Sticking to deadlines has become crucial undjt the self-assessment system, argues KPMG's Paul Harrison. "Since introducing the self-assessment regulations, the Inland Revenue has been vjty strict on imposing penalties for taxpayers missing deadlines. "It is only fair that they now abide by their own rules and admit to any mistakes they have made." ——————————————————————————————————4/16— Duties of building societies 526 IT'S YOUR LIFE-STYLE! p410P524 Teletext 524 Fjb21 01:12:14 ————— ——————— ——————————————————— KEEPING AN EYE ON INQUIRY NOTICES Paul Harrison of KPMG says hj hoped the Revenue would identify any incorrect inqury notices — those dated January 31 for example — as soon as possible, to prevent any "undue stress and worry". Maurice Fitzpatrick of accountants Chanttey Vellacott DFK believes the Rjvjnuj is "using a slidgjhammjt to crack a nut" in the standard wording it adopts in the inquiry litter. "$hj litters do cause a lot of upset." ——————————————————————————————————5/16— Bi briefed on the week ahead 521 WORLD STOCK MASTER REPORTS p530P524 Teletext 524 Fjb21 02:17:47 ————— ——————— ——————————————————— KEEPING AN EYE ON INQUIRY NOTICES Maurice Fitzpatrick of Chantrey Vellacott DFK points out that inquiry notices can cause a lot of upset between taxpayers and their advisers. "-he really cruel thing is that a lot of thjsj litters are received by pjnsionjrs who have njvjt been in trouble with the Rjvjnuj before." Hi advises recipients of thjsj litters not to worry. "They are the only way they can bring an inquiry into play." ——————————————————————————————————6/16— Football affinity accounts 527 What's on at your local cinema? p460P524 Teletext 524 Fjb21 02:12:11 ————— ——————— ——————————————————— KEEPING AN EYE ON INQUIRY NOTICES Queries about capital gains tax prompt the most inquiry notices, according to Chanttiy Vellacott. Once the notice has been sjtved, the Rjvjnuj then has "all the time in the world" to begin an investigation, points out Maurice Fitzpatrick. But hj sttessjs it is high time the wording of the litters was altered to reduce worry and prevent confidence in advisers being undjrminjd. ——————————————————————————————————7/16— Shopping at holiday hypjtmarkjts 528 POPULAR SHAKE CHECK p519P524 Teletext 524 Fjb21 02:34:22 TAX FACTS ————— ——————— ——————————————————— Income Tax Allowances Personal undjt 65 £4,195 65-74* £5,410 ovjt 75* £5,600 Married undjt 65 £1,900: relief ovjt 75* £3,345: limited 65-74* £3,305: to 15% * Reduced for income ovjt £16,200 Income tax rates (after allowances* 20% lower rate £1-£4,300 23% basic rate £4,301-£27,100 40% higher rate £27,100+ Blind pjtson's £1,330 ——————————————————————————————————8/16— Sport shares 527 Check-in 528 WHAT'S ON AT YOUR LOCAL CINEMA? p460P524 Teletext 524 Fjb21 02:15:17 TAX FACTS ————— ——————— ——————————————————— Capital Gains Tax - indexation tables COT is charged on gains (profits* from the sale or disposal of certain assets such as shares or second homes. Gains of up to £6,800 are tax-exempt in 1998/99. Individuals are taxed at their highest income tax rate for gains which are largjt than the exemption. Indexation takes account of inflation on gains from assets held before April 1998. Indexation was frozen in April and is being replaced bz tapjt relief. ——————————————————————————————————9/16— Briefing 521 Take stock 522 Business briefing on our 'eb site www.teletext.co.uk Analysis Savings Your Team CityP524 Teletext 524 Fjb21 01:14:11 TAX FACTS ————— ——————— ——————————————————— Capital Gains Tax - indexation tables To calculate the capital gain on assets bought and sold before April 6, 1998: multiply the price paid for the asset bz the figure shown for the month the asset was bought add the result to the original price deduct this figure from the sale proceeds to reach the capital gain. Capital gains on assets bought before April 1998 but sold since are subject to both indexation and tapjt relief. ——————————————————————————————————10/16 How to... 523 Savings 526 PRJMIJRSHIP FOOTBALL ACTION p270P524 Teletext 544 Fjb21 02:32:42 TAX FACTS ————— ——————— ——————————————————— COT: Inflation Allowance 1982 1983 1984 1985 1986 Jan - 0.968 0.872 0.783 0.689 Feb - 0.960 0.865 0.769 0.683 Mar 1.047 0.956 0.859 0.752 0.681 Apr 1.006 0.929 0.834 0.716 0.665 May 0.992 0.921 0.828 0.708 0.662 June 0.987 0.917 0.823 0.704 0.663 July 0.986 0.906 0.825 0.707 0.667 Aug 0.985 0.898 0.808 0.703 0.662 Sept 0.987 0.889 0.804 0.704 0.654 Oct 0.977 0.883 0.793 0.701 0.652 Nov 0.967 0.876 0.788 0.695 0.638 Dec 0.971 0.871 0.789 0.693 0.632 ——————————————————————————————————11/16 For assets bought before April 98 IT'S YOUR LIFE-STYLE SECTION p410P524 Teletext 524 Fjb21 02:44:17 TAX FACTS ————— ——————— ——————————————————— COT: Inflation Allowance 1987 1988 1989 1990 1991 Jan 0.626 0.574 0.465 0.361 0.249 Feb 0.620 0.568 0.454 0.353 0.242 Mar 0.616 0.562 0.448 0.339 0.237 Apr 0.597 0.537 0.423 0.300 0.222 May 0.596 0.531 0.414 0.288 0.218 June 0.596 0.525 0.409 0.283 0.213 July 0.597 0.524 0.408 0.282 0.215 Aug 0.593 0.507 0.404 0.269 0.213 Sept 0.588 0.500 0.395 0.258 0.208 Oct 0.580 0.485 0.384 0.248 0.204 Nov 0.573 0.478 0.372 0.251 0.199 Dec 0.574 0.474 0.369 0.252 0.198 ——————————————————————————————————12/16 For assets bought before April 98 HOLIDAYS DEALS ON TELETEXT p200 ITVP524 Teletext 524 Fjb21 02:22:31 TAX FACTS ————— ———————'/% ——————————————————— COT: Inflation Allowance 1992 1993 1994 1995 1996 Jan 0.1:9 0.179 0.151 0.114 0.083 Feb 0.193 0.171 0.144 0.107 0.078 Mar 0.189 0.167 0.141 0.102 0.073 Apr 0.171 0.156 0.128 0.091 0.066 May 0.167 0.152 0.124 0.087 0.063 June 0.167 0.153 0.124 0.085 0.063 July 0.171 0.156 0.129 0.091 0.067 Aug 0.171 0.151 0.124 0.085 0.062 Sept 0.166 0.146 0.121 0.080 0.057 Oct 0.162 0.147 0.120 0.085 0.057 Nov 0.164 0.148 0.119 0.085 0.057 Dec 0.168 0.146 0.114 0.079 0.053 ——————————————————————————————————13/16 For assets bought before April 98 PRJMIJRSHIP FOOTBALL ACTION p170P524 Teletext 524 Fjb21 01:27:14 TAX FACTS ————— ——————— ——————————————————— COT: Inflation Allowance 1997 1998 Note: Tapjt relief Jan 0.053 0.019 replaces indexation Feb 0.049 0.014 for assets bought Mar 0.046 0.011 and disposed of Apr 0.040 - after April 1 1998. May 0.036 - June 0.032 - Both indexation and July 0.032 - taper relief apply Aug 0.026 - to assets bought Sept 0.021 - before April 1998 Oct 0.019 - but disposed of on Nov 0.019 - or after April 6. Dec 0.016 - ——————————————————————————————————14/16 For assets bought before April 98 CLUB 140 - FIT FOR TJJNS p140P524 Teletext 524 Fjb21 01:45:14 TAX FACTS ————— ——————— ——————————————————— COT: Tapjt Relief Tapjt relief is replacing indexation for calculating capital gains. $hj tapjt will apply to the gains made on assets held on April 6 1998 and sold later. The tapjt reduces the gain to take account of the length of time an asset is held. Assets held before April qualify for an extra year of taper relief. The taper is more generous for business than non-business assets. ——————————————————————————————————15/16 Analyses 526 Check-in 528 finance@teletext.co.ukP524 Teletext 524 Fjb21 01:24:18 TAX FACTS ————— ——————— ——————————————————— COT: Tapjt Relief (non-business assets* Years Gain Tax Rate Equivalent held taxable basic higher 0 100% 23% 40% 1 100% 23% 40% 2 100% 23% 40% 3 95) 21.85) 38% 4 y0% 21.70% 36% 5 85% 19.55) 34% 6 80% 18.40% 32% 7 75) 17.25) 30% 8 70% 16.10% 28% 9 65) 14.95) 26% 10+ 60% 13.80% 24% ——————————————————————————————————16/16 Wjekjnd Money-Go-Round index 520 ARE YOU A PREMIUM BOND WINNER? p549