Individuals who submit a self assessment tax return are required (subject to certain exceptions) to make payments on account to HMRC by 31 January and 31 July. The payments are based on the previous years income tax liability, and represent an advance payment for the following year's tax liability. The government has announced that the July 2020 payment on account may be deferred to January 2021, for individuals in self assessment. Initially the measure was only expected to apply the self-employed, however HMRC have since confirmed that it applies to all taxpayers with payment on account liabilities. Deferral of July 2020 Payment  Due to the effect of COVID-19, the government has brought in several measures aimed at supporting ...

Private residence relief (“PRR”) was first introduced over 50 years ago and is one of the more widely known tax reliefs, providing relief from capital gains tax ("CGT") on the sale of your home. That said, there has been contention over the definition of the terms “period of ownership” and “periods of occupation”, both of which are crucial for determining if PRR can be applied. Last year we wrote a blog on the case of Higgins v HMRC where the Upper Tribunal held that the period of ownership for PRR purposes starts from the date the contract for purchase was signed, even though the property in question had not yet been built. Mr Higgins has appealed his case to the Court of Appeal who has now reversed the Upper Tribunal�...