The Tax Preparation Blog

Archive for the ‘UK taxes’ Category

Question: How do you live a carefree life on handouts in the UK?

Right, I have worked all my adult life and to be honest have had enough, I see so many people about with so much leasure time, nice cars, houses full of nice posessions, kids fed and dressed well, holidays twice a year, problem is, they are on social security hand-outs or on disabilty for having slight asthma, or if they ever get off their settee shaped a.rse’s, a bit of back-ache, there’s probably a few of you Income Tax theives out there now reading this Question on your broadband paid for by my taxes….

All I want to know is, how do you do it, I need advice, I want to be like you, why work hard when it can all be provided for you, I know a few of you will be feeling a bit guilty and find it hard to sleep at night worrying over yet another fraudulant claim, but I only want a brief explanation on how to change my mind-set into that of a scrounger and how to beat the system?

Answer: Very easily in this country

FACTBOX – New UK government sets out its plans

LONDON (Reuters) – Britain’s new coalition government set out its goals and plans for legislation over the next 18 months on Tuesday.

United Kingdom General Tax Amnesty part 1

Question: When leaving Gatwick airport, is there…?

A departure tax or any sort of fees that I should be aware of? If so, how much?

I’m leaving for England next week and returning back home November 7th.

Answer: I fly to Gatwick frequently and there are no taxes to pay except those you´ve already paid on your ticket.. I´ll be flying there tomorrow.

Some Social Aspects of Medical Socialism

The 18th century proudly called itself the century of reason. The 19th boasted of being the century of progress. In the same fashion, the 20th deserves one of two titles: the century of Marxian totalitarianism or of Bismarckian social security.

Tax advice from Tax Experts – Tarpon Ltd umbrella solution

Question: How do countries besides the U.S. handle taxes on gambling winnings?

In the U.S. if you “win” $2,000 on a horse racing bet but it cost you $2,500, the gov’t will record this as $2,000 income, and if you deduct the amount of the wager (you can only deduct enough to show no earnings, not losses), you will have to itemize & can’t use a standard deduction any longer. Do other countries such as Canada, UK, etc view gambling earnings in the same way on taxes? Also for racing wagers, if you win a bet with 300-1 or more odds these become taxable, and anything over $5,000 has 25% taken out by the fed gov’t right away before they pay you. Is anything like this also done in other countries?

Answer: In Australia any winnings whether it be on horse races, lotteries or at casinos are tax exempt.

The only exception is if this is your only source of regular income then you can be classified as a “professional gambler”. Then you pay tax on any winnings just like you do if you earn’t the money at a regular job.

(AFX UK Focus) 2010-04-29 23:15 US fund taxes plunged in ‘09 on prior year losses

BOSTON, April 29 (Reuters) – In addition to strong returns, U.S. mutual fund investors had much lower taxes to celebrate in 2009, according to a report issued on Thursday by Lipper, a Thomson Reuters Corp unit tracking fund performance. Not only were equity funds up 34 percent last year, their best year since 2003, they also capitalized on tax benefits tied to market declines during the fiscal …

Unemployment Funds Going Absolutely Broke

Question: How will income earned by a US tax-paying citizen from a foreign trust in the UK be taxable in the US?

If a US citizen is listed as beneficiary of a discretionary gift trust, a whole of life contract, the policy benefit will be payable on death of the life assured to the trustees. How will distributions made from this trust to the U.S. beneficiary be taxed by the U.S? What are the reporting requirements for this income in the U.S.?

Answer: The easiest way to look at this is say that the recipient is getting a gift of income. As such, that would be reported as such. The estates and trusts form 1041 mirrors the 1040 and all the instructions for 1041 are available online also for desribing specific situations.

Taxing attacks

TAX deadlines are here again and Borang BE sits on my desk waiting to be filled in. It’s eight pages long, and it asks me to recall how much I spent on books and computers in 2009. Of the four countries in which I have worked, Malaysia is the most ma fan to file taxes.

House Approves Sweeping Financial Reforms

Question: US Capital Gains Tax on sale of oversees property?

I am selling the family home in England, but I have lived in the U.S. for 10 years and I’m a US passport holder. I understand that I’m not liable for UK CGT, but I would like to bring the substantial proceeds to the US and understand that I will may be liable for US Capital gains. My husband and I have been unemployed for all of 2007, with only a small amount of income from investment interest, much less than $16,050, putting us in the 10% tax bracket for 2008.
Will I, as a result of the Tax Reconciliation Act, and the fact that I am in the 10% income tax bracket, owe 0% capital gains tax? Or am I missing something?
I find it difficult to imagine the tax man will let me off so easily.
Thanks for your help,
Poki

Answer: You must report your world wide income. The sale of the house is reported on schedule D (Form 1040). The cost basis of the house is the fair market value of the house on the date of inheritance. If it was a gift, then you have to figure out your cost basis, which is based on FMV as well as cost basis of the donor.

If you paid taxes in the foreign country you will claim credit by filing form 1116.

On your U.S. return, you must report your worldwide income.Read: http://taxipay.blogspot.com/2008/03/us-citizen-or-resident-with-foreign.html

General election 2010 live blog

Andrew Sparrow covers all the latest election news and events, including David Cameron launching the Conservative party’s election manifesto 8.21am: During questions, Clegg and Vinc Cable (who was appearing alongside him) came under a lot of pressure to explain what impact their plans would have on the City. Andrew Neil (one of several journalists to pose questions on this theme) asked why the …

Goldman Sachs Admits to Investing in Housing Downturn While Selling Securities Backed By Home Loans