UK Tax Podcast

Send us Fan MailIn this episode of The UK Tax Podcast, Chartered Tax Adviser John Kavanagh explains the tax treatment of corporate demergers under UK law, focusing on the three principal routes: statutory demergers, capital reduction demergers, and reconstructions by liquidation. Designed for non-specialist advisers, the episode sets out the conditions for each type of demerger, identifies key tax and legal risks, and discusses the availability of reliefs from income tax, CGT, SDLT and VAT. The episode also highlights practical issues, including HMRC clearances, solvency statements, and the relevance of shareholder approval. Aimed at general practice solicitors and accountants, this is an essential guide to navigating the technical and procedural requirements of UK demergers with confidence.

Send us Fan MailIn this episode of The UK Tax Podcast, John Kavanagh looks at some of the most common errors made when applying the Statutory Residence Test. He explains the correct order in which the automatic overseas, automatic UK, and sufficient ties tests must be applied, and highlights frequent mistakes in interpreting UK days, transit days, and UK workdays. The episode also covers common misconceptions around homes, the family tie, and the 90-day tie, and examines why precise recordkeeping is critical in marginal cases. John draws on practical experience to illustrate how small missteps can have significant tax consequences.Tune in for a detailed guide to navigating the SRT and avoiding errors that could trigger unexpected UK tax liabilities.

Send us Fan MailIn this episode of The UK Tax Podcast, John Kavanagh explores the rules for claiming mixed-use treatment on property purchases for SDLT purposes. He examines recent tribunal decisions, including Ridgway, Tretyakov, and Suterwalla, and considers how the courts have interpreted residential versus non-residential use at the time of completion. The episode highlights HMRC’s increasingly aggressive stance on such claims, the importance of timing and supporting evidence, and how minor differences in fact patterns can affect the outcome. John also discusses how advisers should assess the risk of enquiry before submitting a reclaim or advising on mixed-use eligibility.Tune in for practical commentary on one of the more contentious areas of SDLT and what recent cases mean for taxpayers and advisers alike.

Send us Fan MailIn this episode of The UK Tax Podcast, John Kavanagh explains the essentials of Enterprise Management Incentive (EMI) options, a highly tax-efficient way for smaller businesses to attract and retain key employees. He covers the qualifying conditions, tax advantages, and planning points, with a particular focus on the recent changes to Business Asset Disposal Relief (BADR) rates. From April 2025, qualifying EMI share disposals may be taxed at 14%, rising to 18% from April 2026. This episode is a concise and up-to-date guide to EMI schemes in the current tax landscape.

Send us Fan MailIn this episode of The UK Tax Podcast, John Kavanagh examines the rules regarding UK corporate tax residenceand the approach taken by HMRC. He explains the UK’s central management and control test, how HMRC has challenged offshore structures, and the role of double tax treaties in resolving residence disputes. The episode also explores the growing use of the mutual agreement procedure in modern treaties and touches on the relevance of permanent establishment rules for non-resident companies. Along the way, John briefly touches on recent media reports concerning Roman Abramovich’s offshore companies and their potential UK tax implications.Tune in for expert insights into the complexities of corporate tax residence and what businesses should consider when structuring their international operations.

Send us Fan MailIn this episode of The UK Tax Podcast, John Kavanagh, Chartered Tax Adviser, examines the risks of distributions in a liquidation being taxed as income rather than capital under the Targeted Anti-Avoidance Rule (TAAR). With no binding case law and limited guidance from HMRC, this is a highly uncertain area, particularly where individuals resume similar business activities after a winding up. John explains how the TAAR operates, the importance of Conditions C and D, and why securing Business Asset Disposal Relief (BADR) can be far from straightforward. Essential listening for advisers and business owners considering company liquidation.

Send us Fan MailIn this episode of The UK Tax Podcast, John Kavanagh explores a significant recent decision from the Court of Appeal in the case of A Taxpayer v HMRC. The case considers how the Statutory Residence Test (SRT) deals with exceptional circumstances and when a taxpayer can be considered prevented from leaving the UK due to unforeseen personal events.The facts involve a taxpayer who exceeded the permitted days in the UK after stepping in to care for her sister during a serious health crisis. The episode looks at how the First-tier Tribunal, Upper Tribunal, and Court of Appeal each approached the concept of exceptional circumstances, with the Court of Appeal ultimately recognising that compelling moral and family obligations can be just as restrictive as legal or physical barriers. Although John highlights in the podcast the possibility that HMRC might appeal the Court of Appeal's decision to the Supreme Court,he has since learned that HMRC have not lodged an appeal.Whether you are a professional adviser, an internationally mobile individual, or simply interested in how UK tax residence is determined, this episode offers valuable insight into an evolving area of tax law.

Send us Fan MailIn this episode of the UK Tax Podcast, Chartered Tax Adviser John Kavanagh examines the process of incorporating a property portfolio held by a partnership or LLP into a limited company. John explains the potential tax advantages, including Capital Gains Tax and Stamp Duty Land Tax reliefs, as well as the key risks around mortgage debt, novation, and HMRC’s evolving position on incorporation relief. With practical guidance on the necessary steps, documentation, and post-incorporation tax strategies, this episode is essential listening for property investors and their advisers considering incorporation.

Send us Fan MailIn this episode of the UK Tax Podcast, Chartered Tax Adviser John Kavanagh explores the tax implications of divorce settlements, including the Capital Gains Tax consequences of asset transfers, the Stamp Duty Land Tax implications of transfers of equity, and key Inheritance Tax considerations once a marriage or civil partnership ends. With practical insights and clear explanations, John highlights the importance of careful planning to minimise tax liabilities during what is already a challenging process. Whether you’re a professional adviser assisting clients or navigating your own divorce, this episode offers essential guidance on managing the tax aspects of financial settlements.

Send us Fan MailIn this episode of the UK Tax Podcast, Chartered Tax Adviser John Kavanagh discusses the sweeping changes to Inheritance Tax (IHT) announced in the Autumn Budget 2024. From the abolition of domicile as a factor for IHT from April 2025, to the extension of IHT to unused pension funds and the capping of Business and Agricultural Property Relief, these changes represent the most significant overhaul of IHT in decades. John explains what these reforms mean for individuals, families, and businesses, and highlights the importance of reviewing estate plans and taking action ahead of the new rules. Whether you are an adviser helping clients prepare or someone concerned about the future of your own estate, this episode offers essential insights into the evolving IHT landscape.

Send us Fan MailIn this episode of the UK Tax Podcast, Chartered Tax Adviser John Kavanagh takes an in-depth look at Employee Ownership Trusts (EOTs), with a particular focus on the significant changes introduced in the October 2024 Budget. John explains how EOTs work, the tax benefits they can offer, and the compliance challenges that sellers now face, including the extended Capital Gains Tax clawback period and its interaction with Business Asset Disposal Relief, new trustee requirements, and the risks of retaining control after the sale. Whether you advise clients on EOT transactions or are considering selling your own business to an EOT, this episode offers essential insights into the latest rules and practical considerations.