Good morning everyone it's a cloudy day with a little rain this afternoon.
Enjoy your day everyone 
Just had an email from the son of a client I used to have. He was asking for information for capital gains tax purposes on a property which was gifted to him by his parents. I had to reply saying that my father had changed accountants from me to another firm back in January 2010 so the gift happened after the change.
@El Loro posted:Just had an email from the son of a client I used to have. He was asking for information for capital gains tax purposes on a property which was gifted to him by his parents. I had to reply saying that my father had changed accountants from me to another firm back in January 2010 so the gift happened after the change.
I'm sure there is information on a Gov.uk site with info re gifting and capital gains El.
One would think after 11 yrs he would know or at least be able to see from accounts paperwork about the change 
@slimfern posted:I'm sure there is information on a Gov.uk site with info re gifting and capital gains El.
One would think after 11 yrs he would know or at least be able to see from accounts paperwork about the change
There's lots of information on the HMRC site about that. The son is selling a property that his parents had gifted him and the son's accountants need some information about that gift. That's not public information. His parents should have got documentation about that gift from their accountants at the time regarding the capital gains tax, and he and his parents should have got documentation done for the gift of the property via the accountants or solicitors.
As the gift was between parents and son, HMRC regard them as connected and the parents would have to pay capital gains tax as if they had sold it at market value. Although the son was asking what tax was paid, it's actually the market value used at the time that he needs as the effective cost to him for CGT purposes. (It's different for a for a gift from one spouse to the other as that doesn't trigger a capital gain).
@El Loro posted:There's lots of information on the HMRC site about that. The son is selling a property that his parents had gifted him and the son's accountants need some information about that gift. That's not public information. His parents should have got documentation about that gift from their accountants at the time regarding the capital gains tax, and he and his parents should have got documentation done for the gift of the property via the accountants or solicitors.
As the gift was between parents and son, HMRC regard them as connected and the parents would have to pay capital gains tax as if they had sold it at market value. Although the son was asking what tax was paid, it's actually the market value used at the time that he needs as the effective cost to him for CGT purposes. (It's different for a for a gift from one spouse to the other as that doesn't trigger a capital gain).
An unfair tax imo....the property isn't being sold, there is no gain.
@slimfern posted:An unfair tax imo....the property isn't being sold, there is no gain.
There are many instances where tax isn't fair. For instance if I bought a business suit which I only wore when seeing clients and never at other times I cannot get tax relief for that suit.
An ex client of mine was in the small helicopter business. He had a nasty accident where he was hit by the blades and lost his teeth - (very lucky that was all he lost). He had to incur substantial costs on restorative dental work. If he had been self-employed he would not have been able to get tax relief for that cost. As he was working through his own company he was an employee of that company and so the company was able to get tax relief.
@El Loro posted:There are many instances where tax isn't fair. For instance if I bought a business suit which I only wore when seeing clients and never at other times I cannot get tax relief for that suit.
An ex client of mine was in the small helicopter business. He had a nasty accident where he was hit by the blades and lost his teeth - (very lucky that was all he lost). He had to incur substantial costs on restorative dental work. If he had been self-employed he would not have been able to get tax relief for that cost. As he was working through his own company he was an employee of that company and so the company was able to get tax relief.
Crikey! 
he was very lucky indeed 
As you say, lots about the tax system that isn't fair and made all the more complicated with every budget 
@slimfern posted:Crikey!
As you say, lots about the tax system that isn't fair and made all the more complicated with every budget
@Moonie posted:Good afternoon Buddies
Its overcast and a little breezy here. Not to cold though
El, he was lucky to have survived
Enjoy your day everyone
Yes, he was lucky
I used to do it all on ledgers (double entry) so found these electronic versions a doddle. I even made my own semi-electronic version before the commercial versions became available.
I started training to become an accountant before computers became widespread and before there were personal electronic calculators. There was one old fashioned adding machine in the office. One of out clients was a solicitors. Part of our work was to make sure that the total of the solicitor's clients monies held agreed the amount in the solicitor client bank account. That included adding up the lists of client balances. The number of balances to add would be a lot, say a thousand. Those were the days you had to be really good at mental arithmetic.
Some years later that solicitor got a mechanised accounting machine which used cards with magnetic strips down the side. There would be a card used for each of their clients. I was asked to go in to help design cards which acted as control cards so that it would not be necessary to write out all the balances individually and to help the reconciliation process. So a primitive form of creating accounting software, Nothing like Quickbooks though.
Years later I got the partner to get me on a basic computer course run by the firm nationally. The partner thought it a waster of time as computers weren't going to happen 
A year or so later, a client lent the firm a computer and I was the only person there able to use it. Si I trained others to use it. I also wrote a simple program in Basic to do analyses with, So if we wanted to analyse client bankings for instance, my program could be used to list those bankings by type. Nothing remotely sophisticated but it was useful. In due course the larger local office got a more sophisticated program to do that but my program did help in the early days.
I was church treasurer for many years. When I got my own PC I bought a copy of Sage Instant Accounts when that was first released. I used it for the church accounts for one year but found it very cumbersome. So, using Excel Visual Basic I created a simple accounting program which I used to record the transactions up to trial balance stage. I did that back in 1997. There have been a couple of treasurers since I stood down - that Excel accounts program is still used, 24 years later.
My semi-automated version was drawn up on excel. Because I was doing it for over a thousand staff I never found the time to get it fully automated. The fully automated scheme they replaced me with was basically a dolled-up version of what I had come up with myself.
Also, using a not-joined-up database, I was able to produce results similar to what a joined-up database now does as standard!
@El Loro posted:I started training to become an accountant before computers became widespread and before there were personal electronic calculators. There was one old fashioned adding machine in the office. One of out clients was a solicitors. Part of our work was to make sure that the total of the solicitor's clients monies held agreed the amount in the solicitor client bank account. That included adding up the lists of client balances. The number of balances to add would be a lot, say a thousand. Those were the days you had to be really good at mental arithmetic.
Some years later that solicitor got a mechanised accounting machine which used cards with magnetic strips down the side. There would be a card used for each of their clients. I was asked to go in to help design cards which acted as control cards so that it would not be necessary to write out all the balances individually and to help the reconciliation process. So a primitive form of creating accounting software, Nothing like Quickbooks though.
Years later I got the partner to get me on a basic computer course run by the firm nationally. The partner thought it a waster of time as computers weren't going to happen
I was church treasurer for many years. When I got my own PC I bought a copy of Sage Instant Accounts when that was first released. I used it for the church accounts for one year but found it very cumbersome. So, using Excel Visual Basic I created a simple accounting program which I used to record the transactions up to trial balance stage. I did that back in 1997. There have been a couple of treasurers since I stood down - that Excel accounts program is still used, 24 years later.
Hubby found Sage over complicated too. When I had my business he drew up his own accounting system on the computer. HMRC were fine with it ....but then I guess he was a tax officer himself at the time. He started as a collector (in his Dad's demobbing suit) .....went to the inspectors to set up an EOY dept, where he stayed till he retired.
Quickbooks is dead easy to use really....at end of year I handed a copy to the accountant....he did all the hard work 
night EL monsiee slim
Good morning everyone it's very misty this morning with a drizzly day to follow.
Enjoy your day everyone
An original Apple-1 computer has been sold at auction and still works. It was sold in kit form and is unusual as the outer case is made from wood - only 200 were made.
https://www.bbc.co.uk/news/technology-59222749
@El Loro posted:An original Apple-1 computer has been sold at auction and still works. It was sold in kit form and is unusual as the outer case is made from wood - only 200 were made.
https://www.bbc.co.uk/news/technology-59222749
wow EL have never seen one like that-smart for its day
night EL monsieee Slim
Good morning everyone it's a cloudy day with rain this evening.
Enjoy your day everyone
Mentioned on the radio news this morning, another new species of dinosaur found on the Isle of Wight. There's an article about it on BBC's CBBC Newsround page which includes an image of it which looks as if it came from a cartoon
https://www.bbc.co.uk/newsround/59241167
@El Loro posted:Mentioned on the radio news this morning, another new species of dinosaur found on the Isle of Wight. There's an article about it on BBC's CBBC Newsround page which includes an image of it which looks as if it came from a cartoon
https://www.bbc.co.uk/newsround/59241167
Is that for real El?
@Moonie posted:Is that for real El?
It does seem to be for real though the first picture is there because it's on a CBBC page so is for children
It's on various newspaper sites and there's an article on the Natural History Museum website today which isn't aimed at children so doesn't have the first picture,
@El Loro posted:It does seem to be for real though the first picture is there because it's on a CBBC page so is for children
It's on various newspaper sites and there's an article on the Natural History Museum website today which isn't aimed at children so doesn't have the first picture,
Ah, right 
It looks almost horse like to me. The dinosaur that is
@El Loro posted:Mentioned on the radio news this morning, another new species of dinosaur found on the Isle of Wight. There's an article about it on BBC's CBBC Newsround page which includes an image of it which looks as if it came from a cartoon
https://www.bbc.co.uk/newsround/59241167
So it was actually unearthed in 1978, but has only just been recognised as a new species
Ugly looking beastie isn't it
I woke up this morning dreaming that a client who rents out houses had rung me - they had incurred a lost of ÂĢ699,000 in the year and were wanting to know what they could do with that loss
It was a dream. If that really happened it would take the largest landlord client I have over 15 years for their rental profits to cove that loss. There would also be the issues as to how the loss was incurred, to what extent it was allowable for tax and how did they finance such a loss.
@El Loro posted:I woke up this morning dreaming that a client who rents out houses had rung me - they had incurred a lost of ÂĢ699,000 in the year and were wanting to know what they could do with that loss
It was a dream. If that really happened it would take the largest landlord client I have over 15 years for their rental profits to cove that loss. There would also be the issues as to how the loss was incurred, to what extent it was allowable for tax and how did they finance such a loss.
Well first off I would suggest to your client that he change career
What does it mean to dream of someone losing money?
âIf you dream of losing money, it may be a reflection of how you currently feel about your financial situation in daily life. You may be experiencing some financial setbacks right now,â 
@slimfern posted:Well first off I would suggest to your client that he change career
What does it mean to dream of someone losing money?âIf you dream of losing money, it may be a reflection of how you currently feel about your financial situation in daily life. You may be experiencing some financial setbacks right now,â
I think that's where you've had a dream where you have lost the money rather than someone else.
The only way I could lose money in connection with a client is if I have then negligent advice and that it was advice which wasn't covered by my professional indemnity insurance. For instance if I advised the client to burn down his properties - I'm hardly likely to do that