A TUSSLE over the tax status of a £10m Sir Joshua Reynolds masterpiece has reached the Royal Courts of Justice.
The taxman wants capital gains tax charged on the £9.4m hammer price of ‘Omai’, a portrait of Pacific Islanders that had sat on the walls of Castle Howard in North Yorkshire and was sold by Simon Howard.
The picture, which was part of the estate of George Howard, has seen his executors battling HM Revenue & Customs through the tax tribunals, reports the Yorkshire Post.
The executors argue that the painting should be treated as “plant”, in terms of being used to run the house. Its value would have been written off after a period of time – and to illustrate the point the lack of the picture made no difference to visitor numbers. As such, it would avoid the CGT levy.
Lord Howard Leigh of Hurley discusses the government’s initiatives to mitigate tax avoidance and evasion
Top 50+50: Demand for tax advisory services remains high, but fee pressure is expected in relation to compliance services
The demand for tax advisory services remains high and this looks to continue; but fee pressure is expected in relation to compliance services as the “Making Tax Digital” initiative is rolled out,
While some resistance to change is to be expected, the degree of controversy surrounding HMRC's Making Tax Digital proposals has surprised the government
Kevin Reed discusses the worrying findings from HMRC on micro-businesses' problems handling Real-Time Information, and the latest thoughts on how accountants can provide value-added services