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Roundup of ASA guidance on advertising responsibly in relation to COVID-19

Published on 31 Jul 2020.

Retailers seeking to reference the Covid-19 pandemic in their advertising should be aware of the Advertising Standards Authority’s (ASA) recent guidance and robust enforcement activity in this area.

Return of the MAC (clauses) and practical steps for the retail world

Published on 31 Jul 2020.

The Covid-19 crisis is putting Material Adverse Change (or material adverse effect) (MAC) clauses back in the spotlight, none more so than in the world of retail.

Force majeure in a retail context in light of COVID-19

Published on 31 Jul 2020.

In general commercial contracts, force majeure clauses can often be overlooked as standard ‘boilerplate’ with little negotiation between the parties. Covid-19 and the disruption caused to businesses has highlighted how important these clauses can be for all types of commercial agreements and we anticipate that there will be significant focus on force majeure wording going forwards.

Consumers return to retail. The retail story in China…where are things now?

Published on 31 Jul 2020.

Globally, the retail sector has been heavily impacted by Covid-19. As the epicentre for the outbreak of the virus in January 2020. China is now one of the first economies showing signs of recovery, and retailers are looking to understand the pattern there, in order to help predict how retail will recover (and how long it will take to do so) following enforced store closures and restrictions on people’s daily lives.

Livestream shopping: making platform partnerships a success

Published on 31 Jul 2020.

Livestream shopping is a live shopping event – think QVC - hosted by a brand on its own, or a third party website/mobile app. Usually, a celebrity, social media influencer or brand worker demonstrates a product and answers questions from a digital audience in real-time. Viewers are able to immediately purchase the item from an embedded link online. Just like presenters on QVC, livestreaming hosts sell a wide range of products, from apparel and cosmetics to electronics and even cars. In China, live streaming is a wildly popular way to shop, with the market worth an estimated US$63bn to its economy in 2019. (but the technology is starting to catch on in the US and UK too). The first major livestream shopping player emerged in China in 2016 when Alibaba first launched Taobao Live. Since then, platforms like Tmall, Douyin or Xiaohongshu have become key Chinese e-commerce sites and saw a big spike in demand during lockdown as shoppers were forced to shop from home

Retail returns in light of COVID-19

Published on 31 Jul 2020.

Many retail businesses have reopened/are preparing to reopen as the Covid-19 lockdown eases. Whilst retailers hope that sales will surge as consumers rush to the shops that they have been unable to visit since March, some fear that a large percentage of transactions will be returns of goods purchased pre-lockdown.

Stores in focus; reopenings, safety and single use (plastic) setback

Published on 31 Jul 2020.

With stores reopened, retailers face an unprecedented operational challenge in delivering the retail experience.

Furlough fraud and Government clawback: managing the risk

Published on 31 Jul 2020.

HMRC has the right to go back up to five years when considering businesses’ (including retailers’) records relating to the Coronavirus Job Retention Scheme (the “furlough scheme”) and will be able to clawback funds which have been claimed in error, or fraudulently, under new powers contained in the Finance Bill 2020, which is expected to become law in the latter half of 2020.

Furlough forecast: What kind of employment law claims are on the horizon?

Published on 31 Jul 2020.

As retail workforces continue to be re-organised, what kind of employment claims could be brought by employees in the coming months, in light of the Coronavirus Job Retention Scheme (or furlough scheme) and what can you do in anticipation?

Temporary COVID-19 measures in respect of AGMs and other general meetings

Published on 31 Jul 2020.

The Corporate Insolvency and Governance Act 2020 (CIGA), which came into force on 26 June 2020, provides temporary measures which enable companies to comply with their legal requirements on holding annual general meetings (AGMs) and other meetings whilst still respecting social distancing legislation and guidance.

UK Government introduces “suspension” of wrongful trading provisions

Published on 31 Jul 2020.

In March 2020, Business Secretary Alok Sharma announced that provisions on wrongful trading would be suspended. The move came as part of a wider package of measures that sought to provide assistance to businesses – and their beleaguered boards – experiencing financial distress due to Covid-19. Now set out in the Corporate Insolvency and Governance Act 2020 (CIGA), which was passed on 26 June 2020, the provisions adapt the wrongful trading regime making directors’ liability for the “relevant period” unlikely.

Corporate Insolvency and Governance Act – Supplier Terms

Published on 31 Jul 2020.

On 26 June 2020 the Corporate Insolvency and Governance Act (CIGA) came into force. The CIGA has made both permanent and short-term changes to the insolvency regime in response to the coronavirus pandemic and its consequences.

The ASA bites back – Burger King 'Rebel Whopper' ads ruled to be misleading and in breach of advertising rules

Published on 07 May 2020. By Ben Mark, Partner

At the start of the year, Veganuary hit the headlines, with the British public challenged to ditch animal by-products in favour of a plant-based diet for the month of January.

The ASA bites back – Burger King 'Rebel Whopper' ads ruled to be misleading and in breach of advertising rules

Published on 07 May 2020. By Ben Mark, Partner

At the start of the year, Veganuary hit the headlines, with the British public challenged to ditch animal by-products in favour of a plant-based diet for the month of January.

Give retailers a break, lawyers tell creditors

Published on 16 Apr 2020.

Lawyers have called for a break on winding-up petitions against retailers as they fail to pay creditors due to the outbreak. So far, retailers have been hit with 52 winding-up petitions since the beginning of the year, with the numbers accelerating since the coronavirus outbreak took hold, according to lawyers at RPC.

Could I mitigate my losses by using my premises for other purposes?

Published on 14 Apr 2020.

With the inevitable impact of the coronavirus on retail businesses, many will be looking to mitigate their losses. One obvious way of doing this would be to use their premises, often their single largest overhead, for other uses. But is this possible and what must you consider?

COVID-19: The groceries sector - temporary competition law exemption comes into force

Published on 03 Apr 2020. By Melanie Musgrave, Of Counsel

In light of "exceptional and compelling reasons of public policy" arising from the Covid-19 pandemic, the Secretary of State (the "SoS") has announced temporary competition law arrangements in the groceries sector.

Changing retail landscape leads to decline in employee numbers

Published on 21 Nov 2019. By Kelly Thomson, Partner, ESG strategy lead

The retail sector continues to face change and challenge from every conceivable angle and employment within the sector is following this trend.

Fixing Fast Fashion: Parliament aims to put the brakes on retailers

Published on 10 Apr 2019. By Jeremy Drew, Partner, Head of Commercial

'Fast fashion' has been providing inexpensive, up to date styles to the mass market for decades, keeping the consumer both on trend, and in the black. However, as society becomes increasingly aware of the environmental and social impact of the retail sector, Parliament has thrown a spotlight upon the sustainability of 'fast fashion' and the modern retailing practices which underpin it.

Tribunal confirms no tax due on disposal of property held on trust for taxpayer's brother

Published on 18 Jul 2024. By Keziah Mastin, Associate

In Raveendran v HMRC [2024] UKFTT 273 (TC), the First-tier Tribunal allowed the taxpayer's appeal against HMRC's discovery assessment in relation to the disposal of a property because it was held on trust for his brother.

Tribunal confirms loans from remuneration trust were disguised remuneration

Published on 11 Jul 2024. By Liam McKay, Senior Associate

In allowing HMRC's appeal in part, the Upper Tribunal determined that payments received under a remuneration trust scheme were caught by the anti-avoidance provisions in Part 7A of the Income Tax (Earnings and Pensions) Act 2003.

Dealing with HMRC information notices

Published on 04 Jul 2024. By Adam Craggs, Partner and Daniel Williams, Associate

Considering three common types of HMRC information notices and the extent to which they can be challenged.

Tribunal awards taxpayer his costs due to HMRC's unreasonable conduct

Published on 20 Jun 2024. By Jasprit Singh, Senior Associate

In Aftab Ahmed v HMRC [2024] UKFTT 00236 (TC), the First-tier Tribunal granted the taxpayer's application for costs as HMRC had acted unreasonably in defending the appeal.

Tribunal allows entrepreneurs' relief appeal

Published on 13 Jun 2024. By Keziah Mastin, Associate

In Cooke v HMRC [2024] UKFTT 272 (TC), the FTT allowed the taxpayer's appeal against HMRC's refusal of entrepreneurs' relief

What happens in an HMRC criminal investigation

Published on 06 Jun 2024. By Adam Craggs, Partner and Michelle Sloane, Partner

Tribunal dismisses HMRC's appeal and confirms transactions did not give rise to a taxable remittance

Published on 30 May 2024. By Liam McKay, Senior Associate

In dismissing HMRC's appeal, the Upper Tribunal confirmed that transactions entered into by the taxpayers for the sale of shares did not amount to a taxable remittance under section 809L of the Income Tax Act 2007 because no service was provided in the UK.

Key features of the new non-UK domicile regime

Published on 29 May 2024. By Michelle Sloane, Partner and Jasprit Singh, Senior Associate

The UK government's unexpected announcement in Spring Budget in March on the taxation of non-domicile individuals has sparked concerns and much comment. It represents a major change to the current system of taxation, which is more than 200 years old.

Taxpayers' application for  protective costs order against HMRC refused

Published on 20 May 2024. By Alexis Armitage, Senior Associate

UT dismisses taxpayer's application for a protective costs order against HMRC.

Contentious Tax Update

Published on 16 May 2024. By Harry Smith, Senior Associate and Adam Craggs, Partner

Harry Smith and Adam Craggs examine developments in relation to DOTAS, R&D enquiries, and the Economic Crime and Transparency Act.

Tribunal allows taxpayer's appeal in R&D case against penalty assessment for careless inaccuracy

Published on 03 May 2024. By Jasprit Singh, Senior Associate

In H & H Contract Scaffolding Ltd v HMRC [2024] UKFTT 00151 (TC), the First-tier Tribunal (FTT) allowed the taxpayer's appeal against a penalty assessment as the inaccuracy in the tax return was not careless.

Contentious tax quarterly: Spring review

Published on 01 May 2024. By Adam Craggs, Partner and Harry Smith, Senior Associate

The last few months have seen a flurry of activity in relation to the DOTAS regime, with HMRC seeking to register arrangements retrospectively and apply substantial penalties for failure to register. Woes continue for those unfortunate enough to have R&D claims under enquiry, and the Economic Crime and Corporate Transparency Act 2023 gives HMRC a significant new tool in relation to suspected criminal activity by bodies corporate and partnerships.

Costly objection by HMRC

Published on 15 Apr 2024. By Harry Smith, Senior Associate

FTT allows costs application where HMRC acted unreasonably in opposing specific disclosure application.

Let us in!

Published on 20 Jun 2023. By Adam Craggs, Partner and Michelle Sloane, Partner

Adam Craggs and Michelle Sloane explain what a business should do should HMRC come calling unexpectedly.

Are you ready for the Economic Crime Levy?

Published on 14 Mar 2023. By Adam Craggs, Partner and Michelle Sloane, Partner

On 28 February 2023, HM Treasury published draft regulations, together with an explanatory memorandum, that revise and make further provision for assessment, payment, collection, and enforcement of the Economic Crime Levy (ECL).

Couldn’t careless? Reasonable care and the role of professional advisers

Published on 27 Feb 2023. By Adam Craggs, Partner

Whilst taking professional advice will usually mean a taxpayer has taken reasonable care, not taking advice does not necessarily mean a taxpayer has been careless.

Victory – but at what cost?

Published on 31 Jan 2023. By Adam Craggs, Partner and Harry Smith, Senior Associate

From a review of recent costs decisions handed down by the FTT, it is difficult to escape the conclusion that the FTT can be guilty of inconsistency and results-led reasoning when exercising its jurisdiction in relation to costs orders.

Tribunal allows taxpayer's appeal and confirms its holding in another company constituted a "structural asset"

Published on 02 Nov 2022.

Tribunal allows taxpayer's appeal and confirms its holding in another insurance company constituted a "structural asset" for the purpose of section 137, Finance Act 2012.

Upper Tribunal agrees with the taxpayer on payments to secure changes to pension arrangements

Published on 26 Oct 2022. By Keziah Mastin, Associate

The Upper Tribunal allowed E.ON's appeal against HMRC's decisions imposing income tax and national insurance contributions to facilitation payments for changes to pension arrangements.

Lack of documentary evidence no bar to proving capital loss claim

Published on 19 Oct 2022. By Liam McKay, Senior Associate

Allowing the taxpayers' appeal, the First-tier Tribunal held the Appellant was entitled to claim a capital loss from an earlier tax year to reduce the capital gains tax due on a gain realised by him on the sale of a commercial property because the claim was notified in time, and that inaccuracies in the Appellant's return had not been brought about deliberately.

HMRC's Ramsay argument fails

Published on 12 Oct 2022. By Harry Smith, Senior Associate

HMRC loses capital allowances case as Ramsay argument fails.

Tribunal considers salaried member rules for the first-time and allows taxpayer's appeal in part

Published on 05 Oct 2022. By Alexis Armitage, Senior Associate

Tribunal considers salaried members rules for the first-time allowing taxpayer's appeal in part

New powers proposed to enable law enforcement agencies to seize crypto assets

Published on 28 Sep 2022. By Adam Craggs, Partner

On 22 September, the UK government introduced The Economic Crime Bill. The Bill contains provisions to make it quicker and easier for law enforcement agencies, such as the National Crime Agency, to seize, freeze and recover cryptoassets used by criminals to launder the proceeds of crime.

Valuing leasehold interests in trade-related properties using profits method does not involve disaggregation of property value and "transferable goodwill"

Published on 28 Sep 2022.

Valuing leasehold interests in trade-related properties using profits method does not involve disaggregation of property value and "transferable goodwill".

Repeal of IR35 reforms

Published on 27 Sep 2022. By Kelly Thomson, Partner, ESG strategy lead

The Chancellor announced at last week's “mini-Budget” that the recent changes to the “off-payroll” working rules (commonly referred to as 'IR35') are going to be reversed, from 6 April 2023.

Purpose-based rules: Have we hit BlackRock-bottom?

Published on 21 Sep 2022.

In HMRC v BlackRock Holdco 5 LLC [2022] UKUT 199 (TCC), the Upper Tribunal (UT) allowed HMRC’s appeal, holding that the First-tier Tribunal (FTT) was wrong to interpose certain terms (covenants) in loans when conducting its analysis of the counter-factual transaction as between the taxpayer and an unconnected third-party. It held that the FTT was wrong to attribute all of the loan debits arising to the taxpayer's commercial main purpose and should instead have arrived at the opposite conclusion.

HMRC made to cry a river over SEIS defeat

Published on 14 Sep 2022. By Harry Smith, Senior Associate

FTT holds in favour of taxpayer in technical SEIS / EIS relief decision.

Tribunal upholds HMRC notice transferring debt from managed service company to its former director

Published on 07 Sep 2022. By Alexis Armitage, Senior Associate

Tribunal upholds HMRC notice transferring a debt from a managed service company to its former director.

Taxpayer successful in application for permission to rely on expert evidence

Published on 31 Aug 2022.

Taxpayer successful in application for permission to rely upon expert evidence.

All settled!

Published on 24 Aug 2022. By Harry Smith, Senior Associate

Loan relationship appeal allowed as credit relating to settlement of litigation due to mis-selling of swaps did not arise from related transaction.

Permission to appeal not required for successful party to a tax appeal

Published on 17 Aug 2022. By Keziah Mastin, Associate

In dismissing the taxpayer's objection, the Upper Tribunal decided that HMRC, who had won before the First-tier Tribunal need not apply for permission to appeal in order to raise two new arguments in response to the taxpayer's appeal to the Upper Tribunal.