Tax Take
VAT update, August 2016
In this month's edition of our VAT update we report on (1) the Law Society's response to HMRC's consultation on VADRA, (2) HMRC's new brief on TOGCs, and (3) HMRC's new policy paper on "Use and Enjoyment" of insurance repair. We also comment on three recent cases concerning Article 9 of the VAT Directive, repayment of VAT by an individual member of a VAT group, and a "hardship" application.
Read moreSIPP scheme administrator avoids 'pension liberation' tax charge
In a recent case the First-tier Tribunal (FTT) has found that HMRC was wrong to refuse Sippchoice's application for the discharge of liability to scheme sanction charges in circumstances where it was not aware of a pension liberation scheme being operated in respect of the pension scheme's invested funds.
Read moreTaxpayer succeeds on penalties issue in Pendulum scheme
In a recent case the First-tier Tribunal (FTT) has found that a taxpayer was not fraudulent or negligent in the completion of his tax return when relying on the advice of his professional advisors.
Read moreTaxpayer wins appeal against HMRC after receiving contradictory tax demand
In Walkers’ Baggage Transfer Company Ltd v HMRC [2016] UKFTT 0415 (TC), the First-tier Tribunal (FTT) has allowed the taxpayer's appeals and concluded that the appellant had accounted for the PAYE properly due in relation to one of its employees over a three year period.
Read moreTax update, August 2016
In this month's edition we report on (1) HMRC's new guidance on contracting-out for defined benefit pension schemes (2) this years' tax take, (3) a new EU directive aimed at reducing corporate tax avoidance. We also comment on three recent cases concerning the validity of a discovery assessment, the tribunal's hardened approach to compliance with directions, and the validity of a notice of enquiry.
Read moreVAT update, July 2016
In this month’s edition of our VAT update we will report on (1) the EU Council’s variation to the Principal VAT Directive relating to vouchers, (2) HMRC’s update on VAT Notice 708, and (3) a variation in the law on the applicably of VAT to offshore property held by insurers. We also comment on three recent cases concerning the supply of services by a bank, the applicability of VAT to an incomplete transfer of title, and whether VAT is payable on charitable donations.
Read moreTribunal allows taxpayer's appeal as notice of enquiry was invalid
First-tier Tribunal (FTT) determined that HMRC had not given a valid notice of intention to enquire into the taxpayer's return because the purported notice of enquiry referred to tax year ended 6 April 2009, rather than 5 April 2009.
Read moreHigh Court criticises HMRC's conduct finding that it breached taxpayer's legitimate expectation
High Court criticises HMRC's conduct finding that it breached taxpayer's legitimate expectation
Read moreCorporate tax update, second quarter 2016
On 23 June 2016 the UK voted to leave the EU in an historic referendum result. A period of some political, economic and social uncertainty will undoubtedly follow (and we've already had a turbulent few weeks) but as far as corporate tax is concerned there should be no immediate consequences. It remains to be seen what happens to the planned further reduction in corporation tax to 15% as announced by the then-Chancellor George Osborne. Some initial views on the likely corporate tax consequences of Brexit are set out below. It has also been announced that Royal Assent to this year's Finance Bill is not now expected before the Autumn. In the aftermath of the referendum result, it is perhaps easy to forget that some significant changes to the UK corporate tax regime are planned. Whether all of these changes now proceed, at the pace originally intended, will become clear in due course. In this edition we therefore also highlight some of the key tax developments of interest to UK corporates from the second quarter of 2016.
Read moreFailure to comply with direction leads to strike out of taxpayers' appeals
In the recent case of Grindley & Others v HMRC [2016] UKFTT 0834 (TC), the First-tier Tribunal (FTT) has directed that the taxpayers' appeals be struck out for failure to comply with a direction issued by the FTT.
Read moreTribunal finds HMRC was not entitled to issue a discovery assessment
In Anderson v HMRC [2016] UKFTT 335 (TC), the First-tier Tribunal (FTT) allowed the taxpayer's appeal and held that HMRC was not entitled to issue a discovery assessment pursuant to section 29(1) TMA, as the taxpayer had not been careless.
Read moreTax update, July 2016
In this month's edition of our Tax Update we will report on HMRC's (1) revised corporate interest deductibility rules consultation, (2) new company taxation manual, and (3) off-payroll working and IR35 consultation. We also comment on three recent cases concerning 'trading', the applicability of income tax on employment termination payments, and SDLT planning.
Read moreTribunal dismisses taxpayer's appeal as trade not conducted on a commercial basis
In Gray v HMRC [2016] UKFTT 0379 (TC), the First-tier Tribunal (FTT) has held that a taxpayer conducting promotional activities for his musician wife was not entitled to set losses from those activities against profits from his legal business.
Read moreVAT update, June 2016
The result of last week's referendum on the UK's membership of the EU is likely to lead to a prolonged period of uncertainty in many areas of taxation
Read moreTribunal confirms that double charge to tax is contrary to taxpayer's human rights
Read moreTax update
The Finance Bill 2016 contains provisions which will introduce a specific penalty linked to the General Anti-Abuse Rule (GAAR) provisions.
Read moreWould you know what to do if you received a Production Order from HMRC?
Last year HMRC issued over 1,400 production orders. They were issued by HMRC’s Criminal Investigation Directorate, as part of investigations into tax evasion and money laundering.
Read moreTribunal allows taxpayer's appeal following poor customer service by HMRC
In Usher & Perkins, Executors of Terence J Guy (deceased) v HMRC [2016] (TC04849), the First-tier Tribunal (FTT), allowed the executors' appeal against a penalty.
Read moreTribunal considers carelessness test and finds discovery assessments to be invalid
In Bubb v HMRC [2016] UKFTT 0216 (TC), the First-tier Tribunal (FTT) allowed the taxpayer's appeals and concluded that two discovery assessments made by HMRC under section 29, TMA 1970, were not validly made because only part of the tax underpayment resulted from the taxpayer's carelessness.
Read moreTax update
In the 2016 Budget, the Chancellor announced proposed legislation to tackle so-called “disguised remuneration”. HMRC has now published an impact note and draft legislation.
Read moreCorporate tax update
Welcome to the latest edition of our Corporate Tax Update, written by members of RPC’s tax team and published quarterly. In this edition we highlight some of the key tax developments of interest to UK corporates from the first quarter of 2016.
Read moreTribunal finds that deferred shares are ordinary shares for the purposes of entrepreneurs' relief
In Alan Castledine v HMRC [2016] UKFTT 145, the First-tier Tribunal (FTT) dismissed Mr Castledine's appeal and found that deferred shares qualified as ordinary shares for the purposes of entrepreneurs' relief.
Read moreVAT update
On 7 April 2016, the European Commission adopted a Communication on an Action Plan on VAT, which sets out the first steps the Commission intends to take with the aim of creating a single EU VAT area.
Read moreReview letter from HMRC should be read as cancelling discovery assessment
In Easinghall Limited v HMRC [2016] UKUT 105 (TCC), the Upper Tribunal (UT) has confirmed that where an agreement has been reached with HMRC under section 54, Taxes Management Act 1970 (TMA 1970), it cannot commence an enquiry or issue a discovery assessment unless they concern an issue which was not the subject of the agreement.
Read moreTribunal rules HMRC's enquiry invalid
In Revell v HMRC [2016] UKFTT 97, the First-tier Tribunal (FTT) held that a purported enquiry by HMRC into an unsolicited tax return was invalid and allowed the taxpayer's appeal.
Read moreBusinesses need to ensure that they do not unwittingly facilitate tax evasion
The Panamanian law firm Mossack Fonesca and the so called 'Panama Papers' have dominated headlines in recent days.
Read moreTax update
On 1 February 2016, HMRC took the unusual step of publishing draft regulations through the CIOT (rather than its own) website.
Read moreVAT update
Next steps following the change to the reduced rate of VAT for energy saving materials
Read moreSupreme Court considers the Ramsay principle in UBS and DBG Services
In UBS AG v HMRC and DB Group Services (UK) Ltd v HMRC [2016] UKSC 13, two cases which were heard together, the Supreme Court found in favour of HMRC by applying the so-called Ramsay principle[1].
Read moreCourt of Appeal confirms that HMRC must comply with rules and directions issued by the tax tribunals
The following is based on an article first published in Tax Journal on 8 March 2016.
Read moreHigh court grants summary judgment against HMRC in FII Group Litigation claims
In the recent case of Evonik Degussa UK Holdings Ltd & Ors v Revenue And Customs [2016] EWHC 86 (Ch), the High Court granted a number of claimants summary judgment in relation to part of their claims in the Franked Investment Income Group Litigation (FII Group Litigation).
Read moreTribunal quashes HMRC's decision to require security from the taxpayer
In Half Penny Accountants Ltd v HMRC [2016] UKFTT 45 (TC), the First-tier Tribunal (FTT) allowed the taxpayer's appeal and quashed HMRC's decision to require security from the taxpayer.
Read moreDiscovery Assessments and the 'hypothetical officer'
The following is taken from an article originally published in Tax Journal on 26 February 2016.
Read moreHMRC escapes strike out notwithstanding its unreasonable behaviour in failing to comply with directions issued by the Tribunal
In the recent case of PGPH Limited v HMRC [2016] UKFTT 46 (TC), the First-tier Tribunal (FTT) declined to exercise its powers under Rule 8 of the Tribunal Procedure (First-tier Tribunal) (Tax Chamber) Rules 2009 (the Rules), to strike out HMRC's case following HMRC's failure properly to comply with a direction issued by the FTT.
Read moreHigh Court dismisses judicial review challenge to HMRC's decision to restrict the availability of the Liechtenstein disclosure facility
In R (on the application of City Shoes Wholesale Ltd) v Revenue & Customs Commissioners [2016] EWHC 107 (Admin), the High Court rejected an application for judicial review of HMRC's refusal to grant the nine claimants, all of whom had operated employee benefit trusts (EBTs), the full benefits of the Liechtenstein disclosure facility (LDF).
Read moreTribunal grants 'disclosure' application against HMRC
The recent case of Tower Bridge GP Ltd v HMRC [2016] UKFTT 054 (TC) concerned applications by Tower Bridge GP Limited (Tower Bridge) and HMRC to the First-tier Tribunal (FTT) for disclosure of information and documents from each other, pursuant to Rule 5 of the Tribunal Procedure (First-tier Tribunal) (Tax Chamber) Rules 2009 (the Tribunal Rules).
Read moreTribunal allows taxpayer's appeal and confirms he was carrying on a trade on a commercial basis
In Akhtar Ali v HMRC [2016] UKFTT 8 (TC), the First-tier Tribunal (FTT), in allowing the taxpayer's appeal, has provided some helpful guidance on the factors to be taken into consideration when deciding whether activities comprise a trade which is commercial, for the purposes of section 66, Income Tax Act 2007 (ITA).
Read moreTax update
Increased SDLT for second homes and buy-to-let properties to apply to all
Read moreCourt of Appeal confirms validity of third party information notices
In Derrin Brothers Properties Limited & Others v HMRC [2016] EWCA Civ 15, the Court of Appeal has dismissed the Appellants' appeal against the High Court's refusal to quash third party information notices issued by HMRC pursuant to paragraph 2, Schedule 36, Finance Act 2008 (the Notices).
Read moreCorporate tax update
Welcome to the latest edition of our Corporate Tax Update, written by members of RPC’s tax team and published quarterly. In this edition we highlight some of the key tax developments of interest to UK corporates from the final quarter of 2015.
Read moreVAT update
Brief 22/15 – VAT partial exemption changes concerning foreign branches
Read moreHMRC fails to satisfy the Tribunal that residential property purchased for a pension fund was "taxable property"
In J & A Young (Leicester) Limited and Others v HMRC [2015] UKFTT 0638 (TC) TC 04771, the First-tier Tribunal (FTT), has allowed the taxpayers' appeals and held that certain residential property acquired by a self-administered occupational pension scheme was not "taxable property", for the purposes of Schedule 29A, Finance Act 2004 (FA 2004).
Read moreSupreme Court confirms that when making a confiscation order and assessing the amount of benefit obtained by an offender any VAT accounted to HMRC should be ignored
In R v Harvey [2015] UKSC 73, the Supreme Court allowed the appeal of Mr Jack Harvey (the Appellant) against the decision of the Court of Appeal (Criminal Division)
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