Latest by Harry Smith
V@ update - June 2022
Welcome to the June 2022 edition of RPC's V@, an update which provides analysis and news from the VAT world relevant to your business.
Read moreHMRC misses penalty
HMRC penalty for EBT use successfully appealed as no deliberate or careless conduct leading to inaccuracy in tax return
Read moreEntrepreneurs' relief applied to disposal of business premises
Entrepreneurs' relief (now Business Asset Disposal Relief) applies to disposal of premises as part of long-term sale of business
Read moreJTC - Escrow agreement set aside on basis of mistake
Rescission granted of pension arrangements with tax impact due to incorrect advice for temporary UK non-resident moving to UAE.
Read moreGB Fleet Hire - Upper Tribunal allows appeal against First-tier Tribunal strike out decision
In a rare move, the Upper Tribunal overturned the decision of the First-tier Tribunal to strike out an appeal on the grounds that the tribunal's decision was irrational.
Read moreHMRC issues 'nudge' letters to recipients of foreign investment income
HMRC is targeting taxpayers who received foreign investment income in 2019/20, and who, HMRC believes, claimed foreign tax credit relief incorrectly, or at the wrong rates. HMRC has issued 'nudge' letters to taxpayers encouraging them to reconsider their tax position.
Read moreGC Field & Sons Ltd – SDLT discovery assessments held to be invalid
Discovery underlying discovery assessment for SDLT planning valid despite change of underlying reasoning, but taxpayer not negligent so appeal upheld.
Read moreHMRC issues 'nudge' letters to non-doms for suspected unpaid tax
HMRC is targeting wealthy UK tax residents claiming a non-UK domicile who may not have paid the remittance basis charge. HMRC has issued hundreds of 'nudge' letters to taxpayers encouraging them to reconsider their tax position.
Read moreKSM Henryk Zeman - Tribunal can consider 'legitimate expectation' arguments in VAT appeal
Taxpayer can bring legitimate expectation/judicial review arguments in appeal against HMRC decision on VAT in First-tier Tribunal – a new step in tax litigation.
Read moreHaworth - Supreme Court upholds decision to quash follower notice
Follower Notice judicial review upheld by Supreme Court even in tax avoidance context; restrictive requirements imposed for issue of follower notices.
Read moreTax Bites - August 2021
Welcome to the latest edition of RPC's Tax Bites - providing monthly bite-sized updates from the tax world.
Read moreWalewski - Mixed partnership rules mean profit can be reallocated for whole period of account
Corporate member tax planning ineffective as profits allocated to partner in partnership for period during which it was a partner under mixed partnership rules.
Read moreAozora - Unilateral credit for US withholding tax allowed even where no treaty relief available
US UK double tax treaty and associated UK legislation interpreted to give unilateral credit for withholding tax suffered on interest income.
Read moreComtek – Counteraction steps taken after Follower Notice deadline can reduce penalty
Follower notice penalty for SDLT scheme follower notice reinstated but reduced by Upper Tribunal, and guidance given as to meaning of 'counteraction' in APN / accelerated payment notice context.
Read moreBalhousie - sale and leaseback does not constitute disposal of 'entire interest' in property
In Balhousie Holdings Ltd v HMRC [2021] UKSC 11, the Supreme Court allowed the taxpayer’s appeal, holding that a sale and leaseback was not a disposal of the taxpayer’s ‘entire interest’ in a care home and accordingly HMRC was not entitled to claw back the benefit of the VAT zero-rating that had applied when the taxpayer acquired the home.
Read moreTax Bites - April 2021
Welcome to the latest edition of RPC's Tax Bites - providing monthly bite-sized updates from the tax world.
Read moreBall Europe - Accounting entry not included in tax return sufficient to preclude discovery assessment
In Ball Europe Ltd v HMRC [2021] UKFTT 23 (TC), the First-tier Tribunal (FTT) has held that the presence of amounts in a taxpayer's accounts but not its tax return was sufficient for a 'hypothetical officer' of HMRC reasonably to be expected to be aware of a tax insufficiency and this prevented HMRC from issuing a valid discovery assessment
Read moreTax Bites - March 2021
Welcome to the latest edition of RPC's Tax Bites - providing monthly bite-sized updates from the tax world.
Read moreSSE Generation – Taxpayer's capital allowances victory marred by procedural issue
In HMRC v SSE Generation Ltd [2021] EWCA Civ 105, the Court of Appeal (CA) upheld the Upper Tribunal's (UT) decision that expenditure on parts of a hydroelectric power scheme was eligible for capital allowances, save for one element in respect of which the taxpayer had failed to seek permission to appeal part of the First-tier Tribunal's (FTT) decision.
Read moreSanctions – A New World?
The new UK sanctions regime (SAMLA) replaces EU sanctions in the UK, and sits alongside UN sanctions and US sanctions as a factor for businesses to consider in planning their anti-corruption and compliance matters. In particular it can impose trade sanctions, travel sanctions and financial sanctions, with tough financial penalties for non-compliance.
Read moreTax Bites - February 2021
Welcome to the latest edition of RPC's Tax Bites - providing monthly bite-sized updates from the tax world.
Read moreRialas: UT dismisses HMRC's appeal in transfer of assets abroad case
Taxpayer succeeds in defending HMRC appeal against transfer of assets abroad / TOAA regime application; anti-avoidance measures did not apply, held the Upper Tribunal.
Read moreEurochoice: Company and its director held jointly and severally liable for HMRC's costs
In Eurochoice Ltd v HMRC [2020] UKFTT 449 (TC), the First-tier Tribunal (FTT) has held that a company and its director are jointly and severally liable for HMRC's costs in circumstances where only the company was party to the appeal proceedings.
Read moreTax Bites - December 2020
Welcome to the latest edition of RPC's Tax Bites - providing monthly bite-sized updates from the tax world.
Read moreOsborne: Tribunal takes a dive into allowable expenditure
In Robert John Osborne v HMRC [2020] UKFTT 373 (TC), the First-tier Tribunal (FTT) held that expenditure on fitness training was allowed because it was wholly and exclusively incurred for the purpose of the taxpayer's occupation as a saturation diver.
Read moreHMRC issues nudge letters targeting residence and domicile
In an extension of its 'nudge' letters campaign, HMRC is writing to wealthy taxpayers encouraging them to bring their tax affairs into line.
Read moreTax Bites - November 2020
Welcome to the latest edition of RPC's Tax Bites - providing monthly bite-sized updates from the tax world.
Read moreKickabout Productions - HMRC wins IR35 re-match
In Kickabout Productions Ltd [2020] UKUT 216 (TCC), the Upper Tribunal (UT) has allowed HMRC's appeal and confirmed that the relationship between a radio station and one of its sports presenters fell within the IR35 regime.
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