Latest by Robert Waterson
Sanctions – 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 moreJurisdiction and the Rule of Law

In R (oao Boulting & Anor) v HMRC [2020] EWHC 2207 (Admin), the High Court refused permission to bring a judicial review claim against HMRC, on the basis that the taxpayer had an 'alternative remedy'.
Read moreFurlough, Act Now to Avoid the Knock

As we leave behind the curious summer of 2020, both HMRC and the SFO are readying themselves for the new term. First order of business: combatting corporate misuse of furlough and Covid-19 bail-out funds. According to official statistics released on 18 September, furloughing of staff in the wholesale and retail sector peaked on 24 April at 1.85 million employees - by 31 July, initial figures show 789,000 retail jobs furloughed– a decrease of more than a half since the peak for the sector. Some furloughed employees in the wholesale and retail sector have been returning to work as lockdown restrictions eased, others have, sadly, faced redundancy. As the furlough scheme winds down to a close next month, some employers may be faced with HMRC insisting that their furlough claims amounted to a misuse of – or even fraud against - the scheme.
Read moreCorporate Tax update - July 2020

Welcome to the latest edition of our Corporate Tax Update, written by members of RPC’s tax team. This month’s update reports on some of the key developments from June 2020. Included in this update are a summary of a decision on the correct tax treatment of bonuses paid to members of an LLP, and an AG’s opinion on the VAT reverse charge position of services supplied for non-economic activity purposes. There’s also an update on HMRC guidance on “exceptional” circumstances in which anticipated losses can be used to claim back overpaid corporation tax. Finally, this update also reports on Covid-19 driven extensions to DAC6 reporting deadlines and to deadlines for notifying VAT options to tax. As ever we hope you, your family and friends are all staying safe.
Read moreCorporate tax update - June 2020

Welcome to the latest edition of our corporate tax update, written by members of RPC’s tax team. This month’s update reports on some of the key developments from May 2020. As well as some further COVID-19 related tax developments, this month’s report also has a bit of a sports theme with summaries of decisions involving an ex-England cricket captain and football referees. As ever we hope you, your family and friends are all staying safe.
Read moreCorporate tax update September 2019

This month’s update reports on the key developments from August 2019. Although this was a relatively quiet month in the corporate tax world, this update includes summaries of an important Upper Tribunal decision on the correct tax treatment of “trail commissions” and a First-tier Tribunal decision on the recovery of pre-incorporation input VAT.
Read moreDraft Finance Bill 2019/20: HMRC’s new insolvency powers

Piercing the corporate veil? Robert Waterson and Constantine Christofi review the draft provisions that will empower HMRC to issue joint liability notices. (This article was originally posted on Tax Journal)
Read moreGraham: taxpayer successfully appeals against APN penalty

In Kevin Graham v HMRC [2018] UKFTT 661 (TC), the First-tier Tribunal (FTT) allowed the taxpayer's appeal against a penalty imposed by HMRC for non-payment of an accelerated payment notice (APN).
Read moreAtherley - qualifying loan write off created an allowable loss

In Douglas Atherley v HMRC [2018] UKFTT 0408 (TC), the First-tier Tribunal (FTT) has found that the taxpayer's partial writing-off of a loan made to a company of which he was the sole shareholder, created an allowable loss under section 253(3), Taxation of Chargeable Gains Act 1992 (TCGA).
Read moreArmstrong: Tribunal cancels late filing penalties

In Armstrong v HMRC [2018] UKFTT 0404 (TC), the First-tier Tribunal (FTT) has cancelled late filing penalties because the taxpayer had not consented to receive penalty notices electronically.
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 second 2018 edition we highlight some of the key tax developments of interest to UK corporates from the second quarter of 2018.
Read moreTager – Court of Appeal allows taxpayers' appeals and reduces penalties for failure to comply with information notices

In Tager & Ors v HMRC [2018] EWCA Civ 1727, in allowing the taxpayers' appeals, the Court of Appeal has provided some general observations on the scope and purpose of HMRC's power to impose tax-related penalties under paragraph 50, Schedule 36, Finance Act 2008 for failures to comply with information notices issued under paragraph 1, Schedule 36, Finance Act 2008.
Read moreBell - The importance of selecting the correct forum when alleging unfairness on the part of HMRC

In J Bell v HMRC [2018] UKFTT 261 (TC), the taxpayer's appeal was struck out by the First-tier Tribunal (FTT), because it does not have jurisdiction to consider issues of public law.
Read moreDundas: out of time capital allowance claims become valid due to HMRC opening enquiries

In Dundas Heritable Limited v HMRC [2018] UKFTT 0244 (TC), the First-tier Tribunal (FTT) has held that a taxpayer was entitled to make, what would otherwise have been out of time capital allowance claims, as a result of HMRC opening enquiries.
Read moreSippchoice Ltd: Taxpayer can claim income tax deduction for contribution in specie to SIPP

In Sippchoice Ltd v HMRC [2018] UKFTT, the First-tier Tribunal (FTT) has held that a taxpayer can obtain tax relief at source in respect of contributions made to s Self-Invested Pension Plan (SIPP) settled in the form of unquoted shares.
Read moreValue Added – New VAT "joint liability" risk for online marketplaces

The flow of goods cross-border has increased significantly as a result of the inexorable rise of the online marketplace. Policing the tax aspect of online businesses has created numerous difficulties for national authorities. In no area is this felt more than VAT, where many online traders (both inside and outside the EU) have opted wittingly or otherwise to evade tax by simply not registering or accounting for VAT in any jurisdiction.
Read moreGoldsmith - late filing penalties cancelled by the Tribunal

In David Goldsmith v HMRC [2018] UKFTT 0005 (TC), the First-tier Tribunal (FTT) has cancelled late filing penalties issued to the taxpayer as the statutory requirements in section 8(1), Taxes Management Act 1970 (TMA), had not been satisfied and HMRC did not have the power to require the taxpayer to deliver self-assessment returns.
Read moreBarclays Wealth Trustees - normal meaning to apply to 'settlement' for IHT purposes

In Barclays Wealth Trustees (Jersey) Ltd and Michael Dreelan v HMRC [2017] EWCA Civ 1512, the Court of Appeal has confirmed that inheritance tax will not apply in circumstances where a transfer between excluded property settlements takes place after a settlor becomes domiciled in the UK.
Read moreMcGreevy – Tribunal describes HMRC's argument as "clap trap" in late filing case

In R McGreevy v HMRC [2017] UKFTT 0690 (TC), the First-tier Tribunal (FTT) allowed a non-resident taxpayer's appeal against a penalty for the late filing of her non-resident CGT (NRCGT) return on the basis that she had a reasonable excuse.
Read moreHickey Plant Hire - Taxpayer successfully challenges HMRC's narrow reading of penalty rules

In M J Hickey Plant Hire and Contracts Ltd v HMRC [2017] UKUT 308 (TCC), the Upper Tribunal (UT) allowed the taxpayer's appeal and in a carefully considered judgment sets out the correct approach to the penalty rules applicable to 'normal' and 'delayed tax' cases, contained in Schedule 24, Finance Act 2007 (FA 2007).
Read moreDerry – HMRC prevented from collecting tax in avoidance case

In R (ota of James Derry) v HMRC [2017] EWCA Civ 435, the Court of Appeal, in allowing the taxpayer's appeal, confirmed that HMRC is not able to ignore a claim for carried back loss relief where the taxpayer has self-assessed and computed his liability to tax.
Read morePitcher - Tribunal finds in favour of taxpayer in APN penalty appeal

In Graham Pitcher [2017] UKFTT 0406 (TC), the First-tier Tribunal (FTT) allowed the taxpayer's appeal against a penalty for non-payment of an Accelerated Payment Notice (APN) due to defects in the APN.
Read moreBudget 2017 Amendments to the QROPS Regime - a Further Breach of EU Law

Back in October 2013, I wrote an article for the Tax Journal (18 October 2013, The QROPS Regime and EU Law) in which I argued that the operation of the qualifying recognised overseas pension scheme (QROPS) system, introduced by Finance 2004, breached EU law and was unlawful. The recent changes introduced by the 2017 Budget not only preserve the inherent unlawfulness which has existed in the system since at least October 2008 but introduces a further breach of EU law rights. The background to the October 2013 article was my involvement in representing individuals who had transferred their UK pensions into a fund called ROSIIP.
Read moreSIPP scheme administrator avoids 'pension liberation' tax charge

In HMRC v Sippchoice Ltd [2017] UKUT 87 (TCC) the Upper Tribunal (UT) has upheld the decision of the First-tier Tribunal (FTT) that Sippchoice should not be subject to scheme sanction charges but said that the FTT's reference to MTIC case law in assessing the evidential burden was incorrect.
Read moreTiming and detail critical in misfeasance claims against HMRC

The claimant taxpayer, who had been wrongly convicted for cheating the public revenue, had his claim of misfeasance in public office against HMRC struck out by the High Court because it was brought too late and he had failed adequately to plead his case.
Read moreTribunal finds for the taxpayer in "income" versus "capital" payment dispute

In James Allan Thornton v HMRC [2016] UKFTT 767 (TC), the First-tier Tribunal (FTT) considered the distinction between income and capital payments in the context of a settlement relating to rental property and held that a settlement payment made to a landlord as compensation for dilapidations to his property was a capital receipt.
Read morePartial success for taxpayer in Dutch-subsidiary quantification judgment following FII

In Six Continents Ltd and Another v HMRC [2016] EWHC 2426 (Ch), the High Court held that the claimants are entitled to a credit at the foreign nominal rate (FNR) of corporation tax in respect of dividends paid from a Dutch subsidiary but are not entitled to a credit in respect of dividends linked to the return of share capital.
Read moreTribunal allows set-off of corporation tax loss against income tax profit

In English Holdings Ltd v HMRC [2016] UKFTT 0346 (TC), the First-tier Tribunal (FTT) allowed an appeal by a non-UK resident company against a decision of HMRC refusing its claim to offset losses arising in its UK permanent establishment (PE) against profits earned by its UK property rental business.
Read moreHarry Potter star loses £1m battle with HMRC

The First-tier Tribunal (FTT) has held that a taxpayer's new accounts did not meet the requirements of section 217, Income Tax (Trading and Other Income) Act 2005 (ITTOIA), for a change in accounting date, as the accounts did not exist when HMRC were notified of the change.
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 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 moreTribunal allows company's appeal and confirms that the four-year time limit does not apply to corporation tax self-assessment returns
In Bloomsbury Verlag GmbH v HMRC [2015] UKFTT 660 (TC),the First-tier Tribunal (Tax and Chancery) (FTT) has held that the four-year time limit does not apply to corporation tax self-assessment returns and that trading losses can be carried forward even though they were not included in a return.
Read moreTribunal finds HMRC's actions unconscionable
In John Clark v HMRC[1], the First-tier Tribunal (FTT) has found that special relief, in terms of paragraph 3A, Schedule 1AB, Taxes Management Act 1970 (paragraph 3A), ought to have been granted to a taxpayer who suffered from serious learning difficulties.
Read moreSearching Requirements when applying for Search Warrants

The Divisional Court (Davis LJ and Hickinbottom J) has confirmed, in [2015] EWHC 1283 (Admin), that state agencies applying for search warrants have a duty to make full disclosure to the court and the court should take an inquisitive approach when considering any such application.
Read moreEntrepreneurs' relief not available for disposal of syndicate capacity by a Lloyd's name
In Carver v HMRC [2015] UKFTT 0168 (TC), the First-tier Tribunal (FTT), has provided helpful guidance on the key requirements of entrepreneurs' relief (ER), under section 169H, Taxation of Chargeable Gains Act 1992 (TCGA).
Read moreTaxpayer not careless in share options case
In Alistair Norman v HMRC1, the First-tier Tribunal ("FTT") found that a taxpayer who wrongly recorded gains made after exercising a share option granted by his employer as capital, rather than income, was not "careless" for the purposes of paragraph 1(1), Schedule 24, Finance Act 2007.
Read moreExcuses, excuses – Tribunal considers 'reasonable excuse' and allows taxpayer appeal
In Barking Brickwork Contractors Limited v HMRC[1], the First-tier Tribunal ("FTT") decided that a taxpayer had a reasonable excuse for late filing and set aside the penalties which had been charged by HMRC pursuant to Schedule 55, Finance Act 2009.
Read moreCourt of Appeal issues guidance on the meaning of "sham" in pension scheme case
In R v Quillan and others [2015] EWCA Crim 538, a complex fraud case, the Court of Appeal, in ruling that there was no case to answer, provided some helpful comments on the requirements of "sham".
Read moreTax avoidance scheme succeeds before the Upper Tribunal
In Tower Radio Limited and another v HMRC[1], the taxpayers successfully utilised a scheme which was designed to take advantage of Part 7 of the Income Tax (Earnings and Pensions) Act 2003 (ITEPA).
Read moreOut of court settlement may lead to adjustment in CGT liability
The Court of Session has found in favour of the taxpayer in Sir Fraser Morrison v HMRC[1] ...
Read moreTribunal orders HMRC to pay taxpayer's costs – Ian Elder v HMRC
The decision of the First-tier Tribunal (Tax Chamber) ('FTT') in Ian Elder v Commissioners for HMRC[1] offers a useful summary of the FTT's approach on the assignment of appeals to the Complex category ...
Read moreTribunal orders HMRC to pay taxpayer's costs – Ian Elder v HMRC
The decision of the First-tier Tribunal (Tax Chamber) ('FTT') in Ian Elder v Commissioners for HMRC[1] offers a useful summary of the FTT's approach on the assignment of appeals to the Complex category, applications to bar a party from participating in proceeding and costs sanctions.
Read moreGMAC's strategy for limiting VAT payments proved lawful in ECJ
The following is taken from an article by Robert Waterson and Nigel Brook, originally published in International Tax Review (12 September 2014).
Read moreTreading uneven boards: VAT claims and setoff – Birmingham Hippodrome Theatre Trust Ltd v HMRC [2014] EWCA Civ 684
The Court of Appeal's decision in this case is likely to create a great deal of uncertainty for taxpayers seeking to recover unlawfully levied VAT from HMRC.
Read moreThe Rangers Case and EBTs
The following was taken from a longer article by Robert Waterson and Adam Craggs originally published in Tax Journal (25 July 2014, pp16-17, www.taxjournal.com).
Read moreAn enquiry is as an enquiry does – HMRC's narrow interpretation of what constitutes an enquiry is rejected by the Upper Tribunal
The recent case of Portland Gas Storage Limited v The Commissioners for HMRC [2014] UKUT 0270 (TCC), considered two important questions: what is an enquiry? and what is a decision?
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