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Rialas – Transfer of assets abroad provisions did not apply
In Rialas v HMRC [2019] UKFTT 520, the First-tier Tribunal (FTT) has found that the transfer of assets abroad (TOAA) provisions, originally contained in section 739 et seq, Income and Corporation Taxes Act 1988 (ICTA) did not apply.
Read moreHealth and safety update September 2019
Welcome to our September 2019 health and safety update where we look at the health and safety stories that have recently hit the headlines as well as the latest fines and sentences that have been handed down.
Read moreSubjective expectation versus objective intention; when will a term be implied into a contract?
The High Court has implied a term into a contract for the sale of Peruvian Government Global Depository Notes (GDNs) by Lehman Brothers International (Europe), in order to make the contract workable.
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 moreVAT update September 2019
In this month’s update we report on (1) changes to the reduced rate for energy-saving materials; (2) the VAT rule changes for higher education; and (3) new regulations amending the rules on when VAT adjustments may be made following a change to the price of goods and services. We also comment on three recent cases relating to (1) the refusal of a claim for the repayment of under-recovered input VAT; (2) the repayment of input VAT charged on the acquisition of single farm payment entitlement units; and (3) a notice of security issued with no explanation for the demand.
Read moreQuentin Skinner – shares sold by trust eligible for entrepreneurs' relief
In The Quentin Skinner 2008 Settlement L and others v HMRC [2019] UKFTT 516 (TC), the First-tier Tribunal (FTT) has held that for a trust to qualify for entrepreneurs' relief (ER) on a disposal of shares, it was not necessary for the trust's beneficiary to have had an interest in possession in the shares for the period prescribed in section 169J(4), Taxation of Chargeable Gains Act 1992 (TCGA).
Read moreCopyright in designs: G-Stars in their Eyes
The CJEU has ruled on the requirements for copyright to vest in designs and applied art.
Read moreVisa? Credit card? No - buy now pay later please!
As online customers make their way to checkout, a growing number of retail brands are offering them the "Buy Now and Pay Later (BNPL)" option along with the classic, Visa and Credit Card and PayPal payment options.
Read moreContentious tax: quarterly review (Q3 2019)
In this quarterly review, Adam Craggs and Michelle Sloane consider HMRC’s increasing propensity to seek the production of documents from accountants and other professional advisers, HMRC’s new policy of challenging taxpayers’ loan relationships, and the increase in the number of domicile enquiries launched by HMRC.
Read moreTinkler - Notice of enquiry invalid
In Tinkler v HMRC [2019] EWCA Civ 1392, the Court of Appeal has allowed the taxpayer's appeal and held that HMRC's notice of enquiry under section 9A, Taxes Management Act 1970 (TMA), was invalid.
Read moreCourt orders mediation
The High Court has upheld a tiered dispute resolution clause in accordance with established principles of contractual interpretation. The court ordered a stay of proceedings for mediation, and in support of the mediation also ordered pleadings to be served in advance in order to optimise the prospects of a settlement.
Read moreArbitration or winding up?
In But Ka Chon v Interactive Brokers LLC [2019] HKCA 873, the Hong Kong Court of Appeal upheld a lower court's decision to reject an application to set aside a statutory demand. The appellant had argued (among other things) that an arbitration clause in his agreement with the respondent required their dispute to be referred to arbitration.
Read moreFootball, the beautiful investment game?
Another football season is upon us and we dream of silverware to be won. However, planning for the next transfer window begins almost immediately for those clubs listed on a stock market. There are opportunities to increase their share price through new signings, managers and sponsorship deals.
Read moreEmerging Risks: Equity release products increasing, despite concerns over lack of understanding
Equity release products are becoming an increasingly popular option to home owners looking to release cash, especially with the over 65 population. However despite the increase in use and the encouragement of these products from the Equity Release Council, advisers need to tread with caution to ensure customers are aware of the potential pitfalls.
Read moreMergers and Aquisitions update August 2019
当法律事務所の紛争解決部門の同僚が、最近のある判例につい-C興味深い考察を記し-Cいる https://www.rpc.co.uk/perspectives/commercial-disputes/clarity-clarity-clarity-more-contract-drafting-lessons-from-the-court/。これを読むと、不要になった契約を打ち切る方法を常に考え-Cおくことの重要性があらため-C分かる。
Read moreHigh Court waits for no lawyer
An appeal was recently lost after an application for an oral hearing was made just two days late. Evans v Pinsent Mason LLP [2019] EWHC 2150 (QB) This decision is a timely reminder of the strictness of court deadlines and of the importance of being upfront with the court (and your opponent) which, on this occasion, was unwilling to forgive ambiguity as to whether the deadline had been met.
Read moreSmart & Son - Supreme Court confirms VAT incurred on funds raised for business purpose was recoverable
In HMRC v Frank A Smart & Son [2019] UKSC 39, the Supreme Court has held that a farming company was entitled to repayment of input VAT charged on its acquisition of single farm payment entitlement units which were related to its overall economic activities and future taxable supplies.
Read moreHong Kong insurance regulation update - Regulator Codes of Conduct for Brokers and Agents
With effect from 23 September 2019, the independent Hong Kong Insurance Authority (the IA) will take over regulation of insurance intermediaries from the three existing self-regulatory organisations (the Hong Kong Confederation of Insurance Brokers, the Professional Insurance Brokers Association, and Insurance Agents Registration Board) and administer a new statutory licensing regime.
Read moreNatasha's law - legislation requiring ingredients labelling on all pre-packaged foods presented in Parliament
On Thursday 5th September, 'Natasha's Law' was presented in Parliament. This is new legislation which mandates full ingredients labelling on all pre-packaged food.
Read moreSpotlight on private wealth - September 2019
Our quarterly update is designed to keep you up to speed with developments in disputes, and how you can avoid them, in the private client world.
Read moreTax update - September 2019
In this month’s update we report on (1) HMRC’s consultation on draft regulations implementing the requirement to disclose certain cross-border arrangements; (2) the Financial Secretary to the Treasury’s statement to Parliament on HMRC powers; and (3) the government’s response to the Joint Committee’s recommendations on the Draft Registration of Overseas Entities Bill.
Read moreUsing was/now price reductions
A recent ASA decision against Zestify Media has confirmed that a “WAS” price must represent a genuine saving when compared with a “NOW” price. This means checking that sales were actually made at the higher price during the relevant period and ensuring you don't advertise the lower price for materially longer than the higher price.
Read moreLevy – Tribunal rejects application for final and partial closure notices
In The Executors of Mrs R W Levy v HMRC [2019] UKFTT 418 (TC), the First-tier Tribunal (FTT), has held that HMRC was not in a position to issue either a final or partial closure notice.
Read moreEnter the avatar - is this medicine's new "reality"?
A brief look at the use of virtual and augmented reality technology in medical treatment, and some of the legal issues that could arise
Read moreNotice givers take care – ignore the contract at your peril
The Court of Appeal has confirmed in Stobart Group Ltd & Anor v William Stobart & Anor [1] that an objective test will be applied when assessing whether a unilateral contractual notice has been validly given. This decision also provides a cautionary reminder of the consequences of a party's failure to comply strictly with contractual notice provisions. [1] [2019] EWCA Civ 1376
Read moreProduct liability update August 2019
A round-up of some of the recent product liability stories making the news.
Read moreAuto-renewals and other consumer terms under the spotlight
The CMA has launched an investigation into potentially unfair terms in online gaming customer terms and conditions, such as auto-renewals, cancellation processes and discretion to alter clauses.
Read moreCorporate tax update August 2019
Welcome to the latest edition of our Corporate Tax Update, written by members of RPC’s tax team. This month’s update reports on the key developments from July 2019 and includes a summary of the key business tax measures coming out of the publication of the draft Finance Bill 2020 legislation. There is also commentary on the draft regulations and consultation document published by HMRC on the UK’s implementation of DAC6 (mandatory disclosure of cross-border tax planning arrangements).
Read moreCustoms and excise quarterly update: August 2019
In this update we report on (1) revised guidance on the Customs Special Procedures for the Union Customs Code; (2) the consultation HMRC has opened into proposed changes to the rules for red diesel used in private pleasure crafts; and (3) the government’s programme to replace EU international agreements with bilateral agreements ready for the UK’s exit from the EU. We also comment on three recent cases relating to (1) whether HMRC has the power to permit temporary trading pending the determination of an appeal to the First-tier Tribunal; (2) excise wrongdoing penalties raised out of time; and (3) an appeal against an assessment for unpaid excise duty.
Read moreHigh Court rejects Part VII transfer - Prudential and Rothesay Life
High Court rejects Part VII transfer in Prudential and Rothesay Life case which had been approved by the regulators and blessed by the independent expert.
Read moreFCA introduces 18-month grace period for two-factor authentication for online transactions
The Financial Conduct Authority this week agreed an 18-month "implementation plan" for Strong Customer Authentication (also known as "two-factor authentication").
Read moreSharpen your blue pencil: the doctrine of severance in employment cases
In Tillman v Egon Zehnder Ltd [2019] UKSC 32, one such business asked the Supreme Court to reconsider the law and to change it to be fit for modern day purposes. In its landmark judgment handed down in July, the Supreme Court has done so. The core facts of the case are not unusual. Egon Zehnder (EZ) is a global specialist executive search and recruitment business. EZ recruited Mary-Caroline Tillman in 2004. As the High Court judge observed, the company regarded Ms Tillman as “a bit special”. She was recruited into a senior role on a salary of £120,000 and first year bonus of £100,000 and then rose steadily through the ranks of the organisation. By 2012, Ms Tillman was joint global head of the company’s financial services practice and a shareholder in the Swiss holding company.
Read moreClarity, clarity, clarity; more contract drafting lessons from the court
Keep under review options for terminating contracts which are no longer needed or pay the price. We discuss an interesting approach from the High Court to the well-known principles of contractual interpretation in Macquarie Capital v Nordsee. [2019] EWHC 1655 (Comm)
Read moreAbridged Advice and Workplace Pension Schemes - digging deeper into the FCA's Latest Pension Transfer Consultation Paper
Now that the dust has settled on the FCA's latest Consultation Paper on Pension Transfers (CP19/25), is there more to the regulator's proposals than first met the eye?
Read moreAbridged Advice and Workplace Pension Schemes - digging deeper into the FCA's Latest Pension Transfer Consultation Paper
Now that the dust has settled on the FCA's latest Consultation Paper on Pension Transfers (CP19/25), is there more to the regulator's proposals than first met the eye?
Read moreThe Senior Managers and Certification regime: The Final Countdown
With only a few months to go until the Senior Managers and Certification Regime (SMCR) is extended to apply to all sole-regulated firms, the FCA has released further near-final rules and produced a report on its findings as to how firms in the banking sector have embedded the regime since March 2016.
Read moreLidl held to mislead consumers with cheesy price comparison
When looking at Lidl's price comparison ad, which compared a number of prices of products with Morrisons, the Advertising Standards Authority found that if a retailer knows their competitor is offering a price promotion on a product, it can’t use the competitor’s normal higher price to make the comparison. This applies even if the backdrop to a savings claim is a year-long price comparison.
Read moreeFootball transfers: Juve and Man U snub FIFA to sign for PES
The RPC Sports group round-up football eSports deals: Juventus and Manchester United sign eSports partnerships with Pro Evolution Soccer, whilst Liverpool FC partners with FIFA.
Read moreGeneral liability newsletter - August 2019
The latest general liability news coming out of the courts.
Read moreANO - pre-ordained transactions avoided CGT losses being caught by pre-entry loss rules
In ANO (No1) Limited v HMRC [2019] UKFTT 406 (TC), the First-tier Tribunal (FTT) has held that a pre-ordained series of transactions implemented to avoid the application of Schedule 7A, Taxation of Chargeable Gains Act 1992 (TCGA) to pre-entry losses were effective.
Read moreInverclyde – Enquiry into LLP returns invalid as opened under incorrect statutory provisions
In Inverclyde and another v HMRC [2019] UKFTT 0408 (TC), the First-tier Tribunal (FTT) has held that enquiries opened, and closure notices issued, to limited liability partnerships (LLPs) were invalid as HMRC should have enquired into the LLPs returns under paragraph 24, Schedule 18, Finance Act 1998 (FA 1998) and not section 12AC, Taxes Management Act 1970 (TMA).
Read moreAn innocent party is entitled to damages, even though performance of the contract is impossible
The Court of Appeal considered the proper interpretation of exceptions or force majeure clauses and provided guidance on the correct application of the compensatory principle of damages in Classic Maritime v Limbungan. Classic Maritime Inc v Limbungan Makmur SDN BHD & Anor [2019] EWCA Civ 1102
Read moreTax update - August 2019
In this month’s update we report on (1) HMRC’s summary of responses to its ‘protecting your taxes in insolvency’ consultation; (2) HMRC’s policy paper on the misuse of company insolvencies; and (3) HMRC’s new guidance on loan relationships and derivatives regime anti-avoidance rules.
Read moreCourt of Appeal guidance on liability of financial advice networks for appointed representatives
In what circumstances is a financial advice network liable for the acts and omissions of its appointed representatives (ARs)? The Court of Appeal has today provided valuable guidance for those operating this business model. The decision will be welcomed by financial advice networks in confirming, in particular, that they are able to place restrictions on the business of ARs for which they have accepted responsibility.
Read moreCorrado – Tribunal cancels follower notice penalties
In Giulio Corrado v HMRC [2019] UKFTT 275 (TC), the First-tier Tribunal (FTT) has set aside a follower notice penalty as the taxpayer's failure to take corrective action in response to a follower notice was reasonable in all the circumstances.
Read moreWarshaw – preference shares equal to ordinary share capital and taxpayer entitled to entrepreneurs' relief
In Steven Warshaw v HMRC [2019] UKFTT 268 (TCC), the First-tier Tribunal (FTT) has confirmed that as the relevant preference shares did not attract a fixed dividend, they could amount to ordinary share capital for the purpose of entrepreneur's relief (ER).
Read moreWhat next for the Energy Performance of Retail Buildings?
After the initial success of the Energy Performance of Buildings Directive (EPBD) and the widespread introduction of the Energy Performance Certificate (EPC) into property transactions, what can we expect from the proposed revisions of the EPBD?
Read moreDevelopment Securities – Jersey-incorporated SPVs held not to be UK tax resident
In Development Securities plc and others v HMRC [2019] UKUT 0169 (TCC), the Upper Tribunal (UT) has held that a number of Jersey-incorporated companies were in fact resident for tax purposes in Jersey. This decision overturned the decision of the First-tier Tribunal (FTT), which had held that the companies were UK tax resident as a result of the central management and control (CMC) of the companies being exercised in the UK (through the companies’ parent). The UT took the view that the FTT had incorrectly concluded that the Jersey company directors had abdicated their decision-making responsibility.
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