Tax Take
Autumn Statement 2013 – George's Marvellous Medicine?
In the midst of the political point-scoring, last week's Autumn Statement was light on significant new tax announcements.
Read moreA Notice of Requirement and VAT Security
A former TV chef was recently fined £10,000 for his failure to comply with a Notice of Requirement (NOR) to give a VAT security (http://abytx.co/1bDo2U0).
Read moreQuality of occupation is paramount when deciding whether a property is a taxpayer's 'only or main residence' for the purposes of capital gains tax
A recent decision of the First-tier Tribunal (Tax Chamber) ('FTT') provides helpful insight into the way in which the FTT will apply the Capital Gains Tax Private Residence relief provisions contained in sections 222 and 223 of the Taxation of Chargeable Gains Act 1992 ('TCGA').
Read moreThe Tribunal considers its public law jurisdiction in VAT online filing human rights case
The First-tier Tribunal (Tax Chamber) ('FTT') has recently considered various difficult questions in relation to its public law jurisdiction and the relevance of human rights issues to taxation disputes in LH Bishop & Others v HMRC[1].
Read moreTribunal sets aside HMRC's Schedule 36 information notice
The First-tier Tribunal (Tax Chamber) ('FTT') has allowed a taxpayer's appeal against an information notice issued by HMRC pursuant to paragraph 1, Schedule 36, Finance Act 2008.
Read moreTribunal prevents HMRC from 'relitigating' the case in Rosenbaum v HMRC
In Rosenbaum v HMRC[1] the First-tier Tribunal ('FTT') recently considered the circumstances in which it can set aside a decision under Rule 38 of The Tribunal Procedure (First-tier Tribunal) (Tax Chamber) Rules 2009 ('the Tribunal Rules').
Read moreHMRC’s Digital and Tax Agent Strategy
HM Revenue & Customs (HMRC) is developing a new platform of digital services, which will ultimately enable tax agents to ‘self-serve’ and allow individual taxpayers and businesses to conduct all of their transactions online.
Read morePhew! Relief granted notwithstanding non-compliance and delay
In Theverajah v Riordan & Others [2013] the court considered the factors relevant to an application for relief under amended CPR 3.9, which came into force in April 2013.
Read moreBundles of fun!
A decision earlier this year sheds light on the provisions for costs orders which apply in relation to appeals held before the First-Tier Tribunal (Tax Chamber) ('FTT').
Read moreTribunal orders HMRC to pay taxpayers’ costs where HMRC ought to have known that their case did not have a reasonable prospect of success
Following hot on the heels of the Simple Solutions decision, the First-tier Tribunal (Tax Chamber) ('FTT') (Judge Mosedale) has again ordered HMRC to pay the taxpayer's costs in Roden & Anor v HMRC.[1].
Read moreA discovery too far?
Since the Court of Appeal decision in Langham v Veltema[1] the courts and tribunals have considered several challenges by taxpayers to HMRC's power to make discovery assessments after failing to open in time enquiries into self-assessments.
Read moreTaxpayer's appeal allowed as HMRC had not made a discovery determination in time
The recent First-tier Tribunal ('FTT') case of Nijjar Dairies Ltd v HMRC1 dealt with two matters.
Read moreVAT – Failure to Register in time - penalty on director not upheld as no dishonest conduct
The First-Tier Tribunal ('FTT') has upheld an appeal by the director of a company against the imposition of a penalty under sections 60 and 61 of the Value Added Taxes Act ('VATA 1994')1 in the case of Mrs G. Candy v HMRC [2013] UKFTT 146 (TC) 02544.
Read moreHMRC ordered to pay taxpayer's costs following improper allegation of fraud
In the recent case of Simple Solutions GB Limited v HMRC,1 not only was the taxpayer successful in its appeal, it was also awarded its costs following serious and unsubstantiated allegations of fraud made against it by HMRC.
Read moreFATCA – are we nearly there yet?
The International Tax Compliance (United States of America) Regulations 2013 ('Regulations') came into force on 1 September 2013.
Read moreHMRC's appeal is dismissed in the Lloyds Leasing case
The Upper Tribunal ('UT') (Newey J and Judge Howard Nowlan) has upheld a decision of the First–tier Tribunal ('FTT') that 25% writing-down allowances ('WDA') were available to a UK lessor of ships...
Read moreTaxpayer wins appeal notwithstanding mistimed implementation
The First-tier Tribunal ('FTT') has recently ruled in favour of a taxpayer in relation to a consultancy fee purportedly paid to a company which was not at the time incorporated(Maureen Hepburn v HMRC [2013] UKFTT 445 (TC)).
Read moreThird time lucky for HMRC as they finally secure victory in DV3
Having lost before both the First-tier Tribunal ('FTT') and the Upper Tribunal ('UT'),1 HMRC have finally managed to secure victory before the Court of Appeal in HMRC v DV3 RS Limited Partnership [2013] EWCA Civ 907, a case involving stamp duty land tax ('SDLT') planning.
Read moreTax tribunal considers the application of the SDLT anti-avoidance legislation contained in section 75A Finance Act 2003
HMRC have been successful before the First-tier Tribunal ("FTT") in Project Blue Ltd v HMRC [2013] UKFTT 378 (TC), an SDLT case in which the anti-avoidance provisions contained in sections 75A to 75C, Finance Act 2003 fell to be considered. Unless otherwise stated all statutory references below are to Finance Act 2003.
Read moreHMRC suffer humiliating defeat in overseas pension scheme judicial review
In what can only be described as a humiliating capitulation, HMRC have conceded defeat during the course of a hotly contested judicial review hearing in the High Court.
Read moreCowboys and followers: HMRC's latest consultation on tax avoidance
On 12 August 2013 HMRC launched a new consultation document: Raising the stakes on tax avoidance. The consultation is open for a short period, the closing date for comments being 4 October 2013.
Read moreA new approach to corporation tax?
On 31 July 2013 the House of Lords Select Committee on Economic Affairs published its first Report in the 2013-2014 session:
Read moreThe rule of law, tax avoidance and the GAAR
Tax is in the news and making the headlines as seldom before, but the debate is not always as informed as it might be...
Read moreThe new UK GAAR – a journey into the unknown?
The Finance Bill 2013 received Royal Assent on 17 July. We are now in uncharted territory.
Read moreHigh Court confirms accountant's duty to alert client to tax saving opportunity
The recent decision of Mr Justice Silber in Hossein Mehjoo v Harben Barker (A Firm) and Harben Barker Limited[1] has attracted a great deal of publicity in both professional journals and the general press as it considers the important issue of an accountant's duty to his client in the context of tax mitigation opportunities.
Read moreHMRC's approach to statutory interpretation – literally, if convenient!
There is a growing body of recent case law in which HMRC have favoured a literal approach to statutory interpretation, as opposed to the usual purposive approach they adopt when challenging what they consider to be 'aggressive' tax avoidance schemes.
Read moreTaxpayer wins penalty shootout against HMRC
The recent case of CED Limited v HMRC [2013] UKFTT 219 (TC) illustrates the importance of preparing thoroughly for the hearing of a tax appeal – even an apparently straightforward penalty appeal - before the First-tier Tribunal ('FTT').
Read moreWhen should a penalty be suspended?
The First-tier Tribunal ('FTT') has allowed the taxpayer's appeal in Testa v HMRC,[1] against HMRC's refusal to suspend a penalty imposed under paragraph 1, Schedule 24, Finance Act 2007...
Read moreTribunal allows taxpayers' appeals against daily penalties as HMRC had failed to give proper notice
The First-tier Tribunal ('FTT') has allowed the taxpayers' joined appeals in Morgan v HMRC and Donaldson v HMRC1 against daily penalties for late filing of their self-assessment returns, because HMRC had failed to give notice to the taxpayers of the date from which the daily penalties would start to accrue.
Read moreTribunal allows taxpayer's appeal in share options case and criticises HMRC's 'mechanistic' approach to statutory interpretation
The First-tier Tribunal ('FTT') has allowed the taxpayer's appeal in Bennedict Manning v HMRC.[1]
Read moreThe Goldman Sachs settlement – 'not a glorious episode in the history of the Revenue'
I commented, in my blog on 15 May 2013 on the continuing controversy surrounding HMRC's deal with Goldman Sachs, in which a large amount of interest that was properly recoverable from the bank was written off by HMRC.
Read moreInadequate deliberation or a case of mistake?
The so-called rule in Hastings-Bass1, which permits trustees to assert and rely on the errors of themselves or their advisors to undo actions which have unexpected tax consequences...
Read moreTax tribunal criticises HMRC's guidance in Catherine Rawcliffe v HMRC
This case1 is of interest not so much for the underlying legal issue which was determined but rather for the unusually strong criticism from the First-tier Tribunal ('FTT') of HMRC's published guidance on approved company securities option plans.
Read moreGoldman Sachs – the plot thickens!
Readers of our blog will be familiar with the controversy surrounding the now retired Dave Hartnett, former Permanent Secretary for Tax at HMRC (see postings of 19 December 2011 and 21 December 2011).
Read moreTermination payments: don't forget the breakdown
In an encouraging win for taxpayers, the First-tier Tribunal ('FTT') in Johnson v HMRC[1] allowed an appeal relating to a termination payment under a compromise agreement.
Read moreTribunal allows VAT appeal and accepts that letter was sent to HMRC
The First-tier Tribunal ('FTT') has allowed the taxpayer's appeal in Exeter Estates Ltd v HMRC[1] against a decision of HMRC that it had opted to tax all the land and buildings on one of its sites.
Read moreTribunal rejects purposive interpretation and allows taxpayer's appeal
The First-tier Tribunal ('FTT') has held in Fidex Ltd v HMRC,1 that a loan relationship debit should not be disallowed under paragraph 13, Schedule 9, Finance Act 1996 ('Paragraph 13'),2 even though one of the main purposes of entering into the arrangement was tax avoidance.
Read moreSDLT mitigation arrangement fails before the Tax Tribunal
The First-tier Tribunal ('FTT') has dismissed the taxpayer's appeal in Edward Allchin v HMRC.[1]
Read moreTax tribunal finds in favour of trustee
The recent case of The Trustee of the De Britton Settlement v HMRC [2013] UKFTT 106 (TC), illustrates the importance of evidence and proper preparation in tax appeals before the First-tier Tribunal ('FTT').
Read moreEaster thoughts and transfer pricing
Easter is a good time for reflection and balanced thinking and never have these qualities been so necessary as in the contentious area of tax, particularly where multinationals and the large corporates are concerned.
Read moreReliance on misleading information or guidance from HMRC can constitute a 'reasonable excuse'
In recent years, with the difficulties that many taxpayers have experienced in the current economic climate, the issue of 'time to pay' agreements with HMRC has become of greater concern.
Read moreFirst-tier Tribunal considers whether a single supply may be taxed at two VAT rates
When a taxpayer makes a supply of goods or services, it is not always clear cut whether there is more than one supply, or a single composite supply for VAT purposes.
Read moreECJ ruling in Grattan plc v Revenue and Customs Commissioners [2012] All ER (D) 246 (Dec)
The Court of Justice of the European ('ECJ') has recently confirmed the opinion of the Advocate General in Grattan Plc v HMRC.
Read moreTribunal finds for the taxpayer and concludes that a trade was being carried on
In the recent case of Albermale 4 LLP v HMRC,1 the First-tier Tribunal ('FTT') was called upon to consider the difficult question of the meaning of 'trade' for the purpose of section 262 Income Tax (Trading and Other Income) Act 2005 ('ITTOIA 2005').
Read moreLate expectations – taxpayers succeed in their application to appeal out of time
The 30 day time limit, contained in section 31A Taxes Management Act 1970 ('TMA 1970'), for giving notice of appeal against an amendment of a self-assessment contained in a closure notice is well known to tax practitioners
Read moreThe Prudential decision – implications for taxpayers
The Supreme Court has refused to extend legal advice privilege ('LAP') to legal advice given by professionals who are not lawyers.
Read moreTaxpayer misled by HMRC amidst settlement confusion
It is normally very clear to both parties when a tax dispute has been settled by way of agreement, but this is not always the case, especially when the 'agreement' was based on a misunderstanding.
Read moreCrown Prosecution Service announces major expansion of prosecutions for tax fraud
As announced in the national press this week (see e.g. the Financial Times Monday 21 January 2013) the Crown Prosecution Service ('CPS') has announced that it will increase five-fold the number of tax cases that it considers for criminal prosecution.
Read moreVictory for the taxpayers in the Charlton case as the UT confirms that HMRC's discovery assessments were unlawful
The eagerly awaited decision of the Upper Tribunal ('UT') in HMRC v Charlton, Corfield & another [2012] UK FTT 770, has now been delivered.
Read moreFact stranger than fiction - taxpayer succeeds in challenging finding of fact before the Upper Tribunal
The Upper Tribunal (Arnold J) has allowed the taxpayer's appeal in Joseph Okolo v HMRC [2012] UKUT 416 (TCC).
Read more