People sitting in cafeteria.

Tax Take

Publication

Tax update

Published on 06 June 2018. By Adam Craggs, Partner

Abstract building

In this month’s update we report on Guidance from HMRC on identifying who is an “enabler” of tax avoidance; a consultation on “off-payroll” working by contractors; and HMRC’s update to its International Exchange of Information Manual to reflect amendments to the list of reportable jurisdictions for Common Reporting Standards.

Read more
Blog

Investec: payments to acquire partnership interests were trading in nature

Published on 06 June 2018. By Adam Craggs, Partner and Constantine Christofi, Associate

Gray tint 3

In HMRC v Investec Asset Finance Plc and Another [2018] UKUT 0069 (TCC), the Upper Tribunal (UT) has held that payments made to acquire partnership interests are deductible in calculating the profits of the partners’ solo trades of dealing in those partnership interests.

Read more
Publication

VAT update

30 May 2018

Green tint 3

In this month’s update we report on HMRC’s cooperation agreement, intended to tackle online VAT fraud; HMRC’s recently published Guidance on online marketplace seller checks; and the government’s pilot for Making Tax Digital for VAT.

Read more
Blog

Patel: Enquiry and closure notices held to be invalid

Published on 25 May 2018. By Adam Craggs, Partner and Constantine Christofi, Associate

Green tint 3

In Patel & Anor v HMRC [2018] UKFTT 0185 (TC), the First-tier Tribunal ('FTT'), in finding in favour of the taxpayers at a preliminary hearing, has held that HMRC had not opened valid enquiries into the taxpayers' self-assessment returns, as the returns had not been made pursuant to a notice issued by HMRC under section 8(1) Taxes Management Act 1970 ('TMA').

Read more
Blog

Customs and excise quarterly update

Published on 23 May 2018. By Adam Craggs, Partner

Gray tint 4

In this update we report on the government’s consultation on Gaming Duty Accounting Periods; the Licensing of Tobacco Manufacturing Machinery; and the European Commission’s consultation on amendments to guarantees. We also comment on three recent cases involving customs classification; excise duty drawback; and excise duty liability on persons with no actual or constructive knowledge of unpaid duty.

Read more
Publication

Wealth and trusts quarterly digest

Published on 23 May 2018. By Adam Craggs, Partner

Purple tint 3

Welcome to our latest Wealth and Trusts digest. Our quarterly digest is specifically tailored for you and aims to provide up to date commentary, analysis and guidance on key sector developments. It is written by our wealth and trusts teams to assist you and your clients in responding to market trends and legal developments. We would welcome the opportunity to discuss any issues you may have and always welcome feedback on the content of our publications.

Read more
Blog

Tooth – discovery assessment invalid as no inaccuracy in return

Published on 21 May 2018. By Nicole Kostic, Senior Associate

Green tint 4

In HMRC v Tooth [2018] UKUT 38, the Upper Tribunal (UT) has concluded that a discovery assessment issued by HMRC was invalid as the taxpayer's self-assessment did not contain an inaccuracy and in any event there was no deliberate intent by the taxpayer to bring about an insufficiency of tax.

Read more
Blog

MDCM Ltd - Tribunal confirms that IR35 does not apply in employment status case

Published on 14 May 2018. By Alexis Armitage, Associate

Gray tint 1

In MDCM Ltd v HMRC [2018] TC 6400, the First-tier Tribunal (FTT) has allowed the taxpayer's appeal, concluding that its contractual arrangements were such that its principal employee was not an employee of the ultimate contracting company, for the purposes of IR35.

Read more
Blog

Sippchoice Ltd: Taxpayer can claim income tax deduction for contribution in specie to SIPP

Published on 04 May 2018. By Robert Waterson, Legal Director

Purple tint

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 more
Publication

Tax update May 2018

01 May 2018

Purple tint 3

In this month’s update we report on HMRC’s recently published guidance relating DOTAS for inheritance tax, its guidance for the GAAR and a new consultation relating to tax avoidance involving Profit Fragmentation.

Read more
Publication

Corporate tax update

Published on 01 May 2018. By Ben Roberts, Senior Associate

Purple tint 3

Welcome to the latest edition of our Corporate Tax Update, written by members of RPC’s tax team and published quarterly.

Read more
Blog

Onillon – Failure to take Follower Notice 'corrective action' reasonable in all the circumstances

Published on 27 April 2018. By Michelle Sloane, Senior Associate

Abstract building

In Onillon v HMRC [2018] UKFTT 33 (TC), the First-tier Tribunal (FTT) allowed the taxpayer's appeal against a penalty imposed for failing to take corrective action following the issue of a Follower Notice (FN) as it was reasonable in all the circumstances for the taxpayer not to take such action.

Read more
Publication

VAT update April 2018

Published on 24 April 2018. By Adam Craggs, Partner

Untinted 2

In this month’s update we report on the publication of the draft agreement on the UK’s withdrawal from the EU; the Government’s “split payment” collection model for online sales by non-UK sellers; and HMRC’s revised guidance on the cost sharing exemption.

Read more
Blog

Hargreaves: Loyalty pays

Published on 13 April 2018. By Constantine Christofi, Associate

Purple tint 1

In Hargreaves Lansdown Asset Management LTD v HMRC [2018] UKFTT 127 (TC) TC06383, the First-tier Tribunal (FTT) has found that loyalty bonus payments paid to investors were not "annual payments" for the purpose of section 683, ITTOIA.

Read more
Blog

Volkswagen: CJEU provides guidance on the time limit for input VAT recovery

Published on 11 April 2018. By Nicole Kostic, Senior Associate

Purple tint

In Volkswagen AG v Finančné riaditeľstvo Slovenskej republiky C-533/16, the Court of Justice of the European Union (CJEU) has held that Member States cannot impose a time limit on input tax recovery that denies claims before the taxable person is in a position to exercise its right to recover.

Read more
Blog

Jackson : HMRC penalised in penalties case

Published on 04 April 2018. By Adam Craggs, Partner

Gray tint 1

In Jackson v HMRC [2018] UKFTT 0064 (TC), the First-tier Tribunal (FTT) has held that HMRC had misapplied the law in respect of penalties it had issued to the taxpayer for filing late returns.

Read more
Publication

Tax update April 2018

03 April 2018

Green tint

In this month’s update we report on HMRC’s new Code of Practice 8 guidance, the OECD’s consultation on misuse of residence and citizenship schemes to circumvent the common reporting standard.

Read more
Blog

Hicks: Discover the limits

Published on 28 March 2018. By Constantine Christofi, Associate

Abstract building

In J Hicks v HMRC [2018] UKFTT 22, the First-tier Tribunal (FTT), in allowing the taxpayer's appeal, has held that discovery assessments issued by HMRC were invalid as the condition contained in section 29(5), TMA 1970, was not satisfied.

Read more
Publication

VAT update March 2018

26 March 2018

Green tint 1

In this month’s update we report on HMRC’s informal VAT grouping consultation; HMRC’s update on its project to digitise the VAT Retail Export Scheme and HMRC’s new guidance for Fast Parcel Operators.

Read more
Blog

Taylor Wimpey – Upper Tribunal clarifies the application of the 'builder's block' scheme

Published on 20 March 2018. By Michelle Sloane, Senior Associate

Purple tint 5

In Taylor Wimpey Plc v HMRC [2018] UKUT 55, the Upper Tribunal (UT) has allowed in part the taxpayer's appeal in relation to its claim to recover input VAT incurred on the provision of certain white goods, kitchen appliances and carpets installed in newly built houses.

Read more
Blog

Towers Watson – Tribunal confirms HMRC cannot raise new matters not covered in a closure notice

Published on 13 March 2018. By Alexis Armitage, Associate

Untinted 3

In Towers Watson Limited v HMRC [2017] TC06241, the First-tier Tribunal (FTT) has held that HMRC cannot raise new matters which were not covered in the closure notice which it had issued to the appellant company.

Read more
Blog

Goldsmith - late filing penalties cancelled by the Tribunal

Published on 05 March 2018. By Robert Waterson, Legal Director

Green tint 1

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 more
Blog

Rowe and Vital Nut – Court of Appeal delivers its judgments in APN judicial review challenge

Published on 02 March 2018. By Adam Craggs, Partner

Abstract building

In Rowe and Vital Nut, the Court of Appeal has dismissed the claimant taxpayers' appeals in judicial review proceedings challenging the legality of Accelerated Payment Notices (APNs) and Partner Payment Notices (PPNs).

Read more
Publication

Tax update March 2018

27 February 2018

Gray tint 3

In this month’s update we report on HMRC’s recently published guidance on the Serial Tax Avoidance Regime, venture capital schemes and non-domicile reforms.

Read more
Publication

Wealth and trusts quarterly digest

22 February 2018

Untinted 3

Welcome to our latest wealth and trusts digest. Our quarterly digest provides up to date commentary and analysis on key sector developments. It is written by our wealth and trusts teams to assist you and your clients in responding to market trends and legal developments. We would welcome the opportunity to discuss any issues you may have and always welcome feedback on the content of our publications.

Read more
Publication

VAT update - February 2018

21 February 2018

Gray tint 3

In this month’s update we report on the EU Commission’s proposals to reduce VAT compliance costs for small businesses, guidance published by HMRC following the Supreme Court’s decision in InvestmentTrust Companies and the latest consultation to implement “making tax digital” for VAT.

Read more
Blog

Stadion - CJEU confirms circumstances where different elements of a supply can be taxed at different rates

Published on 16 February 2018. By Nicole Kostic, Senior Associate

Untinted 4

In Stadion Amsterdam CV v Staatssecretaris van Financiën C-463/16, the Court of Justice of the European Union (CJEU) has confirmed that, in the absence of specific statutory language to the contrary, a single supply, which includes two individually priced elements, is taxable at the rate of the principle supply.

Read more
Blog

Bilta: litigation privilege attaches to documents created during internal investigation into VAT claim

Published on 16 February 2018. By Adam Craggs, Partner

Abstract building

In Bilta (UK) Ltd (in liquidation) and ors v Royal Bank of Scotland Plc and another [2017] EWHC 2525 (Ch), the High Court has held that documents prepared by the Royal Bank of Scotland Plc (RBS) in the course of an investigation into allegations made by HMRC were protected by litigation privilege.

Read more
Publication

Corporate tax update

15 February 2018

Purple tint

Welcome to the latest edition of our Corporate Tax Update, written by members of RPC’s tax team and published quarterly. In this final 2017 edition we highlight some of the key tax developments of interest to UK corporates from the fourth quarter of 2017.

Read more
Publication

Customs and excise quarterly update, February 2018

Published on 13 February 2018. By Adam Craggs, Partner

Green tint 2

Welcome to the February edition of our customs and excise quarterly update.

Read more
Blog

Cannon: Tax barrister not careless in relying on advice received from his accountant

Published on 07 February 2018. By Constantine Christofi, Associate

Untinted 3

In Cannon v HMRC [2017] UKFTT 859 (TC), the First-tier Tribunal has held that a tax barrister was not careless in relying on tax advice received from an accountant retained to give professional advice on specified issues.

Read more
Blog

English Holdings - UT allows set-off of corporation tax loss against general income

Published on 05 February 2018. By Michelle Sloane, Senior Associate

Untinted 4

In English Holdings Ltd v HMRC [2016] UKFTT 0346 (TC), the Upper Tribunal (UT) upheld a decision of the First-tier Tribunal (FTT) which 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 more
Publication

Tax update - February 2018

01 February 2018

Untinted 5

In this month’s update we report on HMRC’s recently published guidance relating to penalties for enablers of defeated abusive tax arrangements; the publication by the EU of a list of non-cooperative jurisdictions in tax matters; and the outcome of HMRC’s consultation on reporting obligations for offshore structures.

Read more
Blog

Beneficial House – Tribunal orders HMRC to issue closure notices in tax avoidance case

Published on 31 January 2018. By Alexis Armitage, Associate

Abstract building

Beneficial House; Stanley Dock; Chancery (UK) LLP, Valhalla Private Client Services LLP; Business Premises Renovation Allowance; BPRA; Disclosure of Tax Avoidance Scheme rules; DOTAS; Tax on restoration of hotel; HMRC closure notices; closure notices; Tribunal orders HMRC to issue closure notices; application for a closure notice; section 28 TMA..

Read more
Publication

VAT Update - January 2018

23 January 2018

Purple tint 3

In this month’s update we report on the VAT treatment of pension fund management services for insurers; the establishment of the EU cross-border prosecution service; and guidance published by HMRC following the Supreme Court’s decision in Littlewoods.

Read more
Blog

Cooke: Tribunal allows taxpayer's discovery assessment appeal

Published on 18 January 2018. By Constantine Christofi, Associate

Untinted 3

In Cooke v HMRC [2017] UKFTT 844 (TC), the First-tier Tribunal (FTT) has allowed an appeal against a discovery assessment issued by HMRC pursuant to section 29, Taxes Management Act 1970 (TMA). The FTT found that the 'hypothetical officer' could have been reasonably expected to be aware that certain claims in the taxpayer's return were excessive.

Read more
Blog

Upper Tribunal refuses permission for judicial review of HMRC's policy on prior misapplication of law

Published on 12 January 2018. By Nicole Kostic, Senior Associate

Abstract building

In The Queen (on the application of R Clarke and others) v HMRC [2017] UKUT 379, the Upper Tribunal (UT) refused an application for permission to judicially review HMRC's decision not to compensate the taxpayer beyond the scope of its published policy contained in Business Brief 28/04.

Read more
Blog

Penalties for non-payment of APN can be avoided where it is reasonable to consider an APN unlawful

Published on 20 December 2017. By Constantine Christofi, Associate

Purple tint 2

In Chapman v HMRC, the First-tier Tribunal (FTT) has confirmed that a reasonable belief that an accelerated payment notice (APN) is unlawful can constitute a reasonable excuse for non-payment.

Read more
Blog

Spurs 2 : 0 HMRC – payment on early termination of fixed term contract not taxable as earnings

Published on 20 December 2017. By Michelle Sloane, Senior Associate

Gray tint 1

In Tottenham Hotspur Ltd v HMRC [2017] UKUT 453 (TCC), the Upper Tribunal (UT) has confirmed the decision of the First-tier Tribunal that payments made by an employer in respect of two football players on early termination of their fixed term contracts were not earnings. They were termination payments and, therefore, were outside the scope of national insurance contributions (NICs).

Read more
Blog

United Biscuits: High Court rejects claims for refunds of overpaid VAT

Published on 18 December 2017. By Nicole Kostic, Senior Associate

Untinted 5

In United Biscuits (Pension Trustees) Ltd and another v HMRC [2017] EWHC 2895 (Ch), the High Court held that pension fund management services by non-insurers are standard rated and dismissed the claimant's claim to recover VAT on investment management services for pensions.

Read more
Blog

Barclays Wealth Trustees - normal meaning to apply to 'settlement' for IHT purposes

Published on 11 December 2017. By Robert Waterson, Legal Director

Gray tint 5

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 more
Publication

Tax update December 2017

06 December 2017

Green tint 1

In this month’s update we report on HMRC’s increased activity in respect of the so-called Panama Papers; HMRC’s new guidance in relation to “enablers” of defeated tax avoidance schemes; new settlement terms concerning disguised remuneration; and HMRC’s updated Litigation and Settlement Strategy

Read more
Blog

Jiminez: High Court quashes information notices issued to non-UK resident taxpayer

Published on 05 December 2017. By Adam Craggs, Partner and Constantine Christofi, Associate

Abstract building

In Jimenez v (1) HMRC & (2) The First Tier Tax Tribunal [2017] EWHC 2585 (Admin), the High Court has quashed an information notice given by HMRC to a non-UK resident taxpayer.

Read more
Publication

VAT update November 2017

29 November 2017

Purple tint 5

In this month’s update we report on the Office of Tax Simplification’s first report on VAT, the draft regulations concerning the fulfilment house due diligence scheme, and HMRC’s revised guidance on input tax deduction for funded occupational pension schemes.

Read more
Blog

Bekoe: Tribunal cancels discovery assessments and penalties issued to taxpayer

Published on 27 November 2017. By Constantine Christofi, Associate

Purple tint

In Edwin Bekoe v HMRC [2017] UKFTT 772, the First-tier Tribunal (FTT) has held that the taxpayer was not liable to assessments and penalties where he had demonstrated that deposits paid into his brother's bank account were loans and not undeclared taxable trading income and HMRC's reliance on the "assumption of continuity" principle had been misplaced.

Read more
Publication

Customs and excise quarterly update, November 2017

21 November 2017

Green tint 3

In this update we report on the Government’s White Paper setting out its approach to the UK’s future customs, VAT and excise regimes; the Trade Bill 2017-2019; and the implementation of the Fulfillment House Due Diligence Scheme.

Read more
Blog

Benham – Upper Tribunal dismisses HMRC's appeal regarding the correct treatment of a purported amendment of a return relating to a failed rollover claim

Published on 20 November 2017. By Alexis Armitage, Associate

Untinted 2

In Benham (Specialist Cars) Limited v HMRC [2017] UKFT 389 (TCC), the Upper Tribunal (UT) dismissed HMRC's appeal upholding the decision of the First-tier Tribunal (FTT) that section 153A(4), Taxation of Chargeable Gains Act 1992 (TCGA), does not provide a freestanding right for HMRC to make or amend an assessment in order to bring a rolled-over gain back into charge following the lapse of a declaration of intention to claim roll-over relief made under section 153A(1), TCGA.

Read more
Publication

Wealth and trusts quarterly digest November 2017

17 November 2017

Untinted 3

Welcome to our latest Wealth and trusts digest. Our quarterly digest provides up to date commentary and analysis on key sector developments. It is written by members of our wealth and trusts team to assist you and your clients in responding to market trends and legal developments. We would welcome the opportunity to discuss any issues you may have and always welcome feedback on the content of our publications.

Read more
Blog

The Barty Party – HMRC's information notice was invalid

Published on 09 November 2017. By Nicole Kostic, Senior Associate

Purple tint 2

In The Barty Party Company Limited v HMRC [2017] UKFTT 697, the First-tier Tribunal (FTT) allowed the taxpayer's appeal against an information notice which HMRC had issued pursuant to Schedule 36, Finance Act 2008, on the basis that the information notice was invalid.

Read more
Blog

NCL Investments - Tribunal allows deductions against trading profits in EBT case

Published on 06 November 2017. By Michelle Sloane, Senior Associate

Green tint

In NCL Investments Limited and another v HMRC [2017] UKFTT 495, the First-tier Tribunal (FTT) held that accounting debits relating to the grant of share options to employees were a deductible expense for corporation tax purposes.

Read more