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Tax take

Blog

Embiricos: HMRC cannot issue a partial closure notice without specifying the amount of tax due

Published on 17 February 2021. By Constantine Christofi, Senior Associate

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In HMRC v Embiricos [2020] UKUT 370 (TCC), the Upper Tribunal (UT),in allowing HMRC's appeal, has held that HMRC cannot issue a partial closure notice without specifying how much tax is due.

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Blog

Warshaw – Cumulative preference shares constituted ordinary share capital and qualified for entrepreneurs' relief

Published on 10 February 2021. By Alexis Armitage, Associate

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In HMRC v Stephen Warshaw [2020] UKUT 366 (TCC), the Upper Tribunal (UT) has upheld the First-tier Tribunal's (FTT) decision that cumulative preference shares with rights to compound accrued but unpaid dividends constituted "ordinary share capital" for the purposes of section 989, Income Tax Act 2007 (ITA) and therefore qualified for entrepreneurs' relief (ER).

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Podcast

Taxing Matters: Sanctions in a post-Brexit landscape

08 February 2021

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From the 1st January 2021 the new UK sanctions framework officially came into force under the Sanctions and Anti-Money Laundering Act 2018 (SAMLA).

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Publication

Tax Bites - February 2021

Published on 04 February 2021. By Adam Craggs, Partner and Harry Smith, Senior Associate

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Welcome to the latest edition of RPC's Tax Bites - providing monthly bite-sized updates from the tax world.

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Blog

Rialas: UT dismisses HMRC's appeal in transfer of assets abroad case

Published on 03 February 2021. By Harry Smith, Senior Associate

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Taxpayer succeeds in defending HMRC appeal against transfer of assets abroad / TOAA regime application; anti-avoidance measures did not apply, held the Upper Tribunal.

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Publication

V@ update - January 2021

Published on 28 January 2021. By Adam Craggs, Partner and Rebekka Sandwell, Associate

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Welcome to the January 2021 edition of RPC's V@, an update on developments in the VAT world that may impact your business.

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Blog

Development Securities – Court of Appeal considers company tax residence

Published on 27 January 2021. By Rebekka Sandwell, Associate

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In HMRC v Development Securities PLC and Others [2020] EWCA Civ 1705, the Court of Appeal (CoA) has allowed HMRC's appeal against a decision of the Upper Tribunal (UT) and confirmed that certain Jersey based companies were resident in the UK, rather than in Jersey.

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Podcast

What "winning on a technicality" really means in disputes with HMRC and why technical points are very important

25 January 2021

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In the latest episode of the Taxing Matters podcast, Harry Smith gives a crash course in procedural arguments in the context of a dispute with HMRC.

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Blog

Project Blue (No 2): HMRC must refund overpaid SDLT

Published on 20 January 2021. By Constantine Christofi, Senior Associate

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In Project Blue Ltd v HMRC [2020] UKFTT 475 (TC), the First-tier Tribunal (FTT) held that the taxpayer was entitled to repayment of SDLT, as part of the consideration for the property in question was contingent, within the meaning of section 51, Finance Act 2003 (FA 2003) and was never paid.

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Publication

Corporate Tax Update - January 2021

18 January 2021

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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 December 2020. Included in this update are summaries of an unexpected twist in the DAC6 saga, a call for evidence on VAT and the ‘sharing economy’, and the Court of Appeal decision in the Development Securities case. As ever we hope you, your family and friends are all staying safe.

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Podcast

The new corporate criminal offence of failure to prevent tax evasion

11 January 2021

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In this episode, we are joined by Sam Dean, who spearheads HMRC's campaign to raise awareness of the corporate criminal offence of failure to prevent tax evasion.

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Blog

London Clubs Management - non-negotiable chips and promotional vouchers not part of casino's "banker's profits" for the purpose of calculating gaming duty

Published on 11 January 2021. By Alexis Armitage, Associate

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In HMRC v London Clubs Management Ltd [2020] UKSC 49, the Supreme Court held that where casinos provide gamblers with non-negotiable chips and/or promotional vouchers (Non-negs) which could be used for gaming but not encashed or exchanged for goods or services, they do not form part of the casino's "banker's profits" for the purpose of calculating its liability to gaming duty.

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Blog

Eurochoice: Company and its director held jointly and severally liable for HMRC's costs

Published on 06 January 2021. By Harry Smith, Senior Associate

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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.

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Blog

Total – Court of Appeal considers meaning of "just and reasonable" apportionment of profits

Published on 23 December 2020. By Rebekka Sandwell, Associate

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In Total E&P North Sea UK Ltd and Another v HMRC [2020] EWCA Civ 1419, the Court of Appeal (CoA) allowed the appellant companies' appeal and decided that the basis of the companies' apportionment of adjusted ring-fence profits was just and reasonable, for the purposes of an election under section 7(5), Finance Act 2011 (FA 2011).

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Podcast

CumEx - probably the biggest tax scandal you've never heard of

21 December 2020

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In this episode, we are joined by Bloomberg finance reporter Donal Griffin. For the past 18 months Donal has been following the development of the multi-billion tax trading scandal known as CumEx.

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Blog

McCabe: HMRC not required to disclose documents relating to discussions with the Belgian tax authority

Published on 16 December 2020. By Constantine Christofi, Senior Associate

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In Kevin McCabe v HMRC [2020] UKUT 266 (TC), the Upper Tribunal (UT) has held that the First-tier Tribunal (FTT) had been correct not to order HMRC to disclose documents relating to discussions it had with the Belgian tax authority, as the documents had no probative value and the tax authorities had raised confidentiality issues.

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Publication

Contentious tax: quarterly review

15 December 2020

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HMRC is increasingly targeting multinationals, in particular by questioning their transfer pricing arrangements and ensuring that they are not artificially diverting profits away from the UK. Additionally, HMRC has made a number of arrests and begun criminal investigations in relation to suspected fraud concerning the coronavirus job retention scheme.

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Blog

RT Rate: Legitimate expectation rights not engaged

Published on 09 December 2020. By Constantine Christofi, Senior Associate

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In RT Rate Ltd and Others v HMRC [2020] UKFTT 392 (TC), the First-tier Tribunal (FTT) has held that it does not have jurisdiction to consider claims for repayment of VAT based on the EU law principle of legitimate expectation.

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Podcast

Taxing Matters: The impact of the loan charge with Keith Gordon

07 December 2020

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Welcome to the Taxing Matters podcast. In this episode, Keith Gordon joins Alice Kemp to discuss the Loan Charge; a topic very dear to his heart and one that has had a devastating impact on many who have been victims of schemes.

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Publication

Tax Bites - December 2020

Published on 03 December 2020. By Adam Craggs, Partner and Harry Smith, Senior Associate

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Welcome to the latest edition of RPC's Tax Bites - providing monthly bite-sized updates from the tax world.

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Blog

AMW Estates – Part of HMRC's pleaded case struck out as it had no realistic prospect of success

Published on 02 December 2020. By Alexis Armitage, Associate

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In AMW Estates Ltd v HMRC [2020] UKFTT 410 (TC), the First-tier Tribunal (FTT) struck out part of HMRC's amended Statement of Case (SoC) alleging that a taxpayer had actual or constructive knowledge of its supplier's fraud as it had no realistic prospect of success.

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Publication

V@ update - November 2020

Published on 26 November 2020. By Adam Craggs, Partner and Rebekka Sandwell, Associate

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Welcome to the November 2020 edition of RPC's V@, an update on developments in the VAT world that may impact your business.

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Blog

Osborne: Tribunal takes a dive into allowable expenditure

Published on 25 November 2020. By Harry Smith, Senior Associate

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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.

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Publication

Customs and excise quarterly - November 2020

24 November 2020

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In this update we report on (1) import duty and VAT when importing decorations and awards; (2) the moving of excise goods under the Northern Ireland Protocol; and (3) an HMRC Tax Importation and Impact Note in relation to the new Customs (Bulk Customs Declaration and Miscellaneous Amendments) (EU Exit) Regulations 2020.

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Podcast

Taxing Matters: An interview with the President of the First-tier Tribunal

23 November 2020

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Welcome to the Taxing Matters podcast - in this episode, we are joined by a very special guest; Judge Sinfield, President of the First Tier Tribunal Tax Chamber (FTT). Judge Sinfield shares his impressive knowledge of the inner workings and intricacies of the tax tribunals, including little known facts like the FTT deals with appeals concerning MPs' expenses!

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Blog

Cheshire Centre – HMRC ordered to pay taxpayer's costs due to its unreasonable behaviour

Published on 18 November 2020. By Constantine Christofi, Senior Associate

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In HMRC v Cheshire Centre for Independent Living [2020] UKUT 275 (TCC), the Upper Tribunal (UT) ordered HMRC to pay the taxpayer's costs even though HMRC had been successful as it had acted unreasonably in introducing a new ground of appeal.

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Blog

HMRC issues nudge letters targeting residence and domicile

Published on 16 November 2020. By Harry Smith, Senior Associate and Adam Craggs, Partner

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In an extension of its 'nudge' letters campaign, HMRC is writing to wealthy taxpayers encouraging them to bring their tax affairs into line.

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Blog

Belloul – Ignorance of the law was a 'reasonable excuse' 

Published on 11 November 2020. By Alexis Armitage, Associate

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In Bachir Mohamed Belloul v HMRC [2020] UKFTT 312, the First-tier Tribunal (FTT) held that a taxpayer's ignorance of the law was a 'reasonable excuse' for failing to notify HMRC of his liability to pay High Income Child Benefit Charge (HICBC).

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Podcast

Top COP9 tips in the era of furlough fraud

10 November 2020

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Welcome to the ninth episode of our Taxing Matters podcast. In this series we review land-mark cases and key tax developments and discuss the commercial impact they could have on your business.

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Publication

Tax Bites - November 2020

Published on 05 November 2020. By Adam Craggs, Partner and Harry Smith, Senior Associate

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Welcome to the latest edition of RPC's Tax Bites - providing monthly bite-sized updates from the tax world.

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Blog

Jurisdiction and the Rule of Law

Published on 04 November 2020. By Adam Craggs, Partner and Robert Waterson, Partner and Constantine Christofi, Senior Associate

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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'.

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Publication

V@ update - October 2020

Published on 29 October 2020. By Adam Craggs, Partner and Rebekka Sandwell, Associate

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Welcome to the October 2020 edition of RPC's V@, an update on developments in the VAT world that may impact your business.

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Podcast

Taxing Matters: A handy guide to appeals

27 October 2020

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Welcome to the eighth episode of our Taxing Matters podcast. In this series we review land-mark cases and key tax developments and discuss the commercial impact they could have on your business.

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Blog

Wired Orthodontics – Tribunal expresses concern about potential inappropriate interference by HMRC's solicitor with the evidence of an independent expert witness

Published on 21 October 2020. By Rebekka Sandwell, Associate

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In Wired Orthodontics Ltd and others v HMRC [2020] UKFTT 290 (TC), the First-tier Tribunal (FTT) refused an application for disclosure of documents and information passing between the solicitors for HMRC and their appointed expert witness.

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Publication

Corporate Tax Update - October 2020

16 October 2020

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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 September 2020. Included in this update are summaries of the Chancellor’s tax announcements as part of the Winter Economy Plan and the EC’s decision to appeal the decision of the European General Court in the Apple state aid case. There are also updates on new HMRC guidance on off-payroll working for private businesses and the VAT treatment of payments for early termination of contracts. As ever we hope you, your family and friends are all staying safe.

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Blog

Box – child benefit charge interpreted as 'income' for the purpose of discovery assessments

Published on 14 October 2020. By Constantine Christofi, Senior Associate

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In Martin Richard Box v HMRC [2020] UKFTT 353 (TC), the First-tier Tribunal (FTT) dismissed a taxpayer's appeal concerning liability to pay the high-income child benefit (HICB) charge, on the basis that the charge constituted income for the purpose of discovery assessments.

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Podcast

Taxing matters: Predicting the tax world of the future

12 October 2020

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Welcome to the seventh episode of our Taxing Matters podcast. In this series we review land-mark cases and key tax developments and discuss the commercial impact they could have on your business.

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Blog

Irish Bank – HMRC entitled to disallow interest deductions claimed by UK permanent establishments

Published on 07 October 2020. By Alexis Armitage, Associate

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In Irish Bank Resolution Corporation Ltd (in special liquidation) and another v HMRC [2020] EWCA Civ 1128, the Court of Appeal upheld the decisions of the First-tier Tribunal (FTT) and the Upper Tribunal (UT) and confirmed that HMRC was entitled to disallow interest deductions claimed by the UK permanent establishments (PEs) of two Irish companies.

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Publication

Tax Bites - October 2020

Published on 01 October 2020. By Adam Craggs, Partner and Constantine Christofi, Senior Associate

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Welcome to the latest edition of RPC's Tax Bites - providing monthly bite-sized updates from the tax world.

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Blog

RBS – HMRC's application for specific disclosure refused

Published on 30 September 2020. By Constantine Christofi, Senior Associate

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In Royal Bank of Scotland Group Plc v HMRC [2020] UKFTT 321 (TC), the First-tier Tribunal (FTT) refused an application by HMRC for a direction requiring the taxpayer to provide specific disclosure.

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Blog

Contentious tax: quarterly review - September 2020

Published on 29 September 2020. By Adam Craggs, Partner and Constantine Christofi, Senior Associate

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The increased flow of information and data to HMRC under the common reporting standard (CRS) has prompted a flurry of so-called ‘nudge’ letters to be issued by HMRC to taxpayers whose offshore affairs it considers may not be in order.

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Podcast

Taxing Matters: Fair's Fair – Judicial Review and Tax Disputes

29 September 2020

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Welcome to the sixth episode of our Taxing Matters podcast. In this series we review land-mark cases and key tax developments and discuss the commercial impact they could have on your business.

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Blog

HMRC to gain further information gathering powers

Published on 25 September 2020. By Adam Craggs, Partner and Alexis Armitage, Associate

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Draft legislation, published as part of Finance Bill 2020/21, will, if enacted, grant HMRC the power to issue 'Financial Institution Notices', requiring certain financial institutions to disclose information they hold about certain taxpayer(s) and their assets, without the safeguards which are currently in place.

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Publication

V@ update - September 2020

Published on 25 September 2020. By Adam Craggs, Partner and Rebekka Sandwell, Associate

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Welcome to the September 2020 edition of RPC's V@, an update on developments in the VAT world that may impact your business.

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Blog

Ahmed - HMRC cannot 'refresh' penalty time limit  by reissuing information notices

Published on 23 September 2020. By Constantine Christofi, Senior Associate

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In Salim Ahmed v HMRC [2020] UKFTT 337 (TC), the First-tier Tribunal (FTT) allowed the taxpayer’s appeal against a penalty for failing to comply with an information notice because the penalty notice was not issued within 12 months of the taxpayer becoming liable to a penalty and HMRC could not refresh the time period by issuing a subsequent information notice which merely repeated earlier information notices.

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Blog

Kickabout Productions - HMRC wins IR35 re-match

Published on 16 September 2020. By Harry Smith, Senior Associate

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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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Podcast

Taxing Matters: HMRC as a Public Authority – what does that mean?

14 September 2020

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Welcome to the fifth episode of our Taxing Matters podcast. In this series we review land-mark cases and key tax principles and discuss the commercial impact they could have on your business.

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Blog

Jones – Taxpayer's appeal allowed as FTT failed to consider vital evidence

Published on 09 September 2020. By Rebekka Sandwell, Associate

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In Heather Jones v HMRC [2020] UKUT 229 (TCC), the Upper Tribunal (UT) allowed an appeal against a decision of the First-tier Tribunal (FTT) upholding a discovery assessment issued in respect of income tax on a severance payment.

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Publication

Tax Bites - September 2020

Published on 03 September 2020. By Adam Craggs, Partner and Constantine Christofi, Senior Associate

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Welcome to the latest edition of RPC's Tax Bites - providing monthly bite-sized updates from the tax world.

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Blog

HMRC's new powers to investigate furlough abuse

Published on 02 September 2020. By Michelle Sloane, Partner and Alice Kemp, Senior Associate (Employed Barrister)

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The Government's Coronavirus Job Retention Scheme (CJRS) was announced on 20 March 2020, with the aim of safeguarding UK jobs during the coronavirus pandemic. The CJRS has undoubtably assisted in protecting jobs but it was, by necessity introduced quickly, with little and complex guidance, which has made it, in the words of HMRC's Chief Executive Jim Harra, a "magnet for fraudsters".

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