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Tax Take

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

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

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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.

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

Published on 13 March 2018. By Alexis Armitage, Associate

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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.

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Goldsmith - late filing penalties cancelled by the Tribunal

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

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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.

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

Published on 02 March 2018. By Adam Craggs, Partner

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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).

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Publication

Tax update March 2018

27 February 2018

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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.

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Wealth and trusts quarterly digest

22 February 2018

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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.

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Publication

VAT update - February 2018

21 February 2018

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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.

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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

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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.

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Blog

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

Published on 16 February 2018. By Adam Craggs, Partner

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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.

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Publication

Corporate tax update

15 February 2018

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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.

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Customs and excise quarterly update, February 2018

Published on 13 February 2018. By Adam Craggs, Partner

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

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

Published on 07 February 2018. By Constantine Christofi, Associate

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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.

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

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

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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.

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Publication

Tax update - February 2018

01 February 2018

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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.

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Blog

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

Published on 31 January 2018. By Alexis Armitage, Associate

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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..

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Publication

VAT Update - January 2018

23 January 2018

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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.

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Cooke: Tribunal allows taxpayer's discovery assessment appeal

Published on 18 January 2018. By Constantine Christofi, Associate

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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.

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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

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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.

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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

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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.

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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

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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).

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Blog

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

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

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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.

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

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

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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.

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Publication

Tax update December 2017

06 December 2017

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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

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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

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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.

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VAT update November 2017

29 November 2017

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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.

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Bekoe: Tribunal cancels discovery assessments and penalties issued to taxpayer

Published on 27 November 2017. By Constantine Christofi, Associate

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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.

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Publication

Customs and excise quarterly update, November 2017

21 November 2017

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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.

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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

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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.

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Publication

Wealth and trusts quarterly digest November 2017

17 November 2017

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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

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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.

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

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

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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.

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Publication

Tax update, November 2017

02 November 2017

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In this month’s update we report on HMRC’s revised guidance relating to venture capital schemes, the coming into force of section 166, Finance Act 2016 (offences relating to offshore income) and HMRC’s new guidance on self-reporting for failure to prevent the facilitation of tax avoidance.

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Corporate tax update, third quarter 2017

27 October 2017

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

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VAT update, October 2017

26 October 2017

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In this month’s update we report on the processing of personal data to combat tax fraud, the new proposals for taxing intra-EU supplies and the change in VAT treatment of pension fund management services supplied by regulated insurers.

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SUSSEX CARS - Tribunal orders HMRC to pay taxpayer's costs of appeal

Published on 18 October 2017. By Constantine Christofi, Associate

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In Sussex Cars Association v HMRC [2017] UKFTT 0691 (TC), the First-tier Tribunal (FTT) has exercised its discretion, under Rule 10(1)(b) of the Tribunal Rules, to make an order for costs against HMRC on the basis that it had "acted unreasonably in bringing, defending or conducting the proceedings".

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McGreevy – Tribunal describes HMRC's argument as "clap trap" in late filing case

Published on 17 October 2017. By Robert Waterson, Legal Director

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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.

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Gill - Tribunal rejects HMRC's interim applications 

Published on 16 October 2017. By Alexis Armitage, Associate

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In Gill v HMRC [2017] UKFTT 0597 (TC), the First-tier Tribunal (FTT) dismissed three interim applications made by HMRC for (1) permission to adduce expert evidence; (2) a direction excluding a large amount of documentation adduced by the taxpayer; and (3) a direction that the taxpayer disclose data in an alternative format to that provided by the taxpayer.

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Chadwick – Discovery assessment on wrong person cannot be remedied by section 114 TMA

Published on 06 October 2017. By Nicole Kostic, Senior Associate

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In Chadwick (as trustee in bankruptcy of Mrs Gloria Oduneye-Braniffe) v The National Crime Agency [2017] UKFTT 656 (TC), the First-tier Tribunal (FTT) has held than an assessment issued to a trustee in bankruptcy was a gross error that could not be cured by section 114 of the Taxes Management Act 1970 (TMA).

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Publication

Tax update, October 2017

04 October 2017

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In this update we report on HMRC’s recently published guidance concerning the new offences of failing to prevent the facilitation of tax evasion; HMRC’s new powers to refuse to register or de-register master trust pension schemes; and new guidance on investors’ relief in the CGT context.

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Bailey: Quality trumps quantity as Tribunal grants taxpayer principle private residence relief

Published on 27 September 2017. By Constantine Christofi, Associate

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In Stephen Bailey v HMRC [2017] UKFTT 658 (TC), the First-tier Tribunal (FTT) granted the taxpayer principle private residence relief, under section 222, Taxation of Chargeable Gains Act 1992 (TCGA), despite having only occupied the property in question for two periods of less than six months.

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Publication

VAT update September 2017

27 September 2017

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In this month’s update we report on the Commission’s evaluation of invoicing rules; revisions to VAT notice 700/50, concerning default surcharge; and details of the consultation on the Making Tax Digital reforms.

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Gekko – HMRC's unreasonable conduct leads to costs award against it

Published on 19 September 2017. By Constantine Christofi, Associate

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In Gekko & Company Ltd [2017] UKFTT 586 (TC), the First-tier Tribunal (FTT), in allowing an appeal against assessments to VAT and penalties, awarded the taxpayer its costs as HMRC's conduct had been unreasonable.

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Thathiah: HMRC unsuccessful in first senior accounting officer penalty appeal

Published on 13 September 2017. By Michelle Sloane, Senior Associate

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In Kreeson Thathiah v HMRC [2017] UKFTT 0601 (TC), the First-tier Tribunal (FTT) allowed an appeal against penalties which had been assessed on the finance director of a group of companies under the Senior Accounting Officer (SAO) regime, contained in Schedule 46, Finance Act 2009 (FA 2009), as HMRC had failed to establish that he had breached his duty as a SAO.

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Publication

Settlement considerations following the Rangers decision

08 September 2017

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Following the Supreme Court’s recent judgment in the Rangers case, many employers who had established employee benefit trusts (EBTs) are facing enforcement notices in respect of income tax and National Insurance contributions.

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Hickey Plant Hire - Taxpayer successfully challenges HMRC's narrow reading of penalty rules

Published on 07 September 2017. By Robert Waterson, Legal Director

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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).

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Publication

Tax update, September 2017

07 September 2017

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In this month’s update we report on HMRC’s new guidance on asset-based penalties for offshore inaccuracies; the GAAR Advisory Panel’s first published opinion on tax planning involving gold bullion and Spotlight 39 on measures designed to avoid the 2019 EBT loan charge.

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Corporate tax update, second quarter 2017

05 September 2017

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

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Vigne - HMRC lose business property relief case

Published on 04 September 2017. By Alexis Armitage, Associate

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In The Estate of Maureen W Vigne (deceased) v HMRC [2017] UKFTT 632 (TC), the First-tier Tribunal (FTT) has determined that the estate of the late Maureen Vigne was entitled to business property relief (BPR), as provided for in section 105, Inheritance Tax Act 1984 (IHTA).

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VAT update August 2017

Published on 30 August 2017. By Adam Craggs, Partner

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In this month’s update we report on updated guidance from HMRC on distance selling, the EU (Withdrawal Bill) and the revised place of supply rules for B2C telecommunications.

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BPP – Tribunal correct to strike out HMRC's case for failure to comply with Rules and Directions

Published on 23 August 2017. By Constantine Christofi, Associate

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In BPP Holdings Ltd v HMRC [2017] UKSC 55, the Supreme Court has confirmed that the First-tier Tribunal (FTT) was justified in directing that HMRC be barred from taking further part in the proceedings for failure to adhere to the Tribunal’s Rules and Directions.

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