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Tax take

Blog

Expenses incurred in defending partners against criminal charges were incurred "wholly and exclusively" for the business and were deductible

Published on 16 February 2022.

In TR, SP and SR Rogers v HMRC [2021] UKFTT 0458 (TC), the First-tier Tribunal (FTT) decided that expenses incurred defending two of the partners of a partnership against criminal charges were incurred wholly and exclusively for the business of the partnership and the expenses were therefore deductible.

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Podcast

Supporting mid-sized businesses in a challenging landscape

14 February 2022

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In the first Taxing Matters episode of 2022, we are delighted to be joined by special guest Margaret Mousley, Deputy Director at HMRC.

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Blog

Tribunal reduces scope of Schedule 36 Information Notices

Published on 09 February 2022. By Michelle Sloane, Partner

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HMRC bears the burden of proof that the information requested to check a taxpayer's tax position, as set out in Schedule 36 information notices, is reasonably required and that records requested are statutory records.

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Publication

Tax Bites - February 2022

Published on 03 February 2022. 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

Entrepreneurs' relief applied to disposal of business premises

Published on 02 February 2022. By Harry Smith, Senior Associate

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Entrepreneurs' relief (now Business Asset Disposal Relief) applies to disposal of premises as part of long-term sale of business

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Publication

V@ Update – January 2022

Published on 27 January 2022. By Adam Craggs, Partner

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Welcome to the January 2022 edition of RPC's V@, an update which provides analysis and news from the VAT world relevant to your business.

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Blog

Quinn – Taxpayer entitled to claim enhanced research and development relief

Published on 26 January 2022.

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In Quinn (London) Ltd v HMRC [2021] UKFTT 0437 (TC), the First-tier Tribunal (FTT) allowed the taxpayer's appeal against HMRC's decision to refuse its claims for enhanced research and development relief (enhanced R&D relief), on the basis that the claimed expenditure was “subsidised” within the meaning of section 1138(1)(c), Corporation Tax Act 2009 (CTA 2009).

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Blog

Minstrell Recruitment – HMRC not required to disclose the names of its officers involved in a Gross Payment Status revocation decision

Published on 19 January 2022. By Constantine Christofi, Senior Associate

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In Minstrell Recruitment Ltd v HMRC [2021] UKFTT 0344 (TC), the First-tier Tribunal (FTT) held that HMRC need not disclose the names of the HMRC officers involved in making a gross payment status (GPS) revocation decision where that decision had been successfully appealed, for the purpose of determining whether HMRC had acted unreasonably in the conduct of that appeal.

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Publication

Corporate tax update – January 2022

Published on 13 January 2022. By Ben Roberts, Partner

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Welcome to the latest edition of our Corporate Tax Update, written by members of RPC's tax team. As this edition is the first of the New Year we hope that you, your family and friends had a restful and enjoyable end to 2021.

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Blog

JTC - Escrow agreement set aside on basis of mistake

Published on 12 January 2022. By Harry Smith, Senior Associate

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Rescission granted of pension arrangements with tax impact due to incorrect advice for temporary UK non-resident moving to UAE.

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Blog

Kishore – Court of Appeal rejects HMRC's strike out application

Published on 05 January 2022.

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In HMRC v Dhalomal Kishore [2021] EWCA Civ 1565, the Court of Appeal rejected HMRC's application to strike out the taxpayer's grounds of appeal against penalties for inaccuracies in VAT returns, as the application was an abuse of process.

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Blog

Quarterly Contentious Tax Review – Winter 2021

Published on 22 December 2021. By Adam Craggs, Partner and Constantine Christofi, Senior Associate

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HMRC has extensive powers to require information and documentation from taxpayers. These powers were bolstered in the last Finance Act to include financial institution notices. Failure to comply with information notices can attract penalties. The most severe penalties are those imposed by the Upper Tribunal (UT). We examine, below, HMRC's increasing use of these powers, together with HMRC's penchant for 'nudge' letters and recent developments in the application of the transfer of assets abroad (TOAA) provisions.

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Podcast

Reputation management: the vital difference between reacting and responding

20 December 2021

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Warren Buffet once quipped, "It takes 20 years to build a reputation and only 5 minutes to ruin it". The potential impact of reputational damage can be significant during litigation, or a commercial dispute. Understanding when to react and how to respond, can make all the difference.

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Blog

The Medical Defence Union – insurance premium rebates not taxable receipts

Published on 15 December 2021. By Constantine Christofi, Senior Associate

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Insurance premium rebate does not count as a taxable receipt, but instead is merely a (non-taxable) refund to the mutual fund for the benefit of its members.

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Blog

GB Fleet Hire - Upper Tribunal allows appeal against First-tier Tribunal strike out decision

Published on 08 December 2021. By Harry Smith, Senior Associate

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In a rare move, the Upper Tribunal overturned the decision of the First-tier Tribunal to strike out an appeal on the grounds that the tribunal's decision was irrational.

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Podcast

Blockchain: Revolutionary technology… or the perfect opportunity for fraudsters

06 December 2021

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In recent times it seems that the word crypto, and the underlying blockchain technology associated with it, is on everyone’s lips. From Elon Musk's effect on the price of Bitcoin to non-fungible tokens in the art world, the debate rages over whether blockchain will revolutionise the world or lead to the dismantling of the existing order.

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Publication

Tax Bites - December 2021

Published on 02 December 2021. 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. As always, if there are any areas you would like more information on (or if you have any questions or feedback), please let us know or get in touch with your usual RPC contact.

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Blog

Vitol Aviation – Tribunal directs HMRC to issue closure notices where diverted profits tax review periods are ongoing

Published on 01 December 2021.

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In Vitol Aviation UK Ltd and others v HMRC [2021] UKFTT 0353 (TC), the First-tier Tribunal (FTT) granted the Applicants' application for closure notices in respect of corporation tax enquiries, notwithstanding that the review periods for diverted profits tax (DPT) notices were ongoing in respect of the same accounting periods.

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Publication

Customs and excise quarterly update - November 2021

Published on 30 November 2021. By Adam Craggs, Partner and Michelle Sloane, Partner

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In this update we report on (1) the revised timetable for border controls on imports from the EU; (2) regulations regarding the new Freeports; and (3) updates to safety and security requirements on imports and exports from the EU. We also comment on three recent cases relating to (1) time limits and procedural requirements in a customs context; (2) whether UK acquisition VAT can apply when a bonded warehouse is not located in the UK; and (3) the tariff classification of mastectomy bras.

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Publication

V@ Update – November 2021

Published on 25 November 2021. By Adam Craggs, Partner

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Welcome to the November 2021 edition of RPC's V@, an update which provides analysis and news from the VAT world relevant to your business.

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Blog

Crippin – ancillary dwelling qualified for principal private residence relief

Published on 24 November 2021. By Constantine Christofi, Senior Associate

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Ancillary property qualifies for principle private residence relief despite being informally rented to friends.

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Podcast

Clearer lines of communication

22 November 2021

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With increasing pressure on HMRC to collect more tax with less resource, it is more important than ever to communicate effectively with HMRC.

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Blog

Shinelock Ltd – payment not deductible as a loan relationship debit

Published on 17 November 2021.

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In Shinelock Ltd v HMRC [2021] UKFTT 320 (TC), the First-tier Tribunal (FTT) decided that a payment made by a company to its former shareholder was not deductible as a loan relationship debit and accordingly there was no non-trading loan relationship deficit (NTLRD) to offset the chargeable gain realised on the disposal of a property.

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Blog

Fashion on the Block – taxpayer successful with substance over form argument

Published on 10 November 2021. By Constantine Christofi, Senior Associate

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Erroneous EIS form submitted, SEIS1 required in its place; HMRC alerted to the mistake and told to allow rectification.

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Podcast

Corporate Crime Reform: A comparative guide

08 November 2021

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In a much anticipated follow up to our previous episode on the Law Commission's consultation on the law of corporate crime in the UK, we are delighted to be joined by Dr Robin Lööf to dive a little deeper into the key issues at the heart of this important topic.

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Publication

HMRC issues 'nudge' letters to recipients of foreign investment income

Published on 05 November 2021. By Adam Craggs, Partner and Harry Smith, Senior Associate

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HMRC is targeting taxpayers who received foreign investment income in 2019/20, and who, HMRC believes, claimed foreign tax credit relief incorrectly, or at the wrong rates. HMRC has issued 'nudge' letters to taxpayers encouraging them to reconsider their tax position.

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Publication

Tax Bites - November 2021

Published on 04 November 2021. 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

GC Field & Sons Ltd – SDLT discovery assessments held to be invalid

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

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Discovery underlying discovery assessment for SDLT planning valid despite change of underlying reasoning, but taxpayer not negligent so appeal upheld.

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Publication

V@ Update – October 2021

Published on 28 October 2021. By Adam Craggs, Partner

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Welcome to the October 2021 edition of RPC's V@, an update which provides analysis and news from the VAT world relevant to your business.

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Blog

HMRC targets enablers of tax evasion

Published on 27 October 2021. By Michelle Sloane, Partner and Alice Kemp, Senior Associate (Employed Barrister)

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HMRC and the OECD are looking to tackle the rise of the professional enabler of tax evasion, but what is an enabler? And what does that mean for professionals?

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Podcast

Navigating your career: In conversation with Jack Bonehill

25 October 2021

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In this episode, we are delighted to be joined by fellow tax podcast host Jack Bonehill, the man behind the fantastic Tax Professionals Podcast series.

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Publication

HMRC Target Cryptocurrency Investors

Published on 21 October 2021. By Adam Craggs, Partner and Constantine Christofi, Senior Associate

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HMRC has announced it will launch a new ‘nudge letter’ campaign that will target UK taxpayers who may have failed to pay tax due in respect of their cryptoassets.

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Blog

Vermilion Holdings – Court of Session confirms that the grant of a share option by an employer was not an employment related securities option

Published on 20 October 2021.

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In Vermilion Holdings Ltd v HMRC [2021] CSIH 45, the Court of Session overturned the decision of the Upper Tribunal (UT) and confirmed that an option granted by a company as part of a refinancing exercise was not an employment related securities option, for the purposes of section 471, Income Tax (Earnings and Pensions) Act 2003 (ITEPA).

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Blog

Quarterly Contentious Tax Review

Published on 13 October 2021. By Robert Waterson, Partner and Constantine Christofi, Senior Associate

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The Tax Law Review Committee (TLRC) has published an in-depth review of the First-tier Tribunal (FTT), how it operates and why. In some respects, it is not working as well as it could for certain users. The review makes a number of positive recommendations, which we discuss below, together with two important developments concerning (1) the requirement for HMRC to initiate a formal enquiry and (2) HMRC's strategy on settling disputes relating to the use of historic tax avoidance arrangements.

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Blog

Professional Game Match Officials - Court of Appeal sends football referees case back to the Tax Tribunal

Published on 06 October 2021. By Ben Roberts, Partner

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In HMRC v Professional Game Match Officials Limited [2021] EWCA Civ 1370, the Court of Appeal (CoA) held that the First-tier Tribunal (FTT) and Upper Tribunal (UT) both erred in law in their approaches to the question of 'mutuality of obligation' and upheld the UT's decision that the FTT had erred in its approach to the issue of control. The case has been sent back to the FTT to reconsider whether there was sufficient mutuality of obligation and control in the individual contracts for them to be contracts of employment.

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Publication

Tooth and claw?: The meaning of words in tax assessments

Published on 05 October 2021. By Adam Craggs, Partner and Constantine Christofi, Senior Associate

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The concept of 'staleness' in the context of discovery assessments (assessments issued to taxpayers by HMRC outside of any statutory enquiry), gathered momentum following the Upper Tribunal’s decision in Charlton and others v HMRC [2011] UKFTT 467 (TC). As 'discovery' is only relevant to returns and tax years where HMRC has not opened a statutory enquiry, many commentators considered that the concept provided a degree of procedural fairness in the discovery assessment process, and that HMRC should not be permitted to delay issuing an assessment for a considerable period of time after making a discovery. As recently as February of this year, Judge Malek in the First-tier Tribunal (FTT) in Mehrban v HMRC [2021] UKFTT 53 (TC), noted that it was an “absurdity” to say that the concept of staleness does not exist.

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Publication

V@ Update – September 2021

Published on 30 September 2021. By Adam Craggs, Partner

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Welcome to the September 2021 edition of RPC's V@, an update which provides analysis and news from the VAT world relevant to your business.

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Blog

DNAe Group Holdings – Higher R&D relief claims available

Published on 29 September 2021. By Constantine Christofi, Senior Associate

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In DNAe Group Holdings Ltd v HMRC [2021] TC/201804348, the First-tier Tribunal (FTT) held that 125% research and development (R&D) tax credits for an SME was available, despite the company being the strategic investment vehicle of a larger group.

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Publication

HMRC issues 'nudge' letters to non-doms for suspected unpaid tax

Published on 28 September 2021. By Adam Craggs, Partner and Harry Smith, Senior Associate

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HMRC is targeting wealthy UK tax residents claiming a non-UK domicile who may not have paid the remittance basis charge. HMRC has issued hundreds of 'nudge' letters to taxpayers encouraging them to reconsider their tax position.

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Podcast

Connecting the dots

27 September 2021

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In a world of increasing digitisation, globalisation and remote working, now more than ever taxpayers are starting to ask "how are HMRC going to find out?".

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Blog

KSM Henryk Zeman - Tribunal can consider 'legitimate expectation' arguments in VAT appeal

Published on 22 September 2021. By Harry Smith, Senior Associate

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Taxpayer can bring legitimate expectation/judicial review arguments in appeal against HMRC decision on VAT in First-tier Tribunal – a new step in tax litigation.

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Blog

Tinkler – Supreme Court decides taxpayer is estopped from denying validity of HMRC enquiry

Published on 15 September 2021.

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In Tinkler v HMRC [2021] UKSC 39, the Supreme Court held that, due to the conduct of the taxpayer's advisers, the taxpayer was estopped by convention from denying that HMRC had opened a valid enquiry under section 9A, Taxes Management Act 1970 (TMA), when it had sent the notice of enquiry to the wrong address.

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Podcast

Lockdown thoughts: the evolution of HMRC and its increasing powers

13 September 2021

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Given the complexity and, at times, lack of clarity in our tax system, concerns have been raised about the extent of HMRC's powers, particularly regarding the range of penalties that can be imposed for innocent mistakes, and the severity of penalties that can be imposed in relation to offshore matters.

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Blog

JRO Griffiths – storage facility is plant for capital allowances purposes

Published on 08 September 2021.

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In JRO Griffiths Ltd v HMRC [2021] UKFTT 257 (TC), the First-tier Tribunal (FTT) held that a facility used to store potatoes was a plant, and that it met other conditions allowing it to qualify for capital allowances.

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Blog

Eclipse film partnerships settlement opportunity announced by HMRC

Published on 08 September 2021. By Adam Craggs, Partner and Constantine Christofi, Senior Associate

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HMRC announced on 6 September 2021 a settlement opportunity for current and former members of the Eclipse Film Partners (numbers 1 to 40) limited liability partnerships (the Eclipse LLPs), under which HMRC will agree not to seek to impose a 'dry tax' charge in exchange for members settling historic tax liabilities (with interest) and abandoning litigation against HMRC in relation to the Eclipse LLPs. If accepted by each taxpayer, approximately £1.6 billion of 'dry tax' will not be pursued by HMRC.

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Publication

Accountants obliged to report suspected misuse of the Bounce Back Loan Scheme

Published on 07 September 2021. By Adam Craggs, Partner and Michelle Sloane, Partner

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The Bounce Back Loan Scheme (BBLS) was introduced to enable smaller businesses adversely affected by the coronavirus pandemic to access government-backed finance.

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Publication

Tax Bites - September 2021

Published on 02 September 2021. 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

Haworth - Supreme Court upholds decision to quash follower notice

Published on 01 September 2021. By Harry Smith, Senior Associate

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Follower Notice judicial review upheld by Supreme Court even in tax avoidance context; restrictive requirements imposed for issue of follower notices.

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Podcast

The tax tribunals: the next 10 years

31 August 2021

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Twelve years on from the seismic changes to the UK tax appeals system that introduced the First-tier Tribunal and the Upper Tribunal, the Tax Law Review Committee (TLRC) has published its Report "The tax tribunals: the next 10 years".

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Publication

V@ Update – August 2021

Published on 26 August 2021. By Adam Craggs, Partner

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Welcome to the August 2021 edition of RPC's V@, an update which provides analysis and news from the VAT world relevant to your business.

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