Tax Take

Tax Tribunal allows taxpayer's appeal against discovery assessment

Published on 18 January 2024. By Alexis Armitage, Senior Associate

FTT allows taxpayer's appeal against HMRC discovery assessment seeking to charge CGT on the disposal of a property between separating spouses.

Court of Appeal considers 'main purpose' test and finds in favour of taxpayer

Published on 11 January 2024. By Jasprit Singh, Senior Associate

Directors not liable under PLNs as HMRC failed to establish deliberate conduct by company

Published on 05 January 2024. By Keziah Mastin, Associate

In Sharon Suttle and another v HMRC [2023] UKFTT 873 (TC), the Tax Tribunal allowed the taxpayers' appeals against Personal Liability Notices (PLNs) on the basis that the company did not make a deliberate inaccuracy in its returns.

Tribunal allows taxpayer's appeal in respect of late filing penalties

Published on 15 December 2023. By Liam McKay, Senior Associate

Tackling "Tax avoidance" this Christmas season with Sam Brodsky

12 December 2023

As the cost of living crisis bites more than ever this year, in this special Christmas episode of RPC's Taxing Matters, we bring you some Christmas cheer by way of a light-hearted discussion of some of the potential ways you may be able to reduce your tax bill. In addition, we'll also have a quick look at Santa's tax position in the run up to Christmas and whether he might be guilty of tax avoidance … or even tax evasion!

Court of Appeal upholds tribunal decision on the taxation of limited partnership transactions

Published on 11 December 2023. By Harry Smith, Senior Associate

Tax Bites - December 2023

Published on 07 December 2023. By Adam Craggs, Partner

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

UT dismisses HMRC's appeal and upholds decision in relation to private residence relief

Published on 01 December 2023. By Alexis Armitage, Senior Associate

V@ update - November 2023

Published on 29 November 2023. By Adam Craggs, Partner

Welcome to the November 2023 edition of RPC's V@, a monthly update which provides insightful analysis and news from the VAT world relevant to your business.

Customs and excise quarterly update - November 2023

Published on 29 November 2023. By Adam Craggs, Partner and Michelle Sloane, Partner

Welcome to the November 2023 edition of RPC's Customs and Excise Quarterly Update.

A day in the life of a tax adviser with Jeremy Johnson

28 November 2023

In this episode of Taxing Matters, we are joined by Jeremy Johnson, managing director of inTAX Limited.

Upper Tribunal dismisses HMRC's appeal in respect of salaried members rules

Published on 24 November 2023. By Liam McKay, Senior Associate

Tribunal confirms that payments of a punitive nature are not deductible

Published on 22 November 2023. By Harry Smith, Senior Associate

NHS Trust wins judicial review claim against HMRC

Published on 15 November 2023. By Alexis Armitage, Senior Associate

NHS Trust wins judicial review claim against HMRC in respect of VAT concession.

Upper Tribunal dismisses taxpayer's appeal in  substantial shareholding exemption case

08 November 2023

In M Group Holdings Ltd v HMRC [2023] UKUT 213 (TCC), the Upper Tribunal (UT) has upheld the decision of the First-tier Tribunal (FTT), which found that a company was not entitled to benefit from the substantial shareholding exemption (SSE) given that the shareholding had only been held for eleven months, as opposed to the required twelve months. The provision of paragraph 15A, Schedule 7AC, Taxation of Chargeable Gains Act 1992 (TCGA), which extends SSE relief when assets have been transferred within a group, was found not to apply and the appellant was liable to pay just over £10M in corporation tax.

Tax Bites - November 2023

Published on 02 November 2023. By Adam Craggs, Partner

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

Tribunal finds that CGT saving was not the main purpose of wider arrangements

Published on 01 November 2023. By Keziah Mastin, Associate

In Wilkinson and others v HMRC [2023] UKFTT 00695 (TC), the First-tier Tribunal (FTT) allowed the taxpayers' appeals on the basis that CGT avoidance was not the main or one of the main purposes behind a deal involving the exchange of shares in one company for shares and loan notes in another.

Why now is the right time to get to grips with your money with Ruth Handcock and Ali Poulton

31 October 2023

In this episode of Taxing Matters, we discuss the hot topic of financial health, wellbeing and confidence. We are currently experiencing a challenging economic climate and any guidance on this important topic is very welcome.

V@ update - October 2023

Published on 26 October 2023. By Adam Craggs, Partner

Welcome to the October 2023 edition of RPC's V@, a monthly update which provides insightful analysis and news from the VAT world relevant to your business.

Tribunal allows taxpayers' application for costs against HMRC

Published on 18 October 2023. By Liam McKay, Senior Associate

While granting the taxpayers' application for costs, the First-tier Tribunal refused to award indemnity costs on the basis that HMRC's conduct did not merit the "stigma of an indemnity costs award".

Limitation proves to be a magic bullet for Magic Carpets

Published on 18 October 2023. By Harry Smith, Senior Associate

In Magic Carpets (Commercial) Ltd v HMRC [2023] TC08892, the First-tier Tribunal (FTT) held that although a taxpayer acted carelessly in implementing a tax planning arrangement involving an employee benefit trust (EBT), this carelessness did not bring about a loss of tax. HMRC's determinations were therefore out of time as they had been issued after the regular four-year limitation period had expired.

Upper Tribunal dismisses HMRC's appeal confirming that input tax is recoverable on fiscal neutrality grounds

Published on 11 October 2023. By Alexis Armitage, Senior Associate

Upper Tribunal dismisses HMRC's appeal confirming that input tax is recoverable on fiscal neutrality grounds.

Tax Bites - October 2023

Published on 05 October 2023. By Adam Craggs, Partner

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

A Tax On Conscience? A Moral Dilemma for Non-Residents

Published on 04 October 2023. By Liam McKay, Senior Associate

Upholding HMRC's appeal, the Upper Tribunal held that moral obligations, specifically the need to care for close relatives, were not "exceptional circumstances" for the purposes of the Statutory Residence Test in Schedule 45 of the Finance Act 2013.

V@ update - September 2023

Published on 28 September 2023. By Adam Craggs, Partner

Welcome to the September 2023 edition of RPC's V@, an update which provides analysis and news from the VAT world relevant to your business.

Judicial developments in recent treaty cases

27 September 2023

Sanctions Spotlight Session with Alice Kemp

26 September 2023

In this episode of Taxing Matters, we are handing over the podcast baton and introducing our new host Alexis Armitage, Senior Associate in RPC's Tax Disputes Team. We couldn’t think of any better way to say our final goodbyes to the fabulous Alice other than by putting her in the hot seat to discuss the topic of the moment, sanctions.

Tribunal finds in favour of taxpayer confirming that payments are consideration rather than a subsidy for expenditure

20 September 2023

In a recent case, the Upper Tribunal found in favour of the taxpayer and confirmed that payments made for goods and services under an arm's-length contract are consideration rather than subsidy for expenditure, even when the payments are calculated to reflect such expenditure. The payments therefore do not provide grounds for HMRC to disallow the expenditure.

A tax on conscience? A moral dilemma for non-residents

Published on 19 September 2023. By Liam McKay, Senior Associate

In HMRC v A Taxpayer, the Upper Tribunal (UT) considered the meaning of ‘exceptional circumstances’ for the purposes of the statutory residency test (SRT) in FA 2013. In overturning the decision of the First-tier Tribunal, the UT held that moral obligations, specifically the need to care for close relatives, were not exceptional circumstances, creating a potential dilemma for individuals when it comes to managing their tax residency status and their family life.

Tribunal allows taxpayer's appeal as although he had failed to establish his domicile of choice HMRC had failed to prove there had been a loss of tax due to his carelessness

Published on 13 September 2023. By Keziah Mastin, Associate

In Strachan v HMRC [2023] UKFTT 617 (TC), although the taxpayer had failed to establish a domicile of choice in Massachusetts, the Tax Tribunal allowed the taxpayer's appeal against two discovery assessments, despite a finding that the taxpayer had been careless, as HMRC had not discharged the burden of proving that the loss of tax had been bought about by the taxpayer's carelessness.

Tax Bites - September 2023

Published on 07 September 2023. By Adam Craggs, Partner

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

Judicial developments in recent treaty cases

06 September 2023

A spate of recent cases concerning the application of double tax treaties has seen the courts and tribunals striving for common¬sense, policy-driven outcomes.

HMRC prevented from participating further in VAT appeal following failure to comply with unless order

Published on 06 September 2023. By Liam McKay, Senior Associate

In denying HMRC's application for relief from sanctions, the First-tier Tribunal determined that HMRC had committed a serious and significant breach of an unless order and barred HMRC from further participation in the appeal proceedings.

Upper Tribunal gives green light to NICs reclaims on car allowances

Published on 30 August 2023. By Harry Smith, Senior Associate

NICs reclaim allowed on motoring expenses by Upper Tribunal; taxpayers' appeals against HMRC successful.

Customs and excise quarterly update - August 2023

Published on 29 August 2023. By Adam Craggs, Partner and Michelle Sloane, Partner

Welcome to the August 2023 edition of RPC's Customs and Excise Quarterly Update.

V@ update - August 2023

Published on 24 August 2023. By Adam Craggs, Partner

Welcome to the August 2023 edition of RPC's V@, an update which provides analysis and news from the VAT world relevant to your business.

Tribunal confirms UK company was also resident in the USA for the purposes of the UK/USA double tax treaty

Published on 23 August 2023. By Alexis Armitage, Senior Associate

Upper Tribunal confirms that UK company was also USA resident for the purposes of the UK/USA double tax treaty.

Let's talk VAT security notices with Joshua Carey

22 August 2023

One of the things that becomes clear over the course of one's career is that enforcement trends are important for businesses to be aware of. It is important to notice, not just the macro trends like sanctions compliance and fraud enforcement, but also smaller trends; campaigns against particular tax risks and the relegation of certain information gathering powers to relative obscurity.

Court of Appeal confirms no reasonable excuse for non-payment of tax

16 August 2023

In a recent case, the Court of Appeal provided guidance as to what evidence the tax tribunals and courts can consider when determining a taxpayer's subjective belief as to a reasonable excuse for non-payment.

Tribunal confirms that HMRC failed to use the correct test in HICBC case

Published on 09 August 2023. By Keziah Mastin, Associate

The First-tier Tribunal allowed a taxpayer's appeal against an assessment for High Income Child Benefit Charge, because a severance payment from the taxpayer's employer should have been treated as largely exempt from income tax under the disability exemption.

Tribunal allows taxpayer's appeal in respect of SDLT and mixed-use premises

Published on 02 August 2023. By Liam McKay, Senior Associate

In allowing the taxpayer's appeal, the First-tier Tribunal has held that a property comprising a dwelling house and separate paddock subject to a grazing lease was mixed use for Stamp Duty Land Tax purposes.

Tax Bites - August 2023

Published on 01 August 2023. By Adam Craggs, Partner

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

V@ update - July 2023

Published on 27 July 2023. By Adam Craggs, Partner

Welcome to the July 2023 edition of RPC's V@, an update which provides analysis and news from the VAT world relevant to your business.

When determining whether there are 'special circumstances' account can be taken of early payments and voluntary disclosure by the taxpayer

Published on 26 July 2023. By Harry Smith, Senior Associate

HMRC can take account of early payments, voluntary disclosure and proportionality when considering whether 'special circumstances' exist justifying the reduction of tax-geared penalties for late filing of a tax return.

Legislation extending time limits for assessing unpaid offshore tax did not prevent the requirement to correct rules from applying to determine the time limit for making a discovery assessment

Published on 19 July 2023. By Alexis Armitage, Senior Associate

Tribunal confirms that legislation extending time limits for assessing unpaid offshore tax did not prevent the requirement to correct rules from applying to determine the time limit for HMRC to make a discovery assessment.

The power of language when talking about tax with Kirstie Skates

18 July 2023

Have you ever wondered about the language we use when we talk about tax? And does that language influence or betray how we feel about tax as individuals or as a society? It turns out it is a hot topic of discussion.

Judicial Review in the Tax Sphere: Does the Court of Appeal's decision in Murphy offer taxpayers a glimmer of hope?

Published on 12 July 2023. By Adam Craggs, Partner and Liam McKay, Senior Associate

Allowing the taxpayers' appeal, the Court of Appeal overturned the High Court's refusal of the taxpayers' judicial review claim, finding that HMRC had breached the taxpayers' legitimate expectation in respect of the application of an extra statutory concession.

Tax Bites - July 2023

Published on 06 July 2023. By Adam Craggs, Partner

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

Tribunal confirms taxpayer can benefit from HMRC dispensation for employee expenses

05 July 2023

In a recent case the First-tier Tribunal allowed the taxpayer's appeal, finding that the company's 'broad-brush' approach to verifying employees' claims for expenses was sufficient to comply with HMRC's dispensation and therefore the payments were not subject to income tax or NICs.

V@ update - June 2023

Published on 29 June 2023. By Adam Craggs, Partner and Harry Smith, Senior Associate

Welcome to the June 2023 edition of RPC's V@, a monthly update which provides insightful analysis and news from the VAT world relevant to your business.