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Tax Take

Blog

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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Blog

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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Blog

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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Publication

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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Blog

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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Publication

Customs and excise quarterly update, August 2017

Published on 22 August 2017. By Adam Craggs, Partner

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In this update we report on the implementation of the Fulfillment House Due Diligence Scheme, the National Audit Office's report on the new Customs Declaration Service and the future excise duty rate changes to cooking wine and other cooking alcohol.

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Publication

Wealth and trusts quarterly digest, August 2017

15 August 2017

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Our quarterly digest provides up to date commentary and analysis on key sector developments.

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Eastern Power – Tribunal orders HMRC to close its enquiries despite outstanding information notices

Published on 10 August 2017. By Adam Craggs, Partner

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In Eastern Power Networks Plc and others v HMRC [2017] UKFTT 494 (TC), the First-tier Tribunal (FTT) ordered HMRC to issue closure notices even though there were a number of outstanding information notices.

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Blog

Gray – FTT allows appeal against discovery assessment as ITV correctly accounted for PAYE

Published on 03 August 2017. By Michelle Sloane, Senior Associate

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In Gray v HMRC [2017] UKFTT 0275, the First-tier Tribunal (FTT) allowed the taxpayer's appeal against a discovery assessment in relation to a termination payment as there was no additional tax to assess in the relevant year and in any event the assessment was out of time.

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Blog

Rangers: Supreme Court confirms remuneration paid through EBT is subject to income tax

Published on 02 August 2017. By Alexis Armitage, Associate

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In RFC 2012 Plc (in liquidation) (formerly The Rangers Football Club Plc) v Advocate General for Scotland [2017] UKSC 45, the Supreme Court has held that remuneration payments made into an employees' remuneration trust were earnings for income tax and NICs purposes.

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Publication

Tax update, August 2017

31 July 2017

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In this update we report on the Government’s intention to use the Finance Bill (No. 2) 2017 to retrospectively implement the policies dropped from the first Finance Act 2017; amendments to the new disguised remuneration provisions in the Income Tax (Earnings and Pensions) Act 2003; and the implementation of the guidance requirement under the Criminal Finances Act 2017

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Blog

Derry – HMRC prevented from collecting tax in avoidance case

Published on 25 July 2017. By Robert Waterson, Legal Director

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In R (ota of James Derry) v HMRC [2017] EWCA Civ 435, the Court of Appeal, in allowing the taxpayer's appeal, confirmed that HMRC is not able to ignore a claim for carried back loss relief where the taxpayer has self-assessed and computed his liability to tax.

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Publication

VAT update, July 2017

24 July 2017

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In this month’s update we report on HMRC’s recent guidance on its approach to supply splitting; the Supreme Court hearing in the Littlewoods compound interest case; and the revised timetable for “Making Tax Digital”.

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Publication

New corporate criminal offence

Published on 21 July 2017. By Adam Craggs, Partner and Michelle Sloane, Senior Associate

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Failure to prevent the facilitation of tax evasion

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Oval Estates - Tribunal confirms deficiencies in invoices may not prevent VAT recovery

Published on 11 July 2017. By Nicole Kostic, Senior Associate

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In Oval Estates (Bath) Limited v HMRC [2017] UKFTT 403 (TC), the First-tier Tribunal (FTT) held that input tax was attributable to an identifiable supply and was recoverable despite allegations of deliberate and concealed behaviour.

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Blog

Märtin: Application directing HMRC to close its enquiry into tax avoidance scheme granted

Published on 10 July 2017. By Nicole Kostic, Senior Associate

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In Jörg Märtin v HMRC [2017] UKFTT 488 (TC), the First-tier Tribunal (FTT) directed HMRC to close its enquiry as it had taken no action in three years.

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Blog

Anstock - Tribunal quashes penalties imposed for failure to comply with information notice

Published on 07 July 2017. By Constantine Christofi, Associate

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Penalties for failure to comply with an information notice issued by HMRC can only be imposed if the information notice in question is unambiguous, clear and precise.

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Publication

Tax update, July 2017

Published on 04 July 2017. By Adam Craggs, Partner

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In this month’s Update we report on draft provisions for a EU wide cross-border tax planning disclosure requirement; changes to HMRC’s guidance on the WDF and announcements in the Queen’s Speech in relation to the next Finance Bill.

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Berlioz - ECJ confirms that third parties can challenge 'foreseeable relevance' of tax information exchange requests

Published on 03 July 2017. By Constantine Christofi, Associate

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In Berlioz Investment Fund SA v Directeur de l'administration des Contributions directes (Case C-682/15), the ECJ has confirmed that a Member State's national court can review a tax information request made by another Member State in order to assess whether the requested information is 'foreseeably relevant'.

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Publication

VAT update, June 2017

Published on 29 June 2017. By Adam Craggs, Partner

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In this month's update we report on proposals for the reduced VAT rate for e-publications, HMRC's first publication of VAT Notes 2017, in which it explains changes to VAT for businesses, and the latest stage in the long-running compound interest litigation involving Littlewoods.

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Blog

Rai - Tribunal quashes penalties for non-payment of PPNs and criticises HMRC's 'nitpicking pedantry'

Published on 26 June 2017. By Constantine Christofi, Associate

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In Rai v HMRC [2017] UKFTT 0467 (TC), the First-tier Tribunal (FTT) was critical of HMRC's conduct and cancelled assessments to penalties which it had issued for failure to pay on time amounts demanded in partner payment notices (PPNs), as the statutory payment period had not expired.

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Pitcher - Tribunal finds in favour of taxpayer in APN penalty appeal

Published on 19 June 2017. By Robert Waterson, Legal Director

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In Graham Pitcher [2017] UKFTT 0406 (TC), the First-tier Tribunal (FTT) allowed the taxpayer's appeal against a penalty for non-payment of an Accelerated Payment Notice (APN) due to defects in the APN.

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Blog

Archer: judicial review in the context of statutory tax appeals

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

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The High Court's judgment in R (on the application of Archer) v HMRC [2017] EWHC 296 (Admin) is one of a number of recent decisions where it has been found that the taxpayer had not challenged HMRC's decision in the correct forum.

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Rendall - Tribunal reduces penalties imposed for failure to file a partnership return to nil

Published on 01 June 2017. By Constantine Christofi, Associate

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In Rendall v HMRC [2017] UKFTT 356 (TC), the First-tier Tribunal (FTT) has reduced penalties imposed on partners for failure to file a partnership return on time to nil as the requisite information had already been disclosed to HMRC in the partners' personal self-assessment returns.

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Publication

Tax update, June 2017

Published on 31 May 2017. By Adam Craggs, Partner

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In this update we report on the scope of the Criminal Finances Bill as it receives Royal Assent; HMRC guidance updates for businesses, individuals and agents on how to make disclosures of unpaid tax; and HMRC’s further consultation on Making Tax Digital.

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Tager – Application to suspend penalties for failing to comply with information notices rejected

Published on 30 May 2017. By Alexis Armitage, Associate

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In HMRC v Romie Tager QC the Personal Representative of Osias Tager [2017] UKUT 161 (TCC), the Upper Tribunal (UT) refused an application that it should exercise its discretion under Rule 5(3) of the Tribunal Procedure (Upper Tribunal) Rules 2008 (the Upper Tribunal Rules) and suspend the effect of its decision to impose tax-related penalties for failing to comply with information notices, pending an appeal to the Court of Appeal.

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Publication

VAT update, May 2017

Published on 24 May 2017. By Adam Craggs, Partner

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In this month’s update we report on HMRC’s revised guidance on holding companies’ input VAT recovery, prelaunch trials for the online tribunal appeals service and draft legislation effecting the removal of the “use and enjoyment” rule for the supplies of B2C telecommunication services.

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Customs and excise quarterly update, May 2017

Published on 23 May 2017. By Adam Craggs, Partner

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In this update we report on the launch of the register of approved UK alcohol wholesalers, HMRC’s Customs Information Paper 5 (2017) (CIP 5), which clarifies the correct codes to use when sending free circulation goods to the special territories of the EU, and the new address for HMRC’s National Clearance Hub.

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BCM – Tribunal grants taxpayers' application for closure notices

Published on 22 May 2017. By Nicole Kostic, Senior Associate

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In BCM Cayman LP and others v HMRC [2017] UKFTT 0226 (TC), the First-tier Tribunal (FTT) directed HMRC to issue closure notices within specified time periods in respect of its enquiries into certain of the applicants' tax returns, pursuant to section 28B, Taxes Management Act 1970 (TMA) and paragraph 33, Schedule 18, Finance Act 1998 (FA 1998).

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Wealth and trusts quarterly digest

Published on 17 May 2017. By Adam Craggs, Partner

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Our quarterly digest provides up to date commentary and analysis on key sector developments from our tax, wealth and trusts teams.

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ABL – Tribunal dismisses HMRC's application to vary direction staying related cases

Published on 16 May 2017. By Alexis Armitage, Associate

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In ABL (Holding) Ltd and Tanias Properties Ltd v HMRC [2017] UKFTT 220 (TC), the First-tier Tribunal (FTT) dismissed HMRC's application to vary the FTT's direction staying over 100 related cases until the determination of the lead appellants' appeals by the Upper Tribunal (UT).

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Budget 2017 Amendments to the QROPS Regime - a Further Breach of EU Law

Published on 08 May 2017. By Robert Waterson, Legal Director

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Back in October 2013, I wrote an article for the Tax Journal (18 October 2013, The QROPS Regime and EU Law) in which I argued that the operation of the qualifying recognised overseas pension scheme (QROPS) system, introduced by Finance 2004, breached EU law and was unlawful. The recent changes introduced by the 2017 Budget not only preserve the inherent unlawfulness which has existed in the system since at least October 2008 but introduces a further breach of EU law rights. The background to the October 2013 article was my involvement in representing individuals who had transferred their UK pensions into a fund called ROSIIP.

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Publication

Corporate tax update, first quarter 2017

Published on 05 May 2017. By Adam Craggs, Partner

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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 first 2017 edition we highlight some of the key tax developments of interest to UK corporates from the first quarter of 2017.

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Tax update, May 2017

Published on 03 May 2017. By Adam Craggs, Partner

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In this update we report on HMRC’s recently amended guidance on the General Anti-Abuse Rule, HMRC’s draft guidance on the new disguised remuneration provisions in the Income Tax (Earnings and Pensions) Act 2003, and on the recent modifications to the Finance Bill 2017.

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Upper Tribunal confirms First-tier Tribunal has jurisdiction to amend tax return

Published on 02 May 2017. By Constantine Christofi, Associate

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In HMRC v Eric Walker [2016] UKUT 32, the Upper Tribunal (UT) has confirmed that the First-tier Tribunal (FTT) has the power, under section 50, Taxes Management Act 1970 (TMA), to amend a return if it decides the taxpayer is entitled to a smaller repayment than the one claimed.

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Publication

VAT update April 2017

Published on 26 April 2017. By Adam Craggs, Partner

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In this month’s update we report on HMRC’s call for evidence on alternative methods for collecting VAT for online sales, HMRC’s policy on historical VAT bad debt relief claims following the BT and GMAC decisions and the enactment of the insolvency VAT clawback concession. We also comment on three recent cases involving mistake-based claims for unjust enrichment, the VAT treatment of temporary workers and the apportionment of residual input tax for finance houses.

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Euro Packaging UK Limited – classification of long-life shopping bags

Published on 25 April 2017. By Michelle Sloane, Senior Associate

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In HMRC v Euro Packaging UK Limited [2017] UKFTT 0160, the First-tier Tribunal (FTT) allowed the Appellant's appeal against decisions of HMRC relating to the customs duty to be paid on the importation from countries outside the EU of shopping bags and its refusal to remit the customs duty.

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Tribunal cancels penalty imposed against doctor and criticises unreasonable HMRC behaviour

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

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In Dr Ragini Pandey v HMRC [2017] UKFTT 0216 (TC), the First-tier Tribunal (FTT) cancelled a penalty which had been issued by HMRC under paragraph 1, Schedule 24, Finance Act 2007 and in so doing criticised HMRC's 'unreasonable' behaviour.

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Closure Notices defective but JR dismissed as taxpayer should have appealed to the Tribunal

Published on 10 April 2017. By Adam Craggs, Partner

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In R (on the application of Archer) v HMRC [2017] EWHC 296 (Admin), the High Court agreed with the claimant that a Closure Notice issued by HMRC must state the tax due, but dismissed his application for judicial review on the ground that he should have appealed to the First-tier Tribunal (FTT).

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Publication

Tax update, April 2017

Published on 05 April 2017. By Adam Craggs, Partner

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In this update we report on recent HMRC guidance on partnership follower notices and penalties, the new employment status checker for the intermediaries legislation (IR35) and details of tax avoidance scheme for income and national insurance contributions which HMRC has highlighted in its Spotlight 37.

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SIPP scheme administrator avoids 'pension liberation' tax charge

Published on 04 April 2017. By Robert Waterson, Legal Director

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In HMRC v Sippchoice Ltd [2017] UKUT 87 (TCC) the Upper Tribunal (UT) has upheld the decision of the First-tier Tribunal (FTT) that Sippchoice should not be subject to scheme sanction charges but said that the FTT's reference to MTIC case law in assessing the evidential burden was incorrect.

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VAT update, March 2017

Published on 30 March 2017. By Adam Craggs, Partner

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In this month’s update we report on the Chancellor’s announcement in the Spring Budget that he intends to “crack down” on VAT “missing trader” fraud within the construction industry, the Offce of Tax Simplification’s Interim Report on its review of VAT, and the EU’s consultation on proposals to tackle VAT fraud.

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New legislation will allow taxpayers to seek partial closure notices

Published on 29 March 2017. By Adam Craggs, Partner

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Proposed legislation contained in Finance Bill 2017, will enable partial closure notices to be issued in respect of a discreet issue while other issues remain under enquiry by HMRC.

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Tribunal concludes that capital gains tax legislation is compliant with Human Rights and EU law

Published on 20 March 2017. By Constantine Christofi, Associate

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In William Reeves v HMRC [2017] UKFTT 192 (TC), the First-tier Tribunal (FTT) has held that section 167 Taxation of Chargeable Gains Act 1992 (TCGA) is compliant with the European Convention on Human Rights (ECHR) and EU law.

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Tribunal allows taxpayers' appeal in foreign exchange losses case

Published on 16 March 2017. By Alexis Armitage, Associate

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In Smith and Nephew Overseas Limited and others v HMRC [2017] UKFTT 151, the First-tier Tribunal (FTT) allowed appeals against HMRC's disallowance of foreign exchange losses incurred as a result of a change in functional currency following a company reorganisation.

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Ridgecrest – Tribunal allows appeal against Regulation 80 determinations

Published on 08 March 2017. By Adam Craggs, Partner

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In Ridgecrest Cleaning Services Pendergate Ltd v HMRC [2016] UKFTT 778 (TC), the First-tier Tribunal (FTT) allowed an appeal against determinations of underpaid tax made under Regulation 80 of the Income Tax (PAYE) Regulations 2003 (the PAYE Regulations), as HMRC had not obtained the necessary statutory consent from the Appellant to notify it of changes to employee PAYE codes electronically.

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HMRC's failure to exercise its discretion unreasonable

Published on 03 March 2017. By Michelle Sloane, Senior Associate

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In G B Housley Limited v HMRC [2016] EWCA Civ 1299, the Court of Appeal allowed the Appellant's appeal and restored the decision of the First-tier Tribunal (FTT) which had discharged HMRC's VAT assessment on the basis HMRC had failed to correctly exercise its discretion.

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