Tax Take
Judicial review: does the Court of Appeal’s decision in Murphy offer taxpayers a glimmer of hope?
Judicial review provides a constitutionally important judicial check on the exercise of statutory powers by public bodies such as HMRC. However, the wide margin of appreciation afforded to public bodies by the courts, coupled with recent reforms to the judicial review process, make it a remedy of last resort that can be difficult for taxpayers to pursue successfully. In overturning the High Court’s refusal of the taxpayers’ judicial review claim, the Court of Appeal in Murphy v HMRC confirmed that HMRC had breached their legitimate expectation as to the application of an extra-statutory concession. While Murphy is unlikely to be the harbinger of a wholesale rebalancing of the judicial review scales in the taxpayer’s favour, it is a welcome step in the right direction.
Read more'Dawn Raids' – what to do should HMRC come knocking!
In the post-pandemic world, the number of dawn raids being carried out is on the increase. Against such a backdrop, it is crucial that businesses are fully prepared should the unthinkable happen.
Read moreHMRC's attempt to strike out appeal fails
The First-tier Tribunal refused HMRC's application for the taxpayer's appeal to be struck out on the basis the appeal had no reasonable prospects of success.
Read moreLet us in!
Adam Craggs and Michelle Sloane explain what a business should do should HMRC come calling unexpectedly.
Read moreInterest in possession trust was ineffective in avoiding inheritance tax charge
In dismissing the taxpayer's appeal, the First-tier Tribunal held that the assets of a property trust were beneficially held by the principal beneficiary and formed part of her estate for inheritance tax purposes.
Read moreWhen is a 'tunnel' not a tunnel, for capital allowances purposes?
In HMRC v SSE Generation Ltd [2023] UKSC 17, the Supreme Court confirmed that capital allowances are available in respect of parts of a hydroelectric power station.
Read moreWealth Tax & Wealth Inequality- with Dr Ben Tippet
As questions of economic resource allocation push to the forefront of the national consciousness there has been a rise in the number of people calling for either new taxes or wholesale tax reform.
Read moreTax Bites - June 2023
Welcome to the latest edition of RPC's Tax Bites - providing monthly bite-sized updates from the tax world.
Read moreTribunal confirms tax assessments out of time
In Ramasamy Danapal v HMRC [2023] UKUT 00086 (TCC), the Upper Tribunal (UT) held that discovery assessments founded on the alleged careless and/or deliberate conduct of a taxpayer's accountants were out of time as the requisite conduct had not been established.
Read moreCustoms and excise quarterly update - May 2023
Welcome to the May 2023 edition of RPC's Customs and Excise Quarterly Update.
Read moreV@ update - May 2023
Welcome to the May 2023 edition of RPC's V@, a monthly update which provides insightful analysis and news from the VAT world relevant to your business.
Read moreTribunal confirms that HMRC may open an enquiry into a protective SDLT return
Upper Tribunal confirms that HMRC may open an enquiry into a protective SDLT return and that no special limitation period applies to SDLT closure notices.
Read moreMitchell: taxpayer confidentiality and a crisis of confidence?
Dismissing the taxpayer's appeal, the Court of Appeal held that the First-tier Tribunal is not empowered to adjudicate on the exercise of HMRC's powers of disclosure under section 18 of the Commissioners for Revenue and Customs Act 2005.
Read moreTribunal finds HMRC's discovery assessment to be invalid
The First-tier Tribunal allowed the taxpayer's appeal as HMRC's discovery assessment was invalid due to there being no valid return because the taxpayer's agent had acted fraudulently in filing his return.
Read moreTax Bites - May 2023
Welcome to the latest edition of RPC's Tax Bites - providing monthly bite-sized updates from the tax world.
Read moreDocuments subject to legal advice privilege were not disclosable to HMRC
The First-tier Tribunal granted the taxpayers' application for the tribunal to determine whether certain documents were subject to legal professional privilege and were therefore not required to be disclosed to HMRC.
Read moreV@ update - April 2023
Welcome to the April 2023 edition of RPC's V@, an update which provides analysis and news from the VAT world relevant to your business.
Read moreDiscovery assessment issued during enquiry period was invalid
Allowing the taxpayer's appeal in part, the Upper Tribunal held that a discovery assessment made during the enquiry period was invalid because the conditions in section 29(5) Taxes Management Act 1970 could not be satisfied at that time.
Read moreLineker 1 v 0 HMRC
Gary Lineker wins IR35 tax appeal due to unanticipated effect of partnership law on his contracts with the BBC and BT Sport.
Read moreTribunal orders HMRC to close its enquiries
Tribunal grants taxpayers' applications and orders HMRC to issue closure notices within six weeks in relation to open HMRC self-assessment enquiries.
Read moreTax Bites - April 2023
Welcome to the latest edition of RPC's Tax Bites - providing monthly bite-sized updates from the tax world.
Read more'Voice of Rugby' wins IR35 tax appeal
The First-tier Tribunal found for the taxpayer in a recent IR35 case, finding that he was "in business on his own account" and should not therefore be treated as an employee for tax purposes.
Read moreWomen in Tax Network: Connecting Professionals
Listen to our latest episode of Taxing Matters in which we highlight the award-winning network, Women in Tax, which is helping to develop networking opportunities within the tax world. We are joined by two of its amazing committee members, Chair Tasneem Kadiri and Events Committee Member, Alexis Armitage.
Read moreV@ update - March 2023
Welcome to the March 2023 edition of RPC's V@, an update which provides analysis and news from the VAT world relevant to your business.
Read moreIHT appeal allowed as friend of deceased had no interest in possession
The First-tier Tribunal allowed appeals against HMRC's inheritance tax decision finding that no interest in possession existed so no inheritance was due upon the eventual sale of the deceased's property.
Read moreTribunal finds that transfer of a business occurred when there was a settled intention to transfer it
Allowing the taxpayers' appeals, the First-tier Tribunal held that a de facto transfer of a business had occurred at the time at which the parties had a settled intention to transfer the business, notwithstanding there was no written contract at that time.
Read moreTribunal dismisses HMRC's appeal and confirms notification under DOTAS is only required for the first occasion the scheme is implemented
HMRC lose appeal regarding DOTAS notification dates; UT holds that obligation of promoter to notify tax avoidance arrangements arises only at arrangement and first implementation stages.
Read moreAre you ready for the Economic Crime Levy?
On 28 February 2023, HM Treasury published draft regulations, together with an explanatory memorandum, that revise and make further provision for assessment, payment, collection, and enforcement of the Economic Crime Levy (ECL).
Read moreShifting the dial on ESG
For international women's day we have produced a special episode of our Taxing Matters podcast, in which we discuss macro trends in ESG and gender diversity at work, the meso-level changes within organisations and the micro changes on a personal level talking through trends in ESG. Did we lose momentum during Covid? Do we still have the emphasis in the right places? And what can each of us do to shift the dial?
Read moreExpenditure incurred on the construction of a nuclear deconversion facility did not qualify for capital allowances
Court of Appeal overturns the Upper Tribunal's decision to set aside the First-tier Tribunal’s decision that expenditure incurred on the construction of nuclear deconversion facility did not qualify for capital allowances.
Read moreTax Bites - March 2023
Welcome to the latest edition of RPC's Tax Bites - providing monthly bite-sized updates from the tax world.
Read moreTax Tribunal allows appeal and confirms interim dividend was not "due and payable"
In Gould v HMRC, the First-tier Tribunal allowed the taxpayer's appeal and found that an interim dividend paid to the taxpayer was taxable on the date of payment, not the earlier date of declaration.
Read moreCorporate tax update – February 2023
Welcome to the latest edition of our Corporate Tax Update, written by members of RPC's tax team.
Read moreCouldn’t careless? Reasonable care and the role of professional advisers
Whilst taking professional advice will usually mean a taxpayer has taken reasonable care, not taking advice does not necessarily mean a taxpayer has been careless.
Read moreV@ update - February 2023
Welcome to the February 2023 edition of RPC's V@, an update which provides analysis and news from the VAT world relevant to your business.
Read moreCustoms and excise quarterly update - February 2023
Welcome to the February 2023 edition of RPC's Customs and Excise Quarterly Update.
Read moreTribunal allows taxpayers' appeals against Schedule 36 information notices and directs HMRC to issue closure notices
The First-tier Tribunal allowed the taxpayers' appeals against HMRC's Schedule 36 Finance Act 2008 information notices, finding that the information requested was not 'reasonably required' and directed HMRC to issue closure notices within 90 days.
Read moreHMRC ordered to pay taxpayer's costs due to unreasonable behaviour
Granting the taxpayer's application for costs, the First-tier Tribunal held that HMRC had behaved unreasonably in not properly considering whether it could defend the appeal on the basis of arguments that had been previously rejected by the FTT and in not withdrawing from the proceedings at an earlier stage.
Read moreVictory against HMRC - but at what cost?
From a review of recent costs decisions handed down by the First-tier Tribunal (FTT), it is difficult to escape the conclusion that the FTT can be guilty of inconsistency and results-led reasoning when exercising its jurisdiction in relation to costs orders.
Read moreUnravelling the differences between the UK & US tax systems
In this episode of Taxing Matters, we are joined by Alex Jones and Graeme Privett who share their insights and views on how the US and UK are less similar than people might think and how this could lead well-meaning taxpayers into avoidable difficulties.
Read moreTax Bites - February 2023
Welcome to the latest edition of RPC's Tax Bites - providing monthly bite-sized updates from the tax world.
Read moreTribunal confirms that dividends declared but withheld from recipients do not constitute taxable income
Taxpayer win in relation to income tax liability on dividends; FTT passes comment on validity of discovery assessments.
Read moreVictory – but at what cost?
From a review of recent costs decisions handed down by the FTT, it is difficult to escape the conclusion that the FTT can be guilty of inconsistency and results-led reasoning when exercising its jurisdiction in relation to costs orders.
Read moreV@ update - January 2023
Welcome to the January 2023 edition of RPC's V@, an update which provides analysis and news from the VAT world relevant to your business.
Read moreTribunal rejects mixed use relief argument but allows SDLT appeal on the basis that multiple dwellings relief is available
Tax Tribunal rejects mixed use relief argument but allows SDLT appeal on the basis that multiple dwellings relief is available in respect of two properties.
Read moreCorporate tax update - January 2023
Welcome to the latest edition of our Corporate Tax Update, written by members of RPC's tax team.
Read moreTribunal confirms it has jurisdiction to consider an argument of abuse of process based on excessive delay on the part of HMRC
Tribunal allows taxpayers' appeals against discovery determinations and penalties and confirms it has jurisdiction to consider an argument of abuse of process based on excessive delay on the part of HMRC.
Read moreCourt of Appeal confirms that management expenses were capital in nature and not deductible for Corporation Tax purposes
In HMRC v Centrica Overseas Holdings Ltd [2022] EWCA Civ 1520, the Court of Appeal (CoA) confirmed that certain professional fees incurred in the run-up to the disposal of a subsidiary were expenses of management but also capital in nature and therefore not deductible for Corporation Tax purposes.
Read moreTribunal orders HMRC to close its enquiry
Granting the taxpayer's application for a closure notice, the First-tier Tribunal held that there were no reasonable grounds for HMRC to maintain its enquiry into the taxpayer's claim to charity tax relief, instead concluding that HMRC must close its enquiry on the information and documentation it held.
Read moreHMRC left in poor spirits following severe rebuke from the Tribunal
Penalty appeals related to alcohol inward diversion fraud upheld and HMRC evidence criticised.
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