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Bella Figura – Unauthorised payment charge set aside

Published on 01 July 2020. By Constantine Christofi, Senior Associate

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In HMRC v Bella Figura [2020] UKUT, the Upper Tribunal (UT) held that a scheme sanction charge stood as a valid assessment and partially allowed the taxpayer's cross-appeal, setting aside HMRC's assessments of an unauthorised payments charge and surcharge as being out of time.

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Corporate tax update - June 2020

Published on 26 June 2020. By Ben Roberts, Partner and Adam Craggs, Partner and Robert Waterson, Partner

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Welcome to the latest edition of our corporate tax update, written by members of RPC’s tax team. This month’s update reports on some of the key developments from May 2020. As well as some further COVID-19 related tax developments, this month’s report also has a bit of a sports theme with summaries of decisions involving an ex-England cricket captain and football referees. As ever we hope you, your family and friends are all staying safe.

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V@ update - June 2020

Published on 26 June 2020. By Adam Craggs, Partner and Rebekka Sandwell, Senior Associate

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Welcome to RPC's V@, a monthly update on developments in the VAT world that may impact your business. In this month’s update we report on (1) VAT treatment on fixed odds betting terminals and gaming machines; (2) VAT treatment of property search fees charged by solicitors and conveyancers; and (3) domestic reverse charge VAT for construction services ­delay in implementation.

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Sippchoice – Allowable contributions to a SIPP are restricted to payments of money

Published on 24 June 2020. By Constantine Christofi, Senior Associate

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In HMRC v Sippchoice Ltd [2020] UKUT 0149 (TCC), the Upper Tribunal (UT) has allowed HMRC’s appeal and confirmed that 'contributions paid' to a SIPP are restricted to contributions of money and do not encompass transfers of non-monetary assets.

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NCL - Court of Appeal upholds tribunal decisions and confirms that a company was entitled to deductions representing IFRS 2 debits

Published on 17 June 2020. By Alexis Armitage, Associate

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In HMRC v NCL Investments Ltd and Smith & Williamson Corporate Services Ltd [2020] EWCA Civ 663, the Court of Appeal has confirmed that accounting debits relating to the grant of share options to employees were a deductible expense for corporation tax purposes notwithstanding that no monies were actually expended.

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Partners and closure notices: making amends

Published on 10 June 2020. By Adam Craggs, Partner and Constantine Christofi, Senior Associate

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In R (on the application of Amrolia) v HMRC; R (on the application of Ranjit-Singh) v HMRC [2020] EWCA Civ 488, the Court of Appeal held that notices amending individual partners’ tax returns under section 28B(4), Taxes Management Act 1970 (TMA), were not closure notices and therefore did not need to specify the final amounts of tax due.

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V@ update - May 2020

05 June 2020

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Welcome to the first edition of RPC's V@, an update on developments in the VAT world that may impact your business.

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Tax Bites - June 2020

04 June 2020

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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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Investec - Court of Appeal confirms partnership contributions not deductible

Published on 03 June 2020.

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In Investec Asset Finance Plc and Another v HMRC [2020] EWCA Civ 579, the Court of Appeal has held that partnership contributions were non-deductible, but has upheld the 'no double taxation' principle and prevented HMRC from introducing arguments not previously relied upon.

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Game Match - Football referees held not to be employed for tax purposes – the final whistle for HMRC?

Published on 27 May 2020. By Ben Roberts, Partner

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In Professional Game Match Officials Limited v HMRC [2020] UKUT 147 (TCC), the Upper Tribunal (UT) confirmed that certain football referees and other match day officials were not employees of Professional Game Match Officials Ltd (PGMOL) and accordingly it did not have tax and NICs liabilities in respect of the officials in question.

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Customs and excise quarterly update May 2020

Published on 26 May 2020. By Adam Craggs, Partner and Michelle Sloane, Partner

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In this update we report on (1) temporary changes to customs authorisations during the coronavirus outbreak; (2) the government's plans to introduce 10 new freeports; and (3) a new liability for carrying out an operation or dilution on wine. We also comment on three recent cases relating to (1) refusal of permission to appeal an excise duty assessment out of time; (2) the customs classification of mobility scooters; and (3) liability to pay excise duty in relation to the movement of dutiable goods under a suspension regime.

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Henkes – FTT has jurisdiction to determine mixed questions of fact and law on application for closure notice

Published on 20 May 2020. By Adam Craggs, Partner

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In Henkes v HMRC [2020] UKFTT 159 (TC), the First-tier Tribunal (FTT) decided that it has jurisdiction to determine mixed questions of fact and law on an application for a closure notice and appeal against an information notice.

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Corporate tax update - May 2020

19 May 2020

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Welcome to the latest edition of our corporate tax update, written by members of RPC's tax team. This month's update reports on the key developments from April 2020. April was not a “bumper” month for corporate tax developments but (as you would expect) there have been some Covid-19 related developments of note. This month's report also includes a summary of the Supreme Court's decision in Zipvit (on input VAT recovery). We hope you, your family and friends are all staying safe

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Looney – Termination payments were trading receipts

Published on 13 May 2020. By Constantine Christofi, Senior Associate

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In Kieran Looney & Anor v HMRC [2020] UKUT 0119 (TCC), the Upper Tribunal (UT) has dismissed an appeal against the First-tier Tribunal's (FTT) decision that a termination payment and other payments made under a contract entered into by a partnership to provide management training, were trading receipts of a partnership.

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Tax Bites - May 2020

07 May 2020

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Welcome to the first edition of RPC's Tax Bites ­ providing monthly bite­sized updates from the tax world.

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Coyle – Upper Tribunal refuses permission to appeal out of time

Published on 06 May 2020. By Constantine Christofi, Senior Associate

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In Michael Coyle t/a Coyle Transport v HMRC [2020] UKUT 0113 (TCC), the Upper Tribunal (UT) set aside the decision of the First-tier Tribunal (FTT) for errors of law, but reached the same conclusion as the FTT and refused the taxpayer permission to appeal out of time.

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VAT update - April 2020

Published on 30 April 2020. By Adam Craggs, Partner and Rebekka Sandwell, Senior Associate

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In this month’s update we report on (1) the Value Added Tax (Finance) Order 2020 (SI 2020/209), which amends the fund management exemption; (2) HMRC’s guidance on the deferral of VAT payments due to COVID-19; and (3) HMRC’s guidance on how importers can pay no import duty and VAT on medical supplies, equipment and protective garments.

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Davies – Taxpayers unable to benefit from motive exemption in TOAA or qualify for treaty relief

Published on 29 April 2020. By Alexis Armitage, Associate

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In Andrew Davies & Others v HMRC [2020] UKUT 67 (TCC), the Upper Tribunal (UT) held that the taxpayers did not satisfy the ‘motive exemption’ in the transfer of assets abroad (TOAA) legislation and could not benefit from treaty relief.

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Zipvit – Supreme Court considers deduction of input VAT on supplies mistakenly treated as VAT exempt

Published on 22 April 2020. By Rebekka Sandwell, Senior Associate

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In Zipvit Ltd v HMRC [2020] UKSC 15, the Supreme Court referred questions to the Court of Justice of the European Union (CJEU) regarding the correct interpretation of Article 168 of the Principal VAT Directive, in connection with the question of whether a recipient of postal services may deduct input VAT in relation to those supplies, where both parties and HMRC had mistakenly treated the supplies as exempt from VAT.

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COVID-19 – Now is not the time for businesses to be complacent

Published on 16 April 2020. By Adam Craggs, Partner and Alice Kemp, Senior Associate (Employed Barrister)

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On 31 March 2020, the Crown Prosecution Service (CPS) and National Police Chiefs' Council (NPCC) issued guidance(1) on how investigators and prosecutors are proposing to tackle the issuing of new criminal proceedings during 'an unprecedented crisis for the Criminal Justice System in the UK.

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Higgs – FTT lacks jurisdiction to disapply the PAYE Regulations

Published on 15 April 2020. By Constantine Christofi, Senior Associate

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In Philip Higgs and Others v HMRC [2020] UKFTT 117 (TC), the First-tier Tribunal (FTT) determined that it did not have jurisdiction to determine whether HMRC is entitled to exercise a discretion under section 684(7A), ITEPA, to disapply the PAYE Regulations.

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COVID-19: Your workforce – furloughing - act to mitigate the risk of exposure to tax evasion offences as scheme could be open to abuse

Published on 09 April 2020. By Alice Kemp, Senior Associate (Employed Barrister)

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Jim Harra, Chief Executive at HMRC, has informed a Treasury Committee meeting that he expects the government's multi-billion pound employee furlough scheme to be targeted by criminals seeking to exploit the £60 billion pledged in Chancellor Rishi Sunak's unprecedented Coronavirus protection package.

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COVID-19 and tax residence

Published on 09 April 2020. By Ben Roberts, Partner

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This blog considers the potential risks posed by the COVID-19 pandemic to maintaining offshore tax structures.

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Fisher – TOAA rules not applicable to sale of business from a UK company to a Gibraltar company

Published on 08 April 2020. By Adam Craggs, Partner

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In S Fisher and Others v HMRC [2020] UKUT 62 (TCC), the Upper Tribunal (UT) allowed the taxpayers' appeals and held that the transfer of assets abroad rules did not apply to the sale of a business from a UK company to a Gibraltar company, which was under the control of the same directors and shareholders.

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Tax update - April 2020

Published on 02 April 2020. By Adam Craggs, Partner

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In this month’s update we report on (1) HMRC’s updated guidance on certain arrangements which purport to avoid the ‘managed services companies’ legislation; (2) recently published draft legislation on voluntary restitution in the context of the loan charge; and (3) the Government’s decision to suspend the extension of IR35 to the private sector.

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Booth – Penalty appeal struck out

Published on 01 April 2020. By Constantine Christofi, Senior Associate

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In CF Booth Ltd v HMRC [2020] UKFTT 35 (TC), the First-tier Tribunal (FTT) struck out the taxpayer's appeal against penalties imposed for deliberate inaccuracies in its VAT returns, on the basis that the appeal amounted to an 'abuse of process'.

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VAT update - March 2020

Published on 26 March 2020. By Adam Craggs, Partner and Rebekka Sandwell, Senior Associate

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In this month’s update we report on (1) HMRC’s recently published policy paper in relation to the VAT liability of digital publications; (2) EU Council Regulation (EU) 2020/283 and Council Directive (EU) 2020/284 in relation to combatting VAT fraud; and (3) EU Council Directive (EU) 2020/285 in relation to the special scheme for small enterprises. We also comment on three recent cases which consider (1) whether a specific form is required for the notification of an assessment of VAT; (2) when VAT is collectable as a debt due; and (3) what constitutes a reasonable excuse for incorrectly issuing a zero-rating VAT certificate.

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Credit Suisse: Appeal allowed as HMRC had failed to open a valid enquiry

Published on 25 March 2020. By Constantine Christofi, Senior Associate

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In Credit Suisse Securities (Europe) Ltd and others v HMRC [2020] UKFTT 86 (TC), the First-tier Tribunal (FTT) allowed a company's appeal against a closure notice on the grounds that HMRC had not issued a valid notice of enquiry.

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McMillan – Gambling proceeds not taxable income

Published on 18 March 2020. By Constantine Christofi, Senior Associate

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In McMillan v HMRC [2020] UKFTT 0082 (TC), the First-tier Tribunal (FTT) held that proceeds of gambling were not taxable income.

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Aria Technology – No specific form required for notification of assessment of VAT

Published on 11 March 2020. By Alice Kemp, Senior Associate (Employed Barrister)

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In Aria Technology Ltd v HMRC [2020] EWCA Civ 182, the Court of Appeal confirmed that there is no particular form or formality required of an assessment under section 73(1), Value Added Tax Act 1994 (VATA) and an assessment can be contained in more than one document as long as the minimum requirements are set out in a clear and unambiguous way.

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Tax update - March 2020

05 March 2020

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In this month’s update we report on (1) updated guidance provided in HMRC’s SDLT manual in relation to section 75A, Finance Act 2003; (2) a House of Commons briefing paper discussing insolvency and joint and several liability notices for directors; and (3) a Policy Paper concerning upcoming changes to the regulations for the Non-residents Landlord Scheme. We also comment on three recent cases relating to (1) capital gains losses incurred in respect of properties which were never completed; (2) a landfill “fluff” case; and (3) inheritance tax agricultural property and business property relief.

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Linpac – Tribunal confirms that EU group relief claims did not replace earlier domestic claims to relief

Published on 04 March 2020. By Michelle Sloane, Partner

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In Linpac Group Holdings Ltd v HMRC [2020] UKFTT 60 (TC), the First-tier Tribunal (FTT) allowed an appeal against an HMRC decision that the taxpayer's claim for group relief had been withdrawn by a subsequent claim.

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VAT update - February 2020

26 February 2020

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In this month’s update we report on (1) publication by the EU of the Implementing Regulation (EU) 2020/21; (2) publication by HMRC of letters to businesses regarding preparations for customs and border arrangements after the Brexit transition period; and (3) the new Value Added Tax (Miscellaneous Amendments, Revocation and Transitional Provisions) (EU Exit) Regulations 2019 (Appointed Day No. 1) (EU Exit) Regulations 2020. We also comment on three recent cases which consider (1) the application of the Halifax principle to what HMRC considered to be VAT avoidance arrangements involving supplies of winter sports training; (2) whether there is a private right of action to enforce the statutory duty to provide a VAT invoice; and (3) whether the general partner of a property fund was entitled to recover VAT incurred on set-up and operating costs.

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MXC Dunlin – Interest due on repayments of tax paid in the 1980s

Published on 26 February 2020. By Constantine Christofi, Senior Associate

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In MCX Dunlin (UK) Ltd v HMRC [2020] EWHC 11 (Ch), the High Court has held that interest was due on repayments of liabilities to petroleum revenue tax (PRT) dating from the 1980s, which had been met by crediting advance PRT (APRT).

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Corporate failure to prevent tax evasion update – a policy is not enough

Published on 21 February 2020. By Michelle Sloane, Partner

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It is no secret that the government has a laser focus on making corporates pay for their roles in "facilitating" tax evasion. Recent figures show that HMRC are serious in their drive to hold companies responsible for tax evasion; even companies with seemingly watertight procedures are susceptible. Now is the time to ensure that your regimes are watertight.

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Customs and excise quarterly update February 2020

20 February 2020

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In this update we report on the government’s plans to (1) introduce 10 new freeports; (2) introduce import controls; and (3) its consultation into the UK’s tariff policy following the UK’s departure from the EU. We also comment on three recent cases relating to (1) time limits to issue a post-clearance demand under the Community Customs Code; (2) tariff classification of fluid and blanket warming cabinets used in hospitals; and (3) what constitutes “complicity” in the context of smuggling.

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Snow Factor – Tribunal applies Halifax principle to redefine supplies of winter sports training

Published on 19 February 2020. By Rebekka Sandwell, Senior Associate

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In Snow Factor Ltd and Snow Factor Training Ltd v HMRC [2019] UKFTT 0664 (TC), the First-tier Tribunal (FTT) found that certain VAT arrangements were abusive within the scope of the Halifax principle, and redefined supplies of winter sports training by a non-profit making company as a supply by its profit making parent and therefore as falling outside the education exemption in Item 1, Group 6, Schedule 9, Value Added Tax Act 1994 (VATA).

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Charnley - Tribunal puts HMRC out to pasture in allowing business and agricultural relief

Published on 12 February 2020. By Michelle Sloane, Partner

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In W Charnley and M Hodgkinson as executors of the estate of Thomas Gill (deceased) v HMRC [2019] UKFTT 0650 (TC), the First-tier Tribunal (FTT) confirmed that inheritance tax agricultural property relief (APR) and business property relief (BPR) was available in relation to Mr Gill's estate.

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Tax update - February 2020

06 February 2020

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In this month’s update we report on (1) HMRC’s Venture Capital Schemes Manual; (2) the review into the off-payroll working rules; and (3) a briefing paper regarding retrospective taxation put before the House of Commons. We also comment on three recent cases relating to (1) the meaning of “structure” for the purposes of capital allowances; (2) an HMRC challenge to carry-back loss relief claims; and (3) principal private residence relief.

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Devon Waste Management – Waste firms win appeal in landfill 'fluff' case

Published on 05 February 2020. By Constantine Christofi, Senior Associate

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In Devon Waste Management Ltd and Others v HMRC [2020] UKUT 1 (TCC), the Upper Tribunal (UT) has held that the disposal of certain waste materials did not attract a charge to landfill tax.

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VAT update - January 2020

30 January 2020

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In this month’s update we report on (1) changes to the rules relating to distance selling; (2) changes to VAT for intra-EU chain transactions and zero rated goods; and (3) HMRC’s guidance on proposed changes to the VAT treatment of call-off stock arrangements. We also comment on three recent cases which consider (1) whether VAT zero rating is available for electronic editions of newspapers; (2) the scope and meaning of “services of consultants”, for the purposes of Article 59(c), Principal VAT Directive; and (3) the deductibility of input tax on fees incurred in implementing a tax scheme.

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Lloyd-Webber – capital gains losses allowed over properties which were never completed

Published on 29 January 2020. By Constantine Christofi, Senior Associate

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In Lloyd-Webber and another v HMRC [2019] UKFTT 717 (TC), the First-tier Tribunal (FTT) has held that a payment made under a contract for the acquisition of land was for the acquisition of contractual rights, rather than for the land, giving rise to an allowable loss on termination of the contract.

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SSE Generation – UT considers the meaning of structure for the purposes of capital allowances

Published on 22 January 2020. By Rebekka Sandwell, Senior Associate

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In HMRC v SSE Generation Ltd [2019] UKUT 332 (TCC), the Upper Tribunal (UT) dismissed HMRC's appeal against the decision of the First-tier Tribunal (FTT) that the taxpayer was eligible for capital allowances in relation to certain expenditure it incurred in connection with the construction of the Glendoe Hydro Electric Power Scheme.

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Taylor Pearson – input tax on fees incurred in implementing a tax scheme

15 January 2020

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In Taylor Pearson (Construction) Limited v HMRC [2019] UKFTT 691 (TC), the First-tier Tribunal (FTT) has held that input tax on fees incurred in implementing a tax scheme, intended to remunerate directors in a tax efficient manner, was deductible.

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Higgins – for the purposes of PPR relief "period of ownership" starts on completion

Published on 08 January 2020. By Michelle Sloane, Partner

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In Desmond Higgins v HMRC [2019] EWCA Civ 1869, the Court of Appeal has held that the date of acquisition of an off-plan property for the purposes of principal private residence relief (PPR) was the date of completion and not the date of exchange of contracts.

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Jafari – HMRC criticised for breach of its duty to assist the Tribunal

Published on 18 December 2019. By Constantine Christofi, Senior Associate

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In Jafari v HMRC [2019] UKFTT 692 (TC), the First-tier Tribunal (FTT) criticised HMRC for failing in its duty to bring relevant authorities to its attention.

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Contentious tax quarterly review (Q4 2019)

Published on 16 December 2019. By Adam Craggs, Partner and Constantine Christofi, Senior Associate

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In this quarterly review we consider: HMRC’s increasing propensity to seek to strike out the taxpayer’s case; recent developments in relation to IR35; the timing of tribunal decisions; and the potential implications of the Inverclyde decision.

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Knibbs – HMRC's challenge to carry-back loss relief claims was correct

Published on 11 December 2019. By Constantine Christofi, Senior Associate

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In Knibbs and ors v HMRC and R (oao Astley and ors) v HMRC [2019] EWCA Civ 1719, the Court of Appeal has held that Schedule 1B, Taxes Management Act 1970 (TMA) can apply to a claim for carry-back loss relief.

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Tax update - December 2019

05 December 2019

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In this month’s update we report on (1) two recent decisions concerning insolvent companies and EBTs in the context of insolvency law; (2) proposed legislation on HMRC’s use of automated processes; and (3) the taxation of cryptoasset transactions using exchange tokens. We also comment on three recent cases relating to (1) legitimate expectation; (2) the payment of costs by HMRC due to its unreasonable behaviour; and (3) the meaning of ‘deliberate’ in the Taxes Acts.

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Locke – Court of Appeal quashes follower and accelerated payment notices

Published on 04 December 2019. By Adam Craggs, Partner

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In R (on the application of Locke) v HMRC [2019] EWCA Civ 1909, the Court of Appeal quashed follower and accelerated payment notices issued to a participant in a film finance partnership, because HMRC had been wrong in considering that a judicial ruling was relevant to the arrangements under consideration.

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