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Tax Take

Blog

Tribunal allows set-off of corporation tax loss against income tax profit

Published on 14 September 2016. By Robert Waterson, Legal Director

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In English Holdings Ltd v HMRC [2016] UKFTT 0346 (TC), the First-tier Tribunal (FTT) allowed an appeal by a non-UK resident company against a decision of HMRC refusing its claim to offset losses arising in its UK permanent establishment (PE) against profits earned by its UK property rental business.

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Errors of law in MTIC case leads to case being remitted to the First-tier Tribunal

Published on 09 September 2016. By Constantine Christofi, Associate

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In HMRC V Pacific Computers Ltd [2016] UKUT 350 (TCC), the Upper Tribunal (UT) has concluded that the First-tier Tribunal (FTT) made errors of law that had been material to the outcome of a taxpayer's appeal in a case involving missing trader intra-community (MTIC) fraud.

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Tribunal finds in taxpayer's favour in IBA case

Published on 02 September 2016. By Adam Craggs, Partner

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In David Wellstead v HMRC [2016] UKFTT 0492 (TC), the First-tier Tribunal (FTT) has held that where a developer acquired a lease of land, constructed industrial units on that land and sold one of the units by way of an under-lease, the grant of the under-lease amounted to the sale of a relevant interest for the purposes of section 296, Capital Allowances Act 2001 (CAA 2001), entitling the purchaser to claim industrial buildings allowances (IBAs) on the purchase price.

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Publication

Tax update, September 2016

Published on 31 August 2016. By Adam Craggs, Partner

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In this month's edition we report on (1) HMRC's much anticipated consultation on proposals to tackle disguised remuneration (2) further amendment to the Finance Bill 2016 in relation to EBT settlement relief and (3) HMRC's consultation on proposed penalties for "enablers" of tax avoidance arrangements. We also comment on three recent cases concerning penalties, scheme sanction changes and industrial buildings allowance.

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Harry Potter star loses £1m battle with HMRC

Published on 25 August 2016. By Robert Waterson, Legal Director

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The First-tier Tribunal (FTT) has held that a taxpayer's new accounts did not meet the requirements of section 217, Income Tax (Trading and Other Income) Act 2005 (ITTOIA), for a change in accounting date, as the accounts did not exist when HMRC were notified of the change.

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Publication

VAT update, August 2016

24 August 2016

In this month's edition of our VAT update we report on (1) the Law Society's response to HMRC's consultation on VADRA, (2) HMRC's new brief on TOGCs, and (3) HMRC's new policy paper on "Use and Enjoyment" of insurance repair. We also comment on three recent cases concerning Article 9 of the VAT Directive, repayment of VAT by an individual member of a VAT group, and a "hardship" application.

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SIPP scheme administrator avoids 'pension liberation' tax charge

17 August 2016

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In a recent case the First-tier Tribunal (FTT) has found that HMRC was wrong to refuse Sippchoice's application for the discharge of liability to scheme sanction charges in circumstances where it was not aware of a pension liberation scheme being operated in respect of the pension scheme's invested funds.

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Taxpayer succeeds on penalties issue in Pendulum scheme

Published on 10 August 2016. By Robert Waterson, Legal Director

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In a recent case the First-tier Tribunal (FTT) has found that a taxpayer was not fraudulent or negligent in the completion of his tax return when relying on the advice of his professional advisors.

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Taxpayer wins appeal against HMRC after receiving contradictory tax demand

Published on 04 August 2016. By Alexis Armitage, Associate

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In Walkers’ Baggage Transfer Company Ltd v HMRC [2016] UKFTT 0415 (TC), the First-tier Tribunal (FTT) has allowed the taxpayer's appeals and concluded that the appellant had accounted for the PAYE properly due in relation to one of its employees over a three year period.

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Publication

Tax update, August 2016

04 August 2016

In this month's edition we report on (1) HMRC's new guidance on contracting-out for defined benefit pension schemes (2) this years' tax take, (3) a new EU directive aimed at reducing corporate tax avoidance. We also comment on three recent cases concerning the validity of a discovery assessment, the tribunal's hardened approach to compliance with directions, and the validity of a notice of enquiry.

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Publication

VAT update, July 2016

28 July 2016

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In this month’s edition of our VAT update we will report on (1) the EU Council’s variation to the Principal VAT Directive relating to vouchers, (2) HMRC’s update on VAT Notice 708, and (3) a variation in the law on the applicably of VAT to offshore property held by insurers. We also comment on three recent cases concerning the supply of services by a bank, the applicability of VAT to an incomplete transfer of title, and whether VAT is payable on charitable donations.

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Blog

Tribunal allows taxpayer's appeal as notice of enquiry was invalid

Published on 27 July 2016. By Adam Craggs, Partner

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First-tier Tribunal (FTT) determined that HMRC had not given a valid notice of intention to enquire into the taxpayer's return because the purported notice of enquiry referred to tax year ended 6 April 2009, rather than 5 April 2009.

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High Court criticises HMRC's conduct finding that it breached taxpayer's legitimate expectation

Published on 20 July 2016. By Adam Craggs, Partner

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High Court criticises HMRC's conduct finding that it breached taxpayer's legitimate expectation

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Publication

Corporate tax update, second quarter 2016

19 July 2016

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On 23 June 2016 the UK voted to leave the EU in an historic referendum result. A period of some political, economic and social uncertainty will undoubtedly follow (and we've already had a turbulent few weeks) but as far as corporate tax is concerned there should be no immediate consequences. It remains to be seen what happens to the planned further reduction in corporation tax to 15% as announced by the then-Chancellor George Osborne. Some initial views on the likely corporate tax consequences of Brexit are set out below. It has also been announced that Royal Assent to this year's Finance Bill is not now expected before the Autumn. In the aftermath of the referendum result, it is perhaps easy to forget that some significant changes to the UK corporate tax regime are planned. Whether all of these changes now proceed, at the pace originally intended, will become clear in due course. In this edition we therefore also highlight some of the key tax developments of interest to UK corporates from the second quarter of 2016.

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Blog

Failure to comply with direction leads to strike out of taxpayers' appeals

Published on 15 July 2016. By Adam Craggs, Partner

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In the recent case of Grindley & Others v HMRC [2016] UKFTT 0834 (TC), the First-tier Tribunal (FTT) has directed that the taxpayers' appeals be struck out for failure to comply with a direction issued by the FTT.

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Blog

Tribunal finds HMRC was not entitled to issue a discovery assessment

Published on 08 July 2016. By Adam Craggs, Partner

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In Anderson v HMRC [2016] UKFTT 335 (TC), the First-tier Tribunal (FTT) allowed the taxpayer's appeal and held that HMRC was not entitled to issue a discovery assessment pursuant to section 29(1) TMA, as the taxpayer had not been careless.

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Publication

Tax update, July 2016

06 July 2016

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In this month's edition of our Tax Update we will report on HMRC's (1) revised corporate interest deductibility rules consultation, (2) new company taxation manual, and (3) off-payroll working and IR35 consultation. We also comment on three recent cases concerning 'trading', the applicability of income tax on employment termination payments, and SDLT planning.

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Blog

Tribunal dismisses taxpayer's appeal as trade not conducted on a commercial basis

Published on 30 June 2016. By Adam Craggs, Partner

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In Gray v HMRC [2016] UKFTT 0379 (TC), the First-tier Tribunal (FTT) has held that a taxpayer conducting promotional activities for his musician wife was not entitled to set losses from those activities against profits from his legal business.

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Publication

VAT update, June 2016

29 June 2016

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The result of last week's referendum on the UK's membership of the EU is likely to lead to a prolonged period of uncertainty in many areas of taxation

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Taxpayer victory in Project Blue SDLT sub-sale case

Published on 14 June 2016. By Robert Waterson, Legal Director

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Publication

Tax update

01 June 2016

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The Finance Bill 2016 contains provisions which will introduce a specific penalty linked to the General Anti-Abuse Rule (GAAR) provisions.

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Would you know what to do if you received a Production Order from HMRC?

Published on 27 May 2016. By Adam Craggs, Partner

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Last year HMRC issued over 1,400 production orders. They were issued by HMRC’s Criminal Investigation Directorate, as part of investigations into tax evasion and money laundering.

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Blog

Tribunal allows taxpayer's appeal following poor customer service by HMRC

Published on 13 May 2016. By Adam Craggs, Partner

In Usher & Perkins, Executors of Terence J Guy (deceased) v HMRC [2016] (TC04849), the First-tier Tribunal (FTT), allowed the executors' appeal against a penalty.

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Blog

Tribunal considers carelessness test and finds discovery assessments to be invalid

Published on 05 May 2016. By Alexis Armitage, Associate

In Bubb v HMRC [2016] UKFTT 0216 (TC), the First-tier Tribunal (FTT) allowed the taxpayer's appeals and concluded that two discovery assessments made by HMRC under section 29, TMA 1970, were not validly made because only part of the tax underpayment resulted from the taxpayer's carelessness.

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Publication

Tax update

04 May 2016

In the 2016 Budget, the Chancellor announced proposed legislation to tackle so-called “disguised remuneration”. HMRC has now published an impact note and draft legislation.

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Publication

Corporate tax update

03 May 2016

Welcome to the latest edition of our Corporate Tax Update, written by members of RPC’s tax team and published quarterly. In this edition we highlight some of the key tax developments of interest to UK corporates from the first quarter of 2016.

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Tribunal finds that deferred shares are ordinary shares for the purposes of entrepreneurs' relief

28 April 2016

In Alan Castledine v HMRC [2016] UKFTT 145, the First-tier Tribunal (FTT) dismissed Mr Castledine's appeal and found that deferred shares qualified as ordinary shares for the purposes of entrepreneurs' relief.

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Publication

VAT update

28 April 2016

On 7 April 2016, the European Commission adopted a Communication on an Action Plan on VAT, which sets out the first steps the Commission intends to take with the aim of creating a single EU VAT area.

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Review letter from HMRC should be read as cancelling discovery assessment

21 April 2016

In Easinghall Limited v HMRC [2016] UKUT 105 (TCC), the Upper Tribunal (UT) has confirmed that where an agreement has been reached with HMRC under section 54, Taxes Management Act 1970 (TMA 1970), it cannot commence an enquiry or issue a discovery assessment unless they concern an issue which was not the subject of the agreement.

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Tribunal rules HMRC's enquiry invalid

15 April 2016

In Revell v HMRC [2016] UKFTT 97, the First-tier Tribunal (FTT) held that a purported enquiry by HMRC into an unsolicited tax return was invalid and allowed the taxpayer's appeal.

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Publication

Offshore tax evasion

11 April 2016

The “Panama Papers”

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Businesses need to ensure that they do not unwittingly facilitate tax evasion

Published on 07 April 2016. By Adam Craggs, Partner

The Panamanian law firm Mossack Fonesca and the so called 'Panama Papers' have dominated headlines in recent days.

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Publication

Tax update

04 April 2016

On 1 February 2016, HMRC took the unusual step of publishing draft regulations through the CIOT (rather than its own) website.

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Publication

VAT update

31 March 2016

Next steps following the change to the reduced rate of VAT for energy saving materials

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Blog

Supreme Court considers the Ramsay principle in UBS and DBG Services

30 March 2016

In UBS AG v HMRC and DB Group Services (UK) Ltd v HMRC [2016] UKSC 13, two cases which were heard together, the Supreme Court found in favour of HMRC by applying the so-called Ramsay principle[1].

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Court of Appeal confirms that HMRC must comply with rules and directions issued by the tax tribunals

Published on 23 March 2016. By Robert Waterson, Legal Director

The following is based on an article first published in Tax Journal on 8 March 2016.

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High court grants summary judgment against HMRC in FII Group Litigation claims

Published on 16 March 2016. By Alexis Armitage, Associate

In the recent case of Evonik Degussa UK Holdings Ltd & Ors v Revenue And Customs [2016] EWHC 86 (Ch), the High Court granted a number of claimants summary judgment in relation to part of their claims in the Franked Investment Income Group Litigation (FII Group Litigation).

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Blog

Tribunal quashes HMRC's decision to require security from the taxpayer

09 March 2016

In Half Penny Accountants Ltd v HMRC [2016] UKFTT 45 (TC), the First-tier Tribunal (FTT) allowed the taxpayer's appeal and quashed HMRC's decision to require security from the taxpayer.

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Publication

Tax update

02 March 2016

DOTAS: New regulations on hallmarks

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Blog

Discovery Assessments and the 'hypothetical officer'

Published on 01 March 2016. By Adam Craggs, Partner

The following is taken from an article originally published in Tax Journal on 26 February 2016.

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HMRC escapes strike out notwithstanding its unreasonable behaviour in failing to comply with directions issued by the Tribunal

26 February 2016

In the recent case of PGPH Limited v HMRC [2016] UKFTT 46 (TC), the First-tier Tribunal (FTT) declined to exercise its powers under Rule 8 of the Tribunal Procedure (First-tier Tribunal) (Tax Chamber) Rules 2009 (the Rules), to strike out HMRC's case following HMRC's failure properly to comply with a direction issued by the FTT.

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Publication

VAT update

25 February 2016

Commission publishes an Action Plan on VAT

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High Court dismisses judicial review challenge to HMRC's decision to restrict the availability of the Liechtenstein disclosure facility

Published on 18 February 2016. By Alexis Armitage, Associate

In R (on the application of City Shoes Wholesale Ltd) v Revenue & Customs Commissioners [2016] EWHC 107 (Admin), the High Court rejected an application for judicial review of HMRC's refusal to grant the nine claimants, all of whom had operated employee benefit trusts (EBTs), the full benefits of the Liechtenstein disclosure facility (LDF).

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Tribunal grants 'disclosure' application against HMRC

Published on 12 February 2016. By Adam Craggs, Partner

The recent case of Tower Bridge GP Ltd v HMRC [2016] UKFTT 054 (TC) concerned applications by Tower Bridge GP Limited (Tower Bridge) and HMRC to the First-tier Tribunal (FTT) for disclosure of information and documents from each other, pursuant to Rule 5 of the Tribunal Procedure (First-tier Tribunal) (Tax Chamber) Rules 2009 (the Tribunal Rules).

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Tribunal allows taxpayer's appeal and confirms he was carrying on a trade on a commercial basis

05 February 2016

In Akhtar Ali v HMRC [2016] UKFTT 8 (TC), the First-tier Tribunal (FTT), in allowing the taxpayer's appeal, has provided some helpful guidance on the factors to be taken into consideration when deciding whether activities comprise a trade which is commercial, for the purposes of section 66, Income Tax Act 2007 (ITA).

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Publication

Tax update

03 February 2016

Increased SDLT for second homes and buy-to-let properties to apply to all

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Court of Appeal confirms validity of third party information notices

Published on 29 January 2016. By Adam Craggs, Partner

In Derrin Brothers Properties Limited & Others v HMRC [2016] EWCA Civ 15, the Court of Appeal has dismissed the Appellants' appeal against the High Court's refusal to quash third party information notices issued by HMRC pursuant to paragraph 2, Schedule 36, Finance Act 2008 (the Notices).

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