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Tax Take

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"Horse play" – Tribunal concludes that racehorse ownership was a gamble and not a trade and rejects the taxpayer's loss relief claim

13 February 2015

In recent years, there has been a seemingly unending string of cases relating to whether certain activities constitute trading.

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Out of court settlement may lead to adjustment in CGT liability

Published on 05 February 2015. By Robert Waterson, Legal Director

The Court of Session has found in favour of the taxpayer in Sir Fraser Morrison v HMRC[1] ...

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FTT decision pays dividends for Mr and Mrs Jones

29 January 2015

In Richard Jones, Julie Jones v HMRC[1], the First-tier Tribunal (Tax Chamber) (FTT) has decided that the owners of an insolvent recruitment consultancy do not have to pay employment taxes in respect of dividends paid to them which they subsequently reclassified as salary.

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CJEU confirms UK failed to comply with EU law by retroactively curtailing rights of taxpayers to recover tax unlawfully paid

22 January 2015

The European Commission has succeeded in obtaining a declaration from the CJEU that the UK Government failed to comply with its obligations, under Article 4(3) of the TEU, by retroactively curtailing the right of taxpayers to recover tax levied contrary to European law.

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HMRC Dishonesty Allegation "seriously flawed"

Published on 14 January 2015. By Kristiana Reynolds, Associate

The First-tier Tribunal (Tax Chamber) ("FTT") has ruled, in Citibank NA v Revenue and Customs Commissioners[1], that HMRC's pleadings were "seriously flawed".

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Tribunal sets aside witness summonses due to misrepresentation and failure in duty to make full and frank disclosure to the Tribunal

08 January 2015

An interesting decision has recently been issued by the First-tier Tribunal (Tax Chamber) ('FTT') in connection with an application to set aside the issue of witness summonses which had been issued to two individuals who were resident in Jersey[1].

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Blog

2014 – The year that was

16 December 2014

Seasonal greetings to all of our readers! 2014 has been another busy year for the RPC Tax Take team.

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Tribunal adopts a literal interpretation of the provisions in allowing the taxpayer's appeal

11 December 2014

In Philip Shirley v HMRC, [1] the First-tier Tribunal (Tax Chamber) (FTT) concluded that a provision in a statute rewritten as part of the Tax Law Rewrite Project should be literally interpreted as the wording in question was clear and unambiguous.

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Blog

HMRC's information notice was too vague

04 December 2014

This case saw the First-tier Tribunal (Tax Chamber) (FTT) uphold the appeal of the taxpayer against penalties imposed by HMRC for non-compliance with an information notice issued by HMRC pursuant to paragraph 1, Schedule 36, Finance Act 2008 (the Information Notice).

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HMRC mislead appellants into believing they have a remedy in the Tribunal in contractual settlement dispute

Published on 28 November 2014. By Kristiana Reynolds, Associate

In Morris and another v HMRC,[1] the First-tier Tribunal (“the FTT”) has confirmed that it does not have jurisdiction to determine a dispute relating to the correct valuation of assets which were the subject of a contractual settlement with HMRC.

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Blog

HMRC'S APPLICATION FOR SECURITY FOR COSTS REFUSED

19 November 2014

HMRC'S APPLICATION FOR SECURITY FOR COSTS REFUSED - GSM EXPORT (UK) LTD (IN ADMINISTRATION) AND ANOTHER v HMRC[1]

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HMRC's application for security for costs refused

19 November 2014

HMRC'S APPLICATION FOR SECURITY FOR COSTS REFUSED - GSM EXPORT (UK) LTD (IN ADMINISTRATION) AND ANOTHER v HMRC[1]

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Applicants for search warrants must make full and frank disclosure to the court

Published on 14 November 2014. By Adam Craggs, Partner

The following is taken from an article by Adam Craggs, originally published in Tax Journal on 31 October 2014.

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Applicants for search warrants must make full and frank disclosure to the court

Published on 14 November 2014. By Adam Craggs, Partner

The following is taken from an article by Adam Craggs, originally published in Tax Journal on 31 October 2014.

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Blog

Tribunal orders HMRC to pay taxpayer's costs – Ian Elder v HMRC

Published on 07 November 2014. By Robert Waterson, Legal Director

The decision of the First-tier Tribunal (Tax Chamber) ('FTT') in Ian Elder v Commissioners for HMRC[1] offers a useful summary of the FTT's approach on the assignment of appeals to the Complex category ...

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Tribunal orders HMRC to pay taxpayer's costs – Ian Elder v HMRC

Published on 07 November 2014. By Robert Waterson, Legal Director

The decision of the First-tier Tribunal (Tax Chamber) ('FTT') in Ian Elder v Commissioners for HMRC[1] offers a useful summary of the FTT's approach on the assignment of appeals to the Complex category, applications to bar a party from participating in proceeding and costs sanctions.

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Blog

Tax Tribunal confirms the time period in which HMRC must open an enquiry

30 October 2014

As readers will be aware, HMRC generally has twelve months from the date a company files a return to open an enquiry[1].

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FTT prevents HMRC from having two bites of the cherry!

Published on 22 October 2014. By Daniel Wyatt, Senior Associate

In Lady Henrietta Pearson v HMRC [2014] UKFTT 890 (TC), the First-tier Tribunal (Tax Chamber) ('FTT') concluded that HMRC had "ignored" its previous decision by seeking to reduce the amount of a VAT refund ...

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GMAC's strategy for limiting VAT payments proved lawful in ECJ

Published on 16 October 2014. By Robert Waterson, Legal Director

The following is taken from an article by Robert Waterson and Nigel Brook, originally published in International Tax Review (12 September 2014).

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Blog

HMRC lose employment status case

Published on 09 October 2014. By Kristiana Reynolds, Associate

In the recent case of EMS (Independent Accident Management Services) Limited v HMRC [2014] UKFTT 891 (TC), the First-tier Tribunal (Tax Chamber) ("FTT"), found in favour of the taxpayer on the question of whether or not an employment relationship existed.

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Blog

Tribunal allows taxpayer to make a late appeal and rejects HMRC's overly formalistic approach

01 October 2014

In Chirag Patel v HMRC[1] the First-tier Tribunal ('FTT') decided that a letter from the taxpayer's accountant constituted a late appeal against a discovery assessment, despite it not being expressed as such.

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Tax Tribunal has no jurisdiction to consider public law issues in direct tax appeal

Published on 24 September 2014. By Adam Craggs, Partner

The following is taken from an article by Adam Craggs, originally published in Tax Journal

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Claim for entrepreneurs' relief succeeds: Tribunal finds that the removal from the payroll did not end taxpayer's employment

17 September 2014

The First-tier Tribunal (Tax Chamber) (FTT) has decided in Corbett v HMRC[1] that removing a taxpayer from a company's payroll before a sale of that company did not end her employment for the purposes of claiming entrepreneur's relief.

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Blog

Tribunal rejects Ramsay argument and allows taxpayer's appeal in corporate bond case

12 September 2014

In Hancock & Hancock v HMRC[1] the First-tier Tribunal (FTT) has upheld the taxpayer's appeal against HMRC's decision ...

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Tribunal bars HMRC from taking further part in appeal

04 September 2014

In BPP University College of Professional Studies v HMRC[1]the First-tier Tribunal (Tax Chamber) (FTT) found that HMRC had failed to comply with an 'unless' order under Rule 8(3) of the Tribunal Procedure (First-tier Tribunal) (Tax Chamber) Rules 2009 (the Rules).

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First-tier Tribunal holds that there is no taxable supply where there is no obligation on a subsidiary company which was receiving subsidiary services from the Group parent

27 August 2014

In Norseman Gold plc v HMRC[1] the First-tier Tribunal (Judge Colin Bishopp) ("FTT") dismissed an appeal by Norseman Gold plc ("Norseman") ...

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Blog

Toasted sandwiches are standard-rated “hot food” for VAT purposes

21 August 2014

In Sub One Ltd (t/a Subway) v HMRC[1] the Court of Appeal has upheld the decisions of both the First-tier Tribunal (FTT) and the Upper Tribunal (UT) that toasted sandwiches and "meatball marinara" are "hot food" and therefore, for VAT purposes, amount to standard-rated supplies. This decision has implications for a number of fast food outlets.

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Treading uneven boards: VAT claims and setoff – Birmingham Hippodrome Theatre Trust Ltd v HMRC [2014] EWCA Civ 684

Published on 14 August 2014. By Robert Waterson, Legal Director

The Court of Appeal's decision in this case is likely to create a great deal of uncertainty for taxpayers seeking to recover unlawfully levied VAT from HMRC.

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Trading "with a view to the making of a profit" - an objective or subjective test?

Published on 06 August 2014. By Daniel Wyatt, Senior Associate

In Beacon Estates (Chepstow) Ltd v HMRC [2014] UKFTT 686 (TC), the First-tier Tribunal (Tax Chamber) ('FTT') allowed the taxpayer's appeal, holding that 'with a view to' in section 393A(3), Income and Corporation Taxes Act 1988 ('ICTA')[1] imports an objective test when considering relief for trading losses.

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The Rangers Case and EBTs

Published on 31 July 2014. By Robert Waterson, Legal Director and Adam Craggs, Partner

The following was taken from a longer article by Robert Waterson and Adam Craggs originally published in Tax Journal (25 July 2014, pp16-17, www.taxjournal.com).

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Blog

Reasonable excuse

24 July 2014

In the recent case Spink v HMRC[1] the First-tier Tribunal (Tax Chamber) ('FTT') allowed the taxpayer's appeal against the imposition of penalties by HMRC for late payment, as it was satisfied that the taxpayer concerned had a reasonable excuse for the late payment.

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An enquiry is as an enquiry does – HMRC's narrow interpretation of what constitutes an enquiry is rejected by the Upper Tribunal

Published on 17 July 2014. By Robert Waterson, Legal Director

The recent case of Portland Gas Storage Limited v The Commissioners for HMRC [2014] UKUT 0270 (TCC), considered two important questions: what is an enquiry? and what is a decision?

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Blog

Taxpayer succeeds in loss relief claim

Published on 10 July 2014. By Daniel Wyatt, Senior Associate

In Hamilton & Kinneil (Archerfield) Ltd and others v HMRC [2014] UKFTT 350 (TC), the First-tier Tribunal (Tax Chamber) ('FTT') held that a company which had not made a cash capital contribution to a limited liability partnership could nonetheless claim loss relief against its other profits in respect of losses incurred by the limited liability partnership.

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Blog

HMRC fail to demonstrate negligence in tax planning case

03 July 2014

In the case of R, A and M Gardiner v HMRC[1], the First-tier Tribunal (Tax Chamber) ('FTT') overturned penalties imposed by HMRC on the appellant taxpayers for negligently filing their returns.

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Blog

High Court gives stamp of approval to retrospective anti-avoidance legislation

27 June 2014

A challenge to the lawfulness of the retrospective effect of legislation amending section 45, Finance Act 2003 ('FA 2003'), fell at the first hurdle in a recent application for judicial review heard by Mrs Justice Andrews in R (on the application of St Matthews (West) Ltd and others) v HMRC [2014] EWHC 1848 (Admin).

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Information notices suspended by FTT to allow the taxpayers to seek judicial review

Published on 18 June 2014. By Daniel Wyatt, Senior Associate

In Whitefields Golf Club Ltd & Others v HMRC,[1] the First-tier Tribunal (Tax Chamber) ('FTT') suspended the effect of its decision in relation to information notices issued by HMRC pursuant to paragraph 1, Schedule 36, Finance Act 2008 (the 'information notices') which it had, less than two months earlier, confirmed on appeal.

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Two loans better than one – FTT allows taxpayer's appeal in 'benefit in kind' case

12 June 2014

In the recent decision of the First-tier Tribunal (Tax Chamber) (FTT) in Elizabeth Amri v HMRC, the FTT rejected HMRC’s interpretation of the employment-related loan legislation contained in Chapter 7, Part 3, ITEPA 2003 and allowed the taxpayer’s appeal.

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Tribunal's decision not to follow its previous decision highlights the difficulties with the government's 'follower notice' proposals

Published on 06 June 2014. By Adam Craggs, Partner

In the recent case of Ardmore Construction Limited v HMRC, the First-tier Tribunal (Tax Chamber) ('FTT') dismissed the taxpayer's appeal and chose not to follow its recent decision in Perrin v HMRC.

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Blog

Administrative Court quashes HMRC's refusal to disclose information

Published on 29 May 2014. By Oliver Knox, Senior Associate

In R (on the application of Privacy International) v The Commissioners for HM Revenue and Customs,[1] the Administrative Court has quashed a decision by HMRC that it did not have a duty to disclose information concerning its export control functions.

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Tribunal criticises HMRC for producing 'untruthful' records

22 May 2014

In Kestrel Guards Limited v Revenue & Customs [2014] UKFTT 184 (TC) the First-tier Tribunal (Tax Chamber) ("FTT") allowed the taxpayer's appeal and discharged a penalty which had been imposed by HMRC for the late filing of PAYE cheques.

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Blog

Are you a leader or a follower? - Tribunal gives guidance on the Rule 18 Lead Case procedure

15 May 2014

In the recent case of General Healthcare Group Limited v HMRC,[1] the First-tier Tribunal (Tax Chamber) ('FTT'), considered the application of Rule 18 of the Tribunal Procedure (First-tier Tribunal) (Tax Chamber) Rules (2009/273) ('the Rules') to follower cases where the lead case has chosen not to appeal the decision of the FTT.

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First-tier Tribunal Strips Club of VAT Relief

09 May 2014

More exotic facts than are typical for a VAT case reached the First-tier Tribunal (Tax Chamber) (the FTT) last month.

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Deutsche Bank and UBS tax avoidance schemes succeed

Published on 01 May 2014. By Natalie Drew, Senior Associate

The cases of DB Group Services (UK) Limited v HMRC and HMRC v UBS AG[1] were heard together by the Court of Appeal in November 2013 and the decision was published last month.

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Tribunal sets aside HMRC information notice for lack of clarity

Published on 23 April 2014. By Natalie Drew, Senior Associate

R D Utilities Ltd v HMRC [2014] UKFTT 303 (TC)

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HMRC’s computer says no!

16 April 2014

In Varma v HMRC [2014] UKFTT 006 (TC), the First-tier Tribunal (Tax Chamber) ('FTT') quashed a penalty that had been issued to a taxpayer for late filing of a self-assessment tax return.

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A lack of goodwill for Medical Professionals

14 April 2014

Over recent years increasing numbers of medical professionals have sought to incorporate their private practices for perceived tax advantages.

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Painting by numbers – Court of Appeal dismisses HMRC's appeal

11 April 2014

The Court of Appeal has dismissed HMRC's appeal in Lord Howard of Henderskelfe's Executors v Revenue and Customs Commissioners [2014] EWCA Civ 278 and confirmed that, as the Portrait of Omai by Sir Joshua Reynolds ('the Portrait') was a wasting asset within the meaning of section 44 Taxation of Capital Gains Tax Act 1992 ('TCGA'), no capital gains tax ('CGT') charge arose on its disposal for £9.4m.

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High Court holds that HMRC's winding up petition should be dismissed as an abuse of process.

03 April 2014

The High Court (David Donaldson QC) has held in Enta Technologies Limited v HMRC [2014] EWHC 548 (Ch), that where a winding-up petition was brought by HMRC ...

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Tribunal decides that taxpayers must attempt to obtain information held by trustee!

Published on 27 March 2014. By Natalie Drew, Senior Associate

In the recent case of H A Patel & K Patel (a partnership) v HMRC [1], the First-tier Tribunal (Tax Chamber) (‘FTT’) dismissed an appeal by the taxpayers that information and documents held by a trustee were not ‘in their possession or power’ for the purpose of paragraph 18, Schedule 36, Finance Act 2008.

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HMRC lose FURBS appeal

Published on 19 March 2014. By Daniel Wyatt, Senior Associate

In HMRC v Forde and McHugh Limited [2014] UKSC 14, the Supreme Court has dismissed HMRC's appeal and reinstated the decision of the Upper Tribunal.

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