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Tax Take

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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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Company succeeds in overturning section 419 ICTA assessment

14 March 2014

The First-tier (Tax Chamber) Tribunal ('FTT') has decided in RKW Limited v HMRC [2014] UKFTT 151 (TC) that consideration payable by an individual in future instalments for subscribing for shares in an unconnected close company, as defined in section 414 Income and Corporation Taxes Act 1988 ('ICTA'), is not a loan or debt within the meaning of section 419 ICTA ('section 419').

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Blog

HMRC blunder prevents it from collecting tax

06 March 2014

The Upper Tribunal ('UT') has recently held in Bristol & West plc v HMRC [2014] UKUT 73 (TCC) that closure notices that HMRC had mistakenly sent to a taxpayer were valid and could not therefore be amended.

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Blog

First-tier Tribunal confirms compromise agreement is binding on HMRC

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

The recent case of Southern Cross Employment Agency Ltd v HMRC [2014] UKFTT 088 (TC) considers HMRC's ability (or, in certain cases, their inability) to revoke a decision after a claim has been finalised and paid.

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Blog

Taxpayer establishes clean break and wins residence case before Tax Tribunal

21 February 2014

The First-tier Tribunal (Tax Chamber) ('FTT') have decided in James Glyn v HMRC [2013] UKFTT 645 (TC) that, although Mr Glyn had retained his London house and returned to it several times during the year under appeal, he had nevertheless ceased to be UK resident for tax purposes as he had sufficiently loosened his ties with the UK to show there had been a distinct break with the UK.

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Blog

FTT listens to used car salesman and allows his claim for entrepreneur's relief

13 February 2014

In a recent decision of the First-tier Tribunal (Tax Chamber) ('FTT') it was held that a significant change in business constituted a cessation of one business and the commencement of a second business, (Jeremy Rice v HMRC [2014] UKFTT 0133 (TC)).

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Blog

Tour Operators – Can you benefit from adapting your TOMS calculations?

12 February 2014

After lengthy deliberation, HM Revenue & Customs (HMRC) has announced it is not going to change the way the Tour Operators Margin Scheme [TOMS] is operated in the UK.

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Blog

Further guidance from the Tribunal on closure notices: long stop dates

Published on 05 February 2014. By Daniel Wyatt, Senior Associate

We recently blogged about the timing of closure notices: "Tribunal directs HMRC to issue Closure Notice".

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Blog

Upper Tribunal decides application for extension of time under Civil Procedural Rules

Published on 28 January 2014. By Natalie Drew, Senior Associate

In the recent case of The Commissioners for Her Majesty's Revenue and Customs v McCarthy & Stone (Developments) Ltd and another[1] the Upper Tribunal (Tax and Chancery Chamber) ('UT') was asked to consider whether it should grant HMRC an extension of time to serve its notice of appeal.

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Blog

Tribunal directs HMRC to issue Closure Notice

Published on 22 January 2014. By Natalie Drew, Senior Associate

Mr Kenneth William Bloomfield v The Commissioners for Her Majesty's Revenue and Customs [2013] UKFTT 593 (TC)

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Blog

Court finds HMRC's entry and search unlawful

15 January 2014

In the recent judicial review case of R (on the application of Lees & Ors)[1], the High Court held that the execution of search and seizure warrants obtained by HMRC was unlawful.

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Blog

Franked Investment Income ('FII') Group Litigation: ECJ strikes down UK's retroactive curtailment of limitation period for making mistake-based tax restitution claims

09 January 2014

On 12 December 2013 the Court of Justice of the European ('ECJ') ruled, in line with the Advocate-General's opinion dated 5 September 2013, that section 320 Finance Act 2004 ('section 320') breached EU law.

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Blog

2013 – A review of the year, and Seasonal Greetings!

19 December 2013

2013 has been a busy year for the RPC Tax Take team. To round the year off we have highlighted below a small sample of some of our top blog posts from the past 12 months.

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Blog

Autumn Statement 2013 – George's Marvellous Medicine?

Published on 11 December 2013. By Ben Roberts, Senior Associate

In the midst of the political point-scoring, last week's Autumn Statement was light on significant new tax announcements.

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Blog

A Notice of Requirement and VAT Security

09 December 2013

A former TV chef was recently fined £10,000 for his failure to comply with a Notice of Requirement (NOR) to give a VAT security (http://abytx.co/1bDo2U0).

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Blog

Quality of occupation is paramount when deciding whether a property is a taxpayer's 'only or main residence' for the purposes of capital gains tax

05 December 2013

A recent decision of the First-tier Tribunal (Tax Chamber) ('FTT') provides helpful insight into the way in which the FTT will apply the Capital Gains Tax Private Residence relief provisions contained in sections 222 and 223 of the Taxation of Chargeable Gains Act 1992 ('TCGA').

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Blog

The Tribunal considers its public law jurisdiction in VAT online filing human rights case

27 November 2013

The First-tier Tribunal (Tax Chamber) ('FTT') has recently considered various difficult questions in relation to its public law jurisdiction and the relevance of human rights issues to taxation disputes in LH Bishop & Others v HMRC[1].

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Blog

Tribunal sets aside HMRC's Schedule 36 information notice

22 November 2013

The First-tier Tribunal (Tax Chamber) ('FTT') has allowed a taxpayer's appeal against an information notice issued by HMRC pursuant to paragraph 1, Schedule 36, Finance Act 2008.

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Blog

Tribunal prevents HMRC from 'relitigating' the case in Rosenbaum v HMRC

Published on 13 November 2013. By Daniel Wyatt, Senior Associate

In Rosenbaum v HMRC[1] the First-tier Tribunal ('FTT') recently considered the circumstances in which it can set aside a decision under Rule 38 of The Tribunal Procedure (First-tier Tribunal) (Tax Chamber) Rules 2009 ('the Tribunal Rules').

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Blog

HMRC’s Digital and Tax Agent Strategy

08 November 2013

HM Revenue & Customs (HMRC) is developing a new platform of digital services, which will ultimately enable tax agents to ‘self-serve’ and allow individual taxpayers and businesses to conduct all of their transactions online.

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Blog

Phew! Relief granted notwithstanding non-compliance and delay

08 November 2013

In Theverajah v Riordan & Others [2013] the court considered the factors relevant to an application for relief under amended CPR 3.9, which came into force in April 2013.

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Blog

Bundles of fun!

07 November 2013

A decision earlier this year sheds light on the provisions for costs orders which apply in relation to appeals held before the First-Tier Tribunal (Tax Chamber) ('FTT').

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Blog

Tribunal orders HMRC to pay taxpayers’ costs where HMRC ought to have known that their case did not have a reasonable prospect of success

30 October 2013

Following hot on the heels of the Simple Solutions decision, the First-tier Tribunal (Tax Chamber) ('FTT') (Judge Mosedale) has again ordered HMRC to pay the taxpayer's costs in Roden & Anor v HMRC.[1].

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Blog

A discovery too far?

25 October 2013

Since the Court of Appeal decision in Langham v Veltema[1] the courts and tribunals have considered several challenges by taxpayers to HMRC's power to make discovery assessments after failing to open in time enquiries into self-assessments.

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Blog

Taxpayer's appeal allowed as HMRC had not made a discovery determination in time

Published on 17 October 2013. By Daniel Wyatt, Senior Associate

The recent First-tier Tribunal ('FTT') case of Nijjar Dairies Ltd v HMRC1 dealt with two matters.

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Blog

VAT – Failure to Register in time - penalty on director not upheld as no dishonest conduct

09 October 2013

The First-Tier Tribunal ('FTT') has upheld an appeal by the director of a company against the imposition of a penalty under sections 60 and 61 of the Value Added Taxes Act ('VATA 1994')1 in the case of Mrs G. Candy v HMRC [2013] UKFTT 146 (TC) 02544.

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Blog

HMRC ordered to pay taxpayer's costs following improper allegation of fraud

02 October 2013

In the recent case of Simple Solutions GB Limited v HMRC,1 not only was the taxpayer successful in its appeal, it was also awarded its costs following serious and unsubstantiated allegations of fraud made against it by HMRC.

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Blog

FATCA – are we nearly there yet?

Published on 25 September 2013. By Ben Roberts, Senior Associate

The International Tax Compliance (United States of America) Regulations 2013 ('Regulations') came into force on 1 September 2013.

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Blog

HMRC's appeal is dismissed in the Lloyds Leasing case

20 September 2013

The Upper Tribunal ('UT') (Newey J and Judge Howard Nowlan) has upheld a decision of the First–tier Tribunal ('FTT') that 25% writing-down allowances ('WDA') were available to a UK lessor of ships...

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Blog

Taxpayer wins appeal notwithstanding mistimed implementation

Published on 11 September 2013. By Daniel Wyatt, Senior Associate

The First-tier Tribunal ('FTT') has recently ruled in favour of a taxpayer in relation to a consultancy fee purportedly paid to a company which was not at the time incorporated(Maureen Hepburn v HMRC [2013] UKFTT 445 (TC)).

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Blog

Third time lucky for HMRC as they finally secure victory in DV3

04 September 2013

Having lost before both the First-tier Tribunal ('FTT') and the Upper Tribunal ('UT'),1 HMRC have finally managed to secure victory before the Court of Appeal in HMRC v DV3 RS Limited Partnership [2013] EWCA Civ 907, a case involving stamp duty land tax ('SDLT') planning.

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Blog

Tax tribunal considers the application of the SDLT anti-avoidance legislation contained in section 75A Finance Act 2003

28 August 2013

HMRC have been successful before the First-tier Tribunal ("FTT") in Project Blue Ltd v HMRC [2013] UKFTT 378 (TC), an SDLT case in which the anti-avoidance provisions contained in sections 75A to 75C, Finance Act 2003 fell to be considered. Unless otherwise stated all statutory references below are to Finance Act 2003.

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Blog

HMRC suffer humiliating defeat in overseas pension scheme judicial review

20 August 2013

In what can only be described as a humiliating capitulation, HMRC have conceded defeat during the course of a hotly contested judicial review hearing in the High Court.

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Blog

Cowboys and followers: HMRC's latest consultation on tax avoidance

16 August 2013

On 12 August 2013 HMRC launched a new consultation document: Raising the stakes on tax avoidance. The consultation is open for a short period, the closing date for comments being 4 October 2013.

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Blog

A new approach to corporation tax?

08 August 2013

On 31 July 2013 the House of Lords Select Committee on Economic Affairs published its first Report in the 2013-2014 session:

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Blog

The rule of law, tax avoidance and the GAAR

Published on 31 July 2013. By Adam Craggs, Partner

Tax is in the news and making the headlines as seldom before, but the debate is not always as informed as it might be...

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The new UK GAAR – a journey into the unknown?

Published on 24 July 2013. By Ben Roberts, Senior Associate

The Finance Bill 2013 received Royal Assent on 17 July. We are now in uncharted territory.

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High Court confirms accountant's duty to alert client to tax saving opportunity

Published on 17 July 2013. By Daniel Wyatt, Senior Associate

The recent decision of Mr Justice Silber in Hossein Mehjoo v Harben Barker (A Firm) and Harben Barker Limited[1] has attracted a great deal of publicity in both professional journals and the general press as it considers the important issue of an accountant's duty to his client in the context of tax mitigation opportunities.

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Blog

HMRC's approach to statutory interpretation – literally, if convenient!

12 July 2013

There is a growing body of recent case law in which HMRC have favoured a literal approach to statutory interpretation, as opposed to the usual purposive approach they adopt when challenging what they consider to be 'aggressive' tax avoidance schemes.

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Blog

Taxpayer wins penalty shootout against HMRC

05 July 2013

The recent case of CED Limited v HMRC [2013] UKFTT 219 (TC) illustrates the importance of preparing thoroughly for the hearing of a tax appeal – even an apparently straightforward penalty appeal - before the First-tier Tribunal ('FTT').

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Blog

When should a penalty be suspended?

Published on 27 June 2013. By Daniel Wyatt, Senior Associate

The First-tier Tribunal ('FTT') has allowed the taxpayer's appeal in Testa v HMRC,[1] against HMRC's refusal to suspend a penalty imposed under paragraph 1, Schedule 24, Finance Act 2007...

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Blog

Tribunal allows taxpayers' appeals against daily penalties as HMRC had failed to give proper notice

21 June 2013

The First-tier Tribunal ('FTT') has allowed the taxpayers' joined appeals in Morgan v HMRC and Donaldson v HMRC1 against daily penalties for late filing of their self-assessment returns, because HMRC had failed to give notice to the taxpayers of the date from which the daily penalties would start to accrue.

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Blog

Tribunal allows taxpayer's appeal in share options case and criticises HMRC's 'mechanistic' approach to statutory interpretation

14 June 2013

The First-tier Tribunal ('FTT') has allowed the taxpayer's appeal in Bennedict Manning v HMRC.[1]

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Blog

The Goldman Sachs settlement – 'not a glorious episode in the history of the Revenue'

Published on 06 June 2013. By Adam Craggs, Partner

I commented, in my blog on 15 May 2013 on the continuing controversy surrounding HMRC's deal with Goldman Sachs, in which a large amount of interest that was properly recoverable from the bank was written off by HMRC.

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Blog

Inadequate deliberation or a case of mistake?

30 May 2013

The so-called rule in Hastings-Bass1, which permits trustees to assert and rely on the errors of themselves or their advisors to undo actions which have unexpected tax consequences...

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Tax tribunal criticises HMRC's guidance in Catherine Rawcliffe v HMRC

22 May 2013

This case1 is of interest not so much for the underlying legal issue which was determined but rather for the unusually strong criticism from the First-tier Tribunal ('FTT') of HMRC's published guidance on approved company securities option plans.

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Blog

Goldman Sachs – the plot thickens!

Published on 15 May 2013. By Adam Craggs, Partner

Readers of our blog will be familiar with the controversy surrounding the now retired Dave Hartnett, former Permanent Secretary for Tax at HMRC (see postings of 19 December 2011 and 21 December 2011).

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Blog

Termination payments: don't forget the breakdown

Published on 08 May 2013. By Daniel Wyatt, Senior Associate

In an encouraging win for taxpayers, the First-tier Tribunal ('FTT') in Johnson v HMRC[1] allowed an appeal relating to a termination payment under a compromise agreement.

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Blog

Tribunal allows VAT appeal and accepts that letter was sent to HMRC

Published on 01 May 2013. By Adam Craggs, Partner

The First-tier Tribunal ('FTT') has allowed the taxpayer's appeal in Exeter Estates Ltd v HMRC[1] against a decision of HMRC that it had opted to tax all the land and buildings on one of its sites.

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Blog

Tribunal rejects purposive interpretation and allows taxpayer's appeal

26 April 2013

The First-tier Tribunal ('FTT') has held in Fidex Ltd v HMRC,1 that a loan relationship debit should not be disallowed under paragraph 13, Schedule 9, Finance Act 1996 ('Paragraph 13'),2 even though one of the main purposes of entering into the arrangement was tax avoidance.

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