Corporate tax update May 2019
Welcome to the latest edition of our Corporate Tax Update, written by members of RPC’s tax team.
This month’s report includes a summary of a recent decision of interest for those taxpayers using, or considering, offshore UK property holding structures. There are also case summaries on the topics of entrepreneurs’ relief, employment-related securities options and the application of the dreaded “IR35” regime.
Warshaw and entrepreneurs’ relief: when is a fixed rate not a fixed rate?
On 24 April 2019, the First-tier Tribunal held that a cumulative preference share fell within the definition of “ordinary share capital” (OSC) for entrepreneurs’ relief (ER) purposes. Read more
Entrepreneurs’ Relief – new guidance for revised “personal company” conditions
HMRC has updated its CGT manual following the amendments made to the definition of a “personal company” for the purposes of disposals made on or after 29 October 2018. Read more
SDLT avoidance and corporate property deals – the importance of timing!
On 18 April 2019, the First-tier Tribunal, caused something of a stir for clients and advisors familiar with the well-trodden (and, usually, tax-efficient) use of offshore unit trusts to hold UK property. Read more
IR35 – Tribunal decisions come thick and fast
Hot on the heels of the First-tier Tribunal’s decision in Albatel (the “Lorraine Kelly” case) two more IR35 decisions were handed down in April. Read more
First-tier Tribunal – option granted to director not “employment related” under deeming provision
On 8 April 2019, the First-tier Tribunal held that an option granted to a company director was not an employment-related securities option (ERSO) under the deeming provision of ITEPA 2003. Read more
European Commission: pre-2019 CFC rules amounted to illegal state aid
On 2 April 2019, the European Commission (EC) announced that the UK’s controlled foreign company (CFC) regime exemption for certain finance income amounted (in part) to illegal state aid. Then, on 25 April 2019, the EC published its full decision in this case. Read more
UK’s chargeable gains group relief rules contrary to EU law – First-tier Tribunal
On 25 March 2019, the First-tier Tribunal held that the denial of intra-group transfer relief (section 171 TCGA 1992) for transfers to a non-UK EU parent was contrary to the right to freedom of establishment. Read more
AG opines that provision and maintenance of cashpoints not exempt from VAT
On 2 May 2019, the Advocate General (AG) in Finanzamt Trier v Cardpoint GmbH opined that the outsourced operation of ATMs is not within the scope of the VAT exemption (Article 135(1) (d) of Directive 2006/112/EC). Read more