Tax Bites - May 2020
Welcome to the first edition of RPC's Tax Bites providing monthly bitesized updates from the tax world.
As always, if there are any areas you would like more information on, or if you have any ideas on how we might improve this update, do please let us know, or get in touch with your usual RPC contact.
News
COVID19: HMRC issues guidance on 'exceptional' circumstances under the statutory residence test
HMRC has issued guidance for nonUK residents on circumstances that will be considered 'exceptional' under the statutory residence test (SRT) during the COVID19 pandemic. Read more
COVID19: HMRC issues guidance on implications for company residence and permanent establishments
On 7 April 2020, HMRC added new pages to its International Manual (IM) containing its approach to company tax residence and permanent establishments (PEs) in response to the COVID19 pandemic. Read more
Law Society asks HMRC to defer commencement of DAC 6 and Trust Registration Service rules
The Law Society has asked HMRC whether it would consider deferring the commencement dates of the DAC 6 and the Trust Registration Service rules (under Directives 2018/822 and 2018/843) in the UK. The Law Society believes that there is a strong case for deferral of both in the current circumstances, given the burden they will place on both private and public sectors. Read more
Case reports
Higgs - FTT lacks jurisdiction to disapply PAYE Regulations
In Philip Higgs and Others v HMRC [2020] UKFTT 117 (TC), the Firsttier Tribunal held 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. Read more
Fisher - TOAA rules not applicable to sale of business from a UK company to a Gibraltar company
In S Fisher and Others v HMRC [2020] UKUT 62 (TCC), the Upper Tribunal allowed the taxpayers' appeals and held that the transfer of assets abroad (TOAA) 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. Read more
Davies - Taxpayers unable to benefit from motive exemption in TOAA
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 TOAA legislation and could not benefit from treaty relief. Read more
And finally...
Jim Harra, Chief Executive and Permanent Secretary of HMRC, has informed a Treasury Committee meeting that he expects the government's multibillion 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. Read more