Tax Bites - October 2020
Welcome to the latest edition of RPC's Tax Bites - providing monthly bite-sized updates from the tax world.
As always, if there are any areas you would like more information on (or if you have any questions or feedback), please let us know or get in touch with your usual RPC contact.
News
Company Taxation Manual guidance on EEA loss relief updated
HMRC has updated the guidance in its Company Taxation Manual on group relief for losses incurred by a non-UK resident company that is resident in, or carries on a trade through a permanent establishment in, an EEA state. Read more
HMRC guidance on R&D relief for costs of furloughed employees
HMRC has updated page CIRD83200 of its Corporate Intangibles Research and Development Manual to provide guidance on whether costs of furloughed employees benefit from research and development relief (R&D relief) and research and development expenditure credit (RDEC). Read more
A General Anti-Avoidance Rule?
A House of Commons Library Briefing Paper looks at the case that has been made for a general anti-avoidance rule (GAAR) and the Government's introduction of a "narrower" GAAR in 2013. Read more
HMRC issue guidance on how it will support taxpayers and the economy following the COVID-19 pandemic
HMRC has published new guidance entitled: “COVID-19: how HMRC will continue to support customers and the economy”, in which it sets out HMRC's position in relation to tax collection, compliance checks and collection of tax debts, following the policy changes and support schemes introduced in response to the COVID-19 pandemic. Read more
HMRC issue coronavirus job retention scheme compliance letters to employers
The ATT reports that HMRC issued the first set of CJRS compliance letters in August as part of the post-transaction review phase of the scheme. The ATT notes that HMRC intends to focus on fraudulent claims rather than cases where the employer has made an innocent error, and intends to publish more details of its approach to compliance in the coming weeks. Read more
Cross-border tax arrangements
HMRC has published a report containing details of research carried out by IFF Research, which is intended to enable HMRC to better understand the role of intermediaries in cross-border tax arrangements and the potential impact of the new DAC6 regulations. Read more
Case reports
Hackett - HMRC's decision to proceed by way of civil penalty rather than criminal prosecution was not an abuse of process
In Lindsay Hackett v HMRC [2020] UKUT 212 (TCC), the Upper Tribunal (UT) confirmed that the decision whether to bring civil or criminal proceedings is a matter for HMRC to decide with any such decision being amenable to challenge by way of judicial review. Read more
Jones - Taxpayer's appeal allowed as FTT failed to consider vital evidence
In Heather Jones v HMRC [2020] UKUT 229 (TCC), the UT allowed an appeal against a decision of the FTT upholding a discovery assessment issued in respect of income tax on a severance payment. Read more
Kickabout - HMRC wins IR35 re-match
In Kickabout Productions Ltd v HMRC [2020] UKUT 216 (TCC), the UT allowed HMRC's appeal and confirmed that the relationship between a radio station and one of its sports presenters fell within the IR35 regime. Read more