Corporate tax update November 2019

Published on 22 November 2019

Welcome to the latest edition of our Corporate Tax Update, written by members of RPC’s tax team. This month’s update reports on the key developments from September and October 2019. No update would be complete in the current climate without a report on a recent IR35 decision (this month, we bring you two). This month’s update also includes summaries as to HMRC’s latest thinking on the regime for offshore receipts in respect of intangible property, as well as case summaries on the interpretation of the UK-Irish double tax treaty, cross-border loss relief and the effect of statements in HMRC’s published manuals.

HMRC updates venture capital scheme advance assurance guidance

On 28 October 2019, HMRC published updated guidance on its venture capital scheme advance assurance facility. Read more

Upper Tribunal upholds IR35 decision in Christa Ackroyd case

On 25 October 2019, the Upper Tribunal (UT) upheld the decision of the First-tier Tribunal (FTT) that the BBC had suffcient control over Ms Ackroyd (a presenter) such that an employment relationship would have existed had her services been directly supplied (rather than supplied via her personal services company, or PSC). Read more

Policy paper published in relation to reform of the off-payroll working (‘IR35’) rules

On 22 October 2019, HMRC published a policy paper in relation to reforms to the off-payroll working rules and the support HMRC is putting in place to assist organisations prepare ahead of April 2020. Read more

AG opines that freedom of establishment does not entitle migrating company to loss relief in new member state in respect of losses incurred prior to migration

On 17 October 2019, the Advocate General (AG) opined that the freedom of establishment does not oblige a host member state to allow tax relief for losses incurred by a company in another (home) member state before it transferred its place of management (PoM) to the host state. Read more

HMRC publishes draft regulations to provide for real-time reporting of employer NICs on termination awards from April 2020

On 16 October 2019, draft regulations to provide for real-time reporting of the new Class 1A NIC liabilities from 6 April 2020 were published for consultation by HMRC. Read more

New, extended scope of UK VAT grouping rules takes effect from 1 November 2019

On 15 October 2019, HM Treasury made an order appointing 1 November 2019 as the day on which the extended scope of the VAT grouping rules take effect. Read more

HMRC consultation response published in relation to offshore receipts in respect of intangible property

On 14 October 2019, the government published a number of documents in response to its consultation on draft Regulations relating to offshore receipts in respect of intangible property. Read more

EU list of ‘non-cooperative’ jurisdictions for tax purposes updated
On 10 October 2019, the Economic and Financial Affairs Council updated the EU list of ‘noncooperative’ jurisdictions for tax purposes. Read more

Upper Tribunal holds that UK legislation attributing notional capital to UK PE was consistent with UK-Irish tax treaty
On 9 October 2019, the Upper Tribunal (UT) held that UK legislation setting out how equity and loan capital should be attributed to a UK permanent establishment (PE) of a non-resident company was consistent with the UK-Ireland double tax treaty (DTT). Read more

Court of Appeal holds that published HMRC statement could give rise to a legitimate expectation, but that taxpayer did not rely on it
On 8 October 2019, the Court of Appeal held that a statement in HMRC’s published manuals, although a statement as to HMRC’s opinion of the law, was suffciently clear, unambiguous and devoid of relevant qualification to produce a legitimate expectation. Read more

ECJ agrees with AG opinion that VAT exemption does not extend to the provision and maintenance of cashpoint machines
On 3 October 2019, the ECJ held that the provision and maintenance of cashpoint machines did not fall within the VAT exemption at Article 135(1)(d) of Directive 2006/112/EC for financial services transactions. Read more

OTS publishes update on its VAT report
On 1 October 2019, the Offce of Tax Simplification (OTS) published an update on its VAT review. Read more

Large business tax compliance – HMRC updates risk profile guidance
On 30 September 2019, HMRC added guidance on its revised Business Risk Review (BRR) process to the Tax Compliance Risk Management manual. Read more

First-tier Tribunal holds that BBC presenters were caught by IR35 rules
On 17 September 2019, the First-tier Tribunal held that the so-called ‘IR35’ rules applied to successive contracts entered into by the BBC and personal services companies (PSCs) formed by three presenters. Read more


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