Side view of corridor and docks.

Tax Bites - May 2020

Published on 07 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.


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


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