Tax update - November 2019

In this month’s update we report on (1) the government’s response to the Treasury Sub-Committee’s conclusions and recommendations in “Disputing Tax”; (2) the outcome of the consultation into offshore receipts in respect of intangible property; and (3) HMRC’s briefing regarding reform of the off-payroll working rules. We also comment on three recent cases relating to (1) the meaning of “trading company” in the context of entrepreneurs’ relief; (2) whether HMRC can conduct informal enquiries; and (3) the disposal of a business with goodwill and the capital gains tax implications of that disposal.

News items

The government’s response to the Treasury Sub-Committee’s report on “Disputing Tax”

On 10 October 2019, the government published its response to each of the Treasury Sub-Committee’s conclusions and recommendations in “Disputing Tax” (HC Paper No.1914 (Session 2017/19)). Read more

Policy paper published in relation to offshore receipts in respect of intangible property

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

Policy paper published in relation to reform of the off-payroll working 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

Case reports

Potter – the owners of a company were entitled to entrepreneurs’ relief as the company was trading

In Jacqueline Potter and Neil Potter v HMRC [2019] UKFTT 0554 (TC), the First-tier Tribunal (FTT) has held that the owners of a company were entitled to entrepreneurs’ relief (ER) as the activities of the company amounted to trading. Read more

JJ Management – HMRC can conduct informal enquiries

Following the decision of the High Court in R (oao JJ Management LLP and Ors) v HMRC [2019] EWHC 2006 (Admin), it would appear that HMRC can conduct informal enquiries outside of section 9A, Taxes Management 1970 (TMA). Read more

Leeds Cricket Football & Athletic Co Ltd – business with attached goodwill disposed of

In The Leeds Cricket Football & Athletic Company Ltd v HMRC [2019] UKFTT 0568 (TC), the FTT has held that the freehold in a cricket ground involved the disposal of a business with attached goodwill and was not simply a disposal of land with attached income streams. Read more