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Busy Practitioner
Authors: Mark McLaughlin CTA (Fellow) ATT (Fellow) TEP, Julian Harris, Andrew Needham BA CTA and Lee Sharpe ATT CTA
Publisher: Bloomsbury Professional
Copyright: 2019 Bloomsbury Professional
Busy Practitioner
Busy Practitioner is published monthly
Last update: January 2, 2020
Next update due: early February 2020
Contents
- Close sectionOne Month In A Minute
- Close sectionDecember 2019
- Close sectionNovember 2019
- Close sectionOctober 2019
- Close sectionSeptember 2019
- Close sectionAugust 2019
- Close sectionJuly 2019
- Close sectionJune 2019
- Close sectionMay 2019
- Close sectionApril 2019
- Close sectionMarch 2019
- Close sectionFebruary 2019
- Close sectionJanuary 2019
- Close section2018
- Close sectionDecember 2018
- Close sectionNovember 2018
- Close sectionOctober 2018
- Close sectionSeptember 2018
- Close sectionAugust 2018
- Close sectionJuly 2018
- Close sectionJune 2018
- Close sectionMay 2018
- Close sectionApril 2018
- Close sectionMarch 2018
- Close sectionFebruary 2018
- Close sectionJanuary 2018
- Close section2017
- Close sectionMark McLaughlin
- EIS and SEIS relief: another one bites the dust!
- Private residence relief: is timing everything?
- Goodwill – or is it?
- Tax planning: watch your conduct!
- Inheritance tax: who went first?
- Inheritance tax: all change?
- Business travel: can you prove it?
- A nice little perk!
- Wages payments to offspring: the ‘purpose’ test
- HMRC enquiries: business income or non-taxable source?
- HMRC assessment time limits: where are we now?
- Interest in possession trusts: mandating income
- Gifts with reservation: the family home
- The Finance Bill: here we go again!
- Making gifts and legacies: spelling it out
- Pay up …sooner!
- Principal private residence relief: mind the gap?
- Whose money is it?
- HMRC Enquiries: meeting up?
- Spouse’s wage: allowable deduction?
- HMRC expects!
- Entrepreneurs' relief: a positive change
- The long arm of HMRC
- Closure notices: you’re taking too long!
- Test your knowledge!
- Does your advice count?
- What’s in a name?
- Keep it simple?
- Joint property and form 17: practical issues
- A family affair
- CIS: don’t become an ‘accidental’ contractor
- IHT and lifetime gifts: what’s the value?
- Buy-to-let landlords: the new ‘tax’
- HMRC makes mistakes too!
- Open or closed …or both!
- Close sectionCourts and Tribunals
- Close sectionDecember 2019
- Entrepreneurs’ relief on sale of business premises was not due because no trading activity took place
- Enterprise investment scheme relief denied because ‘B’ shares carried preferential right
- Loans to traders relief denied because lost money was an investment not a loan
- HMRC criticised for refusing to recognise the doctrine of ‘staleness’ for discovery purposes
- Tax return notices were issued for the valid purpose of assessing amount of tax due
- HMRC’s improperly addressed correspondence was a reasonable excuse for late payment by taxpayer
- Close sectionNovember 2019
- Bequest to Jersey charitable trust was exempt from IHT
- Period of ownership for principal private residence relief purposes began when purchase of property was completed
- TV presenter was a BBC employee for IR35 purposes
- Life interest in testator’s share of settled property was conferred on her brother for IHT purposes
- Testator occupied farm for agricultural purposes, and the business was not of making or holding investments
- Issuing notice to file to establish amount of tax owed constituted a valid purpose
- Close sectionOctober 2019
- Communal living areas of houses in multiple occupation form part of a dwelling house for capital allowance purposes
- Tax agent who engaged in dishonest conduct had no legitimate expectation that he would escape further action by HMRC
- Taxpayer had no legitimate expectation that HMRC’s published guidance could be relied on
- Loss relief claim by individuals and not a company they controlled was careless
- LLP traded with a view to profit but not on a commercial basis
- ATED: ignorance of the law was not a reasonable excuse for a legally qualified company chairman
- Close sectionSeptember 2019
- Individuals were not required to be qualifying beneficiaries for entrepreneurs’ relief purposes for a one-year minimum period
- Business did not cease to be trading company for entrepreneurs’ relief purposes when its final invoice was issued
- Company’s preparatory activities in setting up a lottery it was unable to launch constituted commencement of trading
- Organiser of share purchase was not the transferor for transfer of assets abroad purposes
- Information notice request for a detailed company directors’ loan account was ‘reasonably required’
- Sale of cricket ground involved a disposal of business with attached goodwill
- Close sectionAugust 2019
- HMRC wins dispute over taxation of ‘loyalty bonuses’ as annual payments
- Taxpayer’s occupation was temporary and insufficient to qualify as residence for principal residence relief purposes
- Partial closure notice could not be issued without the amount of tax being determined
- Capital payment made to settle litigation did not qualify for CGT exemption for personal injury
- HMRC could not make the same discovery twice
- LLPs involved in film and video games production were not carrying on a trade
- Close sectionJuly 2019
- Judicial review proceedings were commenced prematurely in accelerated payment case
- HMRC fails to overturn ruling that its enquiries validated capital allowances claim in late tax returns
- Tribunal had jurisdiction to approve HMRC third-party information notice to non-UK nationals
- Assessments made but not issued or served were unenforceable
- Taxpayer was not placed under undue pressure to admit deliberate behaviour
- Acquisition of gains group by loss group was not caught by anti-avoidance rules on pre-entry losses
- Close sectionJune 2019
- Principles for issuing follower notices interpreted by the Court of Appeal
- HMRC could not establish that a valid discovery assessment had been made
- QCBs and non-QCBs: taxpayers’ approach to capital gains treatment rejected
- Company helping employees to obtain tax reliefs from HMRC was a ‘tax adviser’ for money laundering purposes
- First-tier Tribunal ruling on company residence was incorrect in law
- Payment of cash instead of loan notes following a deed variation was the disposal of an earn-out right
- Close sectionMay 2019
- Share loss relief was properly claimed
- Delay in HMRC issuing assessment rendered discovery ‘stale’
- Cumulative preference shares were ‘ordinary share capital’ for entrepreneurs’ relief purposes
- HMRC adopted an incorrect approach to calculating top slicing relief
- Trustee’s application to advance new grounds of appeal is granted
- Failure to take corrective action in response to a follower notice was reasonable
- Close sectionApril 2019
- Tribunal finds that TV presenter paid through personal service company was a self-employed ‘brand’ for IR35 purposes
- Personal service company was liable for Class 1 NICs on payments in respect of actor’s services
- Payments through a TV presenter operating through a personal service company were not liable for IR35
- Supreme Court confirms that statutory interest payable on insolvency is ‘yearly’ interest
- ‘Issued share capital’ requirement was not met for entrepreneurs’ relief purposes
- Court of Appeal confirms HMRC’s definition of an MSC provider
- Close sectionMarch 2019
- Cost of replacing tractor units not deductible under the provisions for expenditure on ‘implements, utensils and articles’
- Appeal allowed because issue of advisers’ carelessness had not been adequately pleaded
- Unexplained decision by HMRC to waive interest charge on unpaid tax constituted special circumstances
- Personal guarantee payment to bank did not qualify for loss relief in earlier tax years
- Expectation of HMRC’s permission to pay CGT by instalments was not a reasonable excuse for late payment
- HMRC’s failure to consider circumstances of taxpayer’s ‘involuntary’ self-assessment registration constituted a reasonable excuse for late tax return
- Close sectionFebruary 2019
- Information notice could be given to a non-resident UK taxpayer
- Tribunal was correct to find taxpayer failed to meet required condition to change his accounting date
- HMRC criticised for penalising homeless man over late filing of tax return
- Bungalow not suitable for use as a dwelling not liable to higher rates of SDLT
- Presumption of continuity did not apply as HMRC’s assessment for base year was flawed
- Tribunal decides capital allowances should be allowed on fixtures based on a just and reasonable apportionment
- Close sectionJanuary 2019
- ‘Quality’ of occupation insufficient to qualify for PPR relief
- Tribunal was entitled to conclude no reasonable excuse existed for barrister’s late payment of tax
- Discovery assessments could not be displaced by filing late tax returns
- Occupation of property did not amount to ‘residence’ for PPR relief purposes
- Issue of APNs after HMRC’s agreement to postpone collection of tax was not an abuse of power
- Close section2018
- Close sectionDecember 2018
- Claim for tax loss succeeds because discovery was ‘stale’
- Refusal to grant IHT exemption to UKIP donor was discriminatory but could not be overturned
- Employed diver’s income treated as from carrying on a trade
- Pension contributions made by confused taxpayer were rescinded for mistake
- CVA of his personal company was reasonable excuse for taxpayer’s late payment of an APN
- RTI returns that HMRC failed to receive had been successfully submitted on time
- Close sectionNovember 2018
- Court of Appeal confirms that grant of subleases constituted gifts with reservation for IHT purposes
- Services operated by livery stable qualified for business property relief
- Principal private residence relief denied because property was not occupied with any degree of permanence
- Court of Appeal refuses to order return of work product resulting from invalid information notice
- Redress payments for mis-selling of financial product represented taxable income
- Appellant’s behaviour in response to information notice results in daily penalties for non-compliance being tripled
- Close sectionOctober 2018
- Transfer of pension fund to personal pension was subject to IHT
- CGT holdover relief allowed on gift by non-resident taxpayer
- Period of ownership for principal private residence relief purposes shortened upon HMRC appeal
- First-tier Tribunal directs closure of HMRC enquiry
- Expenditure on clothing, makeup and various beauty treatments was allowable for an exotic dancer but travel expenses disallowed
- Late filing penalty appeal allowed because taxpayer had no reason to suppose he needed to file tax returns
- Close sectionSeptember 2018
- Class 1A NIC: repaid private fuel constituted a benefit for company fuel card holders
- Referees were contractors, not employees of the body appointing them to officiate
- Equitable principles could not assist where a condition for entrepreneurs’ relief was not satisfied
- HMRC had no reasonable grounds to suspect underassessment in returns for information notice purposes
- Penalties due for late tax returns filed to claim repayments for expenses claimed
- Tribunal criticises HMRC for using ‘mantra’ when rejecting appeals on grounds of reasonable excuse
- Close sectionAugust 2018
- Court of Appeal reduces tax-related penalties imposed for taxpayer’s failure to comply with information notices
- Prudential loses claim for compound interest on tax levied unlawfully
- No CGT relief available under EIS on disposal of EIS shares unless income tax relief claimed on acquisition
- Writing off part of a loan created an allowable loss against CGT
- Taxpayers’ private residence relief deemed period of occupation could be extended by concession
- Tribunal was entitled to enquire whether loans on which bad debt relief was claimed had actually been made
- Close sectionJuly 2018
- Developer liable for SDLT payable in respect of alternative finance scheme
- Interest payments were derived from funds generated in the UK
- HMRC not required to consider financial effect on a business when deciding whether to cancel CIS gross payment status
- Holiday letting business qualified for inheritance tax business property relief by offering 'exceptional' services
- Size of share investment not a relevant factor in a SEIS application
- IHT planning scheme failed because purchase of trust interest was a transfer of value and exemption certificates were not satisfied
- Close sectionJune 2018
- Successor company could only claim trading losses sustained by predecessor’s business after the succession
- No binding contract to settle tax liabilities existed because no offer was made
- Football agent associated with football player development activity was not carrying on a trade
- First-tier Tribunal’s decision on ‘reasonable excuse’ defence could not be overturned
- Company purchaser of dwelling for use as care home was ineligible for SDLT relief
- Late filing penalties were invalid because valid notice to file a tax return was never sent
- Close sectionMay 2018
- Tribunal had no jurisdiction to decide whether a taxpayer had a reasonable excuse for late submission of overpayment relief claim
- Termination payment for ‘injury’ could include injury to feelings
- Personal representative was personally liable for IHT on estate he had distributed
- HMRC decision to open an enquiry validated capital allowances claims in late tax returns
- Reliance on tax adviser constituted a reasonable excuse for late filing of NRCGT return
- Enquiries could not be opened by HMRC into voluntary returns
- Close sectionApril 2018
- Sole director-shareholder was liable for his company’s PAYE and NIC debts
- Outstanding business premises rental payment should be deducted from value of business for business property relief purposes
- ‘Loyalty bonus’ payments made to investors by platform provider were not annual payments
- Services provided through personal company were outside IR35
- Copy of enquiry notice sent to the taxpayer’s agent constituted valid notice of enquiry to the taxpayer
- HMRC unable to prove that filing notices were sent to the taxpayer
- Close sectionMarch 2018
- TV presenter providing services through personal service company was an employee of the BBC for IR35 purposes
- HMRC was wrong to tell taxpayer that being a director required her to file a tax return
- Activities of 'hospitality at home' business amounted to a commercial trade
- Income without source could not be assessed to income tax
- In specie transfer to SIPP held to be a contribution 'paid'
- Failure to take corrective action required by follower notice was reasonable in the circumstances
- Close sectionFebruary 2018
- Payment to settle litigation was not made wholly and exclusively for purposes of individual’s profession or trade
- Currency conversion provisions did not prevent bonds from being QCBs
- Discovery assessment not valid as no inaccuracy in tax return
- Further challenge to retrospective legislation on same ground was an abuse of process
- Payment of ‘wages’ by taxpayer to son was not deductible
- Late filing daily penalties set aside as HMRC failed to specify starting date for the penalties
- Close sectionJanuary 2018
- Corporation tax loss could be set off against income tax profit
- Notice to file partnership return sent to limited liability partnership was invalid
- Ignorance of the law on non-resident capital gains tax was not a reasonable excuse for the late filing of a return
- Statutory interest payable on insolvency held to be ‘yearly’ interest
- Closure of HMRC enquiry ordered because taxpayer had no further information to produce
- Late filing penalties cancelled as notices sent by HMRC were not properly addressed
- Close sectionDecember 2018
- Close section2017
- Close sectionDecember 2017
- HMRC’s entitlement to amend returns made by film partnership members is upheld by the Supreme Court
- Computer-generated penalty determination for late filing of company tax return was invalid
- Grant of sublease to owner of headlease constituted a part disposal for CGT purposes
- Company was entitled to rely on HMRC’s guidance but had not done so
- Discovery assessment invalid after accountant took reasonable care in checking client’s return
- Tribunal sets out when reasonable excuse could apply to late-payment of APN
- Close sectionNovember 2017
- Property moving between settlements remained in first settlement for IHT purposes
- Refusal to exempt bequest to Jersey charity from IHT was compliant with EU law
- Taxpayer had reasonable excuse for late filing of her NRCGT return
- Tribunal had no power to order closure of COP 9 enquiry
- EIS form filed in error could not be substituted by its SEIS equivalent
- Upper Tribunal confirms HMRC has no ‘freestanding’ power to make or amend a corporation tax assessment following provisional rollover relief claim
- Close sectionOctober 2017
- Company was de-grouped for group relief purposes by appointment of receiver
- Class 1 NICs were due on actor’s earnings when paid through a personal service company
- Reassessment of taxpayer’s dividend and company car benefit takes account of her abusive relationship with a controlling partner
- Locum doctor operated as a self-employed individual and not through his company
- ‘Alchemy scheme’ found to be notifiable for DOTAS purposes
- Failure by accountant to submit individual’s tax return on time amounted to reasonable excuse
- Close sectionSeptember 2017
- ‘Ordinary share capital’ redefined to include zero dividend shares
- ‘Quality’ trumps ‘quantity’ of occupation for principal private residence relief purposes
- Services offered by livery stable sufficient to establish a business was mainly and investment business
- Cumulative effect of reasons for late CIS returns amounted to a reasonable excuse
- HMRC’s decision not to issue closure notices justified by lack of information and documents
- Fees paid to director’s loan account were liable to PAYE and NICs
- Close sectionAugust 2017
- HMRC did not act unfairly in rejecting claim for ‘Mansworth v Jelley’ losses after changing its guidance
- Tax return enquiry notice containing incorrect period was valid
- SEIS relief blocked because EIS form used in error
- Grandfather’s failure to acquire domicile of choice in Brazil meant grandchildren acquired UK domicile of origin
- Tax return omission was not deliberate because taxpayer was unaware of it at the time of filing
- Inaccuracies in tax returns indicated deliberate behaviour which could not be excused by claims of stress and depression
- Close sectionJuly 2017
- Supreme Court confirms contributions to employee benefits trusts were redirected earnings subject to income tax
- Upper Tribunal agrees that grant of subleases constituted gifts with reservation
- Company director had no obligation to submit a self-assessment return without receiving notice to file
- Services provided by holiday cottages business insufficient to qualify for business property relief
- Negligible value claim was valid and incorrectly disallowed by HMRC
- HMRC could not prove three year delay in requesting enquiry information was justified
- Close sectionJune 2017
- QCBs and non-QCBs: capital gains tax legislation was contrary to purpose but taxpayers’ construction of it exposed greater anomaly
- Organisation formed to underwrite challenge for America’s Cup did not operate on a commercial basis or with a view to profit
- Claimant had no right to claim refund from HMRC of sum levied from her account under tax agreement in excess of her actual tax liabilities
- Tribunal rules on ‘permitted’ area in claim for principal private residence relief
- Appeal succeeds against penalty notice showing two different amounts due under an accelerated payment notice
- Further Ingenious Films decision finds expenditure on rights to income from films not deductible in computing taxable profits
- Close sectionMay 2017
- Information obtained by HMRC under invalid information notice not required to be returned
- Information notice failed to meet fundamental requirement for certainty and precision
- Taxpayer was not assessable for gains in intervening tax years when non-UK resident and not ordinarily resident in the UK
- Discovery assessment out of time and no requirement for taxpayer to notify HMRC of termination payment
- Tax scheme failed because assets held overseas were controlled from the UK
- Failure by financial adviser to file form for enhanced pension protection constituted reasonable excuse for late application
- Close sectionApril 2017
- Previous confirmation of taxpayer’s domicile did not bind HMRC
- Tribunal cancels penalty for alleged careless inaccuracies in tax return
- Ordinary meaning of ‘period of ownership’ must be used for the purposes of principal private residence relief
- Payment by shareholder to enable sale of shares was not deductible for CGT purposes
- Executors not entitled to claim relief for losses on investments incurred before deceased’s death
- Upper Tribunal finds Icebreaker LLP partners not entitled to sideways loss relief as the trades were not commercial
- Close sectionMarch 2017
- Upper Tribunal confirms decision to discharge sanction charges against SIPP scheme administrator
- Accountants’ failure to advise company on CIS registration constituted reasonable
- Penalty for careless loss relief claim reduced as no reasonable prospect of capital loss being fully used
- First-tier Tribunal erred when deciding it had no jurisdiction to amend taxpayer’s return
- HMRC could not substantiate claim that appellant was a negligent director and failed to pay NICs
- Correction by current accountants of errors in tax return by previous adviser did not establish a reasonable excuse for late payment
- Close sectionFebruary 2017
- Omission of right to take lifetime pension benefits did not constitute a transfer of value
- Delivery drivers engaged on casual basis by haulage firm were employees not independent contractors
- Private residence relief claim allowed for taxpayer’s six week occupation of property
- Tribunal had no power to order inter partes hearing of HMRC ex parte application for third party information notice
- Application to admit late appeal allowed
- HMRC reduces claim for hours worked by wife assisting husband’s small business
- Close sectionJanuary 2017
- Mental illness constituted a reasonable excuse for failure to submit tax returns
- Computing the chargeable gain payable on asset purchased with and sold for Swiss francs
- Honorarium received by union’s branch secretaries was employment income
- Insufficiency of funds for a reason outside the taxpayer’s control was a reasonable excuse for late payment of CGT
- Unrepaid loans were capital in nature and lender could not claim bad debt relief
- Dishonoured cheque was not a reasonable excuse for late payment of tax
- Close sectionDecember 2017
- Close section2016
- Close sectionDecember 2016
- Employer did not have discretion over which family member should be taxed on benefit-in-kind
- Self-employed ‘partner’ was an employee of the business
- Sponsorship of teenage racing driver by family hotel business was a deductible expense
- Inclusion in tax return of inaccurately estimated figures constituted deliberate behaviour
- Flat was a buy-to-let investment and not taxpayer’s main residence
- Decision by HMRC not to suspend penalty for carless tax return error was flawed
- Close sectionNovember 2016
- ‘Off the record’ press briefing by senior HMRC official breached duty of confidentiality to taxpayers
- Discovery assessment was not valid because insufficiency of tax not brought about deliberately
- Taxpayers who relied on professional advisers had penalties for careless tax return errors set aside
- Accountancy firm’s money laundering procedures were inadequate
- Refusal by HMRC to suspend taxpayer’s penalty for careless tax return errors was flawed
- SIPP scheme administrator wins appeal against liability to scheme sanction charges
- Close sectionOctober 2016
- Caravans providing accommodation for site warden did not qualify as plant for capital allowance purposes
- Investor had subscribed to new issue of shares on which loss arose
- Draft shareholders’ agreement to issue shares was not evidence that shares were issued
- Tax assessments based on convicted criminal’s admissions were not excessive
- Tax scheme involving transfer of reversionary interest to reduce IHT is successful
- Tribunal quashes surcharges imposed over unauthorised payments by pension funds
- Close sectionSeptember 2016
- No exemption from IHT for bequest made to charity governed by Jersey law
- Shares could not become of negligible value because they were worthless when purchased
- Information notice which did not specify a location for documents to be produced was valid
- Football agent’s activities with football academy did not constitute a trade
- Condition for taxpayer to change his accounting date was not met
- Tribunal overrules HMRC decision to make sole director/shareholder liable for his company’s PAYE and NIC debts
- Close sectionAugust 2016
- Two out of three appellant LLPs were trading
- Court of Appeal confirms HMRC documents gave taxpayers proper notice of daily penalties for late returns
- Court of Appeal partially allows appeal against HMRC’s treatment of a group loan arrangement
- Successor company could only claim losses sustained by predecessor’s business trading after succession
- Forfeited property deposits were not losses on disposal for CGT purposes because no disposals took place
- HMRC could pursue extended time limit discovery assessments against taxpayer’s widow
- Close sectionJuly 2016
- Tribunal correct to find that HMRC’s view that an avoidance scheme did not work in a similar scheme justified discovery assessment
- Corporation tax loss could be set off against income tax profit
- Individual partners were entitled to declare different profit shares to the partnership return
- HMRC criticised by tribunal for refusal to suspend penalties imposed for taxpayer’s careless error
- Compensatory payments made to footballers who agreed to end their contracts were not taxable as earnings
- First-tier Tribunal has exclusive jurisdiction over content and enforcement of third party information notice
- Close sectionJune 2016
- Different taxpayer liable for SDLT payable on alternative finance scheme
- Project Blue Limited v Commissioners for Revenue and Customs [2016] EWCA Civ 485
- Residential property acquired with intention of residence but not occupied was held as capital asset
- HMRC could not raise discovery assessment as taxpayer’s behaviour was not careless
- ‘Ordinary share capital’ did not include shares carrying no right to dividend
- Date error invalidated tax return enquiry notice and consequent closure notice
- Close sectionMay 2016
- Transfer of property into trust set aside for mistake because settlor unaware of adverse consequences
- Bonds prevented under their terms from being QCBs
- Taxpayer’s human rights prevented imposition of double tax charge on the same profits
- Cash transportation company’s parking fines were not tax deductible
- Contractor who failed to withhold tax not liable because unaware of CIS
- Tribunal finds reasonable grounds for refusing to issue a closure notice into the return of a seriously ill taxpayer
- Close sectionApril 2016
- Cars leased by employer to employees at market rate were not assessable as a benefit in kind
- Taxpayer not entitled to separate preliminary hearing on the conditions for a discovery assessment
- Foreign service deduction not due following change of employer
- Conclusion by reviewing officer bound HMRC and prevented enquiry being opened into tax return
- Requirement to live near work insufficient to support claim for tax relief on accommodation allowance
- Information communicated by taxpayer’s agent constituted valid notice of enquiry
- Close sectionMarch 2016
- Banks lose Supreme Court appeals against tax treatment of bankers’ bonuses
- Rent from holiday units was not trading income
- Director loses claim for entrepreneurs’ relief on gain from company purchase of own shares
- HMRC did not issue a valid notice requiring a tax return
- Deferred shares counted as ‘ordinary share capital’ for entrepreneurs’ relief purposes
- Compensation paid to employee for lost benefit rights on a TUPE transfer was partly taxable as constituting earnings
- Close sectionFebruary 2016
- When a hypothetical HMRC officer can be expected to be aware of an insufficiency of tax
- Challenge by film partnership members to HMRC’s decision to amend returns is rejected
- Termination payment for injury to feelings was taxable
- Payment to settle litigation was not made wholly and exclusively for purposes of his trade
- Share dealing activities constituted a commercial trade
- Grant of subleases found to be gifts with reservation
- Close sectionJanuary 2016
- Residential property purchased by pension fund was not ‘taxable property’
- Surgeon’s travel and subsistence expenditure for private work was not deductible
- Company’s house building activities were excluded for share loss relief purposes
- Taxpayer had reasonable excuse for late electronic filing of tax return
- Company could set off losses carried forward from earlier years
- Payments to individuals carrying out construction work fell outside CIS
- Close sectionDecember 2016
- Close section2015
- Close sectionDecember 2015
- Upper Tribunal approves use of multi-factorial test to determine source of loan interest
- ‘Goodwill’ payment was income from employment and not capital
- Farming losses could not be offset against property income
- Late filing penalty should not have been imposed where return was filed on time but in wrong online format
- Taxpayer’s life-threatening condition constituted a reasonable excuse for late filing
- Preferential rights attached to shares could not be ignored for EIS purposes
- Close sectionNovember 2015
- Issues of fairness were not balanced by HMRC when rejecting claim for ‘Mansworth v Jelley’ losses
- Tribunal erred in law by not considering whether taxpayer had reasonable excuse for late submission of relief claim
- Circumstances of taxpayer’s eight week period of residence qualified him for principal private residence relief and lettings relief
- Private residence relief refused on ‘second homes’
- HMRC’s refusal to allow claim for ‘special relief’ was unreasonable
- Contributions to employee benefits trusts were redirected earnings subject to income tax
- Close sectionOctober 2015
- Dividends paid to employees were emoluments of employment
- Tax avoidance scheme failed because share of partnership profits constituted income
- HMRC information notice was invalid and penalties for non-compliance could therefore not be enforced
- Construction company required to make CIS deductions from payments to Isle of Man parent company
- HMRC wrong not to suspend penalties for careless tax return error against individual taxpayer
- Underpayment of tax caused by employer’s error could not be recovered from employee
- Close sectionSeptember 2015
- Payment to enable sale of shares was not deductible for CGT purposes
- Film scheme loss relief denied because taxpayer who operated it was not trading
- Land could not be ‘grounds’ or ‘garden’ for PPR relief purposes
- Tribunal finds HMRC acted unreasonably when disallowing claim for special relief
- Securing capital allowances at 25 per cent was a main objective
- Redundant employee’s incentive plan shares were restricted for market valuation purposes
- Close sectionAugust 2015
- Travel expenses payments made to employed temps were taxable as earnings
- Pensions tax charge took effect when approval for scheme was withdrawn
- Judicial review was inappropriate procedure in loss relief claim case
- Trade discontinued at end of period of account was discontinued in that period
- No requirement for HMRC to consider financial effect on the business in cancellation of CIS gross payment status
- Furnished holiday letting business was mainly an investment activity
- Close sectionJuly 2015
- Delaware LLC member eligible for double tax relief on his share of profits
- Forfeited property deposits were not losses on disposal for CGT purposes
- Actions of HMRC in seeking payment of outstanding tax were unconscionable
- Payment of £30,000 to employee to resolve grievance over TUPE transfer was taxable
- Appeals against failure to file company returns succeed in part
- ‘Shadow director’ liable to unpaid PAYE on money received from companies he controlled
- Close sectionJune 2015
- High Court rescinds trust after mistake triggered an unexpected IHT liability
- Forgiveness of debt amounted to non-cash consideration for CGT purposes
- Actor’s claim for accommodation costs denied
- Disposal of syndicate capacity by Lloyd’s ‘Name’ did not quality for entrepreneurs’ relief
- Tribunal determines market value of shares in unquoted company
- Payment made to settle threatened race discrimination claim not taxable as earnings
- Close sectionMay 2015
- Tax scheme failed because consideration not paid ‘wholly and exclusively’ for acquisition of shares
- Film partnerships were not carrying on a trade and so partners denied loss relief
- No reasonable excuse for late payment of PAYE and NICs
- EIS investors lose relief on takeover
- Scrip dividend was capital in hands of trustees
- Tribunal upholds discovery assessments against taxpayers who failed to disclose property disposals
- Close sectionApril 2015
- Four year time limit did not apply to self-assessment returns
- Partner denied right of appeal against penalties issued for late filing of partnership return
- Company’s research and development costs were deductible as an SME
- Taxpayer who inadvertently triggered chargeable gain was entitled to rectification
- No loss relief could be claimed by corporate LLP member which did not contribute capital
- Penalties of over £1.2 million imposed for failure to comply with information notices
- Close sectionMarch 2015
- Application for costs on grounds of HMRC’s unreasonable behaviour succeeds
- Successor company could claim losses sustained by predecessor business prior to succession to trade
- Taxpayer wins appeal against penalty for negligent return following unsuccessful tax scheme
- Property was an investment and not trading stock
- Decision that employee bonus scheme failed on Ramsay grounds is reversed
- Court of Appeal confirms that film partnership’s activities did not amount to a trade
- Close sectionFebruary 2015
- Decision to strike out challenge for having no prospect of success was correct
- Bosher principles give tribunal had no discretion to mitigate penalties imposed for late CIS returns
- Court reverses mistake that triggered substantial CGT liability for trustees
- Inaccuracies in tax return were caused by carelessness
- Negligence claim against advisers failed despite their breach of duty
- Beneficiary liable to a penalty for failing to inform executors of lifetime gift for IHT purposes
- Close sectionJanuary 2015
- Optician who changed business activity could not carry forward losses
- No deduction due from compensation payment for ‘redundancy’ payment to wife
- Were properties the taxpayer’s principal private residence or trading assets?
- Reliance on accountant was not a reasonable excuse for lodging late appeal
- Applicant with previous conviction failed ‘fit and proper person’ test under Money Laundering Regulations
- Sub-sale alternative finance scheme failed to avoid liability for SDLT
- Close sectionDecember 2015
- Close section2014
- Close sectionDecember 2014
- HMRC documents gave taxpayers proper notice of daily penalties for late returns
- Delay in obtaining authorisation code was not a reasonable excuse for late filing
- Application for preliminary hearing on domicile issue refused because it would not have determined the substantive appeal
- Severance of joint tenancy established on balance of probabilities
- Rewritten tax law required a literal interpretation
- Letter from HMRC was not an ‘assessment’ and so could not be appealed
- Close sectionNovember 2014
- Transferable nil rate band doubled bequest to testatrix’s family
- Currency conversion clauses did not prevent bonds from being QCBs
- Statutory period for HMRC enquiry into company tax return begins on day after filing
- Farmer allowed loss relief against other income despite continuous losses
- Taxpayer appeals struck out as having been settled by agreement
- Builder acting on accountant’s advice had reasonable excuse for failure to make CIS returns
- Close sectionOctober 2014
- Bequest made to charity governed by Jersey law was not exempt from IHT
- Clawed back bonus was negative taxable earnings
- Special relief claim fails after tribunal rules that HMRC’s decision to refuse relief was not unreasonable
- Former director who remained involved with the company was an employee for entrepreneurs’ relief purposes
- Ignorance was not a reasonable excuse for late submission of a claim for enhanced protection from the pension lifetime allowance
- Executors could claim deceased individual’s loss relief on investments for period before deceased’s death
- Close sectionSeptember 2014
- Discovery assessments issued after closure notices were valid
- Taxpayer who did not receive notice to file had a reasonable excuse for failure to submit return
- No penalty for taxpayer who mistakenly filed paper tax return followed by an online return
- Time extension granted for appeal notification following reliance on professional advisers
- HMRC’s knowledge that avoidance scheme did not work justified discovery assessment in case seeking same advantages
- Limited partnership involved in vaccines research loses appeal against research and development loss relief restriction
- Close sectionAugust 2014
- Court of Appeal orders First-tier Tribunal to reconsider decision on capital allowances
- Upper Tribunal had no jurisdiction to hear taxpayer’s appeal on error or mistake claim
- Relocation expenses paid to departing employee after agreement to leave would not be allowable
- Assets owned by and used wholly for business were benefit in kind
- Yacht chartering business was commercial with a reasonable prospect of profit
- Gap in capital gains tax legislation revealed by transactions could not be plugged by purposive construction
- Close sectionJuly 2014
- Court of Appeal confirms payments to rugby club by fish business sponsor were not tax deductible
- Fine imposed on Formula One racing team was not tax deductible
- HMRC loses appeal over use of employee benefits trusts by former Rangers FC and others
- Failure to take lifetime benefits under pension plan created IHT liability
- Arguments based on legitimate expectation were outside First-tier Tribunal’s jurisdiction
- Taxpayer wins appeal against CIS late filing penalties
- Close sectionJune 2014
- Leased cars were benefit in kind to director but discovery assessments dismissed
- Marriage breakdown was ‘reasonable excuse’ for late payment of tax
- Value of goodwill in small accountancy practice based on multiple of gross recurring fees
- EIS relief forfeited after company takeover by another EIS company
- Occupation by owners of property on which offer had been accepted was not ‘residence’
- Tribunal rejects standard HMRC definition of ‘reasonable excuse’
- Close sectionMay 2014
- Value of shares gifted to charity is reduced
- Scrip dividend share sale proceeds were income for inheritance tax and general trust law purposes
- Trader wins appeal against HMRC’s ‘excessive’ assessments
- Judicial review claim by film partnerships investors dismissed in relation to loss relief claims
- Upper Tribunal rejects appeal against HMRC’s treatment of a group loan arrangement
- Gains on disposal of mixed use assets cannot be apportioned for EIS relief purposes
- Close sectionApril 2014
- Failure by accountancy firm to advise client to seek specialist tax advice was not negligence
- Painting sold by executors was 'plant' for CGT purposes
- Expenses payments made to employed temps were taxable as earnings
- Shareholder was employed throughout the year ending with disposal for entrepreneurs' relief purposes
- Applications for closure notices within specified period rejected by First-tier Tribunal
- Appeal against information notice upheld as information was 'impossible to supply'
- Close sectionMarch 2014
- Employer contributions to a FURBS were not a payment of earnings for NIC purposes
- Cars leased by employer to employees were not assessable as a benefit in kind
- Company payments on behalf of employees participating in share scheme were within the loan to participators rules
- Self-employed flying instructor loses claim for travel expenses to and from home
- Company wins late payment penalty appeal because HMRC could not prove when it received monthly PAYE cheques
- Company which failed to deduct tax from sub-contractors in CIS scheme wins appeal against HMRC assessments
- Close sectionFebruary 2014
- Upper Tribunal dismisses appeal on deductibility of travel expenses incurred by medical practitioner for his private practice
- No penalty for adviser's error in taxpayer's return
- No inheritance tax business property relief on shares as company's business was mainly of holding investments
- Dividend waivers constituted a settlement for income tax purposes
- Taxpayer wins appeal against HMRC's refusal to grant entrepreneurs' relief following the cessation of a business
- Property occupied by husband's mother was settled property for private residence relief purposes
- Close sectionJanuary 2014
- Grant of an underlease was not a 'gift with reservation' for IHT purposes
- Discovery assessment valid despite individual's earlier tax return disclosure of participation in failed tax scheme
- Nine month time limit imposed for closure of HMRC enquiry
- HMRC wrong to claim shares were not of 'negligible value' for CGT purposes
- Appeals against HMRC assessments of partnerships takeaway profits and penalties allowed
- Tribunal considers that penalty imposed for late MLR registration was appropriate
- Close sectionDecember 2014
- Close section2013
- Close sectionDecember 2013
- Penalty for failing to declare severance payment upheld
- Principal private residence relief was due on sale of land where groundwork started before contractual disposal
- Agent's failings constituted a reasonable excuse for late P35 returns
- Prior information prevented HMRC from raising discovery assessment
- Individual moved abroad but kept London home for visits was non-resident in UK
- Taxpayer not entitled to private residence relief on sale of rebuilt property
- Close sectionNovember 2013
- Loss carry-back claim was made otherwise than in a tax return
- Partner's payment to settle action was made exclusively for purposes of his trade
- Taxpayers were not given proper notice of daily penalties for late returns
- Taxpayer wins appeal against HMRC information notice
- Only parts of an engagement letter were subject to legal privilege
- No intangibles relief available on company's acquisition of members' interests in LLP
- Close sectionOctober 2013
- Application to make late appeal allowed after being wrongly discouraged by HMRC
- Claim for repayment of tax dismissed as relief would not be just and reasonable
- Property was acquired for investment purposes and not as trading stock
- Group relief not allowed as no reasonable expectation of gain in the trade
- ‘Calculation’ on form R27 was not an appealable assessment
- Claims to carry back loses must be ‘quantified’ as legislation specifies
- Close sectionSeptember 2013
- Manslaughter defence costs not incurred wholly and exclusively for trade purposes
- Penalty for late filing of paper tax return overturned due to lack of evidence
- Taxpayer wins claim for 'special relief'
- Consultancy services invoiced in name of unformed company not personally liable for tax
- Property not occupied as a 'residence' over eight month period
- HMRC letter was not a proper record for a valid discovery determination
- Close sectionAugust 2013
- Actor’s claim for accommodation costs remitted back to First-tier Tribunal
- Payments to rugby club by business sponsor was not tax deductible
- Employee bonus scheme using shares in a ‘special bonus vehicle’ company fails on Ramsay grounds
- Purchase of own shares: no distribution where company payments void under company law
- Property was not occupied as taxpayer’s main residence
- Goodwill was acquired from ‘related party’
- Close sectionJuly 2013
- Compensation element of payment upon early termination of dealership was not for disposal of goodwill
- Sole proprietor prevented from setting off all trading losses as not being commercial
- Losses from professional golf management were not allowable
- Car jointly owed by employee was ‘made available’ to him by employer
- Scholarship payments by company to director’s sons taxable as benefit-in-kind on the director
- HMRC attempt to apply presumption of continuity rebutted
- Close sectionJune 2013
- Contractor wins appeal against withdrawal of CIS gross payment status
- APR: nexus between farmhouse and agricultural land was common occupation but not common ownership
- ‘Business’ must be defined broadly in context of CGT relief upon incorporation
- Serviced offices excluded from inheritance tax business property relief
- Taxpayer had reasonable excuse for not paying a provisional tax liability
- Date of claim held to be the relevant date for cross-border group relief purposes
- Close sectionMay 2013
- Supreme Court decides on Hastings-Bass and allows an appeal on ground of mistake
- Properties were purchased for trading not investment purposes
- Taxpayer’s mistake in tax return was not careless
- Non-payment of class 2 NICs attributable to ignorance but not lack of due care
- Requirement for partnerships to purchase software to file return online was unfair
- Repayments of overpaid VAT and interest were liable to corporation tax
- Close sectionApril 2013
- Painting exhibited in stately home was ‘plant’ for CGT purposes
- Replacement of grass surface in caravan park with hard core was revenue expense
- Worker absenteeism was reasonable excuse for late payment of PAYE
- PPR relief denied on residence placed onto the market for sale
- Taxpayer who only lived in property for several weeks entitled to PPR relief
- Reasonable excuse existed for late payment of PAYE
- Close sectionMarch 2013
- Delaware LLC member not entitled to double tax relief on his share of profits
- Principles to be applied on deductibility of travel expenses for NHS consultant’s private practice
- Penalty could be suspended for careless mistake over ‘one-off’ payment
- HMRC decision to cancel taxpayer’s CIS gross payment status was wrong
- PILON prevented taxpayer claiming tax free sum on termination payment
- Taxpayer who funded his company had reasonable excuse for non-payment of income tax under self-assessment
- Close sectionFebruary 2013
- Legal advice privilege cannot extend beyond legal profession
- A practice is not ‘generally prevailing’ unless understood by both HMRC and tax advisers
- Payment offsetting car benefit did not have to be made in same year benefit received
- No agreement to determine appeal had been signed by taxpayer
- Failings of HMRC staff helped provide reasonable excuse for late PAYE payments
- Appeal against penalty for incorrect-self assessment return succeeds due to mistake on P45
- Close sectionJanuary 2013
- Lap dancer was not an employee, Court of Appeal rules
- Inter-company transactions did not constitute loan relationship
- Payment made to settle will challenge not a liability incurred by deceased
- HMRC wrong not relieve contractor of obligation to deduct tax under CIS
- Shareholder withdrawals of company funds were loans to participators and no trading deduction allowable for bad debt created by non-return of funds
- Upper Tribunal provides guidance on when a valid discovery assessment can be raised
- HMRC not obliged to reallocate PAYE payments
- Close sectionDecember 2013
- Close sectionDecember 2019
- Close sectionVAT news and cases roundup
- Close sectionDecember 2019
- Significant information from the annual UK VAT statistics 2018/19
- Notice giving information on group and divisional registration updated
- VAT Notice 708: ‘Buildings and Construction’
- VAT Notice 735: ‘Domestic Reverse Charge Procedure’
- VAT exemption denied to loan account administrator
- Childcare was the predominant element of holiday camps
- Input tax was deductible on fees for advice connected with tax avoidance scheme
- Close sectionNovember 2019
- Treasury publishes Isle of Man VAT review
- Changes to the supply of digital services 2019
- Making Tax Digital for VAT
- Who should register for VAT
- Toolkits updated
- Failure by company supplying labour to account for relevant VAT was careless rather than deliberate
- Sports club was not a charity and so construction services were not zero-rated
- Close sectionOctober 2019
- Leaving the EU with no deal
- VAT on lost space of bathroom and washroom conversions for disabled people explained
- Update to reliefs from VAT for disabled and older people
- Review of the VAT exemption for cost sharing groups in the social housing sector
- Energy-saving materials and heating equipment: changes introduced
- Claim a VAT refund if you build new houses on a DIY basis
- Claim a VAT refund on a conversion if you are a DIY housebuilder
- Goods and services you can claim for under the VAT DIY Scheme
- Domestic reverse charge VAT for construction services - delay in implementation
- VAT Refund Scheme for charities
- VAT when you sell a vehicle
- VAT Notice 700: VAT guide
- Company could recover VAT on legal fees incurred by director before incorporation
- Charity providing parental assessment service made supplies of welfare services exempt from VAT
- Close sectionSeptember 2019
- New domestic reverse charge for building and construction services
- VAT Notice 701/30: ‘Education and vocational training’
- VAT Notice 700/50: ‘Default surcharge’
- Fees received for recovering PPI compensation were not exempt supplies of insurance
- Botox and nail fungus treatments did not constitute medical procedures
- Close sectionAugust 2019
- VAT Notice 701/30: ‘Education and vocational training’ updated
- VAT law amended to ensure continuity of treatment for English higher education providers
- Amendments made to reduced rate for energy-saving materials
- Importing goods for test free of duty and VAT
- Brief explains changes in accounting for VAT after prices are altered
- Call for evidence on simplification of partial exemption and the Capital Goods Scheme
- Failure by HMRC to communicate reasons for taking decision made it unlawful
- Holding company could recover input tax
- Close sectionJuly 2019
- VAT rate set to increase on solar panels and home batteries
- HMRC updates VAT Notices
- Reverse charge mechanism introduced for supplies of gas and electricity certificates in the UK
- HMRC’s policy on zero rate for transport services clarified
- VAT: Domestic reverse charge for building and construction services
- Company was entitled to claim bad debt relief for funds dishonestly diverted by employee
- Employee responsible for company’s financial affairs and management was a ‘manager’
- Close sectionJune 2019
- Close sectionMay 2019
- Introduction of MTD could be an opportunity for advisers
- How digitisation is impacting the accountancy profession
- Notice 101: ‘deferring duty, VAT and other charges’
- Refunds of VAT in the UK for non-EU businesses
- Incorrect deduction of import VAT
- Road fuel scale charge tables for VAT
- VAT Notice 700/1: who should register for VAT
- Tribunal upholds HMRC’s decision that taxpayer should have registered for VAT before he did so
- Appellant loses claim he was not the liable person for VAT registration
- April 2019
- March 2019
- February 2019
- January 2019
- Close section2018
- Close section2017
- Close sectionDecember 2019
- Close sectionCurrent tax consultations as at 1 January 2020
- Open consultations
- Close sectionRecently closed consultations
- Draft legislation: The Value Added Tax (Refund of Tax) Order 2019
- Draft legislation: The Value Added Tax (Drugs and Medicines) Order 2019
- Draft Regulations: The UK Property Rich Collective Investment Vehicles (Amendment of the Taxation of Chargeable Gains Act 1992) Regulations 2019
- International Tax Enforcement: disclosable arrangements