Tax Take

Taxpayer's appeal succeeds as HMRC failed to open enquiry in time

Published on 25 March 2024. By Keziah Mastin, Associate

In Monks v HMRC [2023] UKFTT 853 (TC) the First-tier Tribunal concluded that HMRC had not opened a valid enquiry because the taxpayer didn't receive HMRC's letter until after the relevant time limit had expired.

Supreme Court provides clarity on Transfer of Assets Abroad legislation

Published on 18 March 2024. By Liam McKay, Senior Associate

In allowing the taxpayers' appeal, the Supreme Court determined that shareholders were not "transferors" for the purposes of the Transfer of Assets Abroad regime in the Income and Corporation Taxes Act 1988.

Home run! - Tribunal finds that taxpayer who bought and sold three properties in quick succession was not trading

Published on 11 March 2024. By Harry Smith, Senior Associate

Taxpayer purchasing, renovating and selling properties allowed private residence relief on capital gain and held not to be trading as property developer for tax purposes.

International Women's Day special – Inspiring inclusion with Tax Titan Trio

08 March 2024

To celebrate International Women's Day 2024, we have produced a special episode of RPC's Taxing Matters podcast in which we discuss this year's campaign theme #InspireInclusion and what it means to each of our guest speakers.

Tax Bites - February 2024

Published on 07 March 2024. By Adam Craggs, Partner

Welcome to the latest edition of RPC's Tax Bites - providing monthly bite-sized updates from the tax world.

A look into HMRC's toolbox during a criminal investigation

Published on 05 March 2024. By Adam Craggs, Partner and Michelle Sloane, Partner

HMRC has far-reaching powers it can deploy during a criminal investigation into suspected tax fraud, which include applying for and executing search warrants (colloquially referred to as a "dawn raid"), making arrests and the compulsorily obtaining information and documentation through production orders and disclosure notices/orders. A criminal investigation conducted by HMRC is one of the most stressful events a business can experience and failing to properly respond can have serious repercussions, including significant financial and reputational damage or even prison time for individuals.

V@ update - February 2024

Published on 28 February 2024. By Adam Craggs, Partner

Welcome to the February 2024 edition of RPC's V@, a monthly update which provides insightful analysis and news from the VAT world relevant to your business.

Customs and excise quarterly update - February 2024

Published on 28 February 2024. By Adam Craggs, Partner and Michelle Sloane, Partner

Welcome to the February 2024 edition of RPC's Customs and Excise Quarterly Update.

Tribunal allows taxpayers' appeals against discovery assessments as company could not distribute goodwill it did not own

Published on 26 February 2024. By Alexis Armitage, Senior Associate

Tribunal allows taxpayers' appeals against HMRC discovery assessments as company could not distribute goodwill it did not own.

A whistlestop tour of the taxation of international sports and rock stars with Patrick Way KC

21 February 2024

In this episode, RPC's Taxing Matters Host and Senior Associate in RPC's Tax Disputes team, Alexis Armitage, will be discussing the taxation of international sports and rock stars with leading silk, Patrick Way KC.

Tribunal varies Schedule 36 information notice as it sought material not reasonably required by HMRC

Published on 19 February 2024. By Jasprit Singh, Senior Associate

In Parker Hannifin (GB) Ltd v HMRC [2023] UKFTT 00971 (TC), the First-tier Tribunal found that an information notice issued by HMRC, under Schedule 36, Finance Act 2008, was not invalid because it required electronic searches using a list of specified search terms but it did seek information that was legally privileged or not "reasonably required" and the notice was varied accordingly.

Upper Tribunal remits CGT appeal back to Tribunal for rehearing

Published on 12 February 2024. By Keziah Mastin, Associate

In M Campbell v HMRC [2023] UKUT 265 (TCC) the Upper Tribunal (Tax chamber) remitted the taxpayers' appeals back to the First-tier Tribunal to consider the liability to capital gains tax, after the taxpayer flipped four residential properties.

Tribunal allows taxpayers' appeals against discovery assessments

Published on 05 February 2024. By Liam McKay, Senior Associate

In Smith v HMRC [2023] UKFTT 00912 (TC), the First-tier Tribunal (FTT) allowed the taxpayers' appeals against discovery assessments, finding that a transfer of goodwill did not amount to a distribution under section 1000, Corporation Tax Act 2010 (CTA), because the goodwill was owned personally by the taxpayers.

Tax Bites - January 2024

Published on 31 January 2024. By Adam Craggs, Partner

Welcome to the latest edition of RPC's Tax Bites - providing monthly bite-sized updates from the tax world.

AIM higher!

Published on 30 January 2024. By Harry Smith, Senior Associate

In Graham Chisnall and Others v HMRC [2023] UKFTT 857 (TC), the First-tier Tribunal (FTT) held, in allowing the taxpayers' appeals, that evidence derived from the sale price of shares on the Alternative Investment Market (AIM) was more reliable than evidence provided by a valuer employed by HMRC.

Exploring the World of AI with Olivia Dhein

30 January 2024

In this episode we discuss the hot topic of artificial intelligence. We will consider what is AI, what is a large language model and how does it work, what can AI do and not do at the moment as well as some of the potential effects AI might have in the tax world. We also take a look at the recent Tax Tribunal decision in Harber v HMRC [2023] UKFTT 1007 (TC), in which false case law was generated by AI and innocently relied upon by the taxpayer and how the Tribunal dealt with this.

V@ update - January 2024

Published on 24 January 2024. By Adam Craggs, Partner

Welcome to the January 2024 edition of RPC's V@, a monthly update which provides insightful analysis and news from the VAT world relevant to your business.

Tax Tribunal allows taxpayer's appeal against discovery assessment

Published on 18 January 2024. By Alexis Armitage, Senior Associate

FTT allows taxpayer's appeal against HMRC discovery assessment seeking to charge CGT on the disposal of a property between separating spouses.

Court of Appeal considers 'main purpose' test and finds in favour of taxpayer

Published on 11 January 2024. By Jasprit Singh, Senior Associate

Directors not liable under PLNs as HMRC failed to establish deliberate conduct by company

Published on 05 January 2024. By Keziah Mastin, Associate

In Sharon Suttle and another v HMRC [2023] UKFTT 873 (TC), the Tax Tribunal allowed the taxpayers' appeals against Personal Liability Notices (PLNs) on the basis that the company did not make a deliberate inaccuracy in its returns.

Tribunal allows taxpayer's appeal in respect of late filing penalties

Published on 15 December 2023. By Liam McKay, Senior Associate

Tackling "Tax avoidance" this Christmas season with Sam Brodsky

12 December 2023

As the cost of living crisis bites more than ever this year, in this special Christmas episode of RPC's Taxing Matters, we bring you some Christmas cheer by way of a light-hearted discussion of some of the potential ways you may be able to reduce your tax bill. In addition, we'll also have a quick look at Santa's tax position in the run up to Christmas and whether he might be guilty of tax avoidance … or even tax evasion!

Court of Appeal upholds tribunal decision on the taxation of limited partnership transactions

Published on 11 December 2023. By Harry Smith, Senior Associate

Tax Bites - December 2023

Published on 07 December 2023. By Adam Craggs, Partner

Welcome to the latest edition of RPC's Tax Bites - providing monthly bite-sized updates from the tax world.

UT dismisses HMRC's appeal and upholds decision in relation to private residence relief

Published on 01 December 2023. By Alexis Armitage, Senior Associate

V@ update - November 2023

Published on 29 November 2023. By Adam Craggs, Partner

Welcome to the November 2023 edition of RPC's V@, a monthly update which provides insightful analysis and news from the VAT world relevant to your business.

Customs and excise quarterly update - November 2023

Published on 29 November 2023. By Adam Craggs, Partner and Michelle Sloane, Partner

Welcome to the November 2023 edition of RPC's Customs and Excise Quarterly Update.

A day in the life of a tax adviser with Jeremy Johnson

28 November 2023

In this episode of Taxing Matters, we are joined by Jeremy Johnson, managing director of inTAX Limited.

Upper Tribunal dismisses HMRC's appeal in respect of salaried members rules

Published on 24 November 2023. By Liam McKay, Senior Associate

Tribunal confirms that payments of a punitive nature are not deductible

Published on 22 November 2023. By Harry Smith, Senior Associate

NHS Trust wins judicial review claim against HMRC

Published on 15 November 2023. By Alexis Armitage, Senior Associate

NHS Trust wins judicial review claim against HMRC in respect of VAT concession.

Upper Tribunal dismisses taxpayer's appeal in  substantial shareholding exemption case

08 November 2023

In M Group Holdings Ltd v HMRC [2023] UKUT 213 (TCC), the Upper Tribunal (UT) has upheld the decision of the First-tier Tribunal (FTT), which found that a company was not entitled to benefit from the substantial shareholding exemption (SSE) given that the shareholding had only been held for eleven months, as opposed to the required twelve months. The provision of paragraph 15A, Schedule 7AC, Taxation of Chargeable Gains Act 1992 (TCGA), which extends SSE relief when assets have been transferred within a group, was found not to apply and the appellant was liable to pay just over £10M in corporation tax.

Tax Bites - November 2023

Published on 02 November 2023. By Adam Craggs, Partner

Welcome to the latest edition of RPC's Tax Bites - providing monthly bite-sized updates from the tax world.

Tribunal finds that CGT saving was not the main purpose of wider arrangements

Published on 01 November 2023. By Keziah Mastin, Associate

In Wilkinson and others v HMRC [2023] UKFTT 00695 (TC), the First-tier Tribunal (FTT) allowed the taxpayers' appeals on the basis that CGT avoidance was not the main or one of the main purposes behind a deal involving the exchange of shares in one company for shares and loan notes in another.

Why now is the right time to get to grips with your money with Ruth Handcock and Ali Poulton

31 October 2023

In this episode of Taxing Matters, we discuss the hot topic of financial health, wellbeing and confidence. We are currently experiencing a challenging economic climate and any guidance on this important topic is very welcome.

V@ update - October 2023

Published on 26 October 2023. By Adam Craggs, Partner

Welcome to the October 2023 edition of RPC's V@, a monthly update which provides insightful analysis and news from the VAT world relevant to your business.

Tribunal allows taxpayers' application for costs against HMRC

Published on 18 October 2023. By Liam McKay, Senior Associate

While granting the taxpayers' application for costs, the First-tier Tribunal refused to award indemnity costs on the basis that HMRC's conduct did not merit the "stigma of an indemnity costs award".

Limitation proves to be a magic bullet for Magic Carpets

Published on 18 October 2023. By Harry Smith, Senior Associate

In Magic Carpets (Commercial) Ltd v HMRC [2023] TC08892, the First-tier Tribunal (FTT) held that although a taxpayer acted carelessly in implementing a tax planning arrangement involving an employee benefit trust (EBT), this carelessness did not bring about a loss of tax. HMRC's determinations were therefore out of time as they had been issued after the regular four-year limitation period had expired.

Upper Tribunal dismisses HMRC's appeal confirming that input tax is recoverable on fiscal neutrality grounds

Published on 11 October 2023. By Alexis Armitage, Senior Associate

Upper Tribunal dismisses HMRC's appeal confirming that input tax is recoverable on fiscal neutrality grounds.

Tax Bites - October 2023

Published on 05 October 2023. By Adam Craggs, Partner

Welcome to the latest edition of RPC's Tax Bites - providing monthly bite-sized updates from the tax world.

A Tax On Conscience? A Moral Dilemma for Non-Residents

Published on 04 October 2023. By Liam McKay, Senior Associate

Upholding HMRC's appeal, the Upper Tribunal held that moral obligations, specifically the need to care for close relatives, were not "exceptional circumstances" for the purposes of the Statutory Residence Test in Schedule 45 of the Finance Act 2013.

V@ update - September 2023

Published on 28 September 2023. By Adam Craggs, Partner

Welcome to the September 2023 edition of RPC's V@, an update which provides analysis and news from the VAT world relevant to your business.

Judicial developments in recent treaty cases

27 September 2023

Sanctions Spotlight Session with Alice Kemp

26 September 2023

In this episode of Taxing Matters, we are handing over the podcast baton and introducing our new host Alexis Armitage, Senior Associate in RPC's Tax Disputes Team. We couldn’t think of any better way to say our final goodbyes to the fabulous Alice other than by putting her in the hot seat to discuss the topic of the moment, sanctions.

Tribunal finds in favour of taxpayer confirming that payments are consideration rather than a subsidy for expenditure

20 September 2023

In a recent case, the Upper Tribunal found in favour of the taxpayer and confirmed that payments made for goods and services under an arm's-length contract are consideration rather than subsidy for expenditure, even when the payments are calculated to reflect such expenditure. The payments therefore do not provide grounds for HMRC to disallow the expenditure.

A tax on conscience? A moral dilemma for non-residents

Published on 19 September 2023. By Liam McKay, Senior Associate

In HMRC v A Taxpayer, the Upper Tribunal (UT) considered the meaning of ‘exceptional circumstances’ for the purposes of the statutory residency test (SRT) in FA 2013. In overturning the decision of the First-tier Tribunal, the UT held that moral obligations, specifically the need to care for close relatives, were not exceptional circumstances, creating a potential dilemma for individuals when it comes to managing their tax residency status and their family life.

Tribunal allows taxpayer's appeal as although he had failed to establish his domicile of choice HMRC had failed to prove there had been a loss of tax due to his carelessness

Published on 13 September 2023. By Keziah Mastin, Associate

In Strachan v HMRC [2023] UKFTT 617 (TC), although the taxpayer had failed to establish a domicile of choice in Massachusetts, the Tax Tribunal allowed the taxpayer's appeal against two discovery assessments, despite a finding that the taxpayer had been careless, as HMRC had not discharged the burden of proving that the loss of tax had been bought about by the taxpayer's carelessness.

Tax Bites - September 2023

Published on 07 September 2023. By Adam Craggs, Partner

Welcome to the latest edition of RPC's Tax Bites - providing monthly bite-sized updates from the tax world.

Judicial developments in recent treaty cases

06 September 2023

A spate of recent cases concerning the application of double tax treaties has seen the courts and tribunals striving for common¬sense, policy-driven outcomes.

HMRC prevented from participating further in VAT appeal following failure to comply with unless order

Published on 06 September 2023. By Liam McKay, Senior Associate

In denying HMRC's application for relief from sanctions, the First-tier Tribunal determined that HMRC had committed a serious and significant breach of an unless order and barred HMRC from further participation in the appeal proceedings.