Tax Take
Tax Tribunal confirms the time period in which HMRC must open an enquiry
As readers will be aware, HMRC generally has twelve months from the date a company files a return to open an enquiry[1].
Read moreGMAC's strategy for limiting VAT payments proved lawful in ECJ
The following is taken from an article by Robert Waterson and Nigel Brook, originally published in International Tax Review (12 September 2014).
Read moreHMRC lose employment status case
In the recent case of EMS (Independent Accident Management Services) Limited v HMRC [2014] UKFTT 891 (TC), the First-tier Tribunal (Tax Chamber) ("FTT"), found in favour of the taxpayer on the question of whether or not an employment relationship existed.
Read moreTribunal allows taxpayer to make a late appeal and rejects HMRC's overly formalistic approach
In Chirag Patel v HMRC[1] the First-tier Tribunal ('FTT') decided that a letter from the taxpayer's accountant constituted a late appeal against a discovery assessment, despite it not being expressed as such.
Read moreTax Tribunal has no jurisdiction to consider public law issues in direct tax appeal
The following is taken from an article by Adam Craggs, originally published in Tax Journal
Read moreClaim for entrepreneurs' relief succeeds: Tribunal finds that the removal from the payroll did not end taxpayer's employment
The First-tier Tribunal (Tax Chamber) (FTT) has decided in Corbett v HMRC[1] that removing a taxpayer from a company's payroll before a sale of that company did not end her employment for the purposes of claiming entrepreneur's relief.
Read moreTribunal rejects Ramsay argument and allows taxpayer's appeal in corporate bond case
In Hancock & Hancock v HMRC[1] the First-tier Tribunal (FTT) has upheld the taxpayer's appeal against HMRC's decision ...
Read moreTribunal bars HMRC from taking further part in appeal
In BPP University College of Professional Studies v HMRC[1]the First-tier Tribunal (Tax Chamber) (FTT) found that HMRC had failed to comply with an 'unless' order under Rule 8(3) of the Tribunal Procedure (First-tier Tribunal) (Tax Chamber) Rules 2009 (the Rules).
Read moreFirst-tier Tribunal holds that there is no taxable supply where there is no obligation on a subsidiary company which was receiving subsidiary services from the Group parent
In Norseman Gold plc v HMRC[1] the First-tier Tribunal (Judge Colin Bishopp) ("FTT") dismissed an appeal by Norseman Gold plc ("Norseman") ...
Read moreToasted sandwiches are standard-rated “hot food” for VAT purposes
In Sub One Ltd (t/a Subway) v HMRC[1] the Court of Appeal has upheld the decisions of both the First-tier Tribunal (FTT) and the Upper Tribunal (UT) that toasted sandwiches and "meatball marinara" are "hot food" and therefore, for VAT purposes, amount to standard-rated supplies. This decision has implications for a number of fast food outlets.
Read moreTreading uneven boards: VAT claims and setoff – Birmingham Hippodrome Theatre Trust Ltd v HMRC [2014] EWCA Civ 684
The Court of Appeal's decision in this case is likely to create a great deal of uncertainty for taxpayers seeking to recover unlawfully levied VAT from HMRC.
Read moreTrading "with a view to the making of a profit" - an objective or subjective test?
In Beacon Estates (Chepstow) Ltd v HMRC [2014] UKFTT 686 (TC), the First-tier Tribunal (Tax Chamber) ('FTT') allowed the taxpayer's appeal, holding that 'with a view to' in section 393A(3), Income and Corporation Taxes Act 1988 ('ICTA')[1] imports an objective test when considering relief for trading losses.
Read moreThe Rangers Case and EBTs
The following was taken from a longer article by Robert Waterson and Adam Craggs originally published in Tax Journal (25 July 2014, pp16-17, www.taxjournal.com).
Read moreReasonable excuse
In the recent case Spink v HMRC[1] the First-tier Tribunal (Tax Chamber) ('FTT') allowed the taxpayer's appeal against the imposition of penalties by HMRC for late payment, as it was satisfied that the taxpayer concerned had a reasonable excuse for the late payment.
Read moreAn enquiry is as an enquiry does – HMRC's narrow interpretation of what constitutes an enquiry is rejected by the Upper Tribunal
The recent case of Portland Gas Storage Limited v The Commissioners for HMRC [2014] UKUT 0270 (TCC), considered two important questions: what is an enquiry? and what is a decision?
Read moreTaxpayer succeeds in loss relief claim
In Hamilton & Kinneil (Archerfield) Ltd and others v HMRC [2014] UKFTT 350 (TC), the First-tier Tribunal (Tax Chamber) ('FTT') held that a company which had not made a cash capital contribution to a limited liability partnership could nonetheless claim loss relief against its other profits in respect of losses incurred by the limited liability partnership.
Read moreHMRC fail to demonstrate negligence in tax planning case
In the case of R, A and M Gardiner v HMRC[1], the First-tier Tribunal (Tax Chamber) ('FTT') overturned penalties imposed by HMRC on the appellant taxpayers for negligently filing their returns.
Read moreHigh Court gives stamp of approval to retrospective anti-avoidance legislation
A challenge to the lawfulness of the retrospective effect of legislation amending section 45, Finance Act 2003 ('FA 2003'), fell at the first hurdle in a recent application for judicial review heard by Mrs Justice Andrews in R (on the application of St Matthews (West) Ltd and others) v HMRC [2014] EWHC 1848 (Admin).
Read moreInformation notices suspended by FTT to allow the taxpayers to seek judicial review
In Whitefields Golf Club Ltd & Others v HMRC,[1] the First-tier Tribunal (Tax Chamber) ('FTT') suspended the effect of its decision in relation to information notices issued by HMRC pursuant to paragraph 1, Schedule 36, Finance Act 2008 (the 'information notices') which it had, less than two months earlier, confirmed on appeal.
Read moreTwo loans better than one – FTT allows taxpayer's appeal in 'benefit in kind' case
In the recent decision of the First-tier Tribunal (Tax Chamber) (FTT) in Elizabeth Amri v HMRC, the FTT rejected HMRC’s interpretation of the employment-related loan legislation contained in Chapter 7, Part 3, ITEPA 2003 and allowed the taxpayer’s appeal.
Read moreTribunal's decision not to follow its previous decision highlights the difficulties with the government's 'follower notice' proposals
In the recent case of Ardmore Construction Limited v HMRC, the First-tier Tribunal (Tax Chamber) ('FTT') dismissed the taxpayer's appeal and chose not to follow its recent decision in Perrin v HMRC.
Read moreAdministrative Court quashes HMRC's refusal to disclose information
In R (on the application of Privacy International) v The Commissioners for HM Revenue and Customs,[1] the Administrative Court has quashed a decision by HMRC that it did not have a duty to disclose information concerning its export control functions.
Read moreTribunal criticises HMRC for producing 'untruthful' records
In Kestrel Guards Limited v Revenue & Customs [2014] UKFTT 184 (TC) the First-tier Tribunal (Tax Chamber) ("FTT") allowed the taxpayer's appeal and discharged a penalty which had been imposed by HMRC for the late filing of PAYE cheques.
Read moreAre you a leader or a follower? - Tribunal gives guidance on the Rule 18 Lead Case procedure
In the recent case of General Healthcare Group Limited v HMRC,[1] the First-tier Tribunal (Tax Chamber) ('FTT'), considered the application of Rule 18 of the Tribunal Procedure (First-tier Tribunal) (Tax Chamber) Rules (2009/273) ('the Rules') to follower cases where the lead case has chosen not to appeal the decision of the FTT.
Read moreFirst-tier Tribunal Strips Club of VAT Relief
More exotic facts than are typical for a VAT case reached the First-tier Tribunal (Tax Chamber) (the FTT) last month.
Read moreDeutsche Bank and UBS tax avoidance schemes succeed
The cases of DB Group Services (UK) Limited v HMRC and HMRC v UBS AG[1] were heard together by the Court of Appeal in November 2013 and the decision was published last month.
Read moreTribunal sets aside HMRC information notice for lack of clarity
R D Utilities Ltd v HMRC [2014] UKFTT 303 (TC)
Read moreHMRC’s computer says no!
In Varma v HMRC [2014] UKFTT 006 (TC), the First-tier Tribunal (Tax Chamber) ('FTT') quashed a penalty that had been issued to a taxpayer for late filing of a self-assessment tax return.
Read moreA lack of goodwill for Medical Professionals
Over recent years increasing numbers of medical professionals have sought to incorporate their private practices for perceived tax advantages.
Read morePainting by numbers – Court of Appeal dismisses HMRC's appeal
The Court of Appeal has dismissed HMRC's appeal in Lord Howard of Henderskelfe's Executors v Revenue and Customs Commissioners [2014] EWCA Civ 278 and confirmed that, as the Portrait of Omai by Sir Joshua Reynolds ('the Portrait') was a wasting asset within the meaning of section 44 Taxation of Capital Gains Tax Act 1992 ('TCGA'), no capital gains tax ('CGT') charge arose on its disposal for £9.4m.
Read moreHigh Court holds that HMRC's winding up petition should be dismissed as an abuse of process.
The High Court (David Donaldson QC) has held in Enta Technologies Limited v HMRC [2014] EWHC 548 (Ch), that where a winding-up petition was brought by HMRC ...
Read moreTribunal decides that taxpayers must attempt to obtain information held by trustee!
In the recent case of H A Patel & K Patel (a partnership) v HMRC [1], the First-tier Tribunal (Tax Chamber) (‘FTT’) dismissed an appeal by the taxpayers that information and documents held by a trustee were not ‘in their possession or power’ for the purpose of paragraph 18, Schedule 36, Finance Act 2008.
Read moreHMRC lose FURBS appeal
In HMRC v Forde and McHugh Limited [2014] UKSC 14, the Supreme Court has dismissed HMRC's appeal and reinstated the decision of the Upper Tribunal.
Read moreCompany succeeds in overturning section 419 ICTA assessment
The First-tier (Tax Chamber) Tribunal ('FTT') has decided in RKW Limited v HMRC [2014] UKFTT 151 (TC) that consideration payable by an individual in future instalments for subscribing for shares in an unconnected close company, as defined in section 414 Income and Corporation Taxes Act 1988 ('ICTA'), is not a loan or debt within the meaning of section 419 ICTA ('section 419').
Read moreHMRC blunder prevents it from collecting tax
The Upper Tribunal ('UT') has recently held in Bristol & West plc v HMRC [2014] UKUT 73 (TCC) that closure notices that HMRC had mistakenly sent to a taxpayer were valid and could not therefore be amended.
Read moreFirst-tier Tribunal confirms compromise agreement is binding on HMRC
The recent case of Southern Cross Employment Agency Ltd v HMRC [2014] UKFTT 088 (TC) considers HMRC's ability (or, in certain cases, their inability) to revoke a decision after a claim has been finalised and paid.
Read moreTaxpayer establishes clean break and wins residence case before Tax Tribunal
The First-tier Tribunal (Tax Chamber) ('FTT') have decided in James Glyn v HMRC [2013] UKFTT 645 (TC) that, although Mr Glyn had retained his London house and returned to it several times during the year under appeal, he had nevertheless ceased to be UK resident for tax purposes as he had sufficiently loosened his ties with the UK to show there had been a distinct break with the UK.
Read moreFTT listens to used car salesman and allows his claim for entrepreneur's relief
In a recent decision of the First-tier Tribunal (Tax Chamber) ('FTT') it was held that a significant change in business constituted a cessation of one business and the commencement of a second business, (Jeremy Rice v HMRC [2014] UKFTT 0133 (TC)).
Read moreTour Operators – Can you benefit from adapting your TOMS calculations?
After lengthy deliberation, HM Revenue & Customs (HMRC) has announced it is not going to change the way the Tour Operators Margin Scheme [TOMS] is operated in the UK.
Read moreFurther guidance from the Tribunal on closure notices: long stop dates
We recently blogged about the timing of closure notices: "Tribunal directs HMRC to issue Closure Notice".
Read moreUpper Tribunal decides application for extension of time under Civil Procedural Rules
In the recent case of The Commissioners for Her Majesty's Revenue and Customs v McCarthy & Stone (Developments) Ltd and another[1] the Upper Tribunal (Tax and Chancery Chamber) ('UT') was asked to consider whether it should grant HMRC an extension of time to serve its notice of appeal.
Read moreTribunal directs HMRC to issue Closure Notice
Mr Kenneth William Bloomfield v The Commissioners for Her Majesty's Revenue and Customs [2013] UKFTT 593 (TC)
Read moreCourt finds HMRC's entry and search unlawful
In the recent judicial review case of R (on the application of Lees & Ors)[1], the High Court held that the execution of search and seizure warrants obtained by HMRC was unlawful.
Read moreFranked Investment Income ('FII') Group Litigation: ECJ strikes down UK's retroactive curtailment of limitation period for making mistake-based tax restitution claims
On 12 December 2013 the Court of Justice of the European ('ECJ') ruled, in line with the Advocate-General's opinion dated 5 September 2013, that section 320 Finance Act 2004 ('section 320') breached EU law.
Read more2013 – A review of the year, and Seasonal Greetings!
2013 has been a busy year for the RPC Tax Take team. To round the year off we have highlighted below a small sample of some of our top blog posts from the past 12 months.
Read moreAutumn Statement 2013 – George's Marvellous Medicine?
In the midst of the political point-scoring, last week's Autumn Statement was light on significant new tax announcements.
Read moreA Notice of Requirement and VAT Security
A former TV chef was recently fined £10,000 for his failure to comply with a Notice of Requirement (NOR) to give a VAT security (http://abytx.co/1bDo2U0).
Read moreQuality of occupation is paramount when deciding whether a property is a taxpayer's 'only or main residence' for the purposes of capital gains tax
A recent decision of the First-tier Tribunal (Tax Chamber) ('FTT') provides helpful insight into the way in which the FTT will apply the Capital Gains Tax Private Residence relief provisions contained in sections 222 and 223 of the Taxation of Chargeable Gains Act 1992 ('TCGA').
Read moreThe Tribunal considers its public law jurisdiction in VAT online filing human rights case
The First-tier Tribunal (Tax Chamber) ('FTT') has recently considered various difficult questions in relation to its public law jurisdiction and the relevance of human rights issues to taxation disputes in LH Bishop & Others v HMRC[1].
Read moreTribunal sets aside HMRC's Schedule 36 information notice
The First-tier Tribunal (Tax Chamber) ('FTT') has allowed a taxpayer's appeal against an information notice issued by HMRC pursuant to paragraph 1, Schedule 36, Finance Act 2008.
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