Tax Take
Payments under indemnity not a remittance
In Sehgal & Anor v HMRC [2022] UKFTT 312 (TC), the First-tier Tribunal ruled that payments made under an indemnity did not constitute a remittance, and there was therefore no chargeable gain for the taxpayers.
Read moreTax Bites - December 2022
Welcome to the latest edition of RPC's Tax Bites - providing monthly bite-sized updates from the tax world.
Read moreUpper Tribunal confirms that HMRC has the burden of proof in personal liability notice cases
The Upper Tribunal set aside the decision of the First-tier Tribunal and confirmed that HMRC has the burden of proving that a personal liability notice was correctly issued but once it has met that burden the onus of showing that the assessment on which it was based was excessive, falls on the taxpayer.
Read moreCustoms and excise quarterly update - November 2022
Welcome to the November 2022 edition of RPC's Customs and Excise Quarterly Update. In order to enhance your reading experience, we have adapted the format. We hope you like it
Read moreV@ update - November 2022
Welcome to the November 2022 edition of RPC's V@, an update which provides analysis and news from the VAT world relevant to your business.
Read moreTribunal allows taxpayer's appeal in first consideration of 'main purpose' test in double tax treaty
Allowing the taxpayer's appeal, the First-tier Tribunal held that the main purpose test in Article 12(5) of the double tax treaty between the UK and the Republic of Ireland was not satisfied, and the Appellant was therefore entitled to an exemption from UK income tax withheld at source on a payment of interest received by it in respect of a debt claim.
Read moreTribunal allows unilateral credit for US withholding tax even though no treaty relief available due to 'limitation on benefits' article
US UK double tax treaty and associated UK legislation interpreted to give unilateral credit for withholding tax suffered on interest income.
Read moreTribunal dismisses HMRC's appeal and confirms that a tender support vessel was not a "relevant asset" for the purposes of the oil contractor activities rules contained in Part 8ZA of the CTA 2010
Upper Tribunal dismisses HMRC's appeal and confirms that a tender support vessel was not a "relevant asset", for the purposes of the oil contractor activities rules contained in Part 8ZA of the Corporation Tax Act 2010.
Read moreTax Bites - November 2022
Welcome to the latest edition of RPC's Tax Bites - providing monthly bite-sized updates from the tax world.
Read moreTribunal allows taxpayer's appeal and confirms its holding in another company constituted a "structural asset"
Tribunal allows taxpayer's appeal and confirms its holding in another insurance company constituted a "structural asset" for the purpose of section 137, Finance Act 2012.
Read moreV@ update - October 2022
Welcome to the October 2022 edition of RPC's V@, an update which provides analysis and news from the VAT world relevant to your business.
Read moreUpper Tribunal agrees with the taxpayer on payments to secure changes to pension arrangements
The Upper Tribunal allowed E.ON's appeal against HMRC's decisions imposing income tax and national insurance contributions to facilitation payments for changes to pension arrangements.
Read moreLack of documentary evidence no bar to proving capital loss claim
Allowing the taxpayers' appeal, the First-tier Tribunal held the Appellant was entitled to claim a capital loss from an earlier tax year to reduce the capital gains tax due on a gain realised by him on the sale of a commercial property because the claim was notified in time, and that inaccuracies in the Appellant's return had not been brought about deliberately.
Read moreHMRC's Ramsay argument fails
HMRC loses capital allowances case as Ramsay argument fails.
Read moreTribunal considers salaried member rules for the first-time and allows taxpayer's appeal in part
Tribunal considers salaried members rules for the first-time allowing taxpayer's appeal in part
Read moreTax Bites - October 2022
Welcome to the latest edition of RPC's Tax Bites - providing monthly bite-sized updates from the tax world.
Read moreNew powers proposed to enable law enforcement agencies to seize crypto assets
On 22 September, the UK government introduced The Economic Crime Bill. The Bill contains provisions to make it quicker and easier for law enforcement agencies, such as the National Crime Agency, to seize, freeze and recover cryptoassets used by criminals to launder the proceeds of crime.
Read moreV@ update - September 2022
Welcome to the September 2022 edition of RPC's V@, an update which provides analysis and news from the VAT world relevant to your business.
Read moreValuing leasehold interests in trade-related properties using profits method does not involve disaggregation of property value and "transferable goodwill"
Valuing leasehold interests in trade-related properties using profits method does not involve disaggregation of property value and "transferable goodwill".
Read moreRepeal of IR35 reforms
The Chancellor announced at last week's “mini-Budget” that the recent changes to the “off-payroll” working rules (commonly referred to as 'IR35') are going to be reversed, from 6 April 2023.
Read morePurpose-based rules: Have we hit BlackRock-bottom?
In HMRC v BlackRock Holdco 5 LLC [2022] UKUT 199 (TCC), the Upper Tribunal (UT) allowed HMRC’s appeal, holding that the First-tier Tribunal (FTT) was wrong to interpose certain terms (covenants) in loans when conducting its analysis of the counter-factual transaction as between the taxpayer and an unconnected third-party. It held that the FTT was wrong to attribute all of the loan debits arising to the taxpayer's commercial main purpose and should instead have arrived at the opposite conclusion.
Read moreHMRC made to cry a river over SEIS defeat
FTT holds in favour of taxpayer in technical SEIS / EIS relief decision.
Read moreResearch and development tax relief
In this episode of Taxing Matters, we discuss the role of R&D tax relief, how to qualify for the relief, how to stay compliant, some common abuses of the system and some of the recently proposed reforms.
Read moreTribunal upholds HMRC notice transferring debt from managed service company to its former director
Tribunal upholds HMRC notice transferring a debt from a managed service company to its former director.
Read moreHMRC announces latest 'nudge' letter campaign concerning 'Persons of Significant Control' and share disposals
HMRC's Wealthy External Forum has revealed that it is sending nudge letters to people who are recorded as being 'Persons of Significant Control' in unquoted companies.
Read moreTax Bites - September 2022
Welcome to the latest edition of RPC's Tax Bites - providing monthly bite-sized updates from the tax world.
Read moreTaxpayer successful in application for permission to rely on expert evidence
Taxpayer successful in application for permission to rely upon expert evidence.
Read moreHMRC prepares for new 'nudge' letter campaign aimed at offshore corporates owning UK property
HMRC are targeting offshore corporates that own UK property and who may not have met all of their UK tax obligations. HMRC have confirmed that they will be launching a new campaign in September 2022.
Read moreV@ update - August 2022
Welcome to the August 2022 edition of RPC's V@, an update which provides analysis and news from the VAT world relevant to your business.
Read moreAll settled!
Loan relationship appeal allowed as credit relating to settlement of litigation due to mis-selling of swaps did not arise from related transaction.
Read moreCustoms and excise quarterly update - August 2022
Welcome to the August 2022 edition of RPC's Customs and Excise Quarterly Update.
Read morePermission to appeal not required for successful party to a tax appeal
In dismissing the taxpayer's objection, the Upper Tribunal decided that HMRC, who had won before the First-tier Tribunal need not apply for permission to appeal in order to raise two new arguments in response to the taxpayer's appeal to the Upper Tribunal.
Read moreCapital Gains and Principal Residence Relief: What Makes a House?
Allowing the taxpayers' appeals, the First-tier Tribunal held that, for the purposes of calculating entitlement to Principal Residence Relief under sections 222 and 223 of the Taxation of Chargeable Gains Act 1992, "dwelling-house" did not include the land on which the house was built, and "period of ownership" referred only to the period of ownership of the dwelling-house itself.
Read moreTax Bites - August 2022
Welcome to the latest edition of RPC's Tax Bites - providing monthly bite-sized updates from the tax world.
Read moreTax Bites - July 2022
Welcome to the latest edition of RPC's Tax Bites - providing monthly bite-sized updates from the tax world.
Read moreTribunal confirms discovery assessment was invalid as enquiry window was still open
Tribunal allows taxpayer's appeal confirming that a discovery assessment raised under section 29 Taxes Management Act 1970, was invalid as the enquiry window was still open.
Read moreHMRC investigating hundreds of UK customers of Puerto Rico-based Euro Pacific Bank
HMRC investigating hundreds of UK customers of Puerto Rico-based Euro Pacific Bank.
Read moreV@ update - July 2022
Welcome to the July 2022 edition of RPC's V@, an update which provides analysis and news from the VAT world relevant to your business.
Read moreAgent was careless notwithstanding white space disclosure
White space disclosure on tax returns not a defence against claim of carelessness, as FTT upholds discovery assessments.
Read moreHMRC fails to discharge burden of proof in appeal against personal liability notices
Taxpayer win in case where MTIC fraud alleged in relation to zero-rating of supplies for VAT.
Read moreTribunal finds taxpayer was non-UK resident despite exceeding the permitted days due to 'exceptional circumstances'
The First-tier Tribunal held that a taxpayer was non-UK resident, despite exceeding the permitted days, due to exceptional circumstances which included the moral obligation to come to the UK to care for a relative and their young children.
Read moreFollower notice penalties cancelled as failure to take 'corrective action' was reasonable in all the circumstances
Allowing an appeal by Mr Andreae, the First-tier Tribunal cancelled penalties HMRC had issued for failure to take corrective action following receipt of follower notices. It was held that this failure was reasonable in all the circumstances where Mr Andreae had relied on the advice of a scheme promotor and later sought further advice from an independent advisor.
Read moreAll is not (necessarily) lost: Crypto crime recovery
With over 2 million people in the UK now holding and using cryptocurrency, and the Chancellor announcing that a government backed non-fungible token ("NFT") is to be issued by the Royal Mint this summer, the market for crypto-assets is expected to continue to grow in the coming months and years; so much so that legislation is planned to implement a new regulatory regime for the crypto market.
Read moreV@ update - June 2022
Welcome to the June 2022 edition of RPC's V@, an update which provides analysis and news from the VAT world relevant to your business.
Read moreTribunal allows taxpayer's appeal as investments met the risk to capital test required for Enterprise Investment Scheme relief
Allowing an appeal by Inferno Films Ltd, the First-tier Tribunal held that the company had satisfied the risk-to-capital test in section 157A, Income Tax Act 2007, because it had objectives to grow and develop its trade in the long term. HMRC was directed to authorise the issue of compliance certificates under section 204, Income Tax Act 2007, for the purposes of Enterprise Investment Scheme relief.
Read moreNon-compliance with CrimPR does not render otherwise timely information a nullity
The Court confirmed that, while offences must be charged within any applicable time limit for charging, the requirement that the charge must contain "such particulars of the conduct constituting the commission of the offence as to make clear what the prosecutor alleges against the defendant", in Criminal Procedure Rule (CrimPR) Rule 7.3(1)(b), did not require a statement from the prosecutor that the offence had been laid within the relevant time limit if the timing of the offence was not an element specified in the offence.
Read moreTax Tribunal cancels discovery assessments and late filing penalties
In Robert Don Hunter Dougan v HMRC [2022] UKFTT 00140 (TC), the First-tier Tribunal (FTT) cancelled certain discovery assessments issued to a taxpayer by HMRC, on the basis they were issued out of time because the taxpayer's behaviour was careless rather than deliberate, for the purposes of section 36, Taxes Management Act 1970 (TMA). The FTT also cancelled various late filing penalties and late payment surcharges issued by HMRC, on the basis the notices were not validly served on the taxpayer.
Read morePermission from the Upper Tribunal needed to argue a new point which was not before the First-tier Tribunal
UT permission required to argue a point not argued before the FTT.
Read moreTax Bites - June 2022
Welcome to the latest edition of RPC's Tax Bites - providing monthly bite-sized updates from the tax world.
Read moreAppeal against discovery assessment allowed as SATR was filed by unauthorised agent
Allowing an appeal by Mr McCumiskey, the First-tier Tribunal held that HMRC's discovery assessment was invalid on the basis that the purported tax-return had been fraudulently filed and had included an unauthorised and unsubstantiated claim for SEIS relief.
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