Tax Take
NHS Trust wins judicial review claim against HMRC
NHS Trust wins judicial review claim against HMRC in respect of VAT concession.
Read moreUpper Tribunal dismisses taxpayer's appeal in substantial shareholding exemption case
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.
Read moreTax Bites - November 2023
Welcome to the latest edition of RPC's Tax Bites - providing monthly bite-sized updates from the tax world.
Read moreTribunal finds that CGT saving was not the main purpose of wider arrangements
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.
Read moreWhy now is the right time to get to grips with your money with Ruth Handcock and Ali Poulton
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.
Read moreV@ update - October 2023
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.
Read moreTribunal allows taxpayers' application for costs against HMRC
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".
Read moreLimitation proves to be a magic bullet for Magic Carpets
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.
Read moreUpper Tribunal dismisses HMRC's appeal confirming that input tax is recoverable on fiscal neutrality grounds
Upper Tribunal dismisses HMRC's appeal confirming that input tax is recoverable on fiscal neutrality grounds.
Read moreTax Bites - October 2023
Welcome to the latest edition of RPC's Tax Bites - providing monthly bite-sized updates from the tax world.
Read moreV@ update - September 2023
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.
Read more
Sanctions Spotlight Session with Alice Kemp
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.
Read moreTribunal finds in favour of taxpayer confirming that payments are consideration rather than a subsidy for expenditure
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.
Read moreA tax on conscience? A moral dilemma for non-residents
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.
Read moreTribunal 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
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.
Read moreTax Bites - September 2023
Welcome to the latest edition of RPC's Tax Bites - providing monthly bite-sized updates from the tax world.
Read moreJudicial developments in recent treaty cases
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.
Read moreHMRC prevented from participating further in VAT appeal following failure to comply with unless order
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.
Read moreUpper Tribunal gives green light to NICs reclaims on car allowances
NICs reclaim allowed on motoring expenses by Upper Tribunal; taxpayers' appeals against HMRC successful.
Read moreCustoms and excise quarterly update - August 2023
Welcome to the August 2023 edition of RPC's Customs and Excise Quarterly Update.
Read moreV@ update - August 2023
Welcome to the August 2023 edition of RPC's V@, an update which provides analysis and news from the VAT world relevant to your business.
Read moreTribunal confirms UK company was also resident in the USA for the purposes of the UK/USA double tax treaty
Upper Tribunal confirms that UK company was also USA resident for the purposes of the UK/USA double tax treaty.
Read moreLet's talk VAT security notices with Joshua Carey
One of the things that becomes clear over the course of one's career is that enforcement trends are important for businesses to be aware of. It is important to notice, not just the macro trends like sanctions compliance and fraud enforcement, but also smaller trends; campaigns against particular tax risks and the relegation of certain information gathering powers to relative obscurity.
Read moreCourt of Appeal confirms no reasonable excuse for non-payment of tax
In a recent case, the Court of Appeal provided guidance as to what evidence the tax tribunals and courts can consider when determining a taxpayer's subjective belief as to a reasonable excuse for non-payment.
Read moreTribunal confirms that HMRC failed to use the correct test in HICBC case
The First-tier Tribunal allowed a taxpayer's appeal against an assessment for High Income Child Benefit Charge, because a severance payment from the taxpayer's employer should have been treated as largely exempt from income tax under the disability exemption.
Read moreTribunal allows taxpayer's appeal in respect of SDLT and mixed-use premises
In allowing the taxpayer's appeal, the First-tier Tribunal has held that a property comprising a dwelling house and separate paddock subject to a grazing lease was mixed use for Stamp Duty Land Tax purposes.
Read moreTax Bites - August 2023
Welcome to the latest edition of RPC's Tax Bites - providing monthly bite-sized updates from the tax world.
Read moreV@ update - July 2023
Welcome to the July 2023 edition of RPC's V@, an update which provides analysis and news from the VAT world relevant to your business.
Read moreWhen determining whether there are 'special circumstances' account can be taken of early payments and voluntary disclosure by the taxpayer
HMRC can take account of early payments, voluntary disclosure and proportionality when considering whether 'special circumstances' exist justifying the reduction of tax-geared penalties for late filing of a tax return.
Read moreLegislation extending time limits for assessing unpaid offshore tax did not prevent the requirement to correct rules from applying to determine the time limit for making a discovery assessment
Tribunal confirms that legislation extending time limits for assessing unpaid offshore tax did not prevent the requirement to correct rules from applying to determine the time limit for HMRC to make a discovery assessment.
Read moreThe power of language when talking about tax with Kirstie Skates
Have you ever wondered about the language we use when we talk about tax? And does that language influence or betray how we feel about tax as individuals or as a society? It turns out it is a hot topic of discussion.
Read moreJudicial Review in the Tax Sphere: Does the Court of Appeal's decision in Murphy offer taxpayers a glimmer of hope?
Allowing the taxpayers' appeal, the Court of Appeal overturned the High Court's refusal of the taxpayers' judicial review claim, finding that HMRC had breached the taxpayers' legitimate expectation in respect of the application of an extra statutory concession.
Read moreTax Bites - July 2023
Welcome to the latest edition of RPC's Tax Bites - providing monthly bite-sized updates from the tax world.
Read moreTribunal confirms taxpayer can benefit from HMRC dispensation for employee expenses
In a recent case the First-tier Tribunal allowed the taxpayer's appeal, finding that the company's 'broad-brush' approach to verifying employees' claims for expenses was sufficient to comply with HMRC's dispensation and therefore the payments were not subject to income tax or NICs.
Read moreV@ update - June 2023
Welcome to the June 2023 edition of RPC's V@, a monthly update which provides insightful analysis and news from the VAT world relevant to your business.
Read moreJudicial review: does the Court of Appeal’s decision in Murphy offer taxpayers a glimmer of hope?
Judicial review provides a constitutionally important judicial check on the exercise of statutory powers by public bodies such as HMRC. However, the wide margin of appreciation afforded to public bodies by the courts, coupled with recent reforms to the judicial review process, make it a remedy of last resort that can be difficult for taxpayers to pursue successfully. In overturning the High Court’s refusal of the taxpayers’ judicial review claim, the Court of Appeal in Murphy v HMRC confirmed that HMRC had breached their legitimate expectation as to the application of an extra-statutory concession. While Murphy is unlikely to be the harbinger of a wholesale rebalancing of the judicial review scales in the taxpayer’s favour, it is a welcome step in the right direction.
Read more'Dawn Raids' – what to do should HMRC come knocking!
In the post-pandemic world, the number of dawn raids being carried out is on the increase. Against such a backdrop, it is crucial that businesses are fully prepared should the unthinkable happen.
Read moreHMRC's attempt to strike out appeal fails
The First-tier Tribunal refused HMRC's application for the taxpayer's appeal to be struck out on the basis the appeal had no reasonable prospects of success.
Read moreLet us in!
Adam Craggs and Michelle Sloane explain what a business should do should HMRC come calling unexpectedly.
Read moreInterest in possession trust was ineffective in avoiding inheritance tax charge
In dismissing the taxpayer's appeal, the First-tier Tribunal held that the assets of a property trust were beneficially held by the principal beneficiary and formed part of her estate for inheritance tax purposes.
Read moreWhen is a 'tunnel' not a tunnel, for capital allowances purposes?
In HMRC v SSE Generation Ltd [2023] UKSC 17, the Supreme Court confirmed that capital allowances are available in respect of parts of a hydroelectric power station.
Read moreWealth Tax & Wealth Inequality- with Dr Ben Tippet
As questions of economic resource allocation push to the forefront of the national consciousness there has been a rise in the number of people calling for either new taxes or wholesale tax reform.
Read moreTax Bites - June 2023
Welcome to the latest edition of RPC's Tax Bites - providing monthly bite-sized updates from the tax world.
Read moreTribunal confirms tax assessments out of time
In Ramasamy Danapal v HMRC [2023] UKUT 00086 (TCC), the Upper Tribunal (UT) held that discovery assessments founded on the alleged careless and/or deliberate conduct of a taxpayer's accountants were out of time as the requisite conduct had not been established.
Read moreCustoms and excise quarterly update - May 2023
Welcome to the May 2023 edition of RPC's Customs and Excise Quarterly Update.
Read moreV@ update - May 2023
Welcome to the May 2023 edition of RPC's V@, a monthly update which provides insightful analysis and news from the VAT world relevant to your business.
Read moreTribunal confirms that HMRC may open an enquiry into a protective SDLT return
Upper Tribunal confirms that HMRC may open an enquiry into a protective SDLT return and that no special limitation period applies to SDLT closure notices.
Read moreMitchell: taxpayer confidentiality and a crisis of confidence?
Dismissing the taxpayer's appeal, the Court of Appeal held that the First-tier Tribunal is not empowered to adjudicate on the exercise of HMRC's powers of disclosure under section 18 of the Commissioners for Revenue and Customs Act 2005.
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