Tax Bites - April 2021

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

As always, if there are any areas on which you would like more information (or if you have any questions or feedback), please let us know or get in touch with your usual RPC contact.

News

HMRC updates its guidance on compliance checks

HMRC has updated its guidance with more information on how agents and taxpayers can assist it with compliance checks. Read more 

HMRC issues briefing paper on how it will support organisations to comply with changes to the off-payroll working rules (IR35)

HMRC issues briefing paper on how it will support organisations to comply with changes to the off-payroll working rules (IR35). Read more

Spotlight 57 issued on a tax avoidance arrangement used to avoid tax and National Insurance contributions by selling future business revenues to a trust

HMRC has issued Spotlight 57, in which it confirms that it is aware of an arrangement where a business may enter into an agreement with a trust and claim to have sold the rights to its future revenue to the trust. The revenue is not included in the business’s accounts (so no tax is paid on it) and the transfer of funds to the trust is not disclosed to HMRC. In the view of HMRC, this arrangement is a contrived form of tax avoidance arrangement and it will challenge anyone promoting such arrangements and investigate the tax affairs of all users. Read more 

Regulations published amending capital gains treatment of UK property-rich collective investment vehicles

Regulations have been made amending the taxation of non-UK investors in UK property-rich collective investment vehicles (CIVs). Read more

Government publishes its response to the House of Lords Economic Affairs Finance Bill Sub-Committee report on whether new powers for HMRC are fair and proportionate

The UK government has published its response to a report produced by the House of Lords Economic Affairs Finance Bill Sub-Committee on whether new powers for HMRC are fair and proportionate. Read more

Case reports

SSE Generation – Taxpayer's capital allowances victory marred by procedural issue

In HMRC v SSE Generation Ltd [2021] EWCA Civ 105, the Court of Appeal (CA) has dismissed HMRC's appeal and agreed with the Upper Tribunal's (UT) decision that expenditure on parts of a hydroelectric power scheme was eligible for capital allowances. Read more 

Ditton – HMRC cannot issue daily late filing penalties retrospectively

In D & G Ditton Ltd v HMRC [2021] UKFTT 489 (TC), the FTT has held that daily late filing penalties, where notice was given by HMRC to the taxpayer after the period in respect of which the penalties were issued, were void. Read more

Atholl House Productions - BBC presenter wins IR35 case

In HMRC v Atholl House Productions Ltd [2021] UKUT 0037 (TCC), the UT has held that IR35 did not apply to a presenter who provided services to the BBC through a personal service company. Read more

And finally...
It was International Women's Day on 8 March 2021, and to mark the occasion we commissioned a special episode of our Taxing Matters podcast, which featured five successful women who have encouraged diversity and inclusion in the workplace.

Our guest speakers all come from very different backgrounds and include a global tax correspondent at the FT, a former Tax VP at Sony and the owner of a successful consulting group. They each share the challenges they have faced at work and address a range of topics including juggling family life, being overlooked and suffering imposter syndrome.

You can listen to our podcast here.