Tax update - March 2020

In this month’s update we report on (1) updated guidance provided in HMRC’s SDLT manual in relation to section 75A, Finance Act 2003; (2) a House of Commons briefing paper discussing insolvency and joint and several liability notices for directors; and (3) a Policy Paper concerning upcoming changes to the regulations for the Non-residents Landlord Scheme. We also comment on three recent cases relating to (1) capital gains losses incurred in respect of properties which were never completed; (2) a landfill “fluff” case; and (3) inheritance tax agricultural property and business property relief.

News items

HMRC provides updated guidance in its SDLT manual on section 75A Finance Act 2003

On 15 January 2020, HMRC updated its guidance on sections 75A to 75C, Finance Act 2003 (see SDLTM0950). Read more

Joint and several liability notices for directors

On 5 February 2020, the House of Commons published a briefing paper on the proposal to empower HMRC to issue joint and several liability notices (JSL notices) to directors when certain conditions relating to tax avoidance and insolvency are met. This power would also extend to companies which have repeatedly been involved with insolvency or non-payment of tax. Read more

Changes to the regulations for the Non-residents Landlord Scheme

On 17 February 2020, HMRC published a tax information and impact note regarding the upcoming changes to the regulations for the Non-Resident Landlords Scheme (NRLS). The regulations have been made to accommodate the corporate interest deductibility restriction rules (CIR) within the NRLS. Read more

Case reports

Lloyd-Webber – capital gains losses allowed in relation to properties which were never completed

In Lloyd-Webber and another v HMRC [2019] UKFTT 717 (TC), the First-tier Tribunal (FTT) held that a payment made under a contract for the acquisition of land was for the acquisition of contractual rights, rather than for the land, giving rise to an allowable loss on termination of the contract. Read more

Devon Waste Management – waste firms win appeal in landfill “fluff” case

In Devon Waste Management Ltd and Others v HMRC [2020] UKUT 1 (TCC), the Upper Tribunal (UT) held that the disposal of certain waste materials did not attract a charge to landfill tax. Read more

Charnley – inheritance tax agricultural and business property relief available in relation to farm

In W Charnley and M Hodgkinson as executors of the estate of Thomas Gill (deceased) v HMRC [2019] UKFTT 0650 (TC), the FTT held that inheritance tax agricultural property relief (APR) and business property relief (BPR) were available in relation to Mr Gill’s estate. Read more