Tax update - May 2019

In this month’s update we report on HMRC’s consultation on private residence relief, HMRC’s revised guidance on agreeing the value of shares with HMRC Shares and Assets Valuation when operating an EMI or SIP and HMRC’s guidance on calculating tax and NICs due on the loan charge.

We also comment on three recent cases relating to (1) the IR35 legislation; (2) case management directions; and (3) the existence of a bare trust notwithstanding the absence of a trust document.

News items

HMRC publishes consultation on CGT Private Residence Relief

On 1 April 2019, HMRC published a consultation document on plans announced in the Autumn 2018 Budget to reduce the final period exemption for capital gains tax (CGT) principal private residence relief (PPR) from 18 months to nine months.  Read more

Revised guidance on agreeing the value of shares with Shares and Assets Valuation when operating an EMI or SIP

On 1 April 2019, HMRC published its revised guidance on agreeing the value of shares with HMRC Shares and Assets Valuation when operating enterprise management incentives (EMI) and share incentive plan (SIP) schemes.  Read more

HMRC publishes guidance on how to calculate tax and NICs due on the 2019 loan charge

On 1 April 2019, HMRC published guidance for employers on how to manually calculate income tax and NICs arising on the 2019 loan charge.  Read more

Case reports

Albatel – TV presenter wins £1.2m tax case

In Albatel Ltd v HMRC, the First-tier Tribunal (FTT) has held that the so-called IR35 legislation (contained in section 49, ITEPA 2003 and Regulation 6, Social Security Contributions (Intermediaries) Regulations 2000) did not apply to the provision of services by the well-known TV presenter, Lorraine Kelly, to ITV.  Read more

Gardner Shaw – directions subject to a pending appeal should not have been varied

In Gardner Shaw UK Ltd and others v HMRC, the Upper Tribunal (UT) has held that the FTT should not have varied directions which the FTT had previously issued, when they had been the subject of an unsuccessful appeal to the UT and when an appeal to the Court of Appeal was pending.  Read more

Tang – bare trust existed notwithstanding lack of trust document

In Lily Tang v HMRC, the FTT has held that there was a bare trust despite the absence of a trust document and that the bare trustee did not have to notify HMRC nor was she liable for tax in relation to the funds she held on trust.  Read more