Tax update November 2018

In this month’s update we report on proposals under consideration by the Treasury to extend capital gains tax relief to private landlords, HMRC’s factsheet on new higher penalties that it can impose where taxpayers have failed to declare and pay tax in relation to offshore matters and the annual report of Tax Inspectors Without Borders (TIWB). We also comment on three recent decisions relating to the partial writing-off of loans, Schedule 36 information notices and late filing penalties.

News items

Treasury considering capital gains tax relief for private landlords selling to long-term tenants

The Treasury is reported to be considering a proposal drawn up by the think-tank, Onward, to offer capital gains tax relief to private landlords who sell properties to their long-term tenants. Read more.

Higher penalties for offshore matters

 HMRC has published a factsheet on new higher penalties that it may charge in relation to offshore matters or offshore transfers that involve individuals and unincorporated businesses. Read more.

TIWB’s compliance initiative leads to an increase in tax revenues

Tax Inspectors Without Borders (TIWB) claims in its annual report that it is helping to increase domestic revenues by improving tax auditing and compliance in Europe, Africa, Latin America, the Caribbean and Asia. Read more.

Case reports

Atherley – qualifying loan write off created an allowable loss

In Douglas Atherley v HMRC, the First-tier Tribunal (FTT) has held that the partial writing-off of a loan made by the taxpayer to a company of which he was the sole shareholder, created an allowable loss under section 253(3), Taxation of Chargeable Gains Act 1992 (TCGA). Read more.

Newton – Tribunal confirms that “statutory records” should be narrowly construed

In Newton v HMRC, the FTT has held that the phrase “statutory records”, for the purpose of an information notice issued pursuant to Schedule 36, Finance Act 2008 (FA 2008), must be construed narrowly. Read more.

Armstrong – Tribunal cancels late filing penalties

In Armstrong v HMRC, the FTT cancelled late filing penalties because the taxpayer had not consented to receive penalty notices electronically. Read more.