Tax update October 2019

In this month’s update we report on (1) the independent review of the disguised remuneration loan charge; (2) HMRC’s guidance on preparing for the off-payroll working changes which come into effect from April 2020; and (3) HMRC’s updated guidance on the tax registration of non-resident companies. We also comment on three recent cases relating to (1) an application for final and partial closure notices; (2) the validity of an enquiry; and (3) pre-entry loss rules.

News items

Disguised remuneration loan charge: independent review to take place
An independent review of the disguised remuneration loan charge is to take place. The review will be led by Sir Amyas Morse and will provide independent recommendations to the Government by mid-November 2019. Read more

Working through an intermediary (IR35): HMRC updates existing guidance
and publishes new guidance to assist taxpayers prepare for the off-payroll working changes HMRC has updated six pieces of existing guidance and published five new guides to assist taxpayers prepare for the off-payroll working changes which will come into force in April 2020. Read more

Updated HMRC guidance on registering a non-resident company for corporation tax
HMRC has updated its guidance on the corporation tax registration of non-resident companies who have sold, gifted or transferred interests in UK land or property. Read more

Case reports

Levy – Tribunal rejects taxpayer’s application for final and partial closure notices
In The Executors of Mrs R W Levy v HMRC [2019] UKFTT 418 (TC), the First-tier Tribunal (FTT) has held that HMRC was not required to issue either a final or partial closure notice. Read more

Tinkler – Notice of enquiry invalid
In Tinkler v HMRC [2019] EWCA Civ 1392, the Court of Appeal has allowed the taxpayer’s appeal and held that HMRC’s notice of enquiry under section 9A, TMA, was invalid. Read more

ANO – pre-ordained transactions avoided CGT losses being caught by pre-entry loss rules
In ANO (No1) Limited v HMRC [2019] UKFTT 406 (TC), the FTT has held that a pre-ordained series of transactions implemented to avoid the application of Schedule 7A, Taxation of Chargeable Gains Act 1992 (TCGA), to pre-entry losses were effective. Read more