Hello

We are publishing early this week. There are some rather interesting developments from the courts, we have our latest Land and Property update, more 'CPD for lunch' and more Spotlights from HMRC.

The Supreme Court this week decided that you cannot make a capital gain 'disappear' under the exchange of securities 'roll over' rules by rolling over into a tax free asset.

The Court of Appeal ruled that HMRC's delay in raising an out of time assessment rendered it invalid. Having been aware that the taxpayer had used a failed tax avoidance scheme an assessment should have been raised in a timely fashion.

The Upper Tier tribunal has confirmed that it would be really good idea for someone to come up with a definitive set of rules as to how you work out whether you have a single or multiple supply for VAT purposes. The case concerned admission to an Ice rink. Was boot hire a separate supply to that of admission? We still do not know the answer as the case has been remitted back to the FTT. Our guide to single or multiple supplies does attempt to set out a checklist; this is one area where businesses need to regularly self check.

The Treasury has made a call for evidence on Social Investment Tax relief. Not many people are using the relief and it wonders why. Maybe they should have added Investor Relief to this too. Looking at the page hits on our website, Investor Relief is even less popular. That might be because it is newer, but it might also be because it too is attractive to only a very narrow range of people.

Finally, we have made a new version of the Entrepreneurs' Relief legislation. Like all our tools, we made this to help us!  All the recent changes have really messed up the legislation. It is quite totally absurd that parliament does not provide free up to date legislation.

If you have tax queries contact the Virtual Tax Partner support portal at www.VtaxP.co.uk.

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Back soon 

Nichola Ross Martin FCA CTA (Fellow) Tax Director

www.rossmartin.co.uk

Your Virtual Tax Partner®: online PRACTICAL support for accountants, tax advisers BY accountants and tax advisers

Quick news (freeview)

Social Investment Tax Relief: Call for evidence
HM Treasury have opened a new call for evidence on Social Investment Tax Relief as take up has been poor and the relief is currently due to end in 2021.

GAAR opinions: disguised remuneration using bonds and gilts
HMRC have released two more opinions in their favour from the GAAR advisory panel (GAP) in quick succession. They cover disguised remuneration, extraction of value, and employee rewards using second hand bonds and gilt options.

Tax Data 2018/19
UPDATE: we have been updating some more

Editor's Choice (subscribers)

Land & Property: an Adviser’s Tax Update May 2019
NEW: all the latest changes, news, cases and hot topics relating to Land and Property.

Capital taxes round-up: May 2019
NEW: what's hot, what's not? A round-up of developments in capital taxes including some topical CGT and IHT cases.

Reorganisations Case Study 4
How to separate out a trading company from an investment holding company. Week four in our tour through out new Reorganisation Zone. A series of super practical tax guides provide an outline of the tax treatment together with step guides and tax clearance templates.

Tax Guides & Updates

What is an ordinary share? Why does it matter?
UPDATE: following recent tribunal decisions, HMRC has updated its guidance. Our practical tax guide explains the issues, summarises the recent judgments and explains the consequences when your shares turn out to be not ordinary.

Entrepreneurs' Relief: the legislation
NEW: an interactive version of the legislation that aims to help you work through what changed when and why. Disposals 2018 on.

Furnished Holiday Letting
UPDATE: as the holiday season begins we have reviewed and updated our guide for recent changes affecting FHL businesses. 

ATED: Annual Tax on Enveloped Dwellings
UPDATE: the charge was due in April. We answer your FAQs.

Case Update (freeview)

Tooth: Discovery was 'stale'
In Raymond Tooth v HMRC [2019] EWCA 826 the Court of Appeal confirmed that HMRC's delay in raising a discovery assessment rendered it invalid. 

Final answer: CGT due on redemption of converted QCB’s and non-QCB’s
In Anthony and Tracy Lee Hancock v HMRC [2019] UKSC 24 the Supreme Court held that that the conversion of QCBs and non-QCBs into a single new QCB were two separate conversions: tax was due on redemption.

Failed partnership loss relief claims were not inaccurate
In Mr Douglas Shanks v HMRC [2019] TC07118 the FTT cancelled penalties for inaccuracies but disallowed partnership losses; they were not substantiated and from a different trade to the profits against which they were being offset.

No relief from ATED for house redeveloped for sale 
In Hopscotch Limited v HMRC [2019] TC07127 the FTT found that the redevelopment of a single house in order to sell it was not a property development trade; no ATED relief was due.

VAT cases

Skate hire and admission: one package or two?
In The Ice Rink Company Ltd and PI (Milton Keynes) Ltd [2019] UKUT 0108  the UT found that the FTT had made an error of law, when it decided that a “skate hire and admission” package sold as a package were two separate supplies.

VAT 

Single or Mixed rate supply?
UPDATE: 'as clear as mud' there is no definition of single or multiple supplies in either EU or UK VAT legislation however we have contstructed a checklist, based on case decisions and its recommended to review supplies on a regular basis against case law.

CPD for lunch

Capital Taxes Update - May 2019
NEW: a webinar looking at what's new in the capital taxes arena including recent case law.

Reasonable Excuse
NEW: What is reasonable when it comes to filing failures?

Finance Act 2019
NEW: A webinar covering the latest legislative changes.

Missed last time's Web-update?

Nichola's SME tax W-update 17 May 2019

Features:

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  • Dividends
  • DOTAS penalties
  • R & D Zone
  • Reorganisation case study
  • VAT agent and principle
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