In this week's web-update we hope we can take your minds off the events of such a horrible week in the UK. In tax there are often 'known unknowns'. Most taxpayers probably don't realise this until they enter into a dispute with HMRC. We feature quite a topical collection of these taxing things this week.

Goodwill: to be or not to be, that is often the question. When business activities are closely related to land are they part of the land or can they be a separate business? We look at the case of Headingley Cricket ground where HMRC unsuccessfully argued a hospitality business was an income stream ancilliary to the land.

Entrepreneurs' Relief: is a nearly but not quite dormant business actually trading? Can it be an investment business when its investment business involves no staff time or costs?

IR35: such a tricky area that HMRC had to invest the new off-payrolling rules. What happened when HMRC wanted to make discovery assessments and had to blame the advisers for carelessness in not fully status testing their clients or explaining the rules.

Plant and machinery: when is plant a structure and when should plant be regarded as part of a single entity and not as separate items of apparatus? Not many people will be claiming capital allowance on nuclear processing facilities and given the numbers involved we may expect an appeal. 

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

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Nichola Ross Martin FCA CTA (Fellow) Tax Director


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

Freeview updates 

CGT reliefs: disposal of business assets
There are numerous Capital Gains tax (CGT) reliefs in the UK: this freeview guide outlines which of the key reliefs applies when and where.

Off-payroll working: At a glance
The new rules for IR35 and personal service companies from April 2020.

Time limits for tax assessment, claims and refunds
 How far can HMRC go back and raise an assessment? How many years back can a taxpayer appeal? What are the time limits for correcting a tax return? 

Tax Guides (subscribers)

Entrepreneurs' Relief
When does Entrepreneurs' Relief apply? What is the rate of Entrepreneurs' Relief? How to claim Entrepreneurs' Relief. Case law on Entrepreneurs' Relief.  

Personal Service companies and tax
What's new and recent case law 

IR35: Off-payroll working
What are the IR35 rules? When do they apply? 

Regulation 80 and 72 assessments for PAYE
Useful cases for advisers if you are unsure of these complicated rules. 

What expenditure qualifies for plant and machinery allowances?
The difference between buildings, structures, what is a structure but is allowed.

Goodwill and corporation tax
How does the corporation tax intangible regime work? What is the treatment of goodwill for corporation tax? Do company's account for goodwill differently?

Goodwill and incorporation
What are the tax issues in respect of goodwill on incorporation? What tax reliefs apply if you buy and sell goodwill? What are the valuation and clearance procedures?

Goodwill & Trade related properties 
What are the tax and accounting issues when valuing goodwill inconnection with the purchase or sale of a trade related property? What are HMRC's views? What does case law tell us?

Goodwill & valuation 
What valuation methods are suitable for valuing a business? What are the issues with goodwill and other intangibles? What does HMRC suggest? What does case law say?

Transfer of income streams
Tax anti avoidance provisions which apply when a person makes a transfer to another person of a right to income without the corresponding transfer of the underlying asset that produces that income.

How to appeal an HMRC decision
What type of a decisions are appealable? What are your different options when you disagree with HMRC? What are the key steps in making an appeal?

Discovery Assessment
When can HMRC issue an assessment outside of the normal statutory time limits? What conditions must be met?

Case Update (freeview)

Cricket business goodwill was separable from stadium
In The Leeds Cricket Football & Athletic Company Limited v HMRC [2019] TC4486 the FTT found that cricket hospitality was a separable business from the Headingly Stadium with its own goodwill attaching: it was not merely an income stream anciliary to the land.

BBC presenters: IR35 applied but they were not careless
In Paya Ltd, Allday Media Ltd & Tim Willcox Ltd v HMRC [2019] TC7377 the First Tier tribunal found IR35 applied to the personal service companies of three BBC presenters but their advisers did not act carelessly.

CGT Entrepreneurs' Relief allowed: despite no sales in 5 years
In Jacqueline Potter and Neil Potter v HMRC [2019] TC7348 the First Tier tribunal allowed a claim for Entrepreneurs relief where the business had not raised an invoice for 5 years; its activities were directed at reviving the trade so its non-trading activities were not 'substantial'.

Plant and machinery claim fails for nuclear facility
In Urenco Chemplants Ltd and Urenco UK Limitedv HMRC [2019] TC7318 expenditure on the cost of constructing a tails management facility at a nuclear site was found to be structural and did not qualify for plant and machinery capital allowances.

Making VAT more Digital (freeview)

MTD: VAT blog
This time: evidence of a light touch by HMRC, tips on browsers and observations that software is not always following HMRC's guidance.  

Virtual Tax Partner Toolkit (freeview)

Virtual Tax Partner © Tax Toolkit© Tax Toolkit
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  • Entrepreneurs' Relief: Sole traders: sale of a business, incorporation, sale of assets
  • Entrepreneurs' Relief: Company owners: rules for sales pre 29 October 2018, sales between 29 October 2018 and 5 April 2019 and after.
  • TAAR: closing your Personal service company? Will your final dividends be taxed as income?
  • Salary or dividend, or a mixture of both. Better to claim the Employers' Allowance?
  • Making Tax Digital for VAT: when do you need to join.

TaxKeep Apps
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CPD for lunch 

Byte sized chunks of CPD for subscribers

NEW: Transactions in securities, see: CPD Index

Missed last time's Web-update?

Nichola's SME W-update 20 September 2019

  • Latest statistics on Making VAT Digital
  • HMRC's new Brexit guide
  • A close look at HMRC's information powers
  • Restriction on sideways loss relief for yacht business
  • VAT: a day planner is a book and not merely stationery
  • VAT: Lawn feed is not animal food!
  • Making VAT more digital
  • and much more..


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