The Easter weekend is typically the time when a lot of properties are newly listed on the market. To this end we have been updating our Stamp Duty Land Tax (SDLT) guides for potential buyers as we try to answer your latest, most frequently asked questions (FAQs).

SDLT has some very odd quirks, and it is definitely worth re-checking the provisions on this topic before buyers start viewing properties. One FAQ that has been taxing many peoples' brains, for many years, is the question as to what rate of SDLT should apply to land acquired with a residential property. The Supreme Court has now made a decision on, not one, but three co-joined appeals. It transpires that a field that is not a garden may be residential after all. The judgment is summarised in the link below.

Staying with indirect taxes, we have a VAT special, a case review of our pick of interesting VAT decisions from the last month.

We also have more year-end updates including a look at what's next for Personal Service Companies (PSCs) and their owners. We notice that a lot of people have decided to retain their PSCs, and if you're one of them, you may be interested in our Trusts and Family Investment companies guides. Trusts are here to stay, according to the government's review findings, however you can achieve many of the same ideals with more flexibility if you are able to use a family company.

Lots more below, both freeview and subscriber content. 

Have a good Easter Break.

Back soon 

Nichola Ross Martin FCA CTA (Fellow)
Tax Director


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

Quick News

R & C Brief 4: Partially exempt VAT registered businesses affected by Coronavirus
Revenue & Customs Brief 4 (2021): 'partially exempt VAT registered businesses affected by Coronavirus (COVID-19)' outlines an accelerated process to request temporary alterations to partial exemption methods to reflect changes in business practices due to Coronavirus.

‘The Taxation of Trusts: a review’: Consultation response 
HMRC have published a response to their 2018 consultation ‘The Taxation of Trusts: a review’ which considered if the system for taxing trusts meets the principles of transparency, fairness, neutrality, and simplicity. The conclusion is that no comprehensive reform is currently required.

Starting in Business? Start-here
Our 'At a glance' guide takes you through the key steps in getting started for tax, with links helping you drill down for more detail.

COVID-19 Zone
All about tax and financial support during the ongoing epidemic

Editor's Pick  

Personal Service Company (PSC) Update: 2021/22
What is 'best advice', right now, for Personal Service Companies (PSCs) and their owners?

Tax planning for income at marginal tax rates
UPDATE: At what levels of income do higher marginal rates of Income Tax apply? What tax planning can be undertaken?

Tax Planning for the 2020/21 year-end
This is our year-end and new tax year checklist and toolkit for individual Private Clients. It can be used in conjunction with our checklists for directors, employers and self-employed individuals.

Guides and Updates (subscribers)

Trusts & Tax Planning
What is a trust? How can trusts be used in tax planning? What the advantages and what are the pitfalls?

Family Investment Companies
What is a Family Investment Company?  Why use a Family Investment Company?  What is the tax treatment of a Family Investment Company?

SDLT: Residential properties and dwellings   
What is residential property for Stamp Duty Land Tax (SDLT)? What tax rate applies?  What garden and grounds are subject to higher rates of SDLT?

SDLT: A guide for First Time Buyers
What Stamp Duty Land Tax (SDLT) relief is available to first-time buyers? What qualifying conditions must be met? The relief is scheduled to re-start in July 2021.

SDLT: Residential property higher rates
What Stamp Duty Land Tax (SDLT) rate applies for the purchase of a second home? What is the SDLT higher rate? Are there any reliefs from the SDLT higher rate?

Tax Cases

SDLT: land attached to property taxed at residential rates
In (1) David Hyman and Sally Hyman (2) Pensfold (3) Craig Goodfellow and Julie Goodfellow v HMRC [2021] UKUT0068 the Upper Tribunal (UT) considered the definition of residential property and determined that residential rates should apply to the purchase of properties with land.

No capital allowances for leased satellites
In Inmarsart Global Ltd v HMRC [2021] UKUT0059, the Upper Tribunal refused a claim to Capital Allowances for the launch costs of leased satellites. The assets did not ‘belong’ to the taxpayer in the way that the legislation required.

VAT cases

No VAT on good in transit to Spain
In Jota Jota Alimentos Global SL (‘Jota’) v HMRC [2021] TC06584, the First Tier Tribunal (FTT) concluded that goods imported for subsequent despatch to Spain were not supplied in the UK.

Direct link between consideration and supply
In Imprimatur Capital Holdings Ltd T vs HMRC [2021] TC08006, the First Tier Tribunal (FTT) concluded that only the services to third-party clients were made for consideration, therefore amounted to an economic activity and entitled to input tax recovery on those services.

Place of supply rules and investment services
In The Wellcome Trust Ltd v HMRC (Case C-459/19) (17 March 2021), the Court of Justice of the European Union (CJEU) held that services supplied to a taxable person who acquired those services exclusively for its non-business activities were nonetheless to be regarded as supplied to a taxable person 'acting as such'.

No prompt payment discount for VAT
In Virgin Media Limited v HMRC [2020] UKFTT 30, the Court of Appeal has refused permission to appeal over how VAT was accounted for on supplies of services to customers.

Tax Toolkits 

Tax Tools
Be a winner with our game-changing tax diagnostics tools. Sign up now.

Tax Queries?

Virtual Tax Partner© Support
Have a tax query? Need a second option? Open a ticket and ask a question. A team of tax experts with a very wide range of expertise: covering direct and indirect tax, as well as accounting, R&D claims, reorganisations and much more. 

CPD for lunch 

Byte-sized chunks of CPD for subscribers

More at CPD Index

Missed last time's Web-update?

Nichola's SME Tax Update 25 March 2021

  • No Appeal: New Loan Charge Determinations & Penalties
  • Consultation: Raising standards in the tax advice market 
  • Chancellor responds to the first OTS report on IHT 
  • Call for evidence: Tax administration framework  
  • Call for evidence: Timely payment  
  • Tackling Disguised Remuneration Tax Avoidance: Summary of responses
  • SITR: Responses to call for evidence
  • COVID-19: Option to tax deadline extended
  • Tax Returns: To-do list before/after 5 April 2021  
  • Year-end top tips for OMB's 2020/21
  • Directors: Tax planning toolkit for 2021/22 
  • Savings income: tax on interest
  • Property profits & losses: Toolkit (2021-22)  ...More


SME Tax Monthly Summary March 2021

Links to all of March's newswires...More 

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