This week we feature updates of some useful and topical tax guides, we have a consultation on a new tax for residential property developers, news of more accidental mail-outs by HMRC and a look at what you can do to make your business more environmentally friendly. 

As we try to come to terms with working in a time of COVID-19, many employers are embracing the need to make a fundamental review of their working practices. Homeworking is set to be a permanent feature of employment contracts. This measure has adverse affects on those city-based businesses that rely on commuters, with decreased demand by city workers for lunch, bars, gyms and shops. The business model of many railway stations and the ancillary businesses that start and end the commuter’s journey also suffer from the potential lack of footfall, as well as motor companies who face less demand for business transport. It's a time of change and businesses must act now.

The government has pledged to achieve the environmental objective of having net zero emissions by 2050. Whilst some changing business practices may assist in achieving this goal, the fact of the matter is that the government needs to do an awful lot more to promote action to prevent climate change. A thought not missed by the House of Commons Public Accounts Committee (PAC) who accuse HM Treasury and HMRC of being stuck in a bygone era without a road map. 

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

Treasury criticised for lack of climate plan  
The Public Accounts Committee (PAC) has published a report criticising HM Treasury (HMT) and HM Revenue & Customs (HMRC) on their lack of a clear plan as to how tax revenues will help the government achieve its environmental objective of having net zero emissions by 2050.

Going Eco: Ten steps to a climate-friendly business
As business re-starts we can evaluate a 'new normal'. What can you do and, what tax incentives are currently on offer, to assist you in running a more climate-friendly business?

Consultation on Residential Property Developer Tax
HM Treasury has published 'Residential Property Developer Tax (RPDT): Consultation on policy design', a new tax that forms part of its Building Safety Package ahead of its inclusion in the 2021-22 Finance Bill. This measure targets only the largest developers.

SA Notices to File incorrectly issued to non-resident corporate landlords
HMRC have acknowledged that Notices to File self-assessment returns for 2020-21 have incorrectly been issued to some non-resident corporate landlords (NRCL). The issue came to light after a number of advisers complained to the Chartered Institute of Taxation (CIOT).

Editor's Pick  

Accommodation as a benefit in kind
When is accommodation taxable as an employment benefit and when is it an allowable expense of employment?

Gardens: selling or developing
What are the tax consequences of selling a garden for development purposes? What if the owner develops the garden? 

De-enveloping property
A company may wish to transfer its residential property to its shareholders, this is known as ‘de-enveloping’. There is no specific tax relief for de-enveloping: the result is that it needs to be carefully planned in order to mitigate tax charges.

Demergers: What are your options? 
What are the different types of demergers that are available when you want to reorganise your business? What are the situations where they are typically used? For detailed steps and tax analysis see our Case Study guides

Guides and Updates (subscribers) 

Losses: Trading and other losses
HMRC have released updated guidance in respect of the anticipated extension of trading loss relieving provisions. See the 'What's new' section in our subscriber guide for details.

Purchase of own shares
UPDATE: How can a company repurchase its share capital? What are the Companies Act requirements? What are the tax consequences for company and shareholder?

Purchase of own shares: Checklist (Masterclass)
UPDATE: A Checklist (Masterclass) for dealing with a Company Purchase of Own Shares.

Case Study 6: POS, buyout retiring shareholder
UPDATE: What are the steps for a Purchase of Own Shares (POS)? 

How to set up a UK trust 
NEW: A new guide looking at how to set up a UK trust, what the tax implications are, and what other factors need to be considered.

Permanent establishment & residence
What are the rules for determining a company's country of residence? What is central management and control? When does a company create a permanent establishment in another country?

Tax Cases 

Share repurchase fails minimum ownership condition 
In Boston Khan v HMRC [2021] EWCA Civ 624, the Court of Appeal agreed that a company purchase of its own shares was not part of a wider arrangement whereby the taxpayer acquired a controlling interest in the company. The conditions for capital treatment were not met and the repurchase was a distribution.

VAT Guides

Fuel scale charges (VAT)
UPDATE: What is the VAT fuel scale charge? What alternatives are there to the VAT fuel scale charge? Does the VAT fuel scale charge apply to vans?

Land & Property: DIY Housebuilders scheme
It is possible to recover VAT on constructing a new residential dwelling, or dwellings, even where there is no planned sale of the property. This recovery can arise under the special refund scheme for DIY housebuilders.

Private use of goods: VAT and Lennartz
What is the Lennartz mechanism? How does the Lennartz mechanism assist businesses in accounting for the VAT effect of the non-business use of goods?  

Tax Toolkits 

Tax Tools
Be a winner with our game-changing tax diagnostics tools for Business Asset Disposal Relief, SDLT & annexes/subsidiary properties, Company reorganisations, R & D Zone and TAAR on winding up. 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 W-update 29 April 2021 

  • HMRC software issues caused data breach
  • Business Rates Review: Interim Report 
  • Stamp Taxes Newsletter April 2021 
  • Repayments for Corporate Loss carryback claims
  • Golf club loses 'new claim' appeal 
  • Head office and branch: Separate taxable persons 
  • Historical bad debt relief denied over lack of evidence 
  • No VAT due: no continuous supply of intra-group services 
  • Giving your home to your children
  • Ceasing trading: What are your options?
  • P11Ds: Top Tips
  • Replacement of domestic items relief
  • PRR: Private Residence Relief: settled property & granny flats
  • Tax Penalties: Grounds for Appeal Toolkit
  • Substantial Shareholding Exemption (SSE) ...More


SME Tax Monthly Summary April 2021

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

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