Hello
With only a few days to go until the long-anticipated Autumn Budget, we have something of a bumper update for you this week. This includes a proposed timetable for Companies House reform, increased company size thresholds, a new HMRC tax avoidance spotlight, and several tribunal cases.
Following last week’s news that the medium-sized company employee threshold will not go up, we now know that the monetary size limits for micro, small and medium-sized companies will increase. This was announced by the previous Government in March and it has been confirmed that the current Government will lay the relevant legislation by the end of this year.
In other news for companies, a timetable has been published outlining how the ongoing Companies House reforms will be implemented over the next two years. It is important that those working with companies are familiar with the changes and their expected timings to be able to put in place appropriate systems and procedures.
Tax avoidance features this week in the form of a new HMRC spotlight looking at General Data Protection Regulation (GDPR) provisions. The latest opinion of the General Anti-Abuse Rule (GAAR) Advisory Panel has also been published. These make for interesting reading.
Our case summaries include a decision on whether 40 acres of fields formed part of the grounds of a dwelling for Stamp Duty Land Tax (SDLT) purposes. We also consider two VAT appeals. One looks at VAT apportionment in the context of caravans and the other explores the concept of ‘legitimate expectation’, where HMRC took three months to process a VAT registration.
More news, cases and updates below.
Nichola and the Team
Your Virtual Tax Partner®: online PRACTICAL support for accountants, tax advisers BY accountants and tax advisers.
Quick News
Company size thresholds to increase
In a written statement to Parliament, the Secretary of State for Business and Trade, Jonathan Reynolds, has confirmed that the Government will take forward proposals to increase the monetary size thresholds for UK companies.
Companies House timetable on regulatory changes
A policy paper 'Economic Crime and Corporate Transparency Act: outline transition plan for Companies House' has been released. It follows the Economic Crime and Corporate Transparency Bill that was introduced into Parliament on 22 September 2022 and received Royal Assent on 26 October 2023.
GAAR: Creation and sale of pension obligation not reasonable
The General Anti-Abuse Rule (GAAR) Panel has issued its opinion on an employee reward arrangement involving the creation and sale of a pension obligation with the consideration paid to the owner of the pension obligation.
Spotlight 65: General Data Protection Regulation (GDPR) provisions
HMRC have published Tax Avoidance Spotlight 65: 'General Data Protection Regulation (GDPR) provision used to reduce tax liability'.
Additional relief for low-budget British films
From 30 October 2024, eligible companies will be able to apply for certification to receive the enhanced uplift in AVEC at a rate of 53% for qualifying expenditure incurred on or after 1 April 2024.
Next Steps to Make Work Pay
The Government has published a paper, 'Next Steps to Make Work Pay', with the aim of growing the economy, raising living standards and creating 'opportunities'. Four targeted consultations have also been released.
Tax Cases
Grass cutting doesn't preclude residential SDLT
In Mike Lazaridis v HMRC [2024] TC09321, the First Tier Tribunal (FTT) ruled that 40 acres of fields were part of the grounds of a residential property, despite being used for commercial grass production by an unconnected third party under a formal licence agreement.
Conforming to the CJEU
In Trustees of Panico Panayi A&M Settlements and Redevco Properties UK Limited HMRC [2024] UT319, the Upper Tribunal (UT) held that under a 'conforming interpretation' of UK law, the FTT was able to retrospectively insert a new five-year payment deferral rule on a dry exit charge applied when a trust or company moved their tax residence abroad.
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Overseas & Residence
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Offshore Income Tax Toolkit
This toolkit provides an outline of the tax issues for UK resident individuals with offshore income and investments.
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Eye tests and glasses
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Capital allowances
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Private Client & Estate Planning
High-Income Child Benefit Tax Charge
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Who is a connected person for Capital Gains Tax (CGT) purposes? Why does this matter?
VAT News & Cases
VAT assessment was conspicuously unfair
In Treasures of Brazil Limited v HMRC [2024] TC09325, the First Tier Tribunal (FTT) found that a company had a legitimate expectation that there was no requirement to collect VAT while HMRC processed its VAT registration.
New VAT calculation for caravan sales allowed
In Abbeyford Caravan Company (Scotland) Ltd v HMRC [2024] TC09324, the First Tier Tribunal (FTT) found that a company could use a new and more accurate method of apportioning output VAT between sales of caravans and sales of their removable contents.
Groups (VAT)
What are the conditions for forming a VAT group? What rules apply once a VAT group is in place?
Assessments: Best judgment & time limits
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Tax Tools & Calculators
Tax tools & calculators
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Calendar of tax deadlines and new tax measures
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Tax Queries?
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