Hello,
Transactions in Securities, Entrepreneurs' Relief (now Business Asset Disposal Relief) and disguised remuneration are among the hot topics in the courts and tribunals this week. We also examine several other current issues, including beneficial loans, as well as the reformed Overseas Workday Relief rules.
One significant Upper Tribunal (UT) decision that we explore is that of Hugh Edward Mark Osmond & Anor v HMRC. In 2024, the First Tier Tribunal (FTT) found that a claim for Enterprise Investment Scheme disposal relief in respect of share buybacks fell within the Transactions in Securities (TiS) rules; a decision with potentially wide-ranging ramifications.
The UT has now concluded that while the buyback transactions may have had the effect of obtaining an Income Tax advantage, that was not their purpose. This meant that the TiS rules did not bite. Do read our summary below, which provides more background and detail on the issues at play.
For those in Self Assessment, second 2024-25 Payments On Account (POAs) fall due at the end of this month, with interest charged on late payments. In Editor’s Choice, you can find our new guide to POAs, which includes details of when and how POAs can be reduced.
Last month, HM Treasury confirmed that draft tax legislation will typically continue to be published on Legislation Day (L-Day), in the summer. As Parliament breaks for its summer recess on 22 July, there is speculation as to when precisely L-Day may be. It certainly seems likely that it will be within the next three weeks. Of course, we will provide coverage when L-Day arrives.
More news, cases, and updates below.
The Ross Martin Tax Team
Online PRACTICAL tax resources for accountants and tax advisers BY accountants and tax advisers.
Quick News
Updates to List 3, approved organisations and societies
HMRC have regularly updated ‘List 3’, their list of approved professional organisations and learned societies. Several new organisations have been added over the last six months.
Tax Cases
Upper Tribunal reverses TiS block on EIS disposal
In Hugh Edward Mark Osmond & Anor v HMRC [2025] UKUT 00183, the Upper Tribunal (UT) found that the First Tier Tribunal (FTT) made an error in law. A main purpose of crystallising Enterprise Investment Scheme (EIS) relief was not automatically, as a matter of law, the obtaining of an Income Tax advantage, even though this may have been its effect.
Entrepreneurs' Relief denied due to substantial non-trading
In Andrew & Charlotte Moffat v HMRC [2025] TC09546, the First Tier Tribunal (FTT) found that a disposal of shares in the holding company of a group did not qualify for Entrepreneurs' Relief (ER) due to the level of the group's non-trading activities. The taxpayers had taken reasonable care, however, meaning that HMRC's penalties were quashed.
HMRC right to exercise 'the 7A power' in disguised remuneration case
In Stephen White, Gary Laws & Others v HMRC [2025] EWHC 1600, the High Court (HC) found that HMRC were right to exercise 'the 7A power', removing the requirement for the 'end user' in a disguised remuneration scheme to comply with PAYE Regulations.
CoA rules vandalised property 'residential' for SDLT purposes
In Amarjeet and Tajinder Mudan v HMRC [2025] EWCA Civ 799, the Court of Appeal (CoA) agreed with an earlier Upper Tribunal (UT) decision that, despite a property being dilapidated and vandalised at the time of purchase, it remained 'residential' for Stamp Duty Land Tax (SDLT).
Editor's Choice
Loans: Employment-related (beneficial loans)
NEW: What is a beneficial loan? What are the tax and Benefit In Kind implications? Which loans are exempt? How is the value of the benefit calculated? How is the beneficial loan reported? What happens if the loan is written off?
Payments On Account (POAs): Self Assessment
NEW: When are Payments On Account (POAs) made under Self Assessment? How are POAs calculated? What are the consequences of not making a payment on time? Can POAs be reduced?
Guides & Updates
Self-employed
Losses, trade losses and sideways relief
How can trade losses be utilised? What are the restrictions?
Incorporation
Capital allowances: On incorporation
What is the capital allowance position when an existing business is incorporated? What elections can be made?
Directors & Companies
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?
Employers
Recreational benefits
Employers can provide sporting or recreational benefits tax-free to employees. What is excluded? How should an employer structure benefits?
Pool cars
What is a pool car? How is it taxed? When does it become a benefit? What are the rules? Is it still worth having them?
Electric Vehicles: Update 2025
With the increased focus on achieving Net Zero, the government is planning to ban new petrol and diesel car sales by 2030. We review some tax issues that businesses and their employees may consider when acquiring or providing an electric vehicle.
Private Client & Estate Planning
Student Loans
UPDATE: How are Student Loan repayments calculated? What happens if an individual has more than one job? How are repayments collected under PAYE? How are repayments collected under Self Assessment?
CGT: Rollover Relief
What is Rollover Relief? When a capital gain is made on the disposal of a business asset, it is possible to defer the gain by rolling it over against the cost of acquiring a replacement business asset. What are the conditions for the relief? What is a business asset?
Overseas & Residence
Overseas Workday Relief (OWR)
UPDATE: What is Overseas Workday Relief (OWR)? When does it apply? What are the recent changes to OWR?
Non-resident Tax Toolkit
UPDATE: This toolkit covers the key UK tax issues for non-UK resident individuals holding UK assets and property and working in the UK.
Devolved Taxes
Scottish Income Tax: Am I a Scottish taxpayer?
Who does Scottish Income Tax apply to? Am I resident in Scotland? What constitutes a residence and the 'main' residence?
LBTT: Land and Buildings Transaction Tax
What is Land and Buildings Transaction Tax (LBTT)? What are the rules?
VAT
CIS: Construction Industry reverse charge
What is the CIS VAT reverse charge? How do you account for VAT? Can you still cash account for VAT? What administrative changes do I need in order to operate the reverse charge?
Capital Goods Scheme
What is the VAT Capital Goods Scheme (CGS)? When do I use it? How does it work?
Tax Tools & Calculators
Tax tools & calculators
We have a suite of useful tax tools that help agents, business owners and sole traders calculate their taxes.
Calendar of tax deadlines and new tax measures
This is a freeview 'At a glance' rolling calendar of common recurring tax deadlines, new tax measures and other tax-significant events.
CPD
Recent webinars include:
- Monthly Tax Update - June 2025
- Practice Insight - June 2025 (free)
- Monthly Tax Update - May 2025
- Practice Insight - May 2025 (free)
- Making Tax Digital for Income Tax - Roadmap to April 2026
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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 wide range of expertise: covering direct and indirect tax, as well as accounting, R&D claims, reorganisations and much more.
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Ross Martin Tax: SME Tax News 26 June 2025
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