SME Tax News

In Neil Pickles and Sharon Pickles v HMRC [2020] TC07681, goodwill was overvalued on the incorporation of a farm and then credited to the directors’ loan account without declaring Capital Gains Tax (CGT). Was this a distribution? The First Tier Tribunal (FTT) struggled with the issues.

In Centrica Overseas Holdings Limited v HMRC [2020] TC7683, the First Tier Tribunal (FTT) denied Corporation Tax deductions for fees incurred on the disposal of a subsidiary business by an investment company. The decision to sell was not made by the company but by its ultimate parent.

In Golden Harvest Wholesale Ltd v HMRC [2020] TC07847, a costs order of £45,000 was applied to a director, who caused a VAT appeal to be lodged which he knew to be hopeless. The appeal was withdrawn after he was charged with the criminal offence of cheating public revenue in connection with using his company as a 'buffer company' in an attempt to legitimise fraudulent input VAT recovery.

In Paul Newey (T/A Ocean Finance) v HMRC [2020] TC07844, the First Tier Tribunal (FTT) held that the offshore transfer of a business to avoid incurring irrecoverable VAT was not abusive.

In HMRC v Cheshire Centre for Independent Living [2020] UKUT0275, the Upper Tribunal (UT) ordered HMRC to pay the taxpayers costs despite HMRC’s case being successful. It had acted unreasonably in introducing new grounds of appeal.

In Miroslaw Pawlikowski v HMRC [2020] TC7584, the First Tier Tribunal (FTT) dismissed the taxpayer’s appeal against HMRC’s denial of tax credits for 2016/17 in respect of certain CIS deductions. The taxpayer failed to keep adequate records to support his claim.