The Public Accounts Committee (PAC) have issued a Call for Evidence entitled, 'Managing tax compliance following the pandemic'. It seeks feedback on HMRC’s ability to carry out its compliance work and to identify future risks and challenges following the pandemic.
SME Tax News
In Ladson Preston Limited v HMRC [2022] UKUT 00301, the Upper Tribunal (UT) confirmed that Multiple Dwellings Relief (MDR) cannot apply to the acquisition of bare land: the fact that there was planning permission and that boreholes had been dug for testing did not alter that fact.
HM Treasury (HMT) has released its response to the May 2022 consultation ‘Statutory Debt Repayment Plan’. Respondents raised significant challenges and concerns, both in the design of the proposals and the timing of their implementation.
In Mohammad Ameen Mirza v HMRC [2022] UKUT 00291, it was held that whilst a claim for reasonable excuse must examine the attributes of the specific taxpayer, in this case, there was no evidence of the appellant's attributes or state of mind which meant the claim could not be allowed.
In Michael & Bridget Brown v HMRC [2022] UT00298, the Upper Tribunal (UT) confirmed that a stamp duty sub-sale avoidance scheme under which a company incorporated to purchase a property and transfered it to its individual owners by way of a capital reduction did not avoid any tax: the subscription price of their shares formed consideration for the property.
In Stuart Fox v HMRC [2022] UKUT00310, the Upper Tribunal (UT) found that a Stamp Duty tax avoidance scheme involving the transfer of a property from a wife to her husband failed because they were connected, as such he was liable for the entire tax liability.
HMRC have published new advisory fuel rates for company car drivers which apply from 1 December 2022.
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The Autumn Finance Bill was published this week and we have combined that with all the previous proposals to create a new Finance Act update and rolling planner for 2023-24. Our rolling planners are extremely handy in a year when there have been so many changes in tax.
In Marcus and Karen Jays v HMRC [2022] TC8639, two shareholders avoided dividend tax discovery assessments when their company declared large final dividends. They were denied an enforceable right to receive payment due to an agreement made with their bank to restrict the size of dividends. HMRC had assessed the amounts voted and not paid.
In HMRC v Centrica Overseas Holdings Limited [2022] EWCA Civ 1520, the Court of Appeal confirmed that professional fees incurred in the run-up to the disposal of a subsidiary were expenses of management but also agreed with HMRC that they were also capital in nature as so to be disallowed.