In Bobby Khan Enterprises Limited & Ors v HMRC [2022] TC08556, the First Tier Tribunal (FTT) found that store keepers consistently and deliberately suppressed purchases and corresponding turnover. This triggered Corporation Tax (CT), VAT and s.455 Directors' loan account charges for the missing income over a number of years.
SME Tax News
In HMRC v Euromoney Institutional Investor PLC [2022] UKUT00205, the Upper Tribunal (UT) confirmed that an ordinary share for redeemable preference share exchange, in amending a prior agreement from a direct shares for cash exchange in a takeover, was undertaken for bona fide commercial reasons, without the main purpose of tax avoidance. Relief under the Reorganisation provisions was available.
In Iain Robertson v Revenue Scotland [2022] FTSCT 6, a taxpayer fell foul of the Land and Buildings Transaction Tax (LBTT) rules after COVID lockdown prevented him from occupying a new property as his main residence. The legislation provided no leniency under the circumstances and he was unable to claim relief from the Additional Dwelling Supplement (ADS).
Hello,
Well done to anyone managing to work in this heat! We have lots of updates for you this week, mainly for employers, trusts and Self Assessment return preparers.
HMRC have published their Employer Bulletin for August 2022. We have summarised the key content for you, with links to our detailed guidance on the topics covered.
In HMRC v Keith Murphy [2022] EWCA Civ 1112, the Court of Appeal decided that a success fee and indemnity premium to be paid out of an employment-related compensation settlement were not deductible for PAYE. Neither cost was incurred necessarily in the performance of the employee's duties as a serving police officer.
HMRC have released further annual statistical updates covering Capital Gains Tax and Tax Relief. We summarise some of the key points, interesting figures and the costs of providing a range of tax reliefs.
Following the Bank of England’s recent announcement increasing the base rate, HMRC have announced that their late payment interest rate will also increase by 0.50%, to 4.25%, from 23 August 2022.
Hello,
This week we have a 'hybrid working' tax review, a call for evidence on tax reliefs, interesting statistics on Inheritance Tax (IHT), a look at some unusual global tax announcements and record fines for accountancy firms.
In HMRC v BlackRock Holdco 5, LLC [2022] UKUT 00199, the Upper Tribunal (UT) held that loan relationship debits claimed as part of an intra-group financing arrangement were wholly attributable to the unallowable purpose of the lending and not the commercial purpose and were denied.