In Graham Davis v HMRC [2022] TC08566, a sole trader's claim to have incorporated their business failed. No trade had actually been transferred. This meant that a claim for losses of the sole trade business to be relieved against income derived from the company failed.
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In Carl James v The Welsh Revenue Authority [2022] TC8563, the First Tier Tribunal (FTT) held the purchase of a property, which was then combined with an existing main residence, amounted to the purchase of an additional property. Consequently, it was chargeable to a higher rate transaction for the purposes of Welsh Land Transaction Tax (LTT).
Last year, one in every 12 professional footballers in the UK had enquiries opened into their tax affairs by HMRC, according to research by accountants UHC Hacker Young.
In Guy Boardman v HMRC [2022] TC8558, a taxpayer's plan to profit from selling his shares at an inflated price to his Self Invested Pension Plan (SIPP) backfired and resulted in an unauthorised payment charge. Payments from an opaque LLP were chargeable as distributions.
HMRC have issued their Agent Update for August 2022. We have summarised the key content for you with links to our detailed guidance on the topics covered.
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There is news that yet another public sector body, this time it's HS2, has managed to get the IR35 and Off-Payroll Working rules wrong. HS2's estimated £9.5 million liability, set aside in its accounts, now means that public sector organisations have nearly amassed £275 million in payrolling errors.
In Thursford Enterprises Limited v HMRC [2022] TC08560, the First Tier Tribunal (FTT) found that a 'Christmas Spectacular' performance did have sufficient dramatic production value in order to qualify for Theatre Tax Relief.
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.
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).