In Raj Sehgal and Sanjeev Mehan v HMRC [2022] TC 8581, the First Tier Tribunal (FTT) found that arrangements which resulted in a non-UK entity settling a UK-based indemnity did not represent a taxable remittance for the taxpayers.
SME Tax News
In Gallaher Limited v HMRC (Case C-707/20), the Advocate General to the CJEU decided that the UK group asset transfer rules were justified in restricting the EU Freedom of Establishment and the lack of ability to defer the tax payment was not disproportionate given that consideration was received.
In the Great British Takeaway v HMRC [2022] TC8584, a fish and chip shop failed to overturn a sizeable VAT assessment, including tax penalties levied at 50% of lost tax. The business's owners failed to convince HMRC that it had a reliable daily till reconciliation process and witness evidence proved unreliable and inadmissible.
The Energy Price Guarantee (EPG), introduced in October 2022, applies to domestic electricity and gas consumers. The Chancellor announced further changes in the Autumn Statement 2022 and Spring Budget 2023. The guarantee is in place until March 2024.
We are most saddened by the death of Her Majesty Queen Elizabeth II and we share our deepest condolences with the Royal Family and all her friends throughout the world. She was the most remarkable woman whose achievements, over such a very long reign will surely be impossible for anyone to ever mirror. She devoted nearly her whole life to the service of the UK and brought together a Commonwealth. We are all most grateful to her for all that she achieved, her extremely good humour, stoicism and statesmanship.
Hello,
We have a new CPD and some practical tax guides for you this week, focusing on Partnerships and Stamp Duty Land Tax (SDLT). We also have a bundle of appeals against disallowance of tax relief under variations of the Enterprise Investment Scheme (EIS) as well VAT and ATED penalties.
In Coconut Animated Island Limited v HMRC [2022] TC08575, the First Tier Tribunal (FTT) held that despite meeting the risk to capital and qualifying activities conditions, there were disqualifying arrangements in place that meant that HMRC were right to refuse to issue a Seed Enterprise Investment Scheme certificate.
In HMRC v Priory London Limited and HMRC v Jocoguma Properties Ltd [2022] UKUT 00225, the Upper Tribunal (UT) overturned controversial decisions on ATED late filing penalties as such confirming that HMRC is entitled to notify schedule 55 late filing penalties retrospectively.
In Valyrian Bloodstock Limited v HMRC [2022] TC08578, the First Tier Tribunal (FTT) denied Enterprise Investment Scheme (EIS) relief to a business that bought and kept horses. The risk to capital condition was not met: there was no qualifying trade so no long-term objective to grow and develop a trade.
In Joshua Peter Taylor v HMRC [2022] TC8576, the First Tier Tribunal (FTT) confirmed that a taxpayer who incorporated his business just before the COVID-19 lockdown was not entitled to support payments under the Self-Employment Income Support Scheme.