In Idrees Hashmi v Paul Lorimer-Wing and Fore Fitness Investment Holdings Limited [2022] EWHC 191 (Ch) a dispute between a shareholder and company took an unexpected course: the company's articles prevented a sole director from passing decisions. The decision to commence legal action against the dissenting shareholder was thus ultra vires.
SME Tax News
HMRC have published their Employer Bulletin for June 2022. We have summarised the key content for you, with links to our detailed guidance on the topics covered.
Further to the responses received as part of its 'OECD Pillar 2: Consultation on implementation' on setting a global minimum tax rate, the Government notes that companies have expressed key concerns centred around early implementation. It indicates that the global minimum tax rate will not be introduced until 31 December 2023.
In Seamus Kavanagh v HMRC [2022] TC08500, the First Tier Tribunal (FTT) found that an individual holding 4.997% of a company was unable to benefit from Entrepreneurs’ Relief on its sale. There was no evidence of other shareholders holding any shares on trust for Mr Kavanagh.
In Elaine Curtis v HMRC [2022] TC 8499, the First Tier Tribunal (FTT) ruled that while a loan received was related to a pension transfer and represented an Unauthorised Member Payment, HMRC had not raised a valid discovery assessment to collect the resulting tax.
In Ignatius Tedesco v HMRC [2022] TC8498, the First Tier Tribunal (FTT) found that the repayment of secured debt was not a deductible expense for Capital Gains Tax (CGT) purposes despite it being a condition of sale.
The Chartered Institute of Taxation (CIOT) has been asked by HMRC to share the message below about the recent pausing of Research & Development Tax Credit (RDTC) payments with their members.
Hello
It’s been a quiet week in terms of tax news, which is only to be expected after the Jubilee weekend. Perhaps the lull before the storm for accountants as we approach 'P11D season'.
In Hexagon Properties Ltd v HMRC [2022] TC08468, the First Tier Tribunal (FTT) found that the write off of a loan relationship debt was not subject to tax under the loan relationship code as the profit which arose related to a compensation claim brought by the taxpayer against their bank and not to the debt.
With the second payment on account for the 2021-22 tax year due by 31 July 2022, Self Assessment taxpayers may wish to set up a budget payment plan to help manage their tax payments.