Hello
This time we have a capital taxes round-up. We look at the options of those thousands of taxpayers who still have Employee Benefit Trust loans, we review some topical cases and we have new CPD.
SME Tax News
In Ian Shiner & David Sheinman v HMRC [2020] TC7779, the First Tier Tribunal (FTT) disallowed interest on loans to members of a trading partnership. The loans were taken by the partners as investors and not the partnership and the interest paid was not wholly and exclusively for the partnership trade.
In BlueCrest Capital Management Cayman Limited (& others) v HMRC [2020] TC 07782, the First Tier Tribunal (FTT) agreed that the sale of occupational income rules could apply to charge Income Tax on partnership capital contributions.
In Oisin Fanning v HMRC [2020] TC07776, the First Tier Tribunal (FTT) found that HMRC's discovery assessment was validly issued. The assessment represented a 5% SDLT charge on the purchase price of a £5 million property in London. Mr Fanning (the taxpayer) had used an avoidance scheme involving a sub-sale relief and grant of options.
The House of Commons’ Public Accounts Committee (PAC) has published its report on the 'Management of Tax Reliefs'. It concludes that HMRC and HM Treasury need to improve their reporting on the cost, beneficiaries and impact of tax reliefs so that parliament can scrutinize the value for money of these benefits.
Missed our SME Tax Web-updates in July? Here is a summary of the month.
In Steadfast Manufacturing & Storage Limited v HMRC TC7770, HMRC were unsuccessful in attempting to disallow the costs of resurfacing a yard as capital. The First Tier Tribunal (FTT) found there was no improvement and allowed the costs as a revenue deduction for repairs.
Hello
This week we feature a handy summary of the government's latest measures for re-booting the economy. We also review cases with an employment theme, we revisit the High-Income Child Benefit charge and have a look at some cases where VAT exemption for medical treatments was in question.
Coronavirus/COVID-19 July 2020 update. There are some new deadlines and dates for our diaries. This update highlights some of the key measures that may now need your urgent attention.
In Heather Jones v HMRC [2020] UKUT 0229, the Upper Tribunal allowed an appeal against a discovery assessment for higher rate tax on a severance payment. HMRC had not proved that the assessment was valid.