SME Tax News

Hello,

Given the current resurgence of coronavirus, it came as no surprise today when the Treasury announced that this Autumn's budget has been cancelled. This announcement was later followed by an economic statement, the 'Winter Economy Plan', made by the chancellor, Rishi Sunak. 

The Chancellor Rishi Sunak has announced a package of new measures to support the economy during the Coronavirus pandemic including a new job support scheme, continuing reduced VAT rates, and additional time to pay deferred taxes.

The House of Commons Treasury Committee (Treasury Committee) has published its second report, ‘Economic impact of coronavirus: the challenges of recovery’ which focuses on the medium-term issues that have arisen as the UK has sought to emerge from lockdown.

In Neil Pickles and Sharon Pickles v HMRC [2020] TC07681, goodwill was overvalued on the incorporation of a farm and then credited to the directors’ loan account without declaring Capital Gains Tax (CGT). Was this a distribution? The First Tier Tribunal (FTT) struggled with the issues.

In Centrica Overseas Holdings Limited v HMRC [2020] TC7683, the First Tier Tribunal (FTT) denied Corporation Tax deductions for fees incurred on the disposal of a subsidiary business by an investment company. The decision to sell was not made by the company but by its ultimate parent.

In Golden Harvest Wholesale Ltd v HMRC [2020] TC07847, a costs order of £45,000 was applied to a director, who caused a VAT appeal to be lodged which he knew to be hopeless. The appeal was withdrawn after he was charged with the criminal offence of cheating public revenue in connection with using his company as a 'buffer company' in an attempt to legitimise fraudulent input VAT recovery.