SME Tax News

In Thornton Health LLP v HMRC [2018] TC06831 a company pursuaded the tribunal that it was not liable to register as a contractor under the Construction Industry Scheme: it was a property investor and although it redeveloped one floor of a building that was not enough to say that it had not changed its business to include construction operations. HMRC also calculated penalties incorrectly.

In Hezi Yechiel v HMRC [2018] TC06829 a property owner failed to prove sufficient quality of his occupation of his property in order to claim capital gains tax (CGT) Private Residence Relief (PRR). He did not cook there, his use of utilities was minimal, he did not bring his son there and had little furniture.

In Carol Holmes & Andrew Knight  v HMRC [2018] TC6824 the FTT allowed HMRC to access taxpayers' private bank statements. There was evidence that declared business income did not support private cash outgoings.

In Clive Beagles v HMRC [2018] UKUT 380 the Upper Tier tribunal confirmed that a discovery assessment may become 'stale' in circumstances when HMRC is aware of a potential insufficiency of tax yet delays in raising an appropriate assessment. 

Following a request from the Chancellor the Office for Tax Simplification (OTS) has undertaken a review into the Inheritance Tax (IHT) regime and their first report has now been published.

In Wilsons Solicitors LLP v HMRC [2018] TC06778 the First Tier tribunal held that the money laundering record keeping obligations of a solicitors partnership did not make them a relevant data holder for the purposes of HMRC’s data gathering powers.

In the 2018 budget a temporary increase to the Annual Investment Allowance (AIA) was announced. The ATT has requested an amendment to the draft legislation to allow SME businesses who are disadvantaged in periods which straddle 1 January 2021 to opt out of the increase.

HMRC have published new advisory fuel rates for company car drivers which will apply from 1 December 2018.