SME Tax News

In Champions Fun Learning Centre v HMRC [2018] TC06685, a charity wrongly claimed Gift Aid on membership fees. HMRC raised assessments for tax and penalties however the FTT found that these were all invalidly issued and so allowed the charity's appeal against tax due and penalties.

HMRC have published ‘Tax abuse and insolvency: A discussion document – summary of responses’ confirming that legislation will be introduced to protect against loss of revenue for HMRC in insolvency cases.

HMRC have published ‘Review of the corporate Intangible Fixed Assets regime: summary of responses’, which contains detailed proposals for partial reinstatement of relief for goodwill acquisitions.

HMRC have published ‘Digital services tax: consultation’, regarding the design and implementation of the new tax.

HMRC have published ‘Corporate Capital Loss Restriction: Consultation on delivery’ looking at proposals to restrict the use of carried forward capital losses for companies.

In Viscount Hood (Executor of the estate of Diana, Lady Hood deceased) v HMRC [2018] EWCA Civ 2405 the Court of Appeal concluded that IHT planning whereby the taxpayer granted a sub-lease to the her sons failed. The presence of covenants which passed on the donor's obligations under her head lease, created a gift of property subject to a reservation of benefit.

In HMRC v The Estate of Maureen M Vigne (deceased) [2018] UKUT 0357, the Upper Tribunal (UT) dismissed HMRC’s appeal against the FTT decision. The FTT had applied the correct legal tests in deciding that a DIY livery business did not consist of wholly or mainly in making or holding investments. The BPR claim was upheld.

In HMRC v Parry and others [2018] EWCA Civ 2266 the Court of Appeal held that a failure to exercise pension rights and a statement of wishes leaving death benefits to the deceased’s sons were both transfers of value and IHT was due on the entire pension fund.