Hello,
There is something of an international theme to this week’s SME Tax Update, as our case summaries include issues such as the ‘place of effective management' of a trust, Business Investment Relief (BIR), and the UK Income Tax chargeability of a non-UK resident partner in UK-based Limited Liability Partnerships (LLPs).
The Senedd, the Welsh Parliament, has voted to introduce the Visitor Accommodation (Register and Levy) Etc (Wales) Bill. This could see a family of four paying an extra £36.40 for a week's hotel or B&B stay.
In Benoit d’Angelin v HMRC [2025] UKUT 00212, the Upper Tribunal (UT) found that the provision of a Director's Loan Account (DLA) was an extraction of value, such that Business Investment Relief (BIR) was not available.
In Mark Wallace v HMRC [2025] TC09563, the First Tier Tribunal (FTT) found that a non-UK resident partner in UK-based Limited Liability Partnerships (LLPs) was liable to Income Tax on their share of profits derived from UK trading activities with non-UK counterparties.
In Marlborough DP Ltd v HMRC [2025] EWCA Civ 796, the Court of Appeal (CoA) agreed with an earlier ruling made by the Upper Tribunal (UT), in which contributions made by a dentist to a Paul Baxendale-Walker remuneration trust were found to be 'in connection with' his employment.
In Geoffrey Hawarth, Ian Lenagan and SG Kleinwort Hambros Trust Company Ltd v HMRC [2025] EWCA Civ 822, the Court of Appeal (CoA) found that a trust's 'place of effective management' was located in the UK where general management of the trust was undertaken, and not in the overseas jurisdiction where the trustees had been appointed.
In a written statement to Parliament, James Murray, Exchequer Secretary to the Treasury, has announced that 'Legislation Day' (L-Day) will be on Monday, 21 July 2025.
Hello,
Transactions in Securities, Entrepreneurs' Relief (now Business Asset Disposal Relief) and disguised remuneration are among the hot topics in the courts and tribunals this week. We also examine several other current issues, including beneficial loans, as well as the reformed Overseas Workday Relief rules.
In Andrew & Charlotte Moffat v HMRC [2025] TC09546, the First Tier Tribunal (FTT) found that a disposal of shares in the holding company of a group did not qualify for Entrepreneurs' Relief (ER) due to the level of the group's non-trading activities. The taxpayers had taken reasonable care, however, meaning that HMRC's penalties were quashed.
In Amarjeet and Tajinder Mudan v HMRC [2025] EWCA Civ 799, the Court of Appeal (CoA) agreed with an earlier Upper Tribunal (UT) decision that, despite a property being dilapidated and vandalised at the time of purchase, it remained 'residential' for Stamp Duty Land Tax (SDLT).
