HMRC has published ‘Allowing Entrepreneurs’ Relief on gains before dilution: consultation response’ alongside draft legislation which will ensure shareholders retain ER when a company ceases to be a personal company due to a fundraise.
SME Tax News
HM Treasury has published ‘Rent a room relief: summary of responses’ alongside draft legislation and a policy document. This confirms the retention of the relief and the introduction of a new shared occupancy condition.
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This time: HMRC tell us why they missed an important employment status indicator off their Check Employment Status tool (CEST): we think it's a cop out. The CIOT voice concerns over HMRC's litigation policy "shoot first and ask questions later"?, plus some interesting tax cases.
HMRC have released a paper on Mutuality of Obligation in an attempt to explain why this was missed off its CEST tool and its approach when considering it in IR35 cases.
In Yocheved Blum v HMRC [2017] TC6404 HMRC was able to make a discovery assessment in respect of PAYE income following a taxpayer’s error on her tax return there was nothing on the return to indicate that the taxpayer had picked off the wrong figures for her wages.
In Execs of Estate of D S Campbell Dec’d v HMRC [2018] TC06389, the First-Tier Tribunal (FTT) held that outstanding rents on a lease related to the deceased’s business, were deductible in calculating the value of the Business Property Relief (BPR) qualifying business and not entitled to separate relief.
In Oxbotica Limited v HMRC [2018] TC6538 HMRC was unsuccessful in an attempt to deny SEIS relief for £1,000 of founder shares on the basis that the amount of the investment was too small to be used to for any qualifying activity.
A recent survey by independent charity Arts & Business Scotland and accountancy firm Scott-Moncrieff indicates that over 75% of Scottish museums and galleries have not been claiming the Museum & Gallery Exhibitions Tax Relief introduced in 2017 to encourage museums and galleries to develop new exhibitions and display their collections to a wider audience.
In South Downs Trustees Limited v GH, IJ, KL [2018] EWHC 1064 (Ch) the High Court approved a decision by the trustees of an Employee Benefit Trust (EBT) to sell their controlling stake in the employer company despite the trust deed prohibiting it; the trustees took great care in making their decision which was in the interests of the beneficiaries.
In Robert Ames v HMRC [2018] UKUT 0190 the Upper Tribunal (UT) denied a CGT exemption on the sale of Enterprise Investment Scheme (EIS) shares where no claim to income tax relief had been made due to the taxpayer having only £42 of income.