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SME Tax News

Finance (No 2) 2017 Bill: new clauses

Last Updated: 31 August 2023

Just after scrapping over half of the original Finance (No 2) 2017 Bill, parliament introduced five new clauses into Finance (No 2) Bill as follows:

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Finance Bill (No 2) 2017 Bill: amended version

Last Updated: 31 August 2023

The Finance Bill (No 2) 2017, includes all the measures that were omitted from the first Finance Act of 2017. This guide tracks the changes. Finance Bill 2017-19 was published on 1 December 2017.

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Claim that companies are nominees fails

Last Updated: 31 August 2023

In Stephen Schechter and Lawrence Schechter v HMRC [2017] TC05677 shareholders claimed that their property companies held their respective properties on trust as their nominees so that they could claim loss relief for development losses.The accounts and paperwork told a different story and tribunal did not believe them.

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Welsh Land Transaction Tax (LTT)

Last Updated: 31 August 2023

Welsh Land Transaction Tax (LTT) is set to replace Stamp Duty Land Tax (SDLT)  in Wales in April 2018.

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Non-resident companies to pay UK corporation tax: consultation

Last Updated: 31 August 2023

HMRC consultation ‘Non-resident companies chargeable to Income Tax and non-resident CGT’, (closed 9 June 2017) explored whether non-resident companies with UK sourced property income or gains should pay corporation tax.

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EBT contributions fail wholly and exclusively tests

Last Updated: 31 August 2023

In Alway Sheet Metal Ltd, Praze Consultants Ltd, JC McCahill Ltd v HMRC [2017] TC05686 company contributions to an EBT were disallowed; they had a duality of purpose.

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The fate of the Finance (No 2) Bill 2016/17

Last Updated: 31 August 2023

STOP PRESS: On 25 April 2017 it was confirmed that a large chunk of the bill will be cut.

Prime Minister Theresa May's snap decision to call an early general election on 8 June 2017 leaves the fate of the Finance (No s) Bill 2016/17 hanging in the balance. It may either be rushed through parliament intact but with little parliamentary scrutiny or the more difficult parts of the bill could be omitted.

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Complex legislation defeats HMRC's discovery

Last Updated: 31 August 2023

In D.A. Gray v HMRC [2017] TC05754 the FTT blocked a discovery assessment in relation to a termination payment. The taxpayer was not negligent in failing to notify HMRC as although the employer had only deducted basic rate tax, that was what the PAYE regs' demanded.

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Share issue overturned by High Court

Last Updated: 31 August 2023

In Power Adhesives Limited v Stephen James Sweeney & Others [2017] EWHC 676 the High Court set aside the decision by a company’s directors to convert a loan into shares: this accidently created a transfer of value and it amounted to breach of the directors’ fiduciary or common law duties.

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SDLT filing & payment: consultation response

Last Updated: 31 August 2023

HMRC have published a response to their consultation ‘Stamp duty land tax: changes to the filing and payment process.

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Archived SME tax news Article Count:  336

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