SME Tax News

In Cotterell & Anor v Allendale & Anor [2020] EWHC 2234, the High Court agreed to grant additional powers to the trustees of a family settlement for the purposes of Inheritance Tax planning.

Hello,

We are counting down the days until the end of September, ever more conscious of the work that is being undertaken by HMRC in trying to agree settlement of the remaining disguised remuneration loans. 

HMRC have released Spotlight 56 ‘Disguised remuneration: tax avoidance by owner-managed companies using remuneration trusts’.

In J Charman v HMRC [2019] UKUT0253, the Upper Tribunal (UT) considered whether the grant of a share option amounted to a ‘right to acquire securities’. It also considered whether shares issued on a share for share exchange were acquired as an officer or employee of the original shares.

In Alan Firth Webster [2020] EWHC 2275 (Ch), the claimant’s case for 'rectification' of his 2016/17 tax return to correct a Gift Aid claim error was dismissed by the court. It confirmed that a Gift Aid carryback election must be made in an original tax return.

HMRC have 1,000 officers working to agree a settlement with an estimated 9,000 outstanding Disguised Remuneration cases before the settlement deadline of 30 September 2020. Of the 9,000 taxpayers, around 3,000 have not responded to HMRC and so it may be tricky for them to settle. A further 6,000 cases are unsettled and those taxpayers will become subject to the Loan Charge.