In HMRC v The Executors of Lord Howard of Henderskelfe [2014] EWCA 278, the Court of Appeal has confirmed that a valuable painting was plant and therefore a wasting asset so that its sale proceeds were exempt from Capital Gains Tax. This might also be an important result for capital allowances. Note changes from April 2015.
SME Tax News
In John Best (executor of the estate of Alfred William Buller deceased) v HMRC [2014] TC 03217 shares in a company which ran a business centre did not qualify for inheritance tax (IHT) business property relief (BPR).
In Paul Gibson v HMRC [2013] TC03021, a taxpayer was denied Capital Gains Tax (CGT) Private Residence Relief (PRR) when he totally rebuilt and then sold his house. The First Tier Tribunal (FTT) found that he had acquired it wholly or partly for the purpose of realising a gain on disposal.
In Elizabeth Moyne Ramsay v HMRC [2013] UKUT 0226 (TCC) the Upper Tax Tribunal (UTT) allowed a taxpayer Capital Gains Tax s162 incorporation relief (roll over) on the transfer of her ordinary property letting business (a small appartment block) to a company. It decided that letting was "a business" for s162 relief.
In Mertrux v HMRC [2013] EWCA Civ 821, the Court of Appeal confirmed the existence of a franchisee's goodwill for the purposes of a claim for Capital Gains Tax rollover relief.
In Richard Denny v HMRC [2013] TC02714 a director was caught out by the benefits code. His company had paid for improvements to his property and he had used the company’s yacht. HMRC raised an assessment to tax the benefits received.
In two cases before the First Tier Tribunal (FTT) John Kerr Roofing v HMRC TC02564 and Terry Daniel v HMRC TC02565 two building industry contractors made successful appeals against HMRC's decision to withdraw their gross payment status under the Construction Industry Scheme (CIS).
In July 2022, HMRC reintroduced a new Tax Residence Indicator (TRI) tool; something which had previously been withdrawn. Alternative tools in order to assist in working our your UK residence are available here.
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