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SME Tax News

FTT confirms pre-Wilkes HICBC assessments were invalid

Last Updated: 16 November 2023

In James Fera v HMRC [2023] TC08986, the First Tier Tribunal (FTT) found that High-Income Child Benefit Charge (HICBC) discovery assessments raised by HMRC were retrospectively protected under Finance Act 2022. The assessments were not valid and the appeal was allowed.

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LLP property tax planning One-to-Many letters

Last Updated: 16 November 2023

HMRC have published their latest One-to-Many letters campaign, this time focusing on the use of 'hybrid structures' by some landlords, involving an LLP. This planning was recently featured in HMRC's 'Spotlight 63'.

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International agreement on crypto tax evaders

Last Updated: 16 November 2023

The UK, along with 48 other countries, have agreed to the 'Crypto-Asset Reporting Framework' to help combat criminals using cryptoassets to evade and avoid billions in missing tax.

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Nichola's SME Tax W-update 9 November 2023

Last Updated: 09 November 2023

Hello,

It has been another quiet week from a tax perspective. Tuesday saw the State Opening of Parliament in which the King’s Speech outlined the government’s intent to reduce inflation, ease the cost of living, and assist businesses to fund new jobs and investments. There was little mention of tax measures.

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Windfarm study costs not incurred on the provision of plant

Last Updated: 09 November 2023

In Gunfleet Sands Limited & Ors v HMRC [2023] UKUT 260, the Upper Tribunal (UT) held that preliminary studies performed prior to the installation of wind turbines were not incurred on the provision of plant and so did not qualify for capital allowances. 

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Change in guidance highlights HMRC R&D error

Last Updated: 09 November 2023

HMRC published amended notes on 7 November 2023 for the completion of the CT600 Corporation Tax return when it includes an R&D claim. The new guidance confirms that the Additional Information Form (AIF) can be submitted at the same time as the return, contrary to HMRC's recent R&D practice.

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No CGT deduction for referral & project management fees

Last Updated: 09 November 2023

In Wayne & Beverley Bottomer v HMRC [2023] TC8968, the First Tier Tribunal (FTT) held that fees paid to an individual who provided a lead to a property and then helped manage its renovation were not deductible against the capital gain realised when the property was sold. The payments did not meet the requirements of s.38 TCGA 1992.

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Tax Avoidance not main purpose of restructuring

Last Updated: 09 November 2023

In Delinian Limited (formerly Euromoney Institutional Investor PLC) v HMRC [2023] EWCA Civ 1281, the Court of Appeal (CoA) held that although structuring a deal to allow non-payment of tax through the Substantial Shareholdings Exemption (SSE) rules was tax avoidance, it was not one of the main purposes of the transaction so the deferred gain was allowed.

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Constructive trust prevented CGT liability

Last Updated: 07 November 2023

In Abigail Wilmore v HMRC [2023] TC08959, the First Tier Tribunal (FTT) found that a divorcing couple’s agreement over the division of properties had created a constructive trust. This amounted to a disposal for Capital Gains Tax purposes, allowing no gain/no loss treatment to apply.

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Scottish budget date set for 19 December 2023

Last Updated: 07 November 2023

The Scottish Parliament has announced that its 2023 Budget will be held on Tuesday 19 December 2023. This will set the tax and spending plans for Scotland for 2024-25.

Read more …

Subcategories

Archived SME tax news Article Count:  336

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