The government has responded to two reports by the Treasury Committee, both of which focused on current tax reliefs. It believes a systematic review of all 1,180 plus tax reliefs is impractical and unwarranted, but did confirm its intention to extend the sunset clauses on the Venture Capital Trust (VCT) reliefs.
SME Tax News
HMRC have commenced the outsourced development of a proof of concept for a new split payment system which could see the VAT element of online sales being paid directly to HMRC.
In Eva Mary Butler & Others v HMRC [2023] TC08949, the First Tier Tribunal (FTT) held that Business Property Relief (BPR) was not available for a business that rented out a barn for weddings. The level of services provided did not prevent the business from being wholly or mainly an investment business.
In Richard Monks v HMRC [2022] TC8957, the First Tier Tribunal (FTT) held that a Schedule 36 information notice had been correctly issued by HMRC but the preceding tax return enquiry was out of time.
In HMRC v Vermilion Holdings Ltd [2023] UKSC 37, the Supreme Court (SC) found that share options issued to a director were made available by 'reason of his employment' despite the fact that these share options replaced earlier options given to his consultant company in lieu of fees for advisory services.
HMRC have issued their Agent Update for October 2023. We have summarised the key content for you with links to our detailed guidance on the topics covered.
In Kirin Kalia v HMRC [2023] TC08952, the First Tier Tribunal (FTT) found that backdated sickness payments made under an employer’s group income protection plan were subject to National Insurance Contributions (NICs) in the tax year they were paid, not in the tax year they related to.
Hello
Autumn has certainly arrived this week with cold weather and dark nights! Whilst for many people this means pumpkins, fireworks and falling leaves, we know that for accountants and tax advisers, it marks a major ramping up of Self Assessment activity as the filing deadlines approach.
In BCM Cayman LP & BlueCrest Capital Management Cayman Limited v HMRC [2023] EWCA Civ 1179, the Court of Appeal (CoA) found that a series of pre-ordained transactions kept the beneficial ownership of profits with the taxable entity under the Ramsay principle, and so within the charge to UK Corporation Tax.
In Peter Hemingway v HMRC [2023] TC 08929, the First Tier Tribunal (FTT) agreed that an amount paid to compensate an employee for the cancellation of stock options was taxable. The Employment-Related Securities (ERS) legislation overrode the £30,000 exemption for a change in his employment rights.