23 March 2012
The first drafts of the finance bill implementing the 2012 budget reveal a significant shift in the way that SDLT may be payable on estate or farm purchases, and agents acting for those purchasers need to be aware of this immediately.
21 March 2012
Details of the budget 2012, directly relevant to real estate.
14 February 2012
This recent case makes the interesting point that a settlor of a trust can be assessed to income tax on interest and rental payments that he himself has made into the trust. It also comments upon the concept of mutuality and settlor-interested trusts.
13 February 2012
After years of pressure from the third sector to introduce legislation already operating in other parts of the EU, the Government has confirmed that the Finance Act 2012 will introduce an exemption to allow charities and other not-for-profit organisations to collaborate without paying VAT for their services to each other.
30 January 2012
The recent case of Felixstowe Dock and Railway Company Limited v Others [2011] UKFTT 838 provides commentary on the availability of group relief to several companies, in respect of losses made by a UK company through an intermediate Luxembourg holding company.
19 January 2012
In the recent case of HMRC v J Mazurkiewicz, the First-tier tribunal held that "utterly fictitious" receipts of interest were not taxable.
11 January 2012
In the recent case of The Commissioners for HM Revenue and Customs v PA Holdings Ltd, the Court of Appeal held that a tax avoidance scheme was ineffective. The court's judgment is not only relevant to tax avoidance schemes and could theoretically have an adverse impact for a substantial number of owner-managed businesses, even where no tax avoidance is involved. To read the full briefing, please click on the above article title.
03 January 2012
In M Gilbert v HMRC [2011](UK FTT 705 (TC)), the Appellant's appeal was allowed by the First-tier Tribunal against the disallowance of Entrepreneurs' Relief by HMRC on the sale of part of the Appellant's business.
09 December 2011
Following the Upper Tribunal decision in HMRC v Grattan plc [2011] UKFTT 691 (TC), the First-tier Tribunal has directed that a question should be referred to the ECJ on whether repayment interest on overpaid VAT may be compounded.
06 December 2011
The question of how to identify and value goodwill in the transfer of a business carried on from a 'trade related property' has been the subject of debate and discussion for a number of years.
30 September 2011
In Scotts Glass, the First Tier Tribunal determined an appeal in relation to a compliance issue arising from the submission of a tax return for the Construction Industry Scheme (CIS).
13 September 2011
The recent judgment by the Upper Tier Tribunal in HMRC v Anson [2011] overturned the First Tier Tribunal's decision that double tax treaty relief was available to a UK taxpayer on his share of profits in a Delaware LLC.
02 August 2011
This briefing note details the correct VAT treatment of supplies relating to the establishment and supervision of Individual Voluntary Arrangements as recently considered by the First Tier Tribunal. Please click the link above to view the full briefing.
02 August 2011
Following the recent Supreme Court Judgement of Farstad Supply A/S v Enviroco [2011], we have compiled a briefing note to help explain the potential tax implications of a holding company 'pledging' the shares of its subsidiary as security. Please click the above link to read the full briefing.
08 July 2011
As part of the Government's stated aim to develop the UK into the best place in Europe to finance and grow a small business, HMRC are looking into ways in which they can provide tax advantages to assist the Government in this plan.
29 June 2011
The High Court recently heard a test case regarding the correct procedure for claiming employment loss relief which is available to be carried back against income and gains of previous tax years. The Court held that such a claim must be made in respect of the year in which the loss arises, and may not be included in a taxpayer's return for an earlier year of assessment.
03 June 2011
The key issue in this appeal was whether a business that provided storage facilities for property belonging to third parties, provides a supply of services subject to VAT or whether the supply fell within item 1 of Group 1, Schedule 9 of VATA 1994, in which event the supply was exempt for VAT purposes.
27 May 2011
Teamwork, innovation and service excellence were all major factors in Burges Salmon being named the UK’s Best Tax Team in a Law Firm at the annual Taxation Awards last night [26.05.11].
09 May 2011
In Thomas James Blanche v HMRC (21 February 2011), the First-Tier Tribunal upheld HMRC's decision to relieve an employer of liability for tax which it had incorrectly failed to deduct from an employee's earnings, and instead to impose liability for the shortfall on the employee. Does this case signal a lenient approach to employers who make errors in calculating PAYE?
09 May 2011
The First Tier Tribunal recently considered the correct test to determine whether a transfer of shares to an employee was within the meaning of "emolument" - and consequently chargeable to income tax - under section 19 of the Income Tax Act 1988 (ICTA 1988).
09 May 2011
The Appellant, Mr Wald, appealed against a penalty imposed on him under s. 95 Taxes Management Act 1970 (the "TMA") for negligently delivering to an officer of HMRC an incorrect return under s. 8 TMA, for the tax year 2006/2007. The Appellant appealed to the First-Tier Tribunal, where the judgment was given on 17 March 2011.
28 April 2011
The Appellants had been employed within a manufacturing and distribution business (OldCo) which went into administrative receivership.
The Appellants conducted a buy-out by which a new company was acquired (NewCo) and NewCo purchased the assets of OldCo from the administrative receiver. Upon acquiring NewCo, the Appellants became directors and each acquired two ordinary shares of £1.
Further shares in NewCo were issued to the shareholders upon NewCo's acquisition of the assets of OldCo. The Appellants claimed EIS relief in respect of both issues of shares.
12 April 2011
Speed up your application to register a charity with the Charity Commission.
Charities with annual income of over £5,000 (and which are not exempt) must be registered with the Charity Commission. The registration process involves an on-line application providing details of the activities (or proposed activities) of the charity and of the trustees.
31 March 2011
The Coalition emergency Budget last June dramatically overhauled the capital gains tax (CGT) rules. Out went the flat rate of 18% to be replaced by a maximum rate of 28%. There is still no allowance for indexation but Entrepreneurs' Relief remains to reduce the rate of CGT to 10% on the disposal of business assets.
31 March 2011
Three recent announcements suggest that inheritance tax and schemes to avoid it are coming under ever greater scrutiny.
31 March 2011
Points of interest from the 2011 Budget.
08 February 2011
This judgment (given 9 November 2010) in the Court of Appeal clarifies that it is the employee's responsibility to determine the position with HMRC for tax payable on any taxable elements received under a compromise agreement.
11 January 2011
The First-tier Tax Tribunal recently considered whether a tax avoidance scheme designed to reduce or eliminate tax on bonuses was effective or not.
20 December 2010
This recent judgment made in the First-Tier Tribunal highlights to employers the importance of apportioning the component parts of a settlement payment under a compromise agreement, so that there is no confusion as to the tax treatment.
07 December 2010
The Upper Tribunal has ruled in favour of HMRC in the Airtours appeal concerning the entitlement to recover VAT on advisor fees.
19 November 2010
On 20 August 2010, the First-Tier Tribunal gave judgment on the meaning of "paid" and "unpaid" in relation to electronic payments to HMRC.
08 October 2010
Last month we heard that HMRC had failed in their appeal in the Balfour case. The case concerned whether inheritance tax business property relief (BPR) was available on a Scottish agricultural estate which comprised a mixture of in-hand farms and let land, cottages and buildings.
01 October 2010
The First Tier Tax Tribunal has recently held that for certain purposes, 'businesses' means more than just 'trade'.
16 September 2010
Burges Salmon is pleased to confirm it has advised on the sale of Snow & Rock to a management buyout vehicle backed by LGV Capital.
13 September 2010
On 29 July 2010 the European Court of Justice (the "ECJ") released its judgement in the Astra Zeneca litigation which sought to clarify the VAT treatment of staff vouchers used in salary sacrifice schemes. The ECJ ruled that the employing company must account for tax when making vouchers available to employees.
03 September 2010
Judge Bishopp considered whether interest received by a partnership on short-term funds held in a clients' account was taxable as interest or as trading income.
04 August 2010
On a share for share exchange, HMRC have confirmed that all the conditions for Entrepreneurs' Relief can be established on a 'look through' basis, meaning that the time periods can be aggregated in considering whether an individual qualifies for the relief.
04 August 2010
A share-for-share exchange designed to help one shareholder avoid tax is likely to affect innocent shareholders, preventing them from obtaining rollover treatment.
25 June 2010
HMRC confirm that UK beneficiaries of offshore trusts who receive excess capital payments before 23 June 2010 will, for the remainder of the 2010/11 tax year, be taxed under the "old" rules - even if the capital payment is matched with a later capital gain. For further details read on:
23 April 2010
The Finance Act 2010 contains five sections dealing with stamp taxes. Slightly oddly, these are grouped in three areas of the Act. Sections 6 and 7 deal with SDLT, sections 54 and 55 with SDRT on introduction of securities into clearance systems etc, and SDLT on partnerships, whilst section 65 deals with stamp taxes affecting clearing house. An unhelpful way of grouping things if someone is simply flicking through to see what has been enacted this year.
23 April 2010
It is strange to think that remittances could become chargeable to income tax after the taxpayer dies, but the definition of “relevant person” appears to make this possible.
20 April 2010
Following the Budget of 2009, the HMRC published a consultation document on working with tax agents, detailing what could be done to ensure the highest standards of performance by those working as tax agents. The proposals are very worrying and could affect a wide range of people/organisations.
09 April 2010
It was widely anticipated that an increase in the level of capital gains tax (CGT) would be announced in Budget 2010, however, the only change was an increase in the lifetime allowance for entrepreneurs' relief (ER) from £1 million to £2 million. Please click to read on.
16 March 2010
The new naming and shaming policy introduced by section 94 of the Finance Act 2009 has now been given the green light by HM Treasury and will come into force from 1 April 2010.
15 March 2010
South West businesses have been promised ‘a bonfire of red tape’ under a Conservative government. Speaking at Burges Salmon’s inaugural Non Executive Directors’ Forum in Bristol, Shadow Business Minister John Penrose MP underlined Conservative plans to scrap most tax credits for businesses and replace them with a lower rate of corporation tax.
08 March 2010
If you sell shares for more than their market value, then there may be a charge to income tax and NICs on the overvalue. However, the meaning of "market value" has never been entirely clear. Please click on the link to read the full article.
15 February 2010
With a general election just round the corner, the main political parties have stepped up their campaigns and inevitably these have focussed on the important issues of public spending and tax and how to address the current budget deficit problem of around £175 billion. This looks likely to mean increased rates of personal tax. Click on the link to read more.
15 February 2010
Since the changes to inheritance tax in 2006, advisors have been talking about the advantages of using family partnerships (FPs) as an alternative. FPs are seen to offer many of the same features as trusts, but (crucially) without an immediate 20% inheritance tax (IHT) charge on their creation. However, despite these seeming advantages, progress has been slow and few FPs have actually been created. This article gives a candid view of the benefits and pitfalls of FPs.
15 February 2010
Following some significant teething problems with the new Lasting Powers of Attorney (the replacements for Enduring Powers of Attorney), a new version of the LPA forms became available from 1st October 2009.
27 January 2010
A recent Tax Tribunal case, R J Phillips V HMRC, has confirmed that any partner may appeal against figures included in a partnership tax return, even if he or she is not the "nominated partner". The case also looks again at some of the factors which – in the absence of a written partnership agreement – are relevant in determining whether or not a partnership exists. Click on the link to read more.
27 January 2010
In the recent case of Skye Inns Limited & Mr Chris O. Richards v HMRC the taxpayer lost the appeal for claiming EIS relief, failing on the 80% of monies "employed in business" test. The judgement is useful in confirming that monies can be "employed" without being spent. But it also confirms that one must trace the use of the actual monies raised under EIS. It is not sufficient that the company has spent other monies of an equal amount.
07 January 2010
This report includes changes to the DOTAS regime, a further condoc on Working with Tax Agents, and legislating for Equitable Liability. HMRC have also published a number of consultation documents (or proposals to consult) in a number of areas including offshore evasion, Section 703 consultation, Excise modernisation and compliance checks, and the bulk and specialist information powers review.
16 November 2009
Following several years of consultation the European Union have proposed a Regulation with the objective of simplifying the procedure where someone dies owning assets in more than one EU country.
16 November 2009
Electricity suppliers are now obliged to show that a certain proportion of the electricity they supply comes from renewable sources. To find out how electricity suppliers are doing this please click on the link.
10 November 2009
If you're not domiciled in the UK and (might) make capital losses, read this article.
10 November 2009
On Tuesday 10th November HMRC published draft legislation implementing the rule changes to the way in which groups of companies are taxed when they buy back debt at a discount. Click on the link to read more.
26 October 2009
HMRC have taken a hard line in Brief 49/09, presumably to deter taxpayers from considering the future use of EBTs as part of their tax planning - read more in this article.
26 October 2009
There have been a number of changes made recently to the taxation of authorised investment funds (AIFs) and which came into force on 1 September 2009. They are designed to make the UK a more competitive jurisdiction for these funds.
22 October 2009
HMRC have published further details of the proposed changes to the tax rules on buy backs.
16 October 2009
HMRC has announced that anti-avoidance legislation will be included in the next Financial Bill, but which will have retrospective effect from 15 October 2009, and which affects debt buybacks.
16 October 2009
How will HMRC's new information powers be exercised?
12 August 2009
HMRC has recently published a new consultation document entitled false self-employment in construction: taxation of workers. This outlines the Government's proposal for addressing the problem of false self-employment in construction.
13 July 2009
Equitable liability will be withdrawn with effect from 1 April 2010.
10 July 2009
On 29 June 2009 Her Majesty's Revenue & Customs (HMRC) published its consultation document on the much awaited Code of Practice on taxation for banks, announced in the Chancellor's budget day speech. While the proposed Code is only a page and a half long, the implications of it are potentially wide-ranging.
09 July 2009
The decision of the recently constituted First-Tier Tribunal (Tax) in Graham Morgan & Heather Self v Comrs of HM Revenue & Customs concerned the treatment of certain payments made to retiring partners by the partnership from an income tax perspective.
22 June 2009
A cross-firm team recently supported Milk Link in its acquisition of the Llandyrnog cheese creamery in North Wales.
15 May 2009
HMRC now has new powers to visit your premises without notice.
22 April 2009
The government 'bail-out' of the banking industry has led to a number of banks seeking to increase their capital base by the issue of preference shares.
23 March 2009
In Gray's Timber Products Limited v Revenue & Customs Commissioners the Inner House of the Court of Session provided further guidance on valuing employment related securities.
18 March 2009
A recent Special Commissioners' decision has highlighted concerns where employees are obliged to reimburse employers for unpaid PAYE. In some cases this may leave employees exposed to a potential 56% charge to tax whilst theoretically enabling those who do not repay to take advantage of an effective 16% rate.
09 February 2009
The recent case of Kollektivavtalsstiftelsen TRR Trygghetsradet v Skatteverket indicates that HMRC have been, in part, misapplying the reverse supply rules in respect of intra EU supplies of services.
14 January 2009
A review of the outcome of Fenlo Limited v Revenue and Customs Commissioners [2008].
17 December 2008
HMRC has recently clarified its opinion on some of the circumstances which may give rise to a withdrawal of Stamp Duty Lamp Tax (SDLT) group relief.
17 December 2008
The VAT Tribunal has recently dealt with a number of questions in connection with the VAT implications of the retention of various rights on the grant of a lease. In particular the question on whether such arrangements can be considered barter transactions on which VAT is chargeable has been considered.
09 December 2008
Under the transfer of a business as a going concern (TOGC) rules, once certain requirements are met the transfer of a business is treated as a 'non-supply' for VAT. The VAT Tribunal in Royal Bank of Scotland plc v Commissioners For Her Majesty's Revenue & Customs (decision published 20 November 2008) had to consider an interesting variation on the application of these rules.
09 December 2008
Only actual partners in a partnership, which registers for VAT, can be treated as 'taxable people' and be subject to assessment - Revenue and Customs Commissioners v Pal and others [2006] EWHC 2016 (Ch)
03 November 2008
An individual lender or guarantor of a "qualifying loan" to a UK resident trader can, where that loan has become irrecoverable, be treated as having made an allowable loss for capital gains tax purposes under section 253 TCGA 1992.
30 October 2008
EU Law allows Member States to provide that supplies made by public bodies, which would otherwise be taxable for VAT purposes, are non-taxable. A Member State may only do so where there would not be a distortion of competition. This case of highlights the difficulties that arise in such circumstances.
13 October 2008
HMRC has issued a briefing on the deduction of tax at source for interest treated as a distribution.
13 October 2008
Following the Marks & Spencer Plc v David Halsey case legislation was introduced in the UK purporting to implement the ECJ's judgement.
02 October 2008
New PAYE regulations came into force on 6 April 2008 permitting HMRC to make a direction to transfer an outstanding PAYE liability from an employer to an employee.
11 September 2008
A closer look at HMRC guidance on salary sacrifice.
04 September 2008
A review of the recent case of British Association for Shooting and Conservation Limited (BASC) v Commissioners for HMRC.
13 August 2008
The case Johnston Publishing (North) Limited v Revenue and Customs Commissioners concerns de-grouping charges which bite where a group company has received an asset on a no gain-no loss basis from another group company and then leaves that group. The company leaving the group is charged to corporation tax on chargeable gains to the extent there would have been a charge levied on the transferor company.
11 August 2008
When an individual sells shares in a company he will expect to be taxed to capital gains tax on the proceeds received. Almost invariably this will be more beneficial than the proceeds being treated as an income receipt. For a higher rate taxpayer a capital receipt will be taxed at 18% with an annual exemption available whereas an income receipt will be taxed at 40%. However the recent cases of Lloyd v Revenue and Customs Commissioners and Snell v Revenue and Customs Commissioners highlight the danger that HMRC may use anti avoidance legislation to reclassify the receipt as an income receipt in certain circumstances.
06 August 2008
New Regulations have come into force to implement the changes to the VAT exemption for fund management services.
06 August 2008
In the case of Trustees of The Nelson Dance Family Settlement v HMRC (SpC 682) the Special Commissioner held that business property relief ("BPR") for inheritance tax purposes was available on transfers of value even where the transfer was not of the property itself (i.e. a business or an interest in a business) but simply reduced the value of that property.
30 June 2008
The recent Special Commissioners' case of Corbally-Stourton v HMRC, has added clarity to the law on HMRC's ability to raise a discovery assessment.
25 June 2008
The option to tax rules have been amended with effect from 1 June 2008