Hello,
We have our enhanced version of HMRC's Agent Update for you this time and several topical case decisions and news, including three cases on claims about share disposals, two on employment taxes and one on selling off a garden to a developer.
Hello,
We have our enhanced version of HMRC's Agent Update for you this time and several topical case decisions and news, including three cases on claims about share disposals, two on employment taxes and one on selling off a garden to a developer.
HMRC appealed a decision by the First Tier Tribunal (FTT) relating to a tax avoidance scheme. They won on two of three grounds with the result being that the loans made are taxable as earnings but not deductible for Corporation Tax.
The Department for Business and Trade's response to its consultation 'Distributing tips fairly: draft statutory code of practice' includes the implementation of the Code of Practice, and the Employment (Allocation of Tips) Act 2023. Workers in tipping industries will be protected from unfair employers pocketing money meant to go to them in recognition of good service.
In Andrew Nunn v HMRC [2024] TC09127, the decision to sell off part of a garden to a developer resulted in the owner unwittingly becoming a developer, a fact not missed by the tax tribunal which found his favour terms of Capital Gains Tax (CGT) Private Residence Relief (PRR).
The First Tier Tribunal allowed relief for a capital loss on an irrecoverable loan to a trader, despite the loan having been converted into shares before the loss relief claim was made.
On 22 April 2024, HMRC issued updated guidance on Making Tax Digital (MTD) for Income Tax. After a pause in the pilot in February 2023, HMRC has now confirmed the expansion of the pilot from April 2024.
HMRC published Agent Update 119 on 17 April 2024. Here is our summary of the highlights in direct and indirect tax announcements affecting SME owners and advisers.
The First Tier Tribunal (FTT) found that a shareholder with a 4.99998% shareholding qualified for Entrepreneurs’ Relief (ER). A spreadsheet rounding error meant that 5% was not held, but the FTT decided that the High Court would have rectified this mistake, meaning that ER was available.