HMRC have published their Employer Bulletin for August 2023. We have summarised the key content for you, with links to our detailed guidance on the topics covered.
SME Tax News
In JTI Acquisitions Company (2011) Limited v HMRC [2023] UKUT 194, the Upper Tribunal (UT) agreed with the First Tier Tribunal (FTT) that whilst the appellant made a commercial acquisition using a group loan, the wider group strategy of securing a UK deduction meant it had an unallowable purpose.
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What's the difference between a Self Assessment return containing a Provisional figure and one containing an Estimate? When did the tax return wording on this change? We wondered too. The answer lies in the guide below, in my Editor's Choice.
HMRC have issued their Agent Update for August 2023. We have summarised the key content for you with links to our detailed guidance on the topics covered.
In Stephen Lee v HMRC [2023] TC08872, the First Tier Tribunal (FTT) upheld two of the four assessments for the High-Income Child Benefit Charge (HICBC), as not being a parent of the child did not stop the charge applying. No knowledge of his partner's financial position was, however, a reasonable excuse for preventing penalties from arising.
In John and Janet Beesley v HMRC [2023] TC08871, the First Tier Tribunal (FTT) found that a tax agent had mistakenly claimed a deduction for Capital Gains Tax (CGT) in respect of payments made to redeem a mortgage and made under a personal guaranteed on the disposal of a property and that no Entrepreneurs’ Relief was due either.
In Purple Sunset Limited v HMRC [2023] TC08880, the First Tier Tribunal (FTT) found that payments made to a director should have been reported under Real-Time Information (RTI) as a director is included in the definition of an employee for RTI purposes.
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The dramatic rise in the price of land and property following the COVID-19 lockdowns have resulted in taxpayers reporting record levels of capital gains. HMRC's new report reveals that most gains are created on the disposal of properties in the South East by the over-fifties many of whom are downsizing as part of retirement plans to 'escape to the country'. We note that many private landlords have taken the opportunity to cash in.
In James George Gibson v HMRC [2023] TC8869, a claim that a property was in mixed-use when acquired and so attracted the non-residential rate of Stamp Duty Land Tax (SDLT) was unsuccessful on appeal. The evidence was indecisive: it was the kind of decision that could go either way.
In HMRC v A Taxpayer [2023] UKUT00182, the Upper Tribunal found that looking after an alcoholic sister and her family was not an exceptional circumstance for the Statutory Residence Test (SRT). The taxpayer exceeded her day limit by six days so was UK resident, resulting in tax on £8m of dividends.