In Nicholas Henderson v HMRC [2023] TC8755, the First Tier Tribunal (FTT) found the buying and selling of shares did not amount to a trade. Losses from that activity could not be offset against other income.
SME Tax News
In Simon and Debra England v HMRC [2023] TC8770, two directors made an agreement to repay their outstanding directors' loans following the insolvency of their company over two years. They claimed that the write off was over two years for Income Tax purposes. The First Tier Tribunal (FTT) agreed with HMRC: the effective date of write off was the date of the settlement agreement.
HMRC have released their March edition of the Employment Related Securities (ERS) Bulletin. This is our enhanced version with links to our detailed guides.
In Gary Lineker & Danielle Bux t/a Gary Lineker Media v HMRC [2023] TC8774, HMRC incorrectly challenged broadcaster Gary Lineker's contract with the BBC and BT. It lost a tax appeal against assessments for £4.9m. The First Tier Tribunal (FTT) found that while partnerships can be subject to IR35, the intermediaries' legislation, those rules did not apply as Mr Lineker had contracted with the Broadcasters personally.
Following the Bank of England’s somewhat unexpected announcement on 23 March 2023 that the base rate will rise to 4.25%, HMRC interest rates are also increasing by 0.25%, to 6.75% for late payment interest and 3.25% for repayment interest, from 13 April 2023.
In HFFX LLP and Ors v HMRC [2023] UKUT73, the Upper Tribunal (UT) found that allocations by a corporate member of a mixed member partnership to individual members should be subject to Income Tax under the miscellaneous income provisions.
As part of Spring Budget 2023, a consultation has been issued entitled, 'Simplifying and modernising HMRC’s Income Tax services through the tax administration framework'.
HMRC have published the responses to their Consultation ‘Income tax on low-income trusts and estates’ which sought views on legislative proposals to remove Income Tax liabilities from low-income trusts and estates and how proposed changes might impact beneficiaries.
Sir Keir Starmer published details of his taxable income and gains last week, following the disclosure by the Prime Minister, Rishi Sunak of his tax returns. Sir Keir's income and gains are straightforward and we ran them through our software to reconcile back to an exact breakdown of his tax bill.
Hello,
This time we have a slightly unusual case study in personal tax, we consider the effect of making a mistake in a COVID-19 support payment claim, we look at tax refunds, and tax agents and the courts have been busy with VAT appeals.