In Boston Khan v HMRC [2021] EWCA Civ 624, the Court of Appeal agreed that a company purchase of its own shares was not part of a wider arrangement whereby the taxpayer acquired a controlling interest in the company. The conditions for capital treatment were not met and the repurchase was a distribution.
SME Tax News
Missed our SME Tax Web-updates in April? Here is a summary of the month.
Hello,
We have been gripped by accounting and IT stories in the news this week.
HMRC have published their Stamp Taxes news for April 2021. This is our enhanced version with links to our guides and SDLT tools.
Thousands of fixed penalty notices were incorrectly issued in March 2021 and HMRC have advised that it was due to software issues. All affected penalty notices have been reissued.
HMRC have advised that companies seeking Corporation Tax repayments following loss carryback claims will have their claims dealt with automatically within eight weeks if the repayment box is ticked on the CT600 return.
In March 2021 HM Treasury published 'Fundamental Review of Business Rates', an interim report, providing an overview of responses to July 2020's Call for Evidence and subsequent policy decisions in advance of a final report which is expected in Autumn 2021.
Following publication of the Treasury Direction for the fourth Self-Employment Income Support Scheme (SEISS) grant, taxpayers and agents should be aware of the obligation to notify HMRC of amendments to tax returns.
In M Group Holdings Limited v HMRC [2021] TC08054 , the Frist Tier Tribunal (FTT) dismissed an appeal against a closure notice denying Substantial Shareholding Exemption as a group had not existed for 12 months prior to the disposal.
In Charlton Chauffeur Drive Limited v HMRC [2021] TC08042, the First Tier Tribunal (FTT) found that sums received by a company from a firm of auditors under a legal settlement agreement were compensation in respect of employee fraud. As such, they were revenue in nature and not capital, as the company had claimed.