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.
SME Tax News
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.
In Zyrieda Denning, MH Hants Limited & MP Hants Limited v HMRC [2021] UKUT76 (LC), the Upper Tribunal (UT) determined that the market value of a leasehold interest, for Stamp Duty Land Tax (SDLT) in two care homes was substantially less than that calculated under the RICS principles. The RICS valuation included separate goodwill which was not chargeable to SDLT.
In Euromoney Institutional Investor PLV v HMRC [2021] TC08046, HMRC was unsuccessful in blocking a company's claim for share-for-share relief on a reorganisation, the First Tier Tribunal (FTT) found no main purpose of tax avoidance.
In the non tax case of Ware v Ware [2021] EWHC 694 (Ch), the High Court agreed to rectify flawed trust deeds of appointment which resulted in unexpected tax charges. The trustees had never intended to make the changes included in the deeds.
HMRC have issued a new consultation, ‘Clamping down on promoters of tax avoidance’ setting out proposed new measures and the powers to allow them to further tackle promoters of tax avoidance schemes.
The chancellor introduced an extended three-year carry-back for trading losses at Budget 2021. The measure is included in Finance Bill 2021. It has now been amended to confirm that Furnished Holiday Lettings (FHLs) will not qualify for extended loss relief.