In Foodwood Limited v Revenue Scotland [2020], the First Tier Tribunal (FTT) for Scotland Tax Chamber was held that a reasonable excuse against a £100 penalty does not include relying on a reminder from Revenue Scotland to submit a three-year LBTT Lease Review Return (LBTT return).
SME Tax News
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The Office of Tax Simplification (OTS) has launched a Capital Gains Tax (CGT) review and call for evidence. Perhaps the chancellor has his eye on reforms in this area ahead of an Autumn budget.
In Shu Fang Yang v Revenue Scotland [2020], the First Tier Tribunal (FTT) for Scotland Tax Chamber held that ignorance of the law is not a reasonable excuse for late submission of the three-year LBTT Lease Review Return (LBTT return).
Following a request from the Chancellor, the Office of Tax Simplification (OTS) has launched ‘Capital Gains tax review - call for evidence’ plus an online survey. It wants to hear from taxpayers and their advisers about which areas of Capital Gains Tax are complex and hard to get right and suggestions for improvements.
A group of millionaires from around the world called ‘Millionaires for Humanity’ have signed an open letter urging governments to charge them more tax to help with economic recovery from the COVID-19 pandemic.
In Asif Bhikhi v HMRC [2020] TC7728, the First Tier Tribunal (FTT) held that a property transferred to a relative to raise funds was a chargeable disposal for Capital Gains Tax. There was no evidence that any trust had been created and even if there had, there would still have been a disposal.
The Financial Reporting Council (FRC) has criticised the performance of the UK’s biggest audit firms as ‘unacceptable’. Its annual audit inspection results found that a third of them needed more than limited improvements.
In Charles Tyrwhitt LLP v HMRC [2020] TC7756, the First Tier Tribunal (FTT) held that bonus payments received after becoming a member of an LLP were not self-employment income. The bonuses were paid in respect of their earlier employment by the LLP and were taxable as earnings.
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It seems that HMRC's chief executive Jim Harra has beaten me to it in his criticism of some of the Chancellor's new Summer Economic Update giveaways. We are in a time of extremes. On one hand there are people who have suffered virtually no negative financial effects due to lockdown, while on the other, there are people whose livelihoods have suffered so badly that they may not recover for many years. The burning question is how to target government aid and stimulute our shrunken economy.
In his Summer Economic Update, as part of the ongoing government support during the COVID-19 crisis, the Chancellor announced a new Eat Out to Help Out Scheme for restaurants to offer a discount to diners and encourage them to eat at restaurants.