The chancellor increased personal tax allowances for individuals and increased the Annual Investment Allowance however he also restricted the scope of several valuable tax reliefs, including Capital Gains tax (CGT) Entrepreneurs' Relief and Private Residence Relief and R & D as well as introducing the off-payroll working rules to medium and large companies in the private sector.
SME Tax News
In Katie Lo v HMRC [2018] TC06767 Private Residence Relief was denied and a discovery assessment allowed; the property was never occupied as the appellants residence and the discovery was not stale.
The chancellor, Philip Hammond presented his 2018 Budget on 29 October 2018. These are highlights of his live speech. Personal allowances cut from 2019. Restrictions to CGT Entrepreneurs' Relief, Private Residence Relief, R & D relief. Annual Investment allowance increased.
Hello
It's the Budget next week, so I won't ramble on too much as you probably have more than enough emails about tax.
In Dieno George v HMRC [2018] TC6678 an employer's procrastination in changing its chief executive's non-voting shares into voting shares scuppered his claim for Entrepreneurs' Relief on disposal of the business. Equity could not prevail to alter the CGT rules.
In Alexander Steele v HMRC [2018] TC06717, the First-Tier Tribunal (FTT) cancelled HMRC’s late filing penalties relating to 13/14, 14/15, and 15/16. There was no legal requirement to notify HMRC of a change of address and no legal requirement to file a return just because he was a Director.
In Rajendrakumar Patel v HMRC [2018] T6735 the FTT granted an application for a closure notice. A self assessment enquiry into goodwill and licence fees had drifted on aimlessly and HMRC acknowledged that they were not able to raise an assessment on the taxpayer under review.
The Office of Tax Simplification (OTS) has undertaken a review of taxpayer guidance which complements a separate review currently being undertaken by HMRC on the structure and content of its 219 manuals.
In HMRC v A taxpayer (ex parte) [2018] TC06710 the First Tier Tribunal (FTT) did not approve a third party notice under schedule 36; the recipient was the taxpayers’ auditor who also prepared their corporation tax returns and the protection for audit papers applied.
HMRC have issued the Agent Update for October/November 2018. We have summarised the key content for you with links to our detailed guidance on the topics covered. We have kept to HMRC's order of contents, it's not all 'SME', but read on, there’s some interesting items.