HMRC have opened a consultation: 'Amending HMRC’s Civil Information Powers' explores the efficiencies of HMRC’s civil information powers and considers possible improvements to make things easier for HMRC to obtain certain types of information and to charge higher penalties for non compliance.
SME Tax News
In The Personal Representatives of Grace Joyce Graham (deceased) v HMRC [2018] TC06536 the First Tier tribunal (FTT) agreed that Business Property Relief (BPR) applied to a holiday lettings business; the level of services provided were just enough for it to fall on the “mainly non-investment” side of the line.
HMRC has published ‘Allowing Entrepreneurs’ Relief on gains before dilution: consultation response’ alongside draft legislation which will ensure shareholders retain ER when a company ceases to be a personal company due to a fundraise.
HM Treasury has published ‘Rent a room relief: summary of responses’ alongside draft legislation and a policy document. This confirms the retention of the relief and the introduction of a new shared occupancy condition.
Hello
This time: HMRC tell us why they missed an important employment status indicator off their Check Employment Status tool (CEST): we think it's a cop out. The CIOT voice concerns over HMRC's litigation policy "shoot first and ask questions later"?, plus some interesting tax cases.
HMRC have released a paper on Mutuality of Obligation in an attempt to explain why this was missed off its CEST tool and its approach when considering it in IR35 cases.
In Yocheved Blum v HMRC [2017] TC6404 HMRC was able to make a discovery assessment in respect of PAYE income following a taxpayer’s error on her tax return there was nothing on the return to indicate that the taxpayer had picked off the wrong figures for her wages.
In Execs of Estate of D S Campbell Dec’d v HMRC [2018] TC06389, the First-Tier Tribunal (FTT) held that outstanding rents on a lease related to the deceased’s business, were deductible in calculating the value of the Business Property Relief (BPR) qualifying business and not entitled to separate relief.
In Oxbotica Limited v HMRC [2018] TC6538 HMRC was unsuccessful in an attempt to deny SEIS relief for £1,000 of founder shares on the basis that the amount of the investment was too small to be used to for any qualifying activity.
A recent survey by independent charity Arts & Business Scotland and accountancy firm Scott-Moncrieff indicates that over 75% of Scottish museums and galleries have not been claiming the Museum & Gallery Exhibitions Tax Relief introduced in 2017 to encourage museums and galleries to develop new exhibitions and display their collections to a wider audience.