SME Tax News

In MVM Magyar Villamos Muvet Zrt. V Nemzeti Ado-es Vamhivvatal Fellebbviteli Igazgatosag (Case C-28/16) a holding company was unable to reclaim input VAT on its management activities as it was providing its services free of charge to its subsidiaries.

In Smith and Nephew Overseas (and 2 others) v HMRC [2017] TC05644 accounting exchange losses arising from a change in the group’s functional currency were allowed for tax.

In Desmond Higgins v HMRC [2017] TC 05724 the period of ownership of an off-plan apartment was found to have started for PRR purposes only once the property was complete. 

HMRC have published a response to their consultation ‘Partnership taxation: proposals to clarify tax treatment’.

In BCM Cayman LP and various Bluecrest entities v HMRC, taxpayers were only partially successful in forcing HMRC to issue closure notices into long running and complex tax enquiries concerning the tax arrangements of hedgefunds.

In Stuart Gulliver v HMRC [2017] TC05712 an application for closure notice in order to block a sch 36 information notice failed. The fact that HMRC had agreed a taxpayer's change of domicile in the past did not mean that they could not revisit the issue in a later year and ask more questions.

In HMRC v Execs of Mr Jeffrey Leadley [2017] UKUT 0111 the Upper Tribunal (UT) overturned the original decision of the First-Tier Tribunal (FTT) and found that Executors were not entitled to make a negligible value claim.

HMRC have published a call for evidence: ‘Taxation of employee expenses call for evidence’ in respect of the use of income tax relief for employee business expenses, including those not reimbursed by employers.

William G Anderson v Revenue Scotland [2016] TTFT 1 and Classical Land and Property Limited v Revenue Scotland [2016] TTFT 2 are the first two decisions of the First-Tier Tax Tribunal for Scotland: both concerning penalties for late filing of Land and Buildings Transaction Tax (LBTT) returns.