The Upper Tier Tax tribunal has upheld the First-tier Tribunal’s decision that Eclipse Film Partners No 35 LLP (Eclipse 35) was not carrying on a trade and so a tax scheme to provide tax relief for investors failed.
SME Tax News
In Elizabeth Moyne Ramsay v HMRC [2013] UKUT 0226 (TCC) the Upper Tax Tribunal (UTT) allowed a taxpayer Capital Gains Tax s162 incorporation relief (roll over) on the transfer of her ordinary property letting business (a small appartment block) to a company. It decided that letting was "a business" for s162 relief.
In two cases before the First Tier Tribunal (FTT) John Kerr Roofing v HMRC TC02564 and Terry Daniel v HMRC TC02565 two building industry contractors made successful appeals against HMRC's decision to withdraw their gross payment status under the Construction Industry Scheme (CIS).
In Richard Denny v HMRC [2013] TC02714 a director was caught out by the benefits code. His company had paid for improvements to his property and he had used the company’s yacht. HMRC raised an assessment to tax the benefits received.
In David Morgan v HMRC [2013] TC 02596 a taxpayer was successful in a claim for Private Residence relief (PRR) for Capital Gains Tax (CGT). He lived at his property for a matter of weeks before deciding to let it out because his girlfriend had left him.
In Elizabeth Moyne Ramsey v HMRC [2013] UKUT 266 TC the Upper Tier Tax Tribunal allowed the taxpayer's appeal and decided that residential property letting is a business for the purposes of roll over relief under s162 TCGA 1992 (incorporation relief). HMRC has long argued that there is no business in ordinary letting as it is an investment activity.
In Dr A Gayen V HMRC [2013] TC02556 a doctor made a successful appeal against an assessment for a PAYE underpayment and penalties, after his employer operated the wrong tax code and HMRC failed to issue the appropriate direction notice.
The mooted "Mansion tax" is not to be confused with the new Annual Residential Property Tax (ARPT). Read this and then complete our 2 second Poll on the right.
HMRC v Rangers: the appeal. HM Revenue & Customs (HMRC) have decided to lodge an appeal to the Upper Tier Tax Tribunal in order to challenge whether payments made to players participating in Rangers EBT were really disguised wages and not loans.