HMRC are writing to small charities to remind them to be wary about reclaiming input VAT on non-business activities. Tax compliance, especially for VAT, can be a complicated problem for many charities as there is a general tendency amongst trustees and managers to assume that they operate 'tax-free'.
In FRF (South Wales) Limited v HMRC [2024] TC09386, the First Tier Tribunal (FTT) found that a company could claim Business Premises Renovation Allowances when converting a retail warehouse into a car showroom. Although substantial alterations were undertaken, there had been a continuity of the building’s identity.
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We have quite a diverse blend of news and features this week. More 'One-to-Many letters' and of more general interest, a record number of new bodies added to HMRC's List 3 in 2024. We have 'Top Tips' for January and consider issues for employers and illegally deresticted E-bikes after the issue cropped up on BBC Radio 4 News.
In Chemidex Generics Ltd v HMRC [2024] TC09387, the First Tier Tribunal (FTT) ruled that the taxpayer's valuation and a ten-year amortisation period were compliant with UK GAAP and allowed relief for amortisation for Corporation Tax purposes.
After receiving 1,600 responses, HMRC have published the outcome to their consultation, ‘storage and retention of original will documents’ which had outlined proposals for introducing a digital system for preserving paper wills currently held in storage.
HMRC are sending another batch of one-to-many letters, this time focusing on taxpayers exceeding the lifetime limit for Business Asset Disposal Relief (BADR) in 2023-24.
HMRC has regularly updated ‘List 3’; its list of approved professional organisations and learned societies. Many new organisations have been added over the last six months.
In 71 Brewing Limited v Revenue Scotland [2024] TFSTC 10, the First Tier Tribunal (FTT) found Revenue Scotland has no obligation to notify taxpayers that a three-year lease review return is required for LBTT purposes.
Missed our SME Tax Web-updates in December? Here is a summary of the month.
An E-bike, as in an electrically assisted pedal cycle, can be a tax-efficient means of transport. Derestrict the output and you've got a moped with very different tax and regulatory requirements. This is an issue for employers who provide E-bikes as part of Cycle to Work tax schemes as well as for regulators.
