In HMRC v Vermilion Holdings Ltd [2023] UKSC 37, the Supreme Court (SC) found that share options issued to a director were made available by 'reason of his employment' despite the fact that these share options replaced earlier options given to his consultant company in lieu of fees for advisory services.
SME Tax News
HMRC have issued their Agent Update for October 2023. We have summarised the key content for you with links to our detailed guidance on the topics covered.
In Kirin Kalia v HMRC [2023] TC08952, the First Tier Tribunal (FTT) found that backdated sickness payments made under an employer’s group income protection plan were subject to National Insurance Contributions (NICs) in the tax year they were paid, not in the tax year they related to.
Hello
Autumn has certainly arrived this week with cold weather and dark nights! Whilst for many people this means pumpkins, fireworks and falling leaves, we know that for accountants and tax advisers, it marks a major ramping up of Self Assessment activity as the filing deadlines approach.
In BCM Cayman LP & BlueCrest Capital Management Cayman Limited v HMRC [2023] EWCA Civ 1179, the Court of Appeal (CoA) found that a series of pre-ordained transactions kept the beneficial ownership of profits with the taxable entity under the Ramsay principle, and so within the charge to UK Corporation Tax.
In Peter Hemingway v HMRC [2023] TC 08929, the First Tier Tribunal (FTT) agreed that an amount paid to compensate an employee for the cancellation of stock options was taxable. The Employment-Related Securities (ERS) legislation overrode the £30,000 exemption for a change in his employment rights.
HMRC have highlighted a flaw with their software and the submission process when filing an R&D tax relief claim. The issue is affecting companies claiming both the Research & Development Expenditure Credit (RDEC) and the SME tax credit.
HMRC have published 'Statistics on trusts in the UK October 2023'. Three-quarters of those trusts registered with HMRC signed up between 1 April 2022 and 31 March 2023 as a result of the new Trust Registration Service rules. Capital Gains Tax payable by trust increased by 27% in the tax year ending 5 April 2022 when compared to the previous year.
As the 31 October 2023 deadline for submitting a paper tax return for the 2022-23 tax year approaches, HMRC have relented on a previous policy and advised that they will accept a properly completed, downloaded copy of the reference Self Assessment tax return available from GOV.UK.
HMRC have issued 'Tax-free savings newsletter 9 - October 2023' which primarily clarifies their view that fractional shares cannot be held in ISAs. This means that taxpayers who hold investments in this way may have to sell their holdings and pay tax on any resulting gains.