Latest Legal News

Facts Determine Tax Treatment of Dilapidations Payment

Virtually all leases have clauses which stipulate that when the lease comes to an end, the tenant must leave the premises in the same condition as they were in when they entered them, and the negotiations over the termination of a lease will often involve a...

Furnished Holiday Lettings Face Tax Attack

The United Kingdom has very favourable Inheritance Tax (IHT) treatment for the owners of business assets used in a trade and, in general, the value of these will be outside the charge to IHT on death provided certain criteria are met. The IHT relief...

Intention the Key in Claiming Loss Relief

Tax law allows trading losses to be relieved against other income in a variety of ways, and although there is complexity in that law, the principle that 'losses can be offset against other income' is often considered to be axiomatic. However, as a recent...

No Money a Reasonable Excuse for Not Paying Tax

HM Revenue and Customs (HMRC) are not known for being lenient when it comes to taxpayers who fail to pay taxes, and mere inability to pay tax when due is only regarded as a 'reasonable excuse' (and therefore ground for avoiding penalties) when the inability...

Payment for Removal of Personal Obligation Not a Deduction

When a sale of shares in a company is in progress, there are often a large number of threads that have to be tied up and sometimes this leads to unintended consequences. In a recent case, a shareholder had entered into a contractual obligation to a third...

Get it Right or Else

A recent case illustrates the sort of consequences that can arise from failing to take sufficient care over details when completing a claim for overpaid tax. The claim was made by a group of companies for repayment of VAT wrongly paid. It failed, however,...

Making Tax Digital Delay

The one-year deferral in the adoption of the new 'Making Tax Digital' system for small businesses and landlords is to be welcomed, but businesses are strongly advised to make themselves aware of their pending obligations under the system at an early stage. ...

Claiming VAT on Cars - New Cases Give Hope

Anyone who has tried to recover the VAT on the purchase of a car, particularly an expensive one, will know that few things are as likely to prompt a VAT query. The conditions under which such a claim can be made are strict (see the Value Added Tax (Input...

Sending Employees to the USA - Some Tax Pitfalls

With Brexit looming and the likelihood that firms will look more seriously at doing business in what appears to be a broadly favourable business environment under the Trump regime, it is worth pointing out that sending employees to the USA to work with...

Government Cracks Down on Salary Sacrifice Tax Perks

As had been widely anticipated, the Chancellor of the Exchequer announced in his Autumn Statement that the Government is making changes to salary sacrifice arrangements so that many schemes that currently attract tax and National Insurance Contributions...

Family Companies and Benefits in Kind - Tax Tribunal Guidance

When it comes to Income Tax, almost nothing is more controversial than benefits in kind. The Chancellor's recent announcement on restrictions on 'salary sacrifice' illustrates the Government's hostile attitude towards tax planning that takes advantage of...

Buy-to-Let Landlord Tax Challenge Rejected

The legal challenge to changes in the tax regime relating to buy-to-let properties has failed, despite the backing of a £180,000 'crowd fund' and the pleadings of barrister Cherie Blair. The case was pursued on the basis that the changes, which limit...

New Legislation to Counter Tax Evasion Reaches Parliament

The distaste with which the Government regards tax evasion is clear, with HM Revenue and Customs taking an increasingly tough approach both to tax evasion and (with considerable success) when mounting legal challenges to tax avoidance schemes, especially...

Tough Times for Defaulting Taxpayers

HM Revenue and Customs (HMRC) have in recent years taken an ever more aggressive approach to the collection of underpaid taxes. A woman who for more than a year underdeclared the VAT payable by the building company of which she was a director has agreed to...

No VAT Liability if No Taxable Supplies: True or False?

Many businesses engaged in the provision of 'exempt' supplies for VAT purposes (such as healthcare or financial services) or those with a turnover below the VAT registration threshold (currently £83,000 per annum) believe that they will never have to...

The Taxation of Termination Payments

The Government has published its response to the 2015 consultation on the tax and National Insurance Contributions (NICs) treatment of termination payments as well as draft legislation implementing the planned changes. The first £30,000 of a...

Corporate Veil Saves Honest Director From £100,000 Tax Penalty

The importance of the 'veil of incorporation' is that the owners of a company (the shareholders) and its managers are not normally liable for the company's debts as, in law, a company is a separate legal person from its owners and managers. This encourages...

Developers of Houses in Multiple Occupation Boosted by VAT Ruling

The tax regime relating to property has played a central role in the Government's drive to create more new homes. In a case which shows the importance of tax policy , a tribunal has favoured a broad interpretation of VAT legislation and found that a house...

Tax Data Gathering Powers Lead to Investigations

According to the Chartered Institute of Taxation, HM Revenue and Customs (HMRC) are using data collection powers to uncover the ultimate beneficial ownership of offshore companies and trusts. The information is being obtained from UK-based providers of...

Tax Avoidance Scheme Complies With Law - But Still Fails

In an important decision , the Court of Appeal has underlined that tax avoidance schemes may be strictly in accordance with legislation – but still be ineffective. The case involved a university which made an ultimately abortive attempt to save itself...

A Benefit Must Be a Benefit

Many businesses supply cars to their employees for business use. The regime under which benefits in kind are taxed is well known by most company accountants. However, one such must have been surprised when HM Revenue and Customs (HMRC) sought to levy a...

What a Difference 0.01 Per Cent Makes

Precision is important, as a recent tax case shows. It involved a claim for entrepreneur's relief (ER) by a businessman who had sold his shares in his company. The practical effect of a successful claim for ER is that the rate of Capital Gains Tax (CGT)...

Claiming the VAT Back

Have you ever been out and had a cup of coffee with someone else, who paid and then offered you the VAT receipt 'so you can get the VAT back'? This common offer shows, at best, a lack of understanding about how the recovery of input VAT (the VAT you have...

Takeaway Owner Who Hid Takings Jailed

HM Revenue and Customs (HMRC) know that 'cash trades' are often susceptible to a suppression of takings and regularly target cash traders for tax enquiries. Where HMRC's suspicions are confirmed and the evasion of tax is significant, a criminal prosecution...

No Reasonable Expectation of Profit Prevents Loss Claim

There is a common but incorrect belief that where a taxpayer incurs a trading loss, that can always be set against their other income to reduce the Income Tax they would otherwise pay. The ability to set off losses against profits is the norm and there are...
  • Page 1 of 5