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Updated - see HMRC Says No Penalties for Filing Tax Returns or Paying Tax Late up to 2nd February Whilst we understand that some news sources are suggesting that HM Revenue & Customs has agreed to waive penalties for taxpayers who are unable to get through to them because of strike action, our contacts at HMRC have insisted that it will instead be "business as usual" on 31 January. On 31 January, the Public and Commercial Services Union is planning to hold a one-day strike ... Continue Reading

Mark McLaughlin comments on HM Revenue & Customs' new Alternative Dispute Resolution Service. HMRC launched a pilot introducing the Alternative Dispute Resolution (ADR) service earlier this month. The ADR is a new way of resolving disputes between small and medium sized enterprises and HMRC. In the News Release announcing the ADR pilot, an HMRC spokesman outlined the perceived benefits: “ADR will help SMEs resolve disputes without having to go to a tribunal – saving them ... Continue Reading

Peter Vaines comments on a recent tax tribunal case regarding Entrepreneurs' Relief. Some useful guidance has been provided by the Tribunal in the case of Gilbert v HMRC TC1542. Mr Gilbert carried on a business of selling food on commission representing 9 different suppliers. He sold part of his business to one of his suppliers and claimed Entrepreneurs' Relief on the resultant gain. The sale was of all the business connected to that particular supplier and the brands. The supplier ... Continue Reading

Further consideration of a company's tax residence by Jonathan Schwarz, author of 'Booth & Schwarz: Residence, Domicile and UK Taxation'. The Untelrab Synthesis From a practical perspective, a brief statement of principles is most desirable. In Untelrab Ltd & Ors v McGregor (HMIT) (1995) SpC 55 the first published decision of the Special Commissioners dealing with company residence, an attempt was made to synthesise the principles developed in a large number of cases over more than a ... Continue Reading

The policy of withdrawing child benefit when a claimant or their partner becomes a higher rate taxpayer is being reviewed. LITRG examines the problems that might still remain. Introduction Even if the potential unfairness of the policy is solved, numerous administrative problems will remain. The new policy could kill off independent taxation, or become a new tax on marriage. Background The Prime Minister and the Chancellor have now announced that the Coalition Government policy ... Continue Reading

The government has been told by the High Court that its proposed cuts to the tax-free income, which it had hitherto guaranteed to householders who installed solar energy systems, were illegal. Friends of the Earth, together with two solar energy companies Solarcentury and HomeSun, challenged the cuts in a case heard by the High Court on 21 December, on the basis that the cuts' implementation was unlawful. It seems it didn't help the government's case that its decision to ... Continue Reading

Peter Vaines comments on two recent tax tribunal cases dealing with discovery assessments. Anybody reading this article will know that I cannot resist a good case on discovery assessments and another one has just been published: Mohinder Singh v HMRC TC1544. Discovery and Mohinder Singh v HMRC TC1544 We have thankfully moved a considerable distance from the test enunciated in Langham v Veltema and seem to be reaching a position of balance between HMRC and the taxpayer. In my previous ... Continue Reading

Private Residence Relief from Capital Gains Tax on the main home of a married couple - were they living together? Mark McLaughlin looks at a recent tax case. Introduction Married couples (and civil partners) benefit from favourable treatment for certain tax purposes. A common example is the ‘no gain, no loss’ Capital Gains Tax (CGT) treatment for inter-spouse transfers (TCGA 1992 s 58). In addition, the Inheritance Tax spouse exemption is unlimited for transfers between UK ... Continue Reading

Mark McLaughlin's New Year wish for a simpler tax system in the UK: destined for disappointment? As we start the new year, many people's thoughts turn to their hopes and wishes for 2012. On the tax front, my New Year's wish has been the same for a number of years, and I make no apologies for repeating it this year - a simpler, more transparent tax system. However, that wish seems more distant than ever. The draft Finance Bill 2012 clauses and explanatory notes published on 6 December ... Continue Reading

Jonathan Schwarz, author of 'Booth & Schwarz: Residence, Domicile and UK Taxation, outlines the factors determining company tax residence. Introduction A corporation is a legal entity. It is, under the law, an artificial person, separate and distinct from its members and endowed with an existence independent of their existence. (Salomon v Salomon & Co [1897] AC 22) Although a corporation’s personality is artificial, it is not fictitious. Since 1889 the word ‘person’ ... Continue Reading