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VAT Voice by Andrew NeedhamAndrew Needham, Director of VAT Solutions UK Ltd examines carousel fraud and how advisers may be able to detect if a business is caught in the chain.Missing Trader Intra-Community (‘MTIC’) fraud, or Carousel fraud as it is also known, is costing the Government between £1.2 and £1.9 billion per year. HMRC have pursued an aggressive strategy in combating this fraud, but this has been largely unsuccessful, and has alienated many businesses and VAT professionals. What ... Continue Reading

Capital Tax Review by Matthew Hutton, MA, CTA (Fellow), AIIT, TEPMatthew Hutton MA, CTA (fellow), AIIT, TEP author of Capital Tax Review highlights some potentially strange effects of the pre-owned assets income tax regime.ContextA characteristically excellent article by Emma Chamberlain puts forward a number of examples which illustrate certain curious effects of the application of the regime. These examples, numbered 2 – 7, use Rose and Tom who have lived together for some years as co-habitees. ... Continue Reading

Busy Practitioner by Mark McLaughlin CTA (Fellow) ATT TEPMark McLaughlin CTA (Fellow) ATT TEP highlights a Special Commissioner’s decision on the existence of goodwill in a franchise business.BackgroundThe existence, transferability and valuation of goodwill are important issues when a business is sold or transferred. In Balloon Promotions Limited and Others v Wilson and Another (Insp of Taxes) SpC 524 (two appeals heard together), the taxpayers sold their franchised restaurant businesses to PizzaExpress. ... Continue Reading

VAT Voice by Steve AllenSteve Allen, Director of VAT Solutions (UK) Ltd, comments on a recent VAT Tribunal decision regarding a ‘windfall’ VAT assessment.We should all have learned two valuable lessons from a recent VAT Tribunal decision. Firstly, it is important to make sure that any VAT errors are adjusted the correct way, and secondly, HMRC have discretion which, although they are unwilling to exercise, the Tribunal is more than prepared to exercise on their behalf. BackgroundIn the case ... Continue Reading

TaxationWeb by Sophie HillSophie Hill of Tolley Tax Training examines how businesses obtain relief for expenditure on industrial buildings.In this article we will cover: * Expenditure qualifying for Industrial Buildings Allowances (IBAs); * IBAs for an accounting period; * Balancing adjustments on sale; * Allowances for the second user. Expenditure qualifying for IBAsIBAs are claimed by traders. Traders means sole traders, partnerships or companies. Some landlords may also claim IBAs to set against ... Continue Reading

Busy Practitioner by Mark McLaughlin CTA (Fellow) ATT TEPMark McLaughlin CTA (Fellow) ATT TEP, General Editor of TaxationWeb, highlights recent guidance from HMRC on its policy and practice of collecting company tax debts.Practitioners may be asked to advise on the winding up of companies from time to time. A company may be dissolved either by formal winding up under the Insolvency Act 1986, or if solvent by a members’ voluntary liquidation. An alternative method of dissolving the family company ... Continue Reading

TaxationWeb by Anthony NixonAnthony Nixon, Solicitor, Chartered Tax Adviser, Trust & Estate Practitioner and Partner with Lester Aldridge, considers some practical implications of the proposed new IHT regime for certain trusts.The ‘attack on trusts’Gordon Brown’s Budget Note 25 and Schedule 20 of the new Finance Bill have created great alarm and uncertainty. This article aims to provide a brief practical overview of the consequences if these radical proposals come into effect. I will consider: • ... Continue Reading

VAT Voice by Steve AllenSteve Allen, Director of VAT Solutions (UK) Ltd, summarises a recent Court decision on the valuation of imports.BackgroundThe Appellant was a firm of opticians with branches throughout the UK, some of which were run by itself as principal, and others by franchisees. From July 1999, it operated an offering named 'Contact Lenses by Post' ('CLBP') to private individual customers in the UK. Under CLBP, the customer receives regular deliveries of disposable contact lenses (with ... Continue Reading

Tolley's Practical Tax by Roger JonesRoger Jones considers apparently opposing views from HM Revenue & CustomsWhilst I was pondering the Court of Appeal judgment in Arctic Systems, something suddenly struck me. What if HMRC were to offer the opportunity of reducing tax liabilities by making a transfer of income? Geoff and Diana Jones must be congratulated for their perseverance. Many are heralding the Court of Appeal decision as a victory for commercial common sense over the might of HMRC who wish ... Continue Reading

Monthly Tax Review by Matthew Hutton, MA, CTA (Fellow), AIIT, TEPMatthew Hutton MA, CTA (fellow), AIIT, TEP author and presenter of Monthly Tax Review, highlights possible consequences of the controversial proposed legislative changes to IHT and trusts.NOTE: Matthew Hutton is Chairing ‘Tax Planning With Trusts’, a LexisNexis Tolley Conference in central London on Wednesday 24th May 2006. Among the speakers will be James Kessler QC, Giles Clarke (Author of Offshore Tax Planning) and Nicholas Hughes ... Continue Reading