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Capital Tax Review by Matthew Hutton, MA, CTA (Fellow), AIIT, TEPMatthew Hutton MA, CTA (fellow), AIIT, TEP author of Capital Tax Review, comments on the Lands tribunal decision in ‘Antrobus No 2’.ContextThe effects of the Lands Tribunal decision in favour of HMRC in Antrobus No 2 (see CTR Issue No 13 (Winter 2006) Item 4) continue to be considered. The appeal which had been lodged against the decision was withdrawn on 2.12.05 and so the decision is final. Subject to future judicial authority ... Continue Reading

VAT Voice by Steve AllenSteve Allen, Director of VAT Solutions (UK) Ltd, highlights a recent High Court VAT ruling concerning room hire charges.The High Court has upheld the VAT Tribunal’s decision against the taxpayer in an appeal concerning the VAT liability of charges made to self-employed masseuses who operated from its premises. BackgroundThe appellant makes a daily charge to the masseuses of £110, described as ‘rent for hire of the room and as including costs towards the use of laundry ... Continue Reading

Property Tax Portal by James BaileyFormer Tax Inspector James Bailey, provides some guidance on what ‘to do’ and what ‘not to do’ if the Inland Revenue decide to investigate youThe first thing is don’t panic and don’t ignore itI have known a number of cases where people have received these letters and a bit like the credit card statement or the bank statement you know contains bad news, they have just put it in the back of a drawer and hoped it will go away. You need to respond quickly ... 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 a point concerning the extent of capital gains tax only or main residence relief.ContextA residence subsidiary to the principal dwelling-house (typically occupied by a gardener or other retainer) will attract relief on sale as a part disposal if it can be shown to be within the curtilage of the principal dwelling-house. In Lewis v Rook [1992] STC 171 ... Continue Reading

VAT Voice by Andrew NeedhamAndrew Needham, Director of VAT Solutions (UK) Ltd, comments on three important Court decisions and their implications for VAT avoidance arrangements.The ‘Huddersfield’ decisionThe ECJ has given in its decision in the three long-awaited ‘Halifax’, ‘Huddersfield’, and ‘BUPA’ cases, which addressed the question of whether transactions carried out for tax avoidance purposes could be supplies of goods or services and an economic activity. In the Huddersfield ... Continue Reading

TaxationWeb by Steve SandersSteve Sanders of LexisNexis Tolley Tax Training considers the rules for calculating company car and fuel benefits where cars are made available by an employer to an employee or a member of his family.Employees are taxed on car benefits either if their earnings (including benefits) are more than £8,500 per annum or they are company directors. The taxable benefit is the list price of the car when new, multiplied by a percentage. The percentage we use depends on the vehicle’s ... Continue Reading

Employee Reward Structures by Aidan LangleyAidan Langley, author of ‘Employee Reward Structures’ provides a brief overview of an important exemption from employment income, and its interaction with redundancy payments.A termination payment that is not chargeable to tax under any other provision may be taxable under ITEPA 2003, s403. This section applies to any payment or other benefit received in connection with the termination of the holding of the office or employment, or any change in its ... Continue Reading

Capital Tax Review by Matthew Hutton, MA, CTA (Fellow), AIIT, TEPMatthew Hutton MA, CTA (fellow), AIIT, TEP author of Capital Tax Review considers the current position on the availability of inheritance tax relief for furnished holiday lets.ContextIt is well known that the special income tax and Capital Gains Tax regime for furnished holiday accommodation (‘FHA’, originally as defined in TA 1988 ss 503 and 504 and now to be found in ITTOIA 2005 ss323-326) does not extend to Inheritance Tax (IHT). For ... Continue Reading

VAT Voice by Andrew NeedhamAndrew Needham, Director of VAT Solutions (UK) Ltd, examines particular situations involving the payment of compensation.What constitutes a compensation payment and whether any VAT is due on it causes a lot of confusion to many people. The basic position is that compensation payments are outside the scope of VAT, as they are not the consideration for a supply. This is because the payments are made as a result of a Court Order, or through an agreement between the two parties ... Continue Reading

Taxation by Mark McLaughlin CTA (Fellow) ATT TEP & Beryl MansworthMark McLaughlin CTA (Fellow) ATT TEP, and Beryl Mansworth of HM Revenue & Customs, debate the issue of penalties on technical adjustments in company enquiry cases.‘Keep your friends close, but your enemies closer!’ Perhaps this proverb draws an unkind, unfair analogy with the relationship between HM Revenue & Customs (HMRC) and professional advisers, particularly in this era of ‘Working Together’ and especially in a joint article ... Continue Reading