Tax Online Blog

Court of Appeal rejects HMRC’s appeal against SHIPS 2 scheme

Court of Appeal rejects HMRC’s appeal against SHIPS 2 scheme

Court of Appeal rejects HMRC’s appeal against SHIPS 2 scheme The latest attempt by HMRC to disallow the SHIPS 2 tax planning scheme has been rejected by the Court of Appeal, although it is unlikely that this decision will resolve the litigation. SHIPS 2 was marketed by Matrix Tax Solutions, and operated in respect of. Read more

Tax Review VAT Roundup

Tax Review VAT Roundup

HMRC confirms change to ‘fallback’ provisions HMRC has published Brief 20/11, which sets out a change in VAT treatment where a business uses a UK VAT registration number (other than for triangulation purposes) to secure zero-rating of goods sent from one EU member state to another, without their arriving in the UK. Under what is. Read more

Home Sweet Home

Home Sweet Home

Home Sweet Home Mark McLaughlin highlights a potential stumbling block for taxpayers seeking to claim capital gains tax relief on the disposal of a residence. The fundamental requirement for an individual to claim capital gains tax relief on the disposal of a dwelling house (or an interest in it) is that all or part of. Read more

Jointly Held Property

Jointly Held Property

An article by Mark McLaughlin The tax legislation includes specific rules on income from assets held jointly by spouses (or civil partners) who live together. The rules provide a potential tax planning opportunity for spouses who are liable to income tax at different rates. The broad effect of the legislation (in ITA 2007, s 836). Read more

Associated Companies – applying the new rules

Associated Companies – applying the new rules

An article by Mark McLaughlin The ‘associated company’ rules are changing in Finance Act 2011. The rules are essentially an anti-avoidance measure, to prevent the creation of multiple, closely controlled companies to split a wider economic whole and take advantage of the small companies’ corporation tax rate. That rate reduced to 20% from 1 April. Read more

The 'Agency Trap'

The 'Agency Trap'

An article by Mark McLaughlin The IR35 rules on services provided through intermediaries is well known to many taxpayers and tax advisers. The most common scenario is probably the ‘personal service company’. However, there is potentially an additional line of HMRC challenge to IR35, which is rather less well known. This is the ‘agency workers’. Read more

Loans to Traders

Loans to Traders

An article by Mark McLaughlin The number of capital loss claims in respect of irrecoverable loans to businesses (or loan guarantee payments) has probably increased significantly during the economic downturn. Claiming relief seems straightforward enough on the face of it, but there are some potentially difficult obstacles to overcome. For example, the relief applies to. Read more

HMRC Guidance

HMRC Guidance

By Mark McLaughlin Taxpayers (and advisers) strive for certainty when dealing with tax issues. The legislation is often unclear, and taxpayers may therefore resort to seeking comfort from guidance published by HM Revenue and Customs (HMRC), such as in booklets or its manuals. This guidance does not carry the force of the law. But can. Read more

Income vs Capital

Income vs Capital

By Mark McLaughlin The distinction between income and capital assumed greater importance following the introduction of a 50% income tax rate. The subsequent introduction of a 28% capital gains tax rate has narrowed the differential between the tax rates, but the gap is still significant. The treatment of an activity as a trade (as opposed. Read more

VAT recovery on entertainment of overseas customers allowed

VAT recovery on entertainment of overseas customers allowed

In Revenue & Customs Brief 44/10, HMRC announced that it had reviewed its policy on the treatment of business entertainment provided to overseas customers in light of the ECJ decision in Danfoss and AstraZeneca (C-371/07). Following the review, HMRC hasconcluded that the UK’s input tax block on the business entertainment of overseas clients is inconsistent. Read more

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