Case reports

Tax / HMRC loses argument over VAT and taxable farming activities in Smart case

In the case of Frank A Smart & Sons Ltd [2017] CSIH 77, the appeal at the Scottish Court of Session focused on whether a farming company could reclaim VAT on the purchase of single farm payment entitlements (SFPEs). Croner Taxwise VAT consultant Julie Green considers the implications of the appeal judgment against HMRC

Tax / Case: ‘special allowance’ for decommissioning rejected in Mouk

Marathon Oil UK (MOUK) had its appeal against special allowance for decommissioning dismissed as the First Tier tribunal ruled that expenditure had to be incurred directly on plant and machinery 

Tax / Case: no legitimate expectation based on HMRC manual

A claim for judicial review was dismissed as the court found that there was no legitimate expectation created by a HMRC manual and therefore it was fair for HMRC to insist rules were applied

Tax / Case: not proportionate to strike out appeals

A First Tier Tribunal decided to not strike out three appeals against personal liability notices, for failing to provide documents, as it was not proportionate and there was too much at stake

Tax / Non-resident capital gains tax and penalties for late returns

Stephen Relf CTA ACA considers the penalty structure for the new rules on the charge to capital gains tax on residential property which is now extended to non-UK residents and requires a 30-day filing requirement, especially since HMRC lost the McGreevy case

Tax / FTT quashes tax barrister’s inaccuracy penalties

A tax barrister has won part of an appeal against three penalties for inaccuracies, after a First Tier Tribunal (FTT) found he had relied on professional accountancy advice and could not be expected to have specialist knowledge of all areas of taxation

Tax / Case: penalty for failure to settle accelerated payment upheld

A First Tier Tribunal (FTT) dismissed a taxpayer’s appeal against an accelerated payment penalty from HMRC, arguing that there were no special circumstances which allowed a reduction 

Tax / Case: HMRC’s amendment of limited partners’ individual tax returns was lawful

The Supreme Court ruled, in the landmark De Silva case, that HMRC’s amendment of the taxpayers’ individual tax returns was lawful after partnership losses were stated at much reduced levels in a partnership settlement agreement

Tax / VAT repayment claims clarified after ruling on investment trust companies

HMRC has published a briefing setting its view following a Supreme Court judgment in the case involving investment trust companies  (ITC), which centred on claims made by final consumers against HMRC for VAT that had been wrongly charged to them by their suppliers

Tax / HMRC loses appeal on single farm payment VAT charges

HMRC has lost an appeal at the Court of Session in Scotland over the rights of farmers to reclaim VAT on the purchase of single farm payment entitlements (SFPEs), in a decision which has far-reaching consequences for a range of taxpayers including farmers and the not-for-profit sector

Tax / Case: late non-resident CGT filing appeal allowed in Saunders

A taxpayer's appeal against the issuing of late filing penalties by HMRC, after she failed to file a non-resident Capital Gain Tax (CGT) return on time, was allowed by a First Tier Tribunal (FTT) after it found that there was a reasonable excuse

Tax / Case: Information Notice ‘reasonably required’

A taxpayer's appeal has been dismissed by a First Tier Tribunal (FTT) after it found that a information notice issued by HMRC, after conducting a check on the taxpayer's tax affairs, was 'reasonably required'

Tax / Spurs score second win over HMRC

HMRC has lost its case at Upper Tribunal over money paid to two Tottenham Hotspur football players on leaving the club, after the judge agreed these were payments in connection with the termination of an employment and not earnings

Tax / Case: UK inheritance tax law conforms with EU rules

The Court of Appeal considered whether a restriction imposed by UK inheritance tax law on charities violates the EU law principle of freedom of movement of capital

Tax / Lloyds wins redundancy VAT case

Lloyds Banking Group has won a significant tax case, worth over £5.6m, after the tax tribunal determined that redundancy payments were not subject to VAT. David Wilson, VAT associate director at RSM, examines a case of HMRC refusing to back off