Investors’ relief not available where business not ready to supply goods An enterprise investment scheme (EIS) relief claim made by a group of six companies has failed at the First-tier Tax Tribunal (FTT) because the companies concerned had not commenced qualifying trades inside the two-year deadline. The FTT’s criterion for commencement was ‘when the business...
Why VAT Needs a Fresh Look The UK’s Value Added Tax (VAT) system, first introduced in 1973, has become increasingly complex. With thousands of exceptions and outdated thresholds, businesses often find compliance time-consuming and costly. A VAT reform is long overdue—not just to simplify administration, but also to ensure fairness and efficiency for both small...
Stamp Duty Land Tax (SDLT) can be a confusing area, especially when dealing with run-down or damaged properties. A recent Court of Appeal ruling in the case Mudan v HMRC ([2025] EWCA Civ 799) brings important clarity to the residential SDLT rules, especially regarding properties in poor condition at the time of purchase. Background to...
HMRC has launched an enforcement campaign targeting tax agents who claim repayment of stamp duty land tax (SDLT) because the property needs extensive repairs, is uninhabitable, and therefore not liable to residential SDLT. HMRC’s stance is based on the recent England and Wales Court of Appeal decision in Mudan v HMRC (2025 EWCA Civ 799), which agreed with...
Why did HMRC issue penalties? A recent decision by the First-tier Tribunal (FTT) has highlighted the importance of fully understanding your self-assessment (SA) tax return obligations. The case involved a taxpayer who misunderstood the requirement to file a return and faced HMRC penalties as a result. Despite the individual’s claim of confusion, the tribunal ruled...
HMRC’s annual ‘compliance yield’ from wealthy taxpayers more than doubled from GBP2.2 billion in the 2019/20 tax year to GBP5.2 billion in 2023/24, according to a report from the government’s National Audit Office (NAO). The NAO says the large increase suggests that underlying levels of non-compliance among the wealthy population could be greater than previously...
A woman who lived rent-free in a house settled in an offshore trust by her late husband was liable to GBP163,414 income tax under the transfer of assets abroad (TOAA) legislation even though she was not the transferor, the First-tier Tax Tribunal has ruled (Moran v HMRC, 2025 UKFTT 540 TC). It ruled that the ‘motive defence’...
A couple who bought a property for GBP9.75 million, demolished and rebuilt it, then sold it for GBP27.15 million, have won their appeal against a GBP3.3 million capital gains tax charge. Raymond and Diana Eyre successfully claimed they were not developing in the nature of a trade and the house was their principal private residence...
TAXATION: Agents given access to personal tax query resolution service HMRC’s new personal tax query resolution service for agents is now live, offering representatives a quicker way of chasing up unanswered queries to HMRC’s helplines. Before using the service, agents must check the ‘where’s my reply tool’, with at least 20 working days having passed...
TAXATION: Companies cautioned over using prepaid debit cards for tax-free profit extraction HMRC is warning companies not to use a scheme that uses advertising and marketing expenditure to reduce taxable profits and disguise employment income in the form of redeemable loyalty points. Scheme users buy advertising from the arrangement’s promoter and claim a deduction for...
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Copyright by CareAccountancy. All rights reserved.
