Blog Archives

HICBC ruling in the Upper Tribunal: an update

We are delighted to announce our Upper Tribunal success in HMRC v Wilkes regarding HICBC disputes. More details can be found via our press release. HMRC has until the end of July to decide whether or not to seek a …

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Summary: HMRC has lost its Upper Tribunal appeal – on every point – in Jason Wilkes’s leading case on the controversial High Income Child Benefit Charge (the HICBC) The outcome should benefit hundreds of thousands of taxpayers whose assessments to …

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Collyer Bristow instructed in HMRC -v- Wilkes : High Income Child Benefit Charge

On Wednesday 26 May 2021, the Upper Tribunal (The Hon. Mrs Justice Falk DBE and Judge Timothy Herrington) will hear HMRC’s appeal in the leading “High Income Child Benefit Charge” (the HICBC) case. The taxpayer assessed to the HICBC is …

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‘Tax Day’ – government continues its campaign to tackle non-compliance

Promoters of tax avoidance schemes HM Treasury’s reminder that the so-called “tax gap” is at a record low of 4.7% (of which tax avoidance only counts for £1.7bn – approximately 5.5% of the total) is timely and welcome.  HMRC has …

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Corporate residence of subsidiaries: Court of Appeal decision provides more questions than answers

Though the CA judges unanimously agreed that the UT’s reasons for overturning the FTT decision were flawed, the judges disagreed on whether the FTT decision might have been wrong for other reasons – an issue that was strictly out of …

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Litigation privilege does not apply to tax advice from accountancy firms, rules High Court

When provided by an accountancy firm, advice on how to structure your affairs for tax purposes is not protected by legal advice privilege, and it may therefore need to be disclosed in a subsequent HMRC investigation or in litigation. This …

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Second home owners beware!

HMRC has recently stepped up its investigatory activity in two areas that might be relevant to second home owners:HMRC is intending to send thousands of “nudge” letters to individuals who it suspects may have sold taxable residential property in the tax year 2018/19 and not declared this on their tax return. It is likely that HMRC will identify these suspected sales by using data obtained from the UK Land Registry. The letters will ask individuals to consider whether they should have paid capital gains tax (CGT) on the sale. If CGT should have been paid, the letters will ask individuals to either amend their tax return, or use HMRC’s Digital Disclosure Service, to pay any CGT owed.Airbnb UK has agreed to share data with HMRC on the rental income of Airbnb hosts in the UK in the tax years 2017/18 and 2018/19. If an Airbnb host has received over £1,000 in a year by letting out their second home, this rental income must be declared to HMRC. The Airbnb data will enable HMRC to identify hosts who have not complied with this requirement. Such hosts can expect HMRC to get in touch with them in the near future, but may want to pre-empt this by declaring the income now, in order to reduce potential non-compliance penalties.If either of these matters is of concern to you, please feel free to get in touch.

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HMRC starts to investigate furlough abuse, & property businesses are a target

HMRC has started investigating employers it suspects of abusing the furlough scheme and property and construction businesses are firmly in its sights. Investigations are focused on businesses that deliberately or inadvertently allowed staff to work whilst on furlough and are …

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Post-Brexit sanctions and the high net worth individual

The short answer to the first of those questions is no. At its core, the Sanctions and Money Laundering Act 2018 (‘SAMLA’), under which the British regime will operate once the UK has left the EU, is a restatement of …

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Calls to Abolish CGT Entrepreneurs Relief – Should Business Owners Be Worried?

In what is becoming a near-annual sport, there are again renewed calls for the restriction or outright abolition of CGT Entrepreneurs’ Relief. The latest high-profile support for the move comes from Sir Edward Troup, previously the head of HMRC, in …

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