Our Insights

Q&A: transfer pricing methods in United Kingdom

Graham Aaronson, Michael Anderson and Steve Bousher provide answers to common questions on transfer pricing methods. 

Changes to the UK’s Special Tax Regime for Foreign Income and Gains

With much uncertainty surrounding the end to the non-domicile regime, Helen McGhee and Lynnette Bober provide a helpful summary of the (currently) anticipated changes.

Much ado about non-doms: the new policy paper

Just when we thought we would have to wait for the 30 October Budget for more detail around the new non-dom tax rules, the new government published a policy paper on the changes to the taxation of UK resident foreign domiciled individuals on 29 July giving additional insight. This article is divided into two parts. The first looks at the policy paper itself and the how it adds to what we knew previously. The second part provides an overview of the anticipated new regime incorporating our newly acquired knowledge.

Armour Veterinary Group v HMRC – Warning for Partnership Personnel Changes?

In this decision, the First-tier Tribunal (Tax Chamber) (“FTT”) dismissed an appeal against discovery assessments which disallowed amortisation relief claimed by the Appellant company for three types of goodwill acquired from a partnership. The decision examined the applicability of each of the circumstances set out in s882 CTA 2009 before concluding none of them had been satisfied. It also provided guidance on the meaning of carrying on a business pursuant to s884 CTA 2009. In rejecting the appeal, the FTT reached a number of key conclusions:

1. partners can potentially rebut the presumption that individual partners do not own the goodwill of the business (in whole or part) by expressly recording the division in a partnership agreement;
2. whether a partner is an equity or salaried partner has no bearing on whether they can be treated as carrying on the business for the purpose of s884;
3. when determining whether and when a partner carries on a business, the FTT will consider, inter alia, (1) if they are in a partnership as per the definition in s1 of the Partnership Act 1890 and (2) their role in the day-to-day running of the practice;
4. a fundamental aspect of the self-assessment regime is that taxpayers must ensure that they retain adequate records (backed up by an external valuation as relevant in the case of a goodwill transfer) sufficient to support the information provided in their returns, including evidence to support claims made for relief.

One minute with Helen McGhee

https://www.taxjournal.com/articles/one-minute-with-helen-mcghee-Helen McGhee provides an overview of the “hot topics” currently impacting the world of tax.

The approach of the Tax Tribunal to evidential sampling in Kittel cases

Case Note: ‘The approach of the Tax Tribunal to evidential sampling in Kittel cases’

The First-tier Tribunal (Tax Chamber) has recently published a decision of Judge Dean on a sampling application by HMRC in the case of Ezy Solutions Ltd (in liquidation) and Milo Corporation Ltd (in liquidation) v HMRC [2024] UKFTT 00209 (TC). The Decision was released on 9 March 2023 but had not been published until recently.

VAT Umbrella Appeals Decision

On 27 March 2024, the Tax Tribunal released its Decision in the VAT Umbrella Appeals.

Private Client Tax Budget Update

Spring Budget 2024 was littered with the usual political posturing and some ineffective tinkering. Unfortunately fiscal drag will continue to be significant. Wednesday 6 March 2024 was also an earth-shattering day for the non-UK doms and all those who advise them.

Navigating Domicile Enquiries: Recent Case Review

In recent months, the First-tier Tax Tribunal has presided over 3 headline grabbing domicile cases which, whilst offering little precedential value, set out some useful commentary on the multi factorial approach taken by HMRC and ultimately the tribunal in determining an individual’s domicile status. This note reviews the decisions made in Shah v HMRC [2023] UK FTT 539 (TC), Strachan v HMRC [2023] UKFTT 00617 (TC) and Coller v HMRC [2023] UKFTT 212 (TC).

Mini Umbrella Companies (“MUCs”) Success at Tribunal (Labour Supply; Kittel fraud; Fini fraud)

Iain MacWhannell, instructing David Bedenham, successfully represented an employment intermediary in an appeal against a denial of input tax and £15 million VAT assessment.