De Silva – Supreme Court Upholds HMRC’s Assessment as Valid in Carry-Back Claims
R (De Silva & Anor) v Commissioners for HMRC  UKSC 74 involved an HMRC enquiry into two taxpayers’ partnership affairs. The taxpayers had sought relief for loss incurred in a later year by carrying it back to an earlier year. The taxpayers claimed that HMRC could only conduct an enquiry under Schedule 1A to the Taxes Management Act 1970 (“TMA”), which covers claims not included in the return, and under that provision the statutory limit for carrying out the enquiry had lapsed.
The Supreme Court dismissed the appeal. It held that under other provisions in the TMA, HMRC was entitled to enquire into anything contained or required to be contained in the tax return, including the carry-back claims contained in the later year’s tax returns, and therefore HMRC was not required to launch an enquiry under Schedule 1A to challenge the claims. De Silva was soon applied by the High Court in B Knibbs and others v HMRC  EWHC 13 (7 February 2018).
This article appears in the JHA February 2018 Tax Newsletter, which also features:
- C‑398/16 and C‑399/16 X BV and X NV on the Dutch Fiscal Unity Regime
- C‑685/16 EV – German Participation Exemption for Dividends Breaches EU Law
As announced in July of last year, the 2020 Budget introduces a new deferred payment plan option for Corporation Tax charged on profits or gains arising from certain transactions between UK companies and EEA companies of the same group of companies.
Reversal of Inverclyde
The 2020 Budget announced provisions to reverse last year’s FTT decision in Inverclyde. In that case, HMRC denied the appellant LLPs’ claims for Business Property Renovation Allowance on the basis that the LLPs did not carry on a business with a view to a profit.
HMRC nudge letters
HMRC continues to fight the good fight in its quest to cut down on tax avoidance and have recently been issuing further “nudge” letters to taxpayers who may have an income source or assets producing gains overseas and consequently an undisclosed outstanding UK tax liability.
ExxonMobil: FTT Decision Released
The FTT decision in Esso Exploration and Production UK Limited and others v HMRC, which relates to pre-2006 claims for Cross Border Group Relief, has now been released.