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.