Latest Development in Inverclyde
Previously the FTT held that if a limited liability partnership (LLP) is found to not be trading with a view to a profit, it is in effect a corporate entity and therefore should have filed a company tax return. Therefore, it found that an enquiry into the partnership return filed by such an LLP was void and the accounting period was closed without an enquiry. HMRC appealed this finding.
The Government subsequently introduced Clause 101 of the Finance Bill 2020 to retrospectively reverse this decision.
In a decision issued on 27 May 2020, the Upper Tribunal has now also upheld HMRC’s appeal. In that decision, it confirmed that such enquiries would not rendered a nullity by a finding during that enquiry that the incorrect return had been filed.
The tribunal therefore re-made the decision, holding that the closure notices were validly issued and that there is no basis in law for striking out the appeals. The tribunal’s decision in Inverclyde has therefore now been both negated y legislation and overturned on appeal.
Apple and Ireland Win €13bn State Aid Appeal
The General Court of the European Union has today annulled the Commission’s decision regarding two Irish tax rulings in favour of Apple. The Commission had considered that the two rulings constituted State Aid, granting Apple €13bn in unlawful tax advantages.
The Price of Property
Helen McGhee looks at the present state of UK tax rules that must be considered when owning and disposing of UK property.
Inheritance tax problems in Finance Bill 2020
The rules on excluded property trusts are due to change with effect from royal assent. These changes are complex, and the new rules can have an unexpected and retroactive effect. Emma Chamberlain explores these rules to determine whether it may be necessary to exclude the settlor going forward as a beneficiary.
Trust Registration Service- 5MLD update
HMRC’s Trusts and Registration Service (TRS) was born back in 2017 as part of the implementation of 4MLD. 5MLD has mandated notable amendments to the operation of the TRS that clients and practitioners should not overlook. We have created a Q&A to help to navigate the new upcoming compliance obligations.