There is more to Inverclyde than meets the eye
In Inverclyde Property Renovation LLP and another v HMRC  UKFTT 0408 (TCC), the First-tier Tribunal upheld an appeal against closure notices that were issued to two LLPs. The FTT found that HMRC should have enquired into the appellant LLPs’ partnership returns under paragraph 24 of Schedule 18 to FA 1998 regarding corporation tax self-assessment and not s12AC of TMA 1970 for partnerships.
The LLPs stated that they did not rely on any lacuna in the legislation, but it was a straightforward case of HMRC having followed the wrong procedural steps. Moreover, HMRC could still be able to remedy the situation through their powers to make discovery assessments, subject to statutory limits.
If HMRC wanted to challenge the relevant return of any LLP members, they should have opened an enquiry into those members’ own returns under s9A, TMA. The FTT reiterated that a taxpayer will not be prevented from challenging the procedural course adopted by HMRC only because they have accepted incorrectly issued notices of enquiry and the fact that HMRC has used a procedural course for a considerable period does not make it correct.
It is HMRC’s common practice not to open s9A TMA 1970 enquires into the returns of individual partners of LLPs in analogous scenarios. This decision may therefore have a wider impact on other similar enquires.
HMRC has appealed the FTT decision and the UT hearing is on 27 April 2020.
The DBKAG & K (CJEU) decision: an opportunity for investment funds?
On 17 June 2021, the European Court decided the joint cases K (C-58/20) and DBKAG (C-59/20) regarding whether the supply of certain services constituted the “management of special investment funds”, benefiting from the VAT exemption enshrined in Article 135(1)(g) of Council Directive 2006/112/EC.
Raising the bar: UK Supreme Court clarifies the requirements for HMRC to issue Follower Notices
On 2 July 2021, the Supreme Court delivered its judgment in R (on the application of Haworth) v HMRC  UKSC 25, finding unanimously in favour of the taxpayer and upholding the Court of Appeal’s decision to quash the follower notice issued to him.
The Danish Supreme Court decides the Fidelity case
The Fidelity case concerned claims brough by three undertakings for collective investment in transferable securities (UCITS) for the repayment of Danish withholding tax on dividends received from companies resident in Denmark between 2000 and 2009. The Supreme Court rejected the claims on the grounds that the Fidelity UCITS did not fulfil the conditions for the exemption provided by Danish law.
A yellow card for footballers and their agents……let’s bring in another match official
There has been long running tension between HMRC and the way that footballers and their agents are remunerated. As the Professional Footballers’ Association wade into the debate, Helen McGhee discusses the problems arising from agents’ fees and image rights.