Philip Simpson, Q.C., has successfully acted for the taxpayers in the case of Macleod and Mitchell Contractors Limited v. HMRC  UKUT 46 (TCC). The case concerned keyman insurance policies that were to be taken out for the benefit of the taxpayer company on the life of its director. By mistake, the policies were taken out naming the director as the beneficiary. The company paid regular premiums for a number of years, without anyone realising the mistake. During an enquiry, HMRC spotted the error, and claimed income tax and national insurance contributions on the basis that the premiums had been due by the director, and the fact that the company had paid the premiums counted as earnings for the director. This was said to be because debts due by the director had been paid off. The Upper Tribunal held that neither income tax nor NICs were due. This was because any benefit was not ‘from’ the director’s employment, but arose instead from a mistake. There had been no intention to reward the director for his services by paying the premiums. The taxpayers’ appeals were thus allowed. The decision may be found here:
Sarah will be speaking on the 2017 reforms to the availability of corporation tax loss relief at a seminar organised by MBL Seminars in Birmingham on 20 February 2019.
For more information, including how to register for the seminar, please see here
Philip Simpson QC successfully represented the taxpayer in the case Pulsin’ Limited v. HMRC. The taxpayer manufactured gluten-free brownies. The question was whether they were cakes for VAT purposes, and therefore should be zero-rated. After a hearing that included a tasting session of Pulsin’s products as well as other, similar brownies, the FTT concluded that all four flavours of the taxpayer’s products were cakes.
This case follows on from Mr Simpson’s success, again for the taxpayer, in Lees of Scotland Limited v. HMRC  UKFTT 630.
Etienne Wong recently had an article he co-authored with Alex Tostevin of Dentons published in the Tax Journal. A copy of article VAT and the evolution of the special investment fund can be seen here*.
*This article was first published in the 16 November 2018 issue of the Tax Journal, and is reproduced with the kind permission of the publishers. All rights reserved.
Etienne Wong recently had an article entitled “Ryanair: holding companies
recovering VAT” published in the Tax Journal. A copy of the article* can be seen here.
*This article was first published in the 26 October 2018 issue of the Tax Journal, and is reproduced with the kind permission of the publishers. All rights reserved.
Old Square Tax Chambers hosted an afternoon seminar where Robert Venables QC, Harriet Brown and Patrick Boch discussed the Taxation of Trusts.
The seminar was held from 16:00 on Wednesday 31st October 2018.
The notes are now available to download from here.
This seminar is free of charge.
16:15 – 16:50 Harriet Brown – Halloween Horrors: Terrible Trust Tax Trip-Ups Taken From Case Law and Practice
IHTA, Schedule A1: things you might not have noticed – Requirement to correct: what can be done now? – Barclays Wealth Trustees: a few points to take away – IHT DOTAS – FATCA conviction – Thompson v Thompson: estoppel and inheritance – Singh and ors v Sebastian Ash: proving intentions in rectification
16:50 – 17:25 Patrick Boch – The transfer of assets abroad escape clause – any room for manoeuvre?
Overview of the TAA provisions – the escape clause (s 737 ITA 2007) – what is “avoiding”? – what is a “purpose”? – application to a trust scenario – overview of the EU law defence.
17:25 – 18:00 Robert Venables QC – Employee Benefit Trusts – Are They Still Worthwhile?
IHT and CGT Advantages post Barker v Baxendale-Walker – Taxation of Employees on Contributions to Trust post Murray – Provision of Capital Sums for Employees without Disguised Remuneration Charge – the April 5th 2019 Employee Loan Charge – Deductibility of Contributions to Trust for Employer.
Following on from the seminars that Sarah Squires gave on the new corporation tax loss reforms earlier in 2018, she will be speaking again for MBL at the following:
Leeds (8 November)
London (4 December)
For more information, please click here.
Etienne Wong has recently updated his Practice Note on Sukuk – investment bond arrangements and UK VAT, a copy of the updated Practice Note* can be seen here.
*This article was first published on Lexis®PSL Tax in 2014 and updated in the autumn of 2018, and is reproduced with the kind permission of the publishers. All rights reserved.
Robert Venables QC, James Kessler QC and Ross Birkbeck will be among the speakers for Key Haven Publication’s Two-Silk Afternoon at The Law Society’s Hall, London WC2A on Tax Planning for 2019.
The seminar will be held on 14 November 2018, with further information available here.