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Practical Points

Every month, the Tax Faculty publishes short, practical pieces of guidance to help agents and practitioners in their day-to-day work.

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Business tax

This month covers Corporation Tax, Employment Tax, and VAT.
Corporation tax: Loan relationship debit denied as it did not fairly represent the true position
  • Jun 2024
The First-tier Tribunal (FTT) has denied a loan relationship deduction in respect of a discount shown as accruing on a debt instrument as it did not fairly represent the position of the individual company, which was just one part of a...
Corporation tax: Upper Tribunal dismisses ‘wholly and exclusively’ appeal regarding pension scheme
  • Jun 2024
The Upper Tribunal has dismissed the appeal of two taxpayers in AD Bly Groundworks and Civil Engineering Limited and Another v HMRC, on whether large accruals...
Employment taxes: Appeal dismissed on employment income
  • Jun 2024
The First-tier Tribunal (FTT) has found that an amount paid to a taxpayer after ceasing employment was taxable as employment income. It was earned while the taxpayer was a UK tax resident despite the payment being physically...
VAT: Input tax on iPhones
  • Jun 2024
When the iPhone 4 was launched in 2010, V-Com (Worldwide) Ltd recruited students and gave them gift cards to go to Apple stores and buy phones for V-Com. V-Com managed to acquire around 6,870 phones in this way (at £499 each), which it was able to resell for a profit...
VAT: Valuing shares for VAT purposes
  • Jun 2024
In 2014 and 2015, W and B agreed to transfer 25 commercial properties and some cash to P. sp. z o.o. (P), in return for an issue of 15,909 shares at €8,123 per share (ie, a total transaction value of approximately €129m)...
VAT: VAT on heat donated to asparagus farmer
  • Jun 2024
Y KG operated a biogas production facility in Germany and used the biogas to generate electricity, which it sold to the grid. Biogas production generates significant heat and Y agreed to provide any that it did not use to a...
VAT: Charging points for electric vehicles
  • Jun 2024
Digital Charging Solutions GmbH (DCS) provided a subscription service that allowed customers to charge their electric vehicles (EVs) at charge points operated by charge-point operators (CPOs). In considering the VAT...
VAT: Record-keeping requirements for supplies of investment gold
  • Jun 2024
In 2019-20, HMRC imposed penalties of £14.8m on Qubic Advisory Services Ltd for failure to issue proper invoices and keep accurate records for its supplies of investment gold...
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Personal tax

This month covers Capital Gains Tax and Income Tax.
Capital gains tax: Appeal dismissed on entrepreneurs’ relief
  • Apr 2024
Three taxpayers have lost their appeal to claim entrepreneurs’ relief (ER), now known as business asset disposal relief. The activities carried on by a company owning land did not amount to a trade...
Capital gains tax: Treaty residence, trusts and unpublished decisions
  • Apr 2024
The Upper Tribunal has dismissed the taxpayers’ appeal in the capital gains tax case Haworth and others v HMRC. The case involved the use of a ‘round the world’ scheme, involving overseas family trusts...
Income tax: Arrangements to create tax-free dividend rejected by CA
  • Apr 2024
The Court of Appeal (CA) has agreed with the tribunals that arrangements designed to avoid a tax charge on a dividend were ineffective...
Capital gains tax: Claiming losses and reporting gains in respect of cryptoassets
  • May 2024
A person can claim a capital loss under s24(2), Taxation of Chargeable Gains Act 1992 (TCGA 1992) in respect of a cryptoasset they still own if it becomes of negligible value...
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More in personal tax

Tax compliance and investigations

There are no updates this month.
Appeals, disputes and investigations: Appeal against discovery assessments dismissed
  • May 2024
The First-tier Tribunal (FTT) has refused a taxpayer’s appeal, finding that although the taxpayer’s agent notified HMRC of chargeability, it did not contain sufficient information and therefore the follow-up discovery assessments issued by...
Appeals, disputes and investigations: Enquiry notice valid
  • Mar 2024
The First-tier Tribunal (FTT) found that an enquiry notice into a gilt strip scheme was validly issued, despite the fact that the actual document was missing. The notices had been issued to a large group of taxpayers...
Appeals, disputes and investigations: Company wins appeal on information notice
  • Jan 2024
An information notice was varied to allow a company to send to HMRC only those emails that were relevant to the matter, not those caught by a wider email search but irrelevant...
Penalties: AI did not help CGT case
  • Jan 2024
The taxpayer’s appeal to the First-tier Tribunal (FTT) against failure to notify penalties was based on cases that had been generated by an AI system. The AI system had not cited real tax cases, but made them up. Regardless of this issue, she did not have a reasonable excuse for failure to notify...
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More in tax compliance and investigation

Tax administration

There are no updates this month.
Agents and HMRC: Checking marriage allowance claims using PAYE codes
  • Dec 2023
Agents are able to check whether a client has an enduring marriage allowance claim using the client’s PAYE code. PAYE codes ending in the suffix ‘N’ indicate that an election is in place to transfer part of the personal allowance to a...
Tax returns: Relying on HMRC guidance
  • Nov 2023
Some advisers may have noticed an increase in the number of changes to HMRC’s guidance – in particular changes to articles in Agent Update and Employer Bulletin...
Making tax digital: Manual MTD registration required for some new VAT registrations
  • Oct 2023
When registering for VAT through HMRC’s VAT registration service, businesses should be automatically signed up to making tax digital (MTD). However, in some exceptional cases, the MTD registration is not being processed...
Tax payments and repayments: HMRC guidance on reducing self assessment repayment delays
  • Oct 2023
Self assessment repayments can be delayed at three different stages: 1. A delay to the processing of the return, form, or amendment that generates the repayment. 2. A repayment inhibitor is triggered. 3. The repayment is...
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More in tax administration

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