Tax cases: VAT

The Tax and Chancery tribunal decision applying the CJEU ruling in the case of Shield and Sons Partnership has been issued

Draft Finance Bill 2015 published

The government has published the draft 2015 Finance Bill.

Reasonable excuse

Generally, a 'reasonable excuse' is when some unforeseeable or unusual event beyond somebody's control has prevented that person from filing the return on time. For example: a failure in the HMRC computer system,a serious illness, disability or serious mental health condition has made the taxpayer incapable of filing the tax return etc.

Robert Smith v HMRC (TC2768) 2013

[20/12/2013] The recent tax first tier tribunal case has caused controversy in the professional press and calls into question whether the 'enquiry window' for opening an HMRC inquiry is still meaningful. Is it as bad as it seems?

VAT: single or multiple supplies

Subjective judgement required to apply the basic principles and guidance, as a recent tax case illustrates.

MacDonald Resorts Ltd v HMRC

This case concerns the place supply of a timeshare operated by Macdonald Resorts in Spain. HM Revenue & Customs won at Tribunal contesting that the place of supply was the UK and therefore at the standard rate of VAT.

McGowan v Brown & cousins

Tests whether a payment constitutes a trading receipt.

Horton v Young

Travelling costs and the wholly and exclusively rule.

Furniss v Dawson

Artificial series of steps inserted purely for the avoidance of tax; consolidated the Ramsay principle established in the case of W.T. Ramsay v CIR

Harrold v Inland Revenue Commissioners

Executor’s of the estate claimed APR on the property but the IR sought to include the value of the property in the estate for IHT purposes.

Ready Mixed Concrete (South East) Ltd v Minister of Pensions and National Insurance

Whether an owner-driver who provided his services to one company for its deliveries was employed or self-employed.

W.T. Ramsay V Cir

Artificial series of steps inserted purely for the avoidance of tax. This is a key case and, together with the case of Furniss v Dawson is a mainstay of HMRC in tackling artificial tax avoidance schemes on the basis of substance over form.

Rowland v HMRC

Whether reliance on a third party (an accountant) can be regarded as reasonable excuse for penalty/surcharge purposes.

Purves v Harrison

Retirement relief; whether a disposal constituted the sale of whole or part of a business.

Smiths Potato Estates Ltd v Bolland

The wholly and exclusively rule.

Samuel Jones & Co (Devondale) Ltd v CIR

This case tests whether an expense is revenue or capital.

Southampton Leisure Holdings Plc v C & E Commissioners

This decision tests partial exemption attribution.

Gilbert (T/A United Foods) v HMRC

Entrepreneurs' Relief; whether there was a sale of "part of a business".

HMRC v Khawaja

Level and quality of proof required by HMRC when levying penalties

United Biscuits (UK) Ltd

This case tests the definitions and exceptions of food.

HMRC v Weald Leasing Ltd

This European Court of Justice (ECJ) decision tests the whether a structure was an abusive practice.

Robertson v CIR, Sp C [2002] SSCD 182

IHT Valuation for a property too low; return subsequently corrected and additional IHT paid; HMRC issued penalties.

Scottish and Newcastle case

This case tests whether an expense can be classed as plant.

Allum & Allum v Marsh

Company purchase of own shares on retirement of directors; whether made for benefit of trade

Temperley v Visibell Ltd

Rollover relief; land acquired; proposed building of factory abandoned; roll-over relief claimed.

Walton v R & C Commrs

Amendments to Self Assessment return by HMRC; whether taxpayer had discharged burden of proving incorrect assessments.

Holden v Wood & Wood

Company incorporated overseas; whether resident in UK by virtue of control.

Salt v Chamberlain

The case tests whether an activity constitutes a trade.

HMRC v Landsdowne Partners Ltd.

Whether a discovery assessment was valid after HMRC discovered that they had incorrectly deducted certain expenses.

Hampton v Fortes Autogrill Ltd

This case tests whether an expense can be classed as plant.

Herbert Smith v Honour

Provision for future rents on vacated premises; whether tax deductible.

Tucker v Granada Motorway Ltd.

This case tests the difference between capital and trading treatment

Barclays Bank Trust Co Ltd v CIR

Business property relief; large cash balance held by company and restriction of relief.

Gordon & Blair v CIR

Change in activity; whether constituted a new trade for the purposes of carrying forward trading losses.

Sargent v Barnes

Travelling costs and the wholly and exclusively rule

R (on the application of Prudential plc) v Special Commissioner (and related applications)

Tax investigations, whether legal and professional privilege could be claimed in respect of certain documentation requested by HMRC during the course of an inquiry.

Benson v Yard Arm Club Ltd

This case tests whether an expense can be classed as plant.

HM Revenue & Customs v The Principal & Fellows of Newnham College in the University of Cambridge

This case tests the meaning occupation in regard to land.

TP Madgett (TP) & RM Baldwin (t/a Howden Court Hotel) v C & E Commissioners

This case tested whether a trade was within the Tour Operators Margin Scheme (TOMS).

Fleming (t/a Bodycraft), Condé Nast Publications Ltd v HMRC

This case looks at the issues of the three year time limit and input tax.

Veltema v Langham

Discovery assessment; whether HMRC permitted to issue one; tax return submitted with valuation subsequently found to be incorrect

Varty v Lines

Principle private residence relief; sale of part of land within curtilege of property following earlier sale of dwelling house and land.

Schofield v R & H Hall Ltd

This case tests whether an expense can be classed as plant.

Garnett v Jones (re Arctic Systems Ltd)

Whether issue of share to wife was a settlement and, consequently, the dividends taxable on the husband.

Batey v Whitfield

Principle private residence relief; sale of an ancillary property, separate from the main dwelling house.

Simpson v John Reynolds & Co (Insurances) Ltd

Tests whether a payment constitutes a trading receipt.

GD Cairns (VDE Webb's Personal Representative) v HMRC

Inadequate valuation of property on IHT return; HMRC issued a penalty summons for negligence; validity of summons.

Attwood v Anduff Car Wash Ltd

Plant and machinery; business use test vs. premises test

Rutledge v CIR

The case tests whether an activity constitutes a trade

Taylor v Good

Property with land acquired and subsequently sold with development value; Trading income vs. CGT.