Business tax

Tax / Warning on potential rise in CGT avoidance

HMRC collected £124m last year from investigations into SMEs and wealthy individuals suspected of avoiding capital gains tax (CGT), according to analysis by law firm Collyer Bristow which says a clamp down on the use of entrepreneur’s relief could prompt a hike in the use of avoidance schemes

Tax / European Commission seeks action on digital economy taxation

The European Commission has set out its own path towards a new taxation policy for the digital economy which it wants all member states to endorse, saying the current framework does not fit with modern realities, and global progress on this issue is not adequate

Tax / Solicitors face scrutiny over tax planning advice

Solicitors providing tax planning services could face greater scrutiny from the Solicitors Regulatory Authority (SRA) and HMRC as government begins to clamp down on aggressive tax avoidance schemes

Tax / Future of capital allowances up for OTS review

The Office of Tax Simplification (OTS) is to review options for replacing the current capital allowances tax relief system with an accounts depreciation approach as the current model is too complicated and expensive for businesses to administer, reports Sara White

Tax / US set to lose $12bn in tax take by 2027 if multinationals relocate overseas

Tax inversions by US multinationals attempting to shift profits into lower tax jurisdictions could cost the US up to $12bn (£7.4bn) in lost corporate tax revenues by 2027, according to figures released by the US Congressional Budget Office

Tax / HMRC mid-sized business service to help 170,000 companies

As many as 170,000 mid-sized companies will benefit from extra help from HMRC tax specialists, under plans confirmed by the tax authority

Tax / Wetherspoons cuts food and drink prices today in protest over VAT

Wetherspoon’s pubs across England, Wales and Northern Ireland will be cutting the price of all food and drink by 7.5% on the 20 September, as part of national tax equality day to promote the benefit of a VAT reduction in the hospitality industry

Tax / Farming: ownership disputes and legal status - part 6

Julie Butler FCA considers whether the inclusion of an error in the accounts changes legal ownership highlighting the issues raised in the long-running and contentious Ham v Bell & Ors [2016] EWHC 1791(Ch), settled at the High Court last year

Tax / EU finance ministers agree to draft digital tax laws for IT giants

The EU is closer to reaching agreement on draft rules for a pan-European digital tax basis for major multinational IT giants such as Amazon and Google, with proposals based on permanent establishment status due to be released in spring 2018

Tax / Anti-money laundering online service rejecting certain reference numbers

HMRC’s new anti-money laundering service, the Supervised Business Register, provides taxpayers with longer reference numbers which are not currently compatible with its search tool, meaning taxpayers must use the company name to verify if the business is registered under Money Laundering Regulations

Tax / First Common Reporting Standard exchanges on tax kick off

The first automatic Common Reporting Standard (CRS) exchanges between 49 jurisdictions will take place this month, to allow the annual exchange of information on offshore accounts to tackle tax evasion, with a further 53 jurisdictions taking up exchanges in September 2018

Tax / Corporate loss tax rules could be double edged sword

Menzies tax manager Natasha Spicer and tax director Lucy Mangan consider the impact of changes to the tax regime for corporate losses with the introduction of rules to curb corporate use of interest deductibility

Tax / HMRC puts post-Brexit border tax costs at £800m

HMRC chiefs have warned MPs that the department will need thousands more staff to handle customs and tax requirements once new trade arrangements are established post-Brexit, and are examining a ‘Singapore-style’ option

Tax / R&D tax credit scheme changes see 22% hike in SME claims

SMEs are starting to make greater use of R&D tax credits, with the latest statistics showing a 22% increase in the number of claims in the past year, which HMRC says reflects changes made to the SME scheme from April 2012 onwards

Tax / Landfill tax to be extended to illegal waste sites

HMRC is holding a six-week consultation on draft legislation in Finance Bill (no.2) which will extend the scope of landfill tax to include disposals at sites which do not have an appropriate environmental permit, to ensure rogue operators handling waste illegally will have to pay