Tax analysis: In HMRC v Asset House Piccadilly Ltd, the First-tier Tax Tribunal (FTT) allowed HMRC's application and made an order that the arrangements put in place by the respondent, AHP, were notifiable arrangements within the disclosure of tax avoidance schemes (DOTAS) rules. The FTT rejected AHP’s argument that it was not a ‘promoter’ of the arrangements.

Tax analysis: The First-tier Tax Tribunal (FTT) considered an appeal relating to the statutory interpretation of the loan relationship rules set out in Part 5 of the Corporation Tax Act 2009 (CTA 2009). The appeal concerned whether losses arising from a loan relationship could be disallowed where the loss related to a time when the company seeking to use the loss was outside the scope of UK tax. The relevant provision was CTA 2009, s 327 concerning the disallowance of imported losses, which provides for disallowing a loss in connection with a loan relationship to the extent that the loss is ‘referable’ to a time when the company seeking to use the loss would not have been subject to corporation tax on profits from the loan relationship. The FTT held that the majority of the loss (£93m) was referable to a time when the company was not UK resident, and was therefore correctly disallowed under CTA 2009, s 327. The balance (£56m) was allowed by the FTT, HMRC having accepted that it should be. This is the first decision relating to these important rules. Written by Kelly Stricklin-Coutinho, barrister at 39 Essex Chambers.

Tax analysis: In Sangha, the First-tier Tax Tribunal (FTT) considered an appeal against an information notice issued by HMRC under Schedule 36 to the Finance Act 2008. The FTT set aside some items in the notice and varied others.

Tax analysis: In Lexgreen Services Ltd v HMRC, the First-tier Tax Tribunal (FTT) held that a company can be liable for inheritance tax under section 201(1)(d) of the Inheritance Tax Act 1984 (IHTA 1984) if that company is a ‘live company’ at the time of the relevant transfer.

Tax analysis: In Global by Nature Ltd v HMRC, the First-tier Tax Tribunal (FTT) decided that products were not sports drinks for the purposes of VATA 1994, Sch 8, Group 1, excepted Item 4A, because the products contained ‘low to negligible levels of carbohydrate’.

Tax analysis: In Jeneruhl Trade Ltd and another v HMRC, the First-Tier Tax Tribunal (FTT) found in favour of HMRC regarding the applicable time limit for raising an assessment relating to missing trader fraud.

Tax analysis: In both City Blinds Scotland Ltd v HMRC and Complete Solutions Europe Ltd v HMRC, the First-tier Tax Tribunal (FTT) made decisions concerning the coronavirus job retention scheme (CJRS), ie the coronavirus furlough scheme. Both cases included detailed consideration of the calculation of the reference salary for the purpose of the CJRS.

Tax analysis: In Walkers, the First-tier Tax Tribunal (FTT) decided that Sensations Poppadoms (Sensations) are subject to VAT at the standard rate. The FTT found that the products were similar to potato crisps.

Tax analysis: The First-tier Tax Tribunal (FTT) was required to decide whether certain ‘option agreements’ entered into for the purposes of financing (and re-financing) the purchase of a large former equine farm and buildings were really the grant of options (and therefore taxable disposals for capital gains tax purposes). The taxpayers in this case were ultimately successful in demonstrating that the ‘option agreements’ at issue were not actually options for capital gains tax purposes, but were effectively financing arrangements. While the case is only a FTT decision, it provides some helpful commentary on what an option is not, which is particularly helpful given the generally broad terms in which the word is used, both in the relevant legislation and HMRC’s guidance. Written by Tom Rank, partner and Alex Tolcher, senior associate at DWF Law LLP.

Tax analysis: In Fount Construction Ltd, the First-tier Tax Tribunal (FTT) allowed the appellant’s appeal against a decision by HMRC to disallow the appellant’s input tax claims in relation to three invoices. The FTT found that the supplier invoices supporting the claims met the statutory requirements of Regulation 14(1)(g) and (h) of the Value Added Tax Regulations 1995, SI 1995/2518 (the VAT Regulations).

Tax analysis: In Compound Photonics Group Ltd v HMRC, the First-tier Tax Tribunal (FTT) held that the appellant’s VAT group ceased carrying on economic activity following the disposal of its operating business in May 2017 and did not maintain an objectively evidenced intention thereafter to carry on taxable economic activity. The FTT also concluded, however, that the subsequent sale of retained intellectual property (IP) to Snap Inc in January 2022 constituted economic activity for VAT purposes, with the result that input tax directly linked to that transaction could potentially be recoverable.

Tax analysis: In Solent Pathway Campus Ltd v HMRC, the First-tier Tax Tribunal (FTT) decided that the appellant (SPCL) was an eligible body as a provider of education for VAT purposes. The FTT found that SPCL had the relevant features to be an eligible body, either as a college of a UK university, or as a provider of tuition in English as a foreign language.