The following Owner-Managed Businesses guidance note Produced by Tolley provides comprehensive and up to date tax information covering:
These are our brief notes and thoughts on cases published in the last week or so which caught our eye and are likely to be of particular interest to tax practitioners. Full case reports and commentary on most of these cases will be included within our normal reference sources in the coming weeks.
This is a case on research and development tax credits. What comes through loud and clear in the decision is the critical importance of a claimant being able to identify with precision both the nature of the project for which relief is claimed and the costs associated with that project. Here (other than in some minor respects) the company failed to do either. It is also notable that the firm that advised on the R+D claim did not support the company in its appeal: there seems to have been a fundamental lack of agreement between the company and its advisers over who was responsible for the contents of the claim. The particular facts of this decision will not be of general importance, but the case is certainly an object lesson for all those involved in R+D in showing that mere assertions that R+D activity is being carried on (and that there are costs associated with it) will not be sufficient to rebut an HMRC enquiry.
There are many concerns within the tax profession that there are some fundamental flaws in the way in which some advisers are handling R+D claims. This case will do nothing to allay them.
One of the conditions for Entrepreneur’s relief is that the person making the disposal must have been an employee of the company which has been sold for the 12 months prior to the disposal. Here, the taxpayer’s employment with the company was terminated in 2013 and the disposal occurred in 2017. On the face of it, the conditions were not met, but the
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This guidance note explains the general rules surrounding the availability of indexation allowance on the disposal of company assets and provides information on the rebasing rules for assets held on 31 March 1982. For an overview of the general position regarding company disposals, please refer to
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