Marlborough DP Ltd v Commissioners for HMRC [2021] WTLR 1329

Wills & Trusts Law Reports | Winter 2021 #185

Marlborough DP Ltd (MDPL) operated a dental practice, through which a Dr Thomas, its director and sole shareholder, provided dental services. It had instituted a ‘remuneration trust’ (RT), which it had stated to be for the benefit of persons who had provided or might in the future provide services, custom or products to MDPL. MDPL made ‘contributions’ to the RT which were said to reflect ‘part of the economic cost to [MDPL] of earning its profits’. MDPL then deducted its contributions to the RT as business expenses in computing its profits for accounting purposes, and claimed deductions ...

HMRC v Fisher & ors WTLR(w) 2021-14

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Tax: The future of CGT?

Ramandip Kaur and Jo Summers provide a review of the OTS’s second report on CGT The OTS is recommending that a Single Customer Account for all taxpayers, which is easily accessible and secure, should be a key component of the government’s vision, particularly for CGT. The Office of Tax Simplification (OTS) is the independent adviser …
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Tax: Planning for the future in the present

Rosalind Fitzgerald and Sofia Thomas discuss the practicalities of ‘nesting’ child arrangements and the tax issues that may arise In a nesting arrangement, if both parties are going to utilise the second home for some time, it may well make sense to transfer the property into joint names, so that the annual CGT exemption for …
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Tax: Using HMRC forms wisely

John Elliott gives the lowdown on some essential admin for trusts and estates ‘The R185 shows the income received in the trust or estate and the rate and amount of tax that the trustees or executors have paid on this income. The beneficiary uses this information to offset their own tax liability.’ The R185 (Trust) …
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Tax: HMRC guidance trumped by court

Alison Cartin examines entrepreneurs’ relief: disposals by the trustees and the qualifying beneficiary requirement ‘In relation to disposals by individuals of shares or securities of a company, entrepreneurs’ relief will be available in respect of all shares in the company disposed of by the individual shareholder even if some of those shares have been held …
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Tax: HMRC – a retrospective

The rules on estate duty for works of art have changed, to the detriment of the owner. Charles King-Farlow argues for redress ‘The Finance Act 2016 has effectively introduced a new tax charge payable by grandchildren or even more remote issue of an owner, on whose death an estate duty exemption was granted more than …
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Tax: The limitations of Ramsay

When will an NNDR tax avoidance scheme be subject to a successful challenge? Nicholas Trompeter examines a case that sheds light on the points considered ‘The local authorities in Rossendale submitted that the notion of an “owner” of an unoccupied property had to be interpreted purposively as an owner with a real entitlement to possession.’ …
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Hogarth v HMRC [2018] UKFTT 0595 (TC)

Wills & Trusts Law Reports | Spring 2019 #174

The appellants were trustees of a life interest trust, the income of which was mandated to the life tenant and passed directly to him. HMRC served a notice under s8A of the Taxes Management Act 1970 to file an income tax return on the trustees. When no return was filed, HMRC assessed penalties against the trustees for failure to file the return by the due date. The trustees appealed to the First-Tier Tribunal against the decision of HMRC to reject their appeals, arguing that they thought a return had been filed by their previous agents, that given that the return was a ...

Tax: Window of opportunity

With an updated non-dom regime due to come into force in April 2018, Claire Randall and Alexis Hille outline the action to take now ‘This rule has been introduced to prevent non-doms from taking advantage of the favourable remittance basis regime indefinitely: it means that each non-dom can only use the regime for a maximum …
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