HMRC has published a draft Partnership tax manual, on which comments are invited. This follows the recommendations of the Office of Tax Simplification for a consolidated version of the guidance on partnerships. The manual highlights some of the main issues and areas of complexity that are specific to partnerships and signposts where more detailed guidance can be found. It is mainly focused on direct tax, particularly income and corporation tax, but it also refers to other taxes that may affect partnerships.
The Taxation of Chargeable Gains (Gilt-edged Securities) Order, SI 2014/1120, specifies two Treasury gilt-edged securities – 1¾% Treasury gilt 2019 and 2¾% Treasury gilt 2024 – disposals of which are exempt from tax on chargeable gains.
Revenue & Customs Brief 20/2014 explains that HMRC has received permission to appeal the taxpayer victory in the High Court decision of Littlewoods Retail Ltd and others v HMRC [2014] EWHC 868 (Ch) on a claim for compound interest on overpaid VAT to the Court of Appeal. Pending the outcome of this appeal, HMRC will apply for a stay on any compound interest claims already lodged with the High Court or County Court and will refuse any new requests for compound interest.
The Value Added Tax (Refund of Tax) Order, SI 2014/1112, which comes into force on 20 May 2014, adds five new combined authorities to the existing VAT refunds scheme for eligible bodies in VATA 1994 s 33. The listed bodies are entitled to claim refunds of VAT charged in relation to their supplies, acquisitions or importations, provided that those supplies, acquisitions or importations are not for the purpose of a business carried on by them.
The Value Added Tax (Drugs and Medicines) Order, SI 2014/1111, which comes into force on 21 May 2014, adds physiotherapists and podiatrists to the list of practitioners entitled to treat supplies of drugs and medicines they prescribe as zero-rated for VAT purposes.
HMRC is seeking to launch a new enhanced SDRT assessment service in June 2014. The enhancements aim to rebalance market practice by facilitating gross reporting of transactions in securities (stocks and shares), which have been netted outside of CREST, to a centralised point for reporting and assessment of SDRT. Comments are invited by 16 May 2014..
HMRC is consulting on proposed new powers allowing it to recover a range of assessed tax debts directly from the bank accounts of businesses and individuals who have ignored repeated requests for payment. This action would only apply to debts over £1,000 and would include such safeguards as leaving a minimum of £5,000 in the debtor's account. The proposal was announced at Budget 2014 and the consultation will run until 29 July 2014.
HMRC has published an update on its agents’ strategy. The review states that: HMRC should design all future digital services with agents in mind (agent online self serve will lay the foundations for this); HMRC should work with agents to promote voluntary compliance; and HMRC should work with software developers and service providers to determine the role it should play in supporting compliance.
New HMRC guidance is available from HMRC’s website, including:
HMRC has published a draft Partnership tax manual, on which comments are invited. This follows the recommendations of the Office of Tax Simplification for a consolidated version of the guidance on partnerships. The manual highlights some of the main issues and areas of complexity that are specific to partnerships and signposts where more detailed guidance can be found. It is mainly focused on direct tax, particularly income and corporation tax, but it also refers to other taxes that may affect partnerships.
The Taxation of Chargeable Gains (Gilt-edged Securities) Order, SI 2014/1120, specifies two Treasury gilt-edged securities – 1¾% Treasury gilt 2019 and 2¾% Treasury gilt 2024 – disposals of which are exempt from tax on chargeable gains.
Revenue & Customs Brief 20/2014 explains that HMRC has received permission to appeal the taxpayer victory in the High Court decision of Littlewoods Retail Ltd and others v HMRC [2014] EWHC 868 (Ch) on a claim for compound interest on overpaid VAT to the Court of Appeal. Pending the outcome of this appeal, HMRC will apply for a stay on any compound interest claims already lodged with the High Court or County Court and will refuse any new requests for compound interest.
The Value Added Tax (Refund of Tax) Order, SI 2014/1112, which comes into force on 20 May 2014, adds five new combined authorities to the existing VAT refunds scheme for eligible bodies in VATA 1994 s 33. The listed bodies are entitled to claim refunds of VAT charged in relation to their supplies, acquisitions or importations, provided that those supplies, acquisitions or importations are not for the purpose of a business carried on by them.
The Value Added Tax (Drugs and Medicines) Order, SI 2014/1111, which comes into force on 21 May 2014, adds physiotherapists and podiatrists to the list of practitioners entitled to treat supplies of drugs and medicines they prescribe as zero-rated for VAT purposes.
HMRC is seeking to launch a new enhanced SDRT assessment service in June 2014. The enhancements aim to rebalance market practice by facilitating gross reporting of transactions in securities (stocks and shares), which have been netted outside of CREST, to a centralised point for reporting and assessment of SDRT. Comments are invited by 16 May 2014..
HMRC is consulting on proposed new powers allowing it to recover a range of assessed tax debts directly from the bank accounts of businesses and individuals who have ignored repeated requests for payment. This action would only apply to debts over £1,000 and would include such safeguards as leaving a minimum of £5,000 in the debtor's account. The proposal was announced at Budget 2014 and the consultation will run until 29 July 2014.
HMRC has published an update on its agents’ strategy. The review states that: HMRC should design all future digital services with agents in mind (agent online self serve will lay the foundations for this); HMRC should work with agents to promote voluntary compliance; and HMRC should work with software developers and service providers to determine the role it should play in supporting compliance.
New HMRC guidance is available from HMRC’s website, including:
