I have now retired from full-time practice so it would be disingenuous to describe myself as busy but tax issues that keep me occupied, when I am occupied, are very much the same as they have been for my several decades in practice; namely helping clients navigate the ever increasing complexities of our tax system which task, I have to say, is exacerbated by HMRC’s apparent belief that tax collecting should be a confrontational affair. I also chair a number of employee ownership trusts (EOTs) which, while not specifically a tax pursuit, arises as a result of the government’s very sensible decision to legislate for these in 2014 following the excellent Nuttall Report.
If you could make one change to a tax law or practice, what would it be?
The high income child benefit charge is a nonsense for a variety of reasons. If a benefit is to be means-tested, then it should be dealt with in that way. To make the benefit universal and then means-test it by way of a tax charge (often levied on someone other than the recipient of the benefit) was ill-conceived at best and was always going to lead to problems, which is why too much tribunal time is wasted on deciding whether average taxpayers could possibly have known that this is the way the system works. Also, I am old enough to remember the days before independent taxation of spouses. That change was brought about rightly to acknowledge that wives are not chattels and to legislate for their right to confidentiality as regards their tax affairs. This marks a backward step in that process.
Describe a memorable incident from your career?
Not so much a single incident but more a reminder of ways that things used to be. Many years ago when summers were long and hot, banks had managers, and the then Inland Revenue operated a similar system. Matters were dealt with by local districts which had inspectors who were real human beings with whom one could develop a relationship. I recall one particular exchange of correspondence concerning whether the cost of a commode in an architectural practice had been wholly and exclusively incurred for business purposes. At one point, we raised a new argument as to the functionality of the piece which elicited the reply from the district inspector, no less: ‘Now we’re really getting to the bottom of things’. Priceless!
Has a recent tax case caught your eye?
Yes, The Quentin Skinner 2015 Settlement L and others v HMRC [2022] EWCA Civ 1222. This is a BADR (business asset disposal relief) case relating to holding of company shares both as an individual and trustee. The taxpayer won at FTT, lost at UT and won in the Court of Appeal. If that isn’t an indication that our tax system is overly complex, I don’t know what is!
What are clients currently asking about?
As mentioned above, employee ownership trusts are becoming increasingly popular and rightly so. There is plenty of evidence to demonstrate that EOT ownership can be of great benefit to companies and their various stakeholders, and it is gratifying to see the tax system being used in this positive way to encourage changes in business structures that can benefit the many.
You might not know this about me but...
I am an avid supporter of Millwall Football Club. I wonder why nobody likes me…
I have now retired from full-time practice so it would be disingenuous to describe myself as busy but tax issues that keep me occupied, when I am occupied, are very much the same as they have been for my several decades in practice; namely helping clients navigate the ever increasing complexities of our tax system which task, I have to say, is exacerbated by HMRC’s apparent belief that tax collecting should be a confrontational affair. I also chair a number of employee ownership trusts (EOTs) which, while not specifically a tax pursuit, arises as a result of the government’s very sensible decision to legislate for these in 2014 following the excellent Nuttall Report.
If you could make one change to a tax law or practice, what would it be?
The high income child benefit charge is a nonsense for a variety of reasons. If a benefit is to be means-tested, then it should be dealt with in that way. To make the benefit universal and then means-test it by way of a tax charge (often levied on someone other than the recipient of the benefit) was ill-conceived at best and was always going to lead to problems, which is why too much tribunal time is wasted on deciding whether average taxpayers could possibly have known that this is the way the system works. Also, I am old enough to remember the days before independent taxation of spouses. That change was brought about rightly to acknowledge that wives are not chattels and to legislate for their right to confidentiality as regards their tax affairs. This marks a backward step in that process.
Describe a memorable incident from your career?
Not so much a single incident but more a reminder of ways that things used to be. Many years ago when summers were long and hot, banks had managers, and the then Inland Revenue operated a similar system. Matters were dealt with by local districts which had inspectors who were real human beings with whom one could develop a relationship. I recall one particular exchange of correspondence concerning whether the cost of a commode in an architectural practice had been wholly and exclusively incurred for business purposes. At one point, we raised a new argument as to the functionality of the piece which elicited the reply from the district inspector, no less: ‘Now we’re really getting to the bottom of things’. Priceless!
Has a recent tax case caught your eye?
Yes, The Quentin Skinner 2015 Settlement L and others v HMRC [2022] EWCA Civ 1222. This is a BADR (business asset disposal relief) case relating to holding of company shares both as an individual and trustee. The taxpayer won at FTT, lost at UT and won in the Court of Appeal. If that isn’t an indication that our tax system is overly complex, I don’t know what is!
What are clients currently asking about?
As mentioned above, employee ownership trusts are becoming increasingly popular and rightly so. There is plenty of evidence to demonstrate that EOT ownership can be of great benefit to companies and their various stakeholders, and it is gratifying to see the tax system being used in this positive way to encourage changes in business structures that can benefit the many.
You might not know this about me but...
I am an avid supporter of Millwall Football Club. I wonder why nobody likes me…
