CORPORATION TAX – capital gain realised on sale of property – whether payment to director/former shareholder who was controlling party was deductible – jurisdiction in circumstances where no claim made to use loan relationship deficit before issue of closure notice or expiry of two year time limit - whether payment was a distribution – whether amount deductible as expense or loss from non-trading loan relationship – appeal dismissed
CORPORATION TAX – s1219 Corporation Tax Act 2009 – company with investment business – expenditure in connection with disposal of assets – whether expenses of management of the company’s investment business – whether expenditure was capital in nature
The Court of Appeal reversed the decision of the Upper Tribunal (UT) in relation to the question of whether a UK LLP was trading, and if so, whether that trade was being carried on with a view to a profit
INCOME TAX AND CAPITAL GAINS TAX – sale of serviced building plots in grounds of Grade I listed building – sale proceeds used for restoration of listed building – whether trading or capital gain – appropriation of land from capital to trading stock − principal private residence – extent of permitted area of garden and grounds – whether land “denatured” by construction works – whether “conservation deficit” is deductible expense – whether trust impressed on sale proceeds – imputed market-value on non-arm’s length disposal – s5 ITTOIA – ss 17, 161 and 222 TCGA
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Impact of standstill provision for third country dividends – claim for damages where double taxation relief arises but cannot be used in full because of other reliefs
Treaty interpretation - the First-tier Tribunal (FTT) held that a UK-resident company was not also US resident for the purposes of the UK–US double taxation treaty
The First-tier Tribunal (FTT) determined that a company was entitled in principle to a deduction in computing its rental profits for capitalised revenue expenditure that remained unamortised when the asset to which it related was sold
The First-tier Tribunal (FTT) held that farmhouse renovation costs were capital in nature and disallowable for income tax purposes
COSTS - Complex category case - Applications under Rule 10(1)(b) for unreasonable costs and Rule 10(1)(c) for costs following the event - Whether costs to be assessed on the standard or indemnity basis? - 'Costs of and incidental' - Catana and Distinctive Care considered - Interest on costs - Date from which to run, and rate
Case involving share sale and buy-back transaction, where payment made by the company on the purchase of its own shares was considered by HMRC to be a “distribution” chargeable to income tax under the UK equivalent of s130 TCA 1997