Category: income tax

Jones v Garnett (HM Inspector of Taxes) [2007] UKHL 35 – WLR Daily

Posted July 31st, 2007 in dividends, income tax, law reports, married persons, small businesses by michael

Jones v Garnett (HM Inspector of Taxes) [2007] UKHL 35

“A husband who provided his services to the market via a private company which his wife co-owned, thus distributing his earned income between them both via dividend, was not liable to tax on the income transferred to the wife, pursuant to section 660A of the Income and Corporation Taxes Act 1988, provided the wife’s shares in the company were ordinary shares which carried a right to more than just income.”

WLR Daily, 30th July 2007

Source: www.lawreports.co.uk

Please note once a case has been fully reported in one of the ICLR series the corresponding WLR Daily summary is removed.

Revenue reviews the rules after couple win Lords case on taxing partnership – The Times

Posted July 26th, 2007 in dividends, income tax, married persons, news, small businesses by sally

“A couple who fought HM Revenue & Customs all the way to the House of Lords sparked a wide-ranging review of Britain’s tax system yesterday, after winning their landmark case.”

Full story

The Times, 26th July 2007

Source: www.timesonline.co.uk

Small businesses cheer legal victory in landmark tax case – The Independent

Posted July 26th, 2007 in dividends, income tax, married persons, news, small businesses by sally

“Small businesses were celebrating victory yesterday after the House of Lords dismissed an appeal by HM Revenue & Customs in a landmark tax case, and gave the legal all-clear to a tax-saving arrangement used by thousands of husband-and-wife operations.”

Full story

The Independent, 26th July 2007

Source: www.independent.co.uk

Husband-and-wife team triumph in tax battle – The Times

Posted July 25th, 2007 in dividends, income tax, married persons, news, small businesses by sally

“HM Revenue and Customs suffered a major defeat today when the House of Lords gave the legal all clear to a tax saving arrangement used by thousands of husband-and-wife small businesses.”

Full story

The Times, 25th July 2007

Source: www.timesonline.co.uk

Revenue to take more litigious line over tax cases – The Times

Posted June 11th, 2007 in corporation tax, income tax, news, VAT by sally

“Revenue & Customs has officially declared war on tax cheats, telling individuals and businesses hoping for negotiated settlements that it would rather see them in court.”

Full story

The Times, 11th June 2007

Source: www.timesonline.co.uk

Revenue and Customs Commissioners v. Smallwood – Times Law Reports

Posted June 7th, 2007 in capital allowances, income tax, law reports by sally

Act does not operate to curb enterprise zone losses

Revenue and Customs Commissioners v Smallwood

Court of Appeal

“Section 41(2) of the Taxation of Chargeable Gains Act 1992 did not operate to restrict allowable losses that would otherwise have accrued in respect of a taxpayer’s units in an enterprise zone property unit trust when he received distributions that gave rise to a deemed disposal under section 122 of that Act.”

The Times, 7th June 2007

Source: www.timesonline.co.uk

Please note the Times Law Reports are only available free on Times Online for 21 days from the date of publication.

Small firms could be stung for £1bn if tax battle is lost – The Times

Posted June 6th, 2007 in dividends, income tax, married persons, news, small businesses by sally

“Tens of thousands of small businesses could face a combined tax bill of £1 billion if the Law Lords rule in favour of the Treasury in its long-running battle against a small business owned by a married couple.”

Full story

The Times, 6th June 2007

Source: www.timesonline.co.uk

Landmark ‘husband and wife’ tax case begins in Lords – The Times

Posted June 5th, 2007 in dividends, income tax, married persons, news, small businesses by sally

“A landmark court case that will decide whether hundreds of thousands of owner-managed small businesses will face significantly higher tax bills began today in the House of Lords.”

Full story

The Times, 5th June 2007

Source: www.timesonline.co.uk

Revenue and Customs Commissioners v Barclays Bank plc – Times Law Reports

Posted June 5th, 2007 in income tax, law reports by sally

Employees’ free advice compensation is chargeable to income tax

Revenue and Customs Commissioners v Barclays Bank plc

Court of Appeal

“Payments to former employees of a bank to compensate them for the termination of an arrangement to provide them with a free tax advice service were made in connection with past service and were chargeable to income tax as relevant benefits requiring the bank to account to the Revenue for the tax under the pay-as-you-earn provisions. ”

The Times, 5th June 2007

Source: www.timesonline.co.uk

Please note the Times Law Reports are only available free on Times Online for 21 days from the date of publication.

Revenue and Customs Commissioners v. Decadt – Times Law Reports

Posted June 4th, 2007 in income tax, law reports by sally

Training cost is not tax-deductible

Revenue and Customs Commissioners v. Decadt

Chancery Division

“For expenses to be deductible from a taxpayer’s earnings, they had to be necessarily incurred in the performance of his duties and not simply because he was obliged by his contract to incur them.”

The Times, 4th June 2007

Source: www.timesonline.co.uk

Please note the Times Law Reports are only available free on Times Online for 21 days from the date of publication.

Revenue and Customs Comrs v. Barclays plc and another – WLR Daily

Posted May 15th, 2007 in income tax, law reports by sally

Revenue and Customs Comrs v. Barclays Bank plc and another [2007] EWCA Civ 442

“Where an employer had provided a free tax advice service to its pensioners and surviving spouses and, on termination of the service, made one-off payments in compensation, the provision of such payments constituted a relevant benefit under a retirement benefits scheme for the purposes of ss 596A and 612(1) of the 1988 Act.”

WLR Daily, 11th May 2007

Source: www.lawreports.co.uk

Please note once a case has been full reported in one of the ICLR series the corresponding WLR Daily summary is removed.

Chiniah v. Director General of the Mauritius Revenue Authority – WLR Daily

Posted April 20th, 2007 in company directors, income tax, law reports by sally

Chiniah v. Director General of the Mauritius Revenue Authority 

“A court could take into account a director’s dominant shareholding of a company in determining whether, under the law of Mauritius, he was a ‘principal officer’ of that company so as to be personally liable for income tax owed by the company.The Privy Council so held in dismissing an appeal by Jayram Chiniah from the order of the Court of Civil Appeal of Mauritius (YKJ Yeung Sik Yuen ACJ and P Lam Shang Leen J) affirming the decision of the Supreme Court of Mauritius to dismiss his notice of motion for erasure of an inscription of privilege in the sum of Rs 6.9m over his property, taken under the authority of the Income Tax Act 1995, in respect of income tax for the years 1991–92 to 1994–95 due by a company, Chiniah & Sons Ltd of which he was, until 17 April 1996, a director.”

WLR Daily, 17th April 2007

Source: www.lawreports.co.uk

Please note once a case has been fully reported in one of the ICLR series the corresponding WLR Daily summary is removed.

Income Tax Act 2007

Posted April 5th, 2007 in income tax, legislation by sally

Income Tax Act 2007 published.

Full text of Act

Source: www.opsi.gov.uk