A recent First Tier Tribunal judgement has confirmed HMRC’s view – see here for full judgement http://www2.bailii.org/uk/cases/UKFTT/TC/2021/TC08054.html of the required holding period for Substantial Shareholding Exemption to apply where a trade has been ‘hived down’ into a new company.
The case concerns the specific application of part of the Capital Gains Tax legislation (Para 15A Schedule 7AC Taxation of Chargeable Gains Act 1992) which has potential significance where a trade was ‘hived down’ ahead of a sale. Tax Partner Tom Saltmer comments “The application of this clause had been in doubt for some time as it potentially created an unnatural situation where Substantial Shareholding Exemption would apply if the original company had a dormant subsidiary but would not apply if there was no such subsidiary”.
Whilst the Judge in the M Group Holdings case did note this unnatural outcome it was not found that this was sufficient to depart from the strict wording on the legislation.
On that basis it is clear that HMRC’s view is that Substantial Shareholding Exemption would not apply where a single company ‘hives down’ a trade ahead of a sale – likely meaning a substantially worse tax position. Potential transactions will then need to be structured on a different basis to achieve the same tax outcome.
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Posted: 16 April 2021
HMRC have announced they will be contacting eligible taxpayers, either by email or through the online service, to notify them that they can apply for the fourth Self-Employment Income Support Scheme (SEISS) grant to cover the period 1 February 2021 – 30 April 2021.
No definitive date has been set for this, although HMRC have indicated that they will be contacting taxpayers from mid-April, with the deadline for claims being 1 June 2021.
For further information please see the following link: https://www.gov.uk/guidance/claim-a-grant-through-the-coronavirus-covid-19-self-employment-income-support-scheme
A fifth and, most likely, final grant will be issued later in the year to cover the period 1 May 2021 – 30 September 2021.
Burgess Hodgson will be contacting clients that we believe are eligible for the fourth grant. If you have any queries in the meantime please contact your usual tax adviser or email firstname.lastname@example.orgRead More
Posted 09 April 2021
The Treasury Direction dated 7 April 2021 has been published today, setting out the rules for claims of the latest SEISS grant.
(There seems to be a typo in the Treasury Direction clause 7.3 “31 April 2021” – guidance refers to 30 April 2021)
Also published today are a series of updated guidance notes relating to the grant.
These are currently on the first page:
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The non-binding code of practice has been updated to guide negotiations between commercial landlords and tenants on dealing with rent arrears and future rent arrangements.
Although the basic code is similar to that issued in June 2020, there is a new annex setting out a form for tenants and landlords to complete as part of the negotiations.
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Companies House have confirmed that the automatic extensions will come to an end for filings after 5 April; however there will be an option to apply for a 3 month extension for accounts submissions.
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Posted: 22 March 2021
In a landmark case, held on 19 March 2021, the Supreme Court ruled that care workers who fulfil ‘sleep-in’ shifts are not entitled to be paid the National Minimum Wage (NMW) for any hours that they are not awake and not actually performing a specific activity.
Read the full article here: https://www.cipp.org.uk/resources/news/sleep-in-care-workers-not-entitled-to-nmw.html
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Burgess Hodgson has been assisting General Practitioners and their practice management teams for over 30 years and have helped our clients navigate the ever changing commitments under their NHS Contracts.
Please do not hesitate to get in touch for a free consultation to review your circumstances and see how Burgess Hodgson may be able to assist you:
Simon Bailey: email@example.com
Kenton May: firstname.lastname@example.org
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Posted: 17 March 2021
If you trade goods with the EU or Northern Ireland and have been affected by the border changes since the UK left the EU, £2,000 grants are now available to assist your business. These are intended to help SMEs get up to speed with the new procedures by getting the training or professional advice needed to continue operations. (more…)Read More
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