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M Group Holdings case confirms HMRC view of application of Substantial Shareholding Exemption

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.

If you have any questions please contact ts@burgesshodgson.co.uk

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Self-Employment Income Support Scheme – Fourth Grant

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 tax@burgesshodgson.co.uk

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Treasury Direction – Self employed Income Support Scheme grant

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:

https://www.gov.uk/search/all?level_one_taxon=5b7b9532-a775-4bd2-a3aa-6ce380184b6c&content_purpose_supergroup%5B%5D=guidance_and_regulation&content_purpose_supergroup%5B%5D=news_and_communications&order=updated-newest

If you have any questions please contact info@burgesshodgson.co.uk

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Commercial Property Code of Practice

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.

 

The code is at: https://www.gov.uk/government/publications/code-of-practice-for-the-commercial-property-sector

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.

 

If you have any questions on this please contact info@burgesshodgson.co.uk

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Companies House Filing Extensions Ending

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.

For more information visit: https://www.gov.uk/government/news/automatic-filing-extensions-granted-by-the-corporate-insolvency-and-governance-act-due-to-come-to-an-end

 

If you have any questions on this please contact: company.secretarial@burgesshodgson.co.uk

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The Supreme Court rules that sleep-in care workers are not entitled to the minimum wage

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 

Please contact info@burgesshodgson.co.uk with any questions.

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SEISS Grant – HMRC Email

Posted: 19 March 2021

HMRC sent an email on 26 February 2021 to a number of self-employed traders, asking them to prove they are still trading before they can claim the 4th and 5th SEISS grants.

The deadline for response is Monday 22 March.

(more…)

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Medical Sector

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.

Here are a few of the ways we can assist you if you work in the Medical Sector.

 

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: sjb@burgesshodgson.co.uk

Kenton May: kcm@burgesshodgson.co.uk

Guy Vine: gv@burgesshodgson.co.uk

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£20m SME Brexit Support Fund

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…)

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Tax Tables 2021-22

Click here to download our free and useful tax tables for tax year 2021-2022

 

If you need help with your tax or have any questions please get in touch with our tax team at tax@burgesshodgson.co.uk

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