CREST NICHOLSON LOSES TAX AVOIDANCE CASE
A tax tribunal has ruled against a stamp duty land tax (SDLT) avoidance scheme used by Crest Nicholson, one of the UK’s largest house builders, meaning it will have to pay the £1
3m it owes
HM Revenue & Customs (HMRC) challenged the artificial and complex arrangements made by the FTSE 250-listed company to avoid paying SDLT on three purchases of development land near Rochester in Kent for a total of more than £32m
The avoidance scheme sought to use the transfer of property between two sub-companies to avoid the tax
The First-tier Tribunal decision is likely to have an impact on more than 700 other cases, potentially protecting £65m of taxpayers’ money, HMRC said
Crest Nicholson argued that HMRC did not have a legal right to make assessments of the tax due because it was out of time to do so, and that it had not carried out its assessments properly
The judge disagreed with these arguments and found that HMRC had acted correctly throughout
The judgment reflects HMRC’s tribunal victory in the Vardy case in 2012, when it challenged a similar SDLT avoidance scheme based on complex sub-sale arrangements
HMRC director general, customer compliance, Jennie Granger, said: “This decision makes it clear that setting up artificial and complex arrangements involving sub-companies to avoid paying tax doesn't work
It's another important success that’s protected taxpayers’ money
This win sends a clear message that tax avoidance is expensive and self-defeating
” HMRC challenges every tax avoidance scheme it comes across and has a strong record of defeating schemes
When taxpayers choose to litigate, HMRC wins about 80% of avoidance cases heard in court, though many more scheme users choose to settle before reaching this stage by paying all the tax due
YOU'RE REQUIRED: ALAN SUGAR URGES PUBLIC TO GET BACK TO WORK
Business tycoon Lord Alan Sugar today urged Brits to “put on a suit, put on a dress and get back to work” amid rising calls to kickstart the faltering economy. Speaking to LBC radio, Sugar ...
LOCAL LOCKDOWN GRANT SUPPORTS BUSINESSES FORCED TO CLOSE
New grants worth up to £1,500 will be available every three weeks to businesses required to close due to local lockdowns or targeted restrictions. The new grants come as the government ...
CITB TO REMOVE 5,000 SMALLER CONTRACTORS FROM LEVY SYSTEM
Around 5,000 smaller construction companies will not have to pay any levy to the CITB next year. The training body is raising its Small Business Levy Exemption threshold for employers with wage b ...
540 JOBS LOST AFTER NATIONWIDE ACCIDENT REPAIR SERVICES GOES INTO ADMINISTRATION
The repairer was sold to RunMyCar, keeping 80 sites open but resulting in the closure of 30 more. Nationwide Accident Repair Services has collapsed into administration, along with a number of its subs ...
VIRGIN ATLANTIC TO CUT ANOTHER 1,000 JOBS AFTER £1.2BN RESCUE DEAL
Virgin Atlantic is said to be preparing a further 1,000 job cuts, hours after securing approval for a £1.2bn rescue deal. The airline, founded by Sir Richard Branson in 1984, will announce the l ...
SELF EMPLOYED .. WHAT CAN I CLAIM AS EXPENSES?
If you're self-employed, you will have various running costs. Some of these expenses you can deduct on your tax return as allowable expenses. Allowable expenses do not include money taken from your bu ...