CREST NICHOLSON LOSES TAX AVOIDANCE CASE

blog header image

Posted : 13 Mar 2017 at 16:31:49
Category: News

Share this article

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

LATEST SIMILAR NEWS

YOUR VAT RETURN AND MAKING TAX DIGITAL
Posted on: 10 Sep 2019 at 12:20:18
Support from HMRCMost VAT-registered businesses with a taxable turnover above £85,000 now need to submit their VAT returns using Making Tax Digital compatible software. HMRC can help you get ready with live webinars and short videos.The HMRC are running a number of Webinars to assist anyone wanting...
COULD YOUR END CLIENT BE NEXT ON THE LIST FOR HMRC?
Posted on: 02 Sep 2019 at 14:43:42
Great article by Thomas Wallace from WTT.Why GSK?It wasn’t long ago that all HMRC enquiries took the form of individual Compliance Checks, where an officer of HMRC would write to you, hold a meeting with you, review your records and reach a conclusion (not always right) based on all of this, or evid...
ACCOUNTANTS JOIN CALL TO DELAY CONSTRUCTION VAT CHANGE CHAOS
Posted on: 30 Aug 2019 at 13:20:48
Leading accountants have joined the call to postpone VAT changes which could cause a cash-flow crisis across construction.More than 150,000 construction companies are facing a 20% drop in cash flow when planned VAT changes come into force in October.The “domestic reverse charge” changes mean compani...
LOAN CHARGE ACTION GROUP HELPLINE ARE FEELING SUICIDAL, SAY CAMPAIGNERS
Posted on: 30 Aug 2019 at 10:06:28
GROWING numbers of callers to a helpline set up by the Loan Charge Action Group (LCAG) say they are feeling suicidal, according to research conducted by campaigners.The new helpline is manned by volunteers who oppose the loan charge, a controversial Government policy which has left workers with...
REVERSE CHARGE VAT: CONSTRUCTION INDUSTRY BEGS FOR TIME
Posted on: 30 Aug 2019 at 09:33:22
A coalition of construction associations is pressing the chancellor of the Exchequer for a six-month delay to the 1st October 2019 introduction of domestic reverse charge VAT.Reverse charge VAT means that the customer receiving the service will have to pay the VAT to HM Revenue & Customs instead...
ISG LANDS £40M DIAGEO HQ FIT-OUT
Posted on: 14 Aug 2019 at 10:32:05
ISG has won a £40m contract to refurbish Turner House at 16 Great Marlborough Street in London’s West End.Diageo is moving to Great Marlborough StreetISG’s work will prepare the building to become the new headquarters of international drinks group Diageo, which is moving from Park Royal to the West...