Speed Read: HMRC has published its latest quarterly Trusts and estates newsletter. In Bailey v HMRC, the taxpayer’s claim for PPR based on occupation of just a couple of months was allowed. McQuillan v HMRC reversed the FTT’s decision by holding that redeemable non-voting shares with no right to dividends represent ordinary share capital for entrepreneurs’ relief purposes. A Guernsey court has set aside a trust set up on the basis of incorrect tax advice in Whittaker v Concept Fiduciaries Ltd. !e SRA issued a warning notice to solicitors threatening disciplinary proceedings for involvement in tax avoidance. Root2Tax and Root3Tax Ltd (in liquidation) is the first decision in HMRC’s favour stating that a tax arrangement was notifiable under DOTAS. The CJEU ruled in Trustees of P Panayi Accumulation & Maintenance Settlements v HMRC that a trust represents ‘another legal person’ for the purposes of freedoms under the TFEU. Good news for purchasers of off-plan properties intending to rely on CGT main residence relief in Higgins v HMRC. HMRC v M Mabbutt held that although HMRC made a mistake in issuing an enquiry notice, any reasonable person would have understood what it was referring to.
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