Tax Matters Digest

Our next article concerns a First-tier Tribunal (FTT) decision in Lifeplus Europe Ltd v HMRC. The case looks at the limits of HMRC information powers in a transfer pricing enquiry and, in particular, whether the US parent’s group consolidated accounts were within the taxpayer’s power to provide, and whether they were ‘reasonably required’ for the enquiry. Our article sets out key takeaways from the decision.

Our second case law update concerns another FTT decision in WWM (Harrogate) LLP v HMRC which considers whether intellectual property generated personally sits with the individual. Our article sets out why the case is important, and what potentially affected businesses should consider when claiming goodwill is held by the individual.

Our employer’s article this edition looks at HMRC’s change of view on how corporation tax relief is given for the cash cost of net‑settling employee share awards that are structured as ‘non-legal’ options. Our article summarises what has changed, why it is important, and what employers should do next.

Returning to the courts, we look at the FTT’s decision in Sinclair & Anor v HMRC which considers whether a field used for grazing sheep was ‘grounds’ for SDLT purposes and reminds us that this is a very fact specific area.

Our final article is a link to Tim Sarson’s latest international tax roundup for Tax Journal. This month Tim turns his attention to the latest OECD report on the global minimum tax implementation, an EU judgment on the VAT treatment of year-end transfer pricing adjustments, and a proposed digital services tax in Belgium, as well as other items of interest.

In Other News in Brief this edition we provide updates on the following:

• HMRC’s manual on the Advance Tax Certainty Service;
• HMRC’s manual on Mandatory Tax Adviser Registration;
• OECD consolidated commentary on the GloBE model rules;
• A consultation on guaranteed minimum pension conversion provisions; and
• Updated guidance on the UK-India Double Contribution Convention.

Finally, we include the latest editions of our Indirect Tax Talking Points (three this time) and our global Week in Tax publications.