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Transfer of trade/tax losses: HMRC win in Upper Tribunal

Global Tax Update:August 2016/United Kingdom

The Upper Tribunal has decided in favour of HMRC in the Leekes loss streaming case, reversing the decision of the First-tier Tribunal. The Leekes group acquired Coles, a loss-making company with a business similar to that of Leekes. (Global Tax Update:August 2016/United Kingdom)

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1. Transfer of trade/tax losses: HMRC win in Upper Tribuna

The Upper Tribunal has decided in favour of HMRC in the Leekes loss streaming case, reversing the decision of the First-tier Tribunal. The Leekes group acquired Coles, a loss-making company with a business similar to that of Leekes.

2. Persons of Significant Control (PSC) register goes live

UK incorporated companies, limited liability partnerships and certain other entities are now required to identify individuals that have significant control over them and provide this information to Companies House.

3. New European VAT rules on vouchers from (or before) 1 January 2019

The European Council has announced that it has approved a directive aimed at increasing legal certainty for transactions involving vouchers.

4. “Outside the scope” income leads to loss of input tax: Upper Tribunal decision

The Upper Tribunal has agreed with the First-tier Tribunal’s conclusion in the case of Vehicle Control Services Limited (VCS), and confirmed that VCS was not entitled to recover input tax to the extent that it related to "outside the scope" income - from penalties imposed when motorists contravened the parking regulations in the car parks that it managed.

 

>> Click for Japanese [欠損金の引継ぎ:HMRCが上級裁判所で勝訴 ほか] 

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