April Newsletter 2019



A Trust is a Trust is a Trust… Tang vs HMRC




This was the finding of the First Tier Tax Tribunal in the case of Tang v HMRC, 2019 UKFTT 0081 TC.

Lily Tang was a midwife who worked in the NHS.  In 2013 HMRC found out (having issed an information notice to the bank) that more than 90,000 USDollars were held in an account in Mrs Tang’s name with Standard Chartered in Singapore.

HMRC raised a discovery assessment against Mrs Tang and requested further information from her in relation to the account.  Mrs Tang advised HMRC that the money did not belong to her but belonged to her parents in law who were resident in Hong Kong.  She further advised that she and her husband managed the monies in accordance with the instructions of her parents in law.







Discovery Assessments and Staleness

HMRC have the authority to open a discovery assessment into a taxpayer where HMRC discovers that:
(a) Any income or chargeable gains, which should have been assessed to tax, have not been assessed to tax; or,
(b) An assessment to tax is or has not been sufficient; or,
(c) Any relief that has been given is excessive.


Schedule 36 & HMRC’s Long Reach

The Court of Appeal has decided in HMRC’s favour in an important decision about the department’s powers.The decision concerned HMRC’s ability to issue Schedule 36 information notices outside the UK. Such information notices are formal requests for information under Schedule 36 Finance Act 2008 and such notices may be issued to taxpayers themselves as well as to third parties.




Personal Tax

Individual Taxable Income – The Self-Assessment Tax Return Process

Many of you will have received a tax coding notice from HMRC over the past couple of weeks, but what does this mean and is your code correct?A tax code is a way for HMRC to collect tax on an individual’s taxable income outside the self- assessment tax return process.

Employees’ tax codes stipulate the amount of income tax to be deducted by their employers or pension providers under Pay As You Earn (PAYE) on an ongoing basis rather than filing self-assessment tax returns and paying the tax due after the end of the tax year.



Tax Planning

Transfer of Goodwill:
Richard Villar

Background – transfer of goodwill

This case involved an orthopaedic surgeon selling his trading practice ‘Richard Villar Practice’ but continuing to work for the purchaser. He made a claim for Entrepreneurs’ Relief.

Virtually all of the proceeds were attributed to the reputation and goodwill of the principle surgeon. As such, HMRC argued that this could not be sold. HMRCs argument was that he had merely changed the way in which he operated and that the proceeds should be treated as income profits under general provisions or ‘sale of occupation income’ anti-avoidance provisions.   






In High Demand For Seminars

Paul McKay has been in high demand this April, traveling around the North West delivering seminars. ‘Here at ETC Tax we have always valued seminars, whether it is presenting or just attending.  When we were approached by the ICAEW to present at their events this month we did not hesitate’ commented Paul. Paul has presented at ICAEW BSCA Group (Bolton Society of Chartered Accountants) and ICAEW Latest Developments for Members in Business Spring Updates.





Hitting The Big Screen


Once again Andy Wood will be hitting the big screen with another panel discussion with property TV, so keep a look out on Channel Sky 189 for his interview.


Celebrating The End Of Another Successful Year For ETC Tax


April sees the start of a new financial year for ETC Tax.  To celebrate the end of a great year and to look forward to even greater success going forward we had a curry and drinks locally.  Another great night out with team ETC.



What’s new

Happy new [TAX] year! Here is a list of some of the work we have been involved in this month:

  • Advising a corporate finance firm on the structure of a transaction, to ensure the shareholders satisfy the requirements for entrepreneurs’ relief.
  • Advising a corporate group on the relevant tax issues relating to the winding up of overseas subsidiaries across multiple jurisdictions.
  • Advising a US resident and domiciled client on inheritance tax and succession planning in relation to UK residential properties.
  •  Negotiating settlements with HMRC in relation to the 2019 Loan Charge.

If you or your clients need help with similar issues, or indeed if there are any other tax issues that you feel we may be able to help you with, please contact us at info@etctax.co.uk or on
Cheshire – 01925 363006
Manchester – 0161 711 1310
London – 020 3011 1355




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