UK tax update June 2023

• Double tax treaties: The First-Tier Tribunal recently confirmed (in the case of Sikder v HMRC) that, where a double tax treaty is silent on time limits for a claim, the normal rules for assessments under domestic law apply.
• Careless behaviour: In Danapal v HMRC, the Upper Tribunal issued a reminder that it is not only the taxpayer’s behaviour that is relevant when determining whether they have acted carelessly or deliberately, but also the behaviour of their adviser.
• Artificial tax planning: A recent case heard by the First-Tier Tribunal (Pride v HMRC) and a ruling of the General Anti-Abuse Rule Advisory Panel both highlighted the danger of tax planning that borders on the artificial.
• HMRC’s powers: A recent consultation on HMRC’s information-gathering powers contained a nod to the extensive powers that many of its foreign counterparts enjoy.
• Policy announcements: Ahead of next year’s general election, the Labour Party has come out in favour of higher SDLT on foreign buyers of UK property.

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