Weekly tax brief | 13 April 2021

Supreme Court protects care home operator from painful VAT bill
Sarah Halsted
The Supreme Court’s recent decision in Balhousie Holdings indicates that care home operators, charities and universities may be able to use leaseback arrangements to finance certain new buildings without incurring a hefty VAT liability.

Digital ID measures could block the gateway for 30-day CGT reporting
Justin Stevenson
HMRC’s digital identification processes are causing some taxpayers administrative headaches and delays for 30-day capital gains tax (CGT) reporting on UK property disposals. While ID checks are necessary, HMRC should consider the questions it asks on its Government Gateway account carefully, as current issues do not bode well for the digitisation of tax.

Will the shadow economy be a victim of Coronavirus?
Tim Parr
The Coronavirus pandemic has greatly reduced people’s desire to handle cash. Does this signal the end for the cash-in-hand shadow economy?

Covid working from home tax relief needs to be claimed again
Sarah Saunders
The tax allowance for working from home due to Covid-19 needs to be claimed again for 2021/2, it does not automatically carry forward.