Weekly tax brief | 8 February 2022

HMRC crypto guidance opens door to investigations
Chris Etherington
 Just two days after the tax return filing deadline, HMRC published new cryptocurrency guidance which could mean thousands of taxpayers have prepared their returns incorrectly, leaving them open to investigations into their tax affairs.

VAT exemption for dog-grooming courses – an unexpected Brexit dividend?
Sarah Halsted
 A tax tribunal has ruled that privately taught dog-grooming courses are not currently eligible for the VAT exemption for education, but could the rapid growth of dog ownership, or even Brexit, change this for the future?

HMRC intensifies focus on challenging innovation tax relief claims
Justin Stevenson
 HMRC is becoming increasingly concerned with ‘abuse and boundary-pushing’ involving R&D tax reliefs, as highlighted by the recent HM Treasury R&D Tax Reliefs Report. This is also a concern shared by many advisors.

Will the prospect of a 51 per cent tax lead to an exodus of US private equity money?
Lewis Tompkins
As UK tax advisers were busy completing tax returns throughout January, you wouldn’t blame them for missing a small but significant change to the taxation of carried interest. We don’t have the finished product yet but, if pushed through, new HMRC guidance could leave some investment managers (particularly those subject to worldwide US tax) with staggering 51 per cent tax bills on their carried interest.

CGT reporting for selling your home: resident or non-resident?
Alex Foster
Specific CGT reporting has been in place for individuals selling UK residential property since 2015. However, the difference in the rules for UK tax residents compared to non-residents can lead to difficulties in knowing exactly what to do.

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