Private client briefing for September 2017

The publication of Finance Bill 2017 (which reintroduces heldover rules on non-doms) is followed by the release of draft anti-avoidance rules on offshore trusts for inclusion in Finance Bill 2018. In Hood, the Upper Tribunal (UT) decides that mirror covenants in a sub-lease constitute benefits under the gifts with reservation of benefits rules. The GAAR panel publishes its first opinion. In Vigne, the First-tier Tribunal clarifies how it considers the business property relief ‘wholly or mainly’ test on businesses involving land. In X-Wind Power Ltd, the Upper Tribunal confirms that using the wrong form for seed enterprise investment scheme relief is fatal. In Morrison, the UT affirmed that disposals of listed shares on the market can still constitute pre-ordained composite transactions for CGT. HMRC publishes guidance on trustee tax returns and on the residence nil rate band when downsizing.