Tax and the City August briefing 2018

A legislative amendment is proposed to prevent ‘offshore looping’ of the type seen in the Hastings case. The High Court determines in Minera Las Bambas that tax is not ‘payable’ for tax indemnity purposes until the appeal against the tax assessment has been determined by the relevant court. The exemption from VAT for transactions concerning payments and transfers is so narrowly construed by the CJEU in DPAS that it is difficult to see how anyone other than a financial institution can fall within it. The FTT reminds us in Wildbird of the constituent parts of a loan relationship and shows that the content of HMRC’s manuals can be incorrect.