Tax and the City briefing for May 2012

The First-tier Tribunal has another go at pinning down the slippery concept of ‘trade’ in the Eclipse film partnership case. The government shows some indication that it may be willing to back down on the capping of charitable donations relief, but holds fast to its 15% SDLT rate for corporate purchasers. The Indian government remains defiant over its proposals retrospectively to tax indirect transfers of Indian assets, although seems to accept some limitations on its ability to pursue taxpayers. HMRC has capitulated following HSBC Holdings and will not levy the 1.5% SDRT charge on issues to non-EU depositaries and clearance services. The FTT proposal remains in disarray whilst Philips Electronics gets the right answer from the Advocate General in its consortium relief case. HMRC consults over changes to the short lease premium rules.