Tax News

Tax News: The One Big Beautiful Bill

Zoe Andrews and Tanja Velling are joined by Arvind Ravichandran, Tax Partner at Cravath, to discuss the impact the proposed section 899 could have on US capital markets if enacted but how it is unlikely to be a big issue in practice.

They cover:

• The purpose and potential withdrawal from the Bill of Section 899, a proposed tax on foreign investors, in response to global tax developments
• How changes to the GILTI regime aim to more closely align U.S. tax policy with OECD standards
• The mix of permanent tax cuts and temporary “America First” measures included in the Bill
• Key negotiation points for Congress including the SALT cap, Medicaid reforms, and clean energy tax credits

Tax News: June 2025

Zoe Andrews and Tanja Velling discuss the Upper Tribunal’s decisions in Walkers Snack Foods on the VAT classification of “Sensations Poppadoms” and Rettig Heating Group, the judicial review of HMRC’s refusal of a late claim to set off a non-trading loan relationship deficit. They then discuss the Court of Appeal’s decision in Beard on the meaning of “dividends of a capital nature”.

The podcast also covers the UK government’s plans to modernise stamp taxes on shares, draft legislation for the reform of diverted profits tax, and transfer pricing and permanent establishment legislation, and a consultation on the potential changes to the process for resolving tax disputes.

It further discusses HMRC’s revised unallowable purpose guidance and international news including on a US tax change (the addition of a new Code section 899) that could significantly increase the tax cost of investing in the US for residents of countries that are deemed to impose “unfair” taxes.

Tax News: May 2025

Zoe Andrews and Tanja Velling discuss the First-tier Tribunal’s decisions in:

• Candy giving overpayment relief for an SDLT charge on the substantial performance of a contract that was later cancelled
• Refinitiv on the taxpayer’s successful application for a direction to issue closure notices
• Vaccine Research Limited Partnership where purposive construction was used to look at transactions in the round and conclude that certain licence fees were not “income” 

They also cover the Court of Appeal’s decision in WTGIL on the scope of the VAT exemption for insurance intermediation. 

The podcast further discusses the postponement of the consultation on the tax treatment of pre-development costs, HMRC’s revised guidance on the salaried members rules, legislation on territories recognised as having implemented a qualifying income inclusion rule or domestic minimum tax, and a few other UK domestic and international developments. 

Tax News: April 2025

Partner Alex Dustan from our Infrastructure and Energy team joined the April 2025 edition of our Tax News podcast to discuss the consultation on a “new permanent mechanism…to respond to future oil and gas price shocks” once the Energy Profits Levy ends, and the Court of Appeal’s decision in Gunfleet Sands on tax relief for pre-development costs.

Zoe Andrews and Tanja Velling discuss the consultation on advance tax certainty for major projects and certain other points from the UK Chancellor’s Spring Statement. The podcast further covers the First-tier Tribunal’s decision in Hastings Insurance Services allowing input tax recovery in respect of a so-called “offshore looping structure” - the decision is of wider interest as an example of the application of the UK’s VAT rules post-Brexit - and the Court of Appeal’s decision in Innovative Bites on the VAT classification of Mega Marshmallows. Zoe and Tanja also touch on some EU developments.

Tax News: March 2025

In this podcast, tax associate Stephanie Mullins joins Zoe Andrews and Tanja Velling to discuss the UK Supreme Court’s decision in Royal Bank of Canada which could call into question received wisdom on the Ramsay principle of statutory interpretation.

Zoe and Tanja draw out lessons on evidence and witness selection from the First-tier Tribunal’s decision in Lloyds Asset Leasing before touching on a High Court decision in a VAT-related judicial review, HMRC’s revised view on Condition C in the salaried members rules, updates on changes to inheritance tax reliefs and business rates, and a National Audit Office report on the administrative cost of the UK tax system.

The podcast’s international section focuses on the US with updates on the domestic tax policy process, a new reciprocal trade and tariff policy, and a memorandum which foreshadows US action against digital services taxes and wider policies to regulate digital businesses.

Tax News: February 2025

In this podcast, Tax Associate Nadia Hourihan joins Zoe Andrews and Tanja Velling to discuss the Court of Appeal’s decision in ScottishPower that payments in lieu of penalties are tax deductible (even though no tax deduction would have been available for the penalties themselves).  

Zoe and Tanja further discuss the First-tier Tribunal’s decision in NHS Mid & South Essex that withholding tax applied to an interest element included in certain redress payments.

The podcast also covers the potential impact of President Trump’s inauguration day announcement on international tax reform, before diving into recent UK developments in relation to the multinational top-up tax and the domestic top-up tax (new draft HMRC guidance and government amendments to the Finance Bill) and OECD publications on Pillar Two, including new Administrative Guidance.

Tax News: January 2025

In this podcast, Zoe Andrews and Tanja Velling discuss the First-tier Tribunal’s decision in Blackfriars Hotel applying an anti-avoidance provision in the loss relief regime to a loss-refreshing transaction reminiscent of the Kwik-Fit unallowable purpose case.

They also discuss the First-tier Tribunal’s decision in Grint on the sale of occupational income rules (which had been used by HMRC as an alternative argument in the BlueCrest, HFFX and BCG  partnership remuneration cases) and the Court of Appeal’s decision in Refinitiv, a judicial review case concerning the compatibility of diverted profits tax notices with a prior advance pricing agreement.

They are then joined by Tax Associate Kasim Mehmood for a discussion of the Supreme Court’s approach to interpreting tax legislation in Cobalt Data Centre and changes to HMRC’s capital gains manual in respect of the reorganisation rules.

The podcast also covers PISCES, a proposed new type of regulated trading platform for private shares, and what 2025 might bring in terms of UK, EU and US tax developments, including (in case of the UK) various consultations on changes to the transfer pricing rules as well as potential enquiry activity in this area.

Tax News - U.S. tax policy post-election

In this special episode of our Tax News podcast, Zoe Andrews and Tanja Velling asked Arvind Ravichandran, Tax Partner at Cravath, Swaine & Moore LLP, what U.S. tax policy may look like during a second Trump Administration.

During the episode, we cover:

• The significance of the Republican Party achieving a “trifecta” in the November 2024 elections.
• How tax legislation can be passed by simple majority vote through the Budget Reconciliation process.
• What policy proposals could be on the table and how you can look out for clues as the incoming Administration’s policies develop.

Listen to the podcast to learn more about what might happen next on U.S. tax policy.