DOMESTIC INDIRECT FA18 FA18 Ch FA17 Ch Topic Major changes Minor changes No changes Notes 1 1 General Principles 2 2 The EU VAT system Added Paul Newey T/A Ocean Finance VAT case. 3 3 Registration Added Wetheralds Construction Limited case. 4 4 Definition of supplies 5 5 Liability of the supply Schedule 7A - reduced rate 7 7 Schedule 8 zero-rating 8 8 Schedule 9 - exemptions Added information on changes to: Cost sharing exemption; Affiliation fees; Pension fund management services provided by insurance companies. 9 9 Deemed supply and selfsupplies 10 10 Value of the supply 11 11 Time of supply RELX (UK) Limited 2018 XXXIII FA 2018
12 12 Input tax : when to recover Updated advisory fuel rates. 13 13 Partial exemption 14 14 VAT records and returns Updated for new HMRC guidance on pension funds and when VAT can be recovered. 15 15 Accounting for VAT 1 1 Bad debt relief 17 17 HMRC powers, appeals and assessments 18 18 Penalties for inaccuracies Revised penalty for errors in taxpayer documents. 19 19 Penalties for failure to notify 20 20 Default surcharge 21 21 Other penalties, interest and mitigation Updated to include information on: Penalties for transactions connected with VAT fraud; Disclosure of tax avoidance schemes for VAT and other indirect taxes (DASVOIT); Fulfilment House Due Diligence Scheme (FHDDS); Online marketplaces. 22 22 Refunds, repayment supplement and interest Updated Littlewoods decision to reflect Supreme Court judgement. RELX (UK) Limited 2018 XXXIV FA 2018
23 23 Land and buildings: zero and reduced-rating Updated to include details of the Boxwood, J3 Building Solutions Ltd and Astral Tribunal decisions. 24 24 Land and buildings: exemption and standard-rating 25 25 Land and buildings: option to tax 2 2 Capital goods scheme 27 27 Transfer of a business as a going concern 28 28 Groups 29 29 Second-hand goods margin scheme 30 30 The flat-rate scheme 31 31 Agency Included details of the Brabners LLP Tribunal decision. 32 32 Retail and promotion schemes 33 33 Farmers flat-rate scheme Added details of the Shields & Sons CJEU decision. 34 34 Miscellaneous 35 35 IPT 1 RELX (UK) Limited 2018 XXXV FA 2018
3 3 IPT 2 37 37 IPT 3 IPT returns are now submitted electronically through the Government Gateway. Removed legislative rules where a rate changes from the 9.5% rate to the 10% rate 38 38 IPT 4 Interest rate rise to 3% on underpayments (was 2.75%) New section inserted on DOITAS (Disclosure of Indirect Tax Avoidance Schemes) and the responsibilities placed on promoters and penalties for non-compliance 39 n/a Stamp Duty on Shares Added to syllabus for 2019 exams. Reference to the Air Berlin case where the ECJ held that the 1.5% higher rate on shares transferred to a clearance service will not apply where the sole purpose of the transfer is to list the companyʼs shares on a stock exchange, without there being any change of beneficial ownership; or where the transfer is of newly issued shares on an increase of capital for the sole purpose of offering those new shares to investors for purchase. Reference has been made to the same day stamping service where there is a business-critical requirement to have it stamped immediately RELX (UK) Limited 2018 XXXVI FA 2018
40 39 Stamp Duty Land Tax Students in the 2019 exams can choose to answer questions based on either SDLT or Scottish LBTT. These materials only cover SDLT. Welsh LTT is not examinable. Throughout the chapter references to the UK have been changed to England and Northern Ireland. First time buyer s relief applies for purchases from 22 November 2017. Houses up to 300,000 incur no SDLT. Houses up to 500,000 incur 5% SDLT on the excess above 300,000. Houses above 500,000 incur normal rates. This information is on your tax tables. Anti-avoidance legislation has been enacted so that the additional 3% rates on residential properties will still apply where a person buys a new home and that person s spouse or civil partner retains an interest in the old home. Exceptions are available for situations such as disposals on divorce. The Goode Cuisine Company Ltd case from 2018 has been included which held that the 15% anti-avoidance rate for company s purchasing high value dwellings will apply to a dwelling that is bought but then converted into a bed and breakfast. Although using a dwelling in a trade is an exclusion from the charge, the property must remain a dwelling after the conversion. A B&B is not a dwelling. Clarification that the linked transaction rules do not apply where there is a purchase including a dwelling subject to the 15% antiavoidance rate. Expansion on the relief available to charities and possible withdrawal of relief within 3 years of purchase. RELX (UK) Limited 2018 XXXVII FA 2018
41 40 Stamp Duty Land Tax Administration Students in the 2019 exams can choose to answer questions based on either SDLT or Scottish LBTT. These materials only cover SDLT. Welsh LTT is not examinable Where necessary, references to the UK have been changed to England and Northern Ireland RELX (UK) Limited 2018 XXXVIII FA 2018