Michael Sherry: Recent work

Recent work

8th & 9th June 2010

Old EBT; considering draft amendments to trust deed in light of section 86 of the Inheritance Tax Act 1984, whether the property within the EBT is exempt property, whether section 86 exit event possible, whether any charge arises, whether section 86 ever satisfied or could be satisfied.

7th June 2010

New EBT acquiring 52% of shares in listed company into which the sponsoring company will be "reversed"; considering accounting issue relating to consoldation.

4th June 2010

Advising on remittance basis for non UK domiciliary, including reviewing consultancy contrac with overseas company, considering shadow director rules, considering whether use of assets hired at full market value amounts to remittance.

27th May 2010

First Tier Tribunal (Tax Chamber) Users Group

Advising on commercial derivatives transactions - collar strategy designed to acheive return better than cash for individual. application of gilts exemption.

Advising on substantial call option written by individual and transferred to insurance company by way of additional premium on investment policy - effect of insurance rules re "cooling off".

19th May 2010

Lecture on Gray's Timber.

Advising on realisation of gains prior to 22nd June 2010.

28th April 2010

Non-domiciliary with consultancy contract all duties of which performed overseas - whether non-convertible benefits in kind under contract capable of giving rise to remittances under new remittance basis - cgt rebasing of assets owned by foreign company owned by foreign trust of which UK residnet non-domiciliary settlor and beneficiary (pre 1986 settlement)

week ending 30th April 2010

Employee Benefit Trust - substantial close company - reverse takeover of listed company - initial purchase of controlling interest in listed company by EBT to be followed by offer for rest of shares - establishment of EBT and financing of EBT (drafting and advising).

22nd April 2010

Seminar with tax specialists of a professional firm; topics discussed included - whether car used by employee "pool" car - SDLT on transfer of farm to farming partnership including transferor, transferor's spouse and daughter, and daughter's unmarried partner - ESC C16 preceeded by capital reduction and return of cash to members - capital reduction followed by distribution to members; relevance of acounting treatment for corporate and/or individual members - Employment related securities - whether founder subscriber shares ERS - whether value shift on acquisition of operating company on terms advantageous to employee - whether advantage an emolument - whether advantage a benefit in kind - whether within ITEPA Pt 7, Ch 4?

22nd April 2010

Individual established his own company to operate clinic - clinic owned by individual - company occupying clinic rent free - individual gifting land and buildings to charitable foundation and claiming gift of asset relief - whether continued rent free occupation of clinic a "disqualifying event"; ITA 2007, s.444.

21st April 2010

Residential block of flats - freehold owned by tenants through a company each tennt owning one share - each tenant holding long lease - agreement for lease with developer for development of roof top penthouses - premium of approx £500,000 - developer to carry out the works of construction of penthouses - whether value of works a premium for chargeable gains purposes - developer to carry out renovation works to common parts and to replace all windows in the block with a view to maximising sale proceeds of penthouses - whether value of works a premium for chargeable gains purposes - whether value of works a "sum paid" - whether reasoning in Irving v IRC capable of applying to treat value of works as "sum paid".

20th April 2010

Employer funded pension only contracts - whether EFRBS - whether within scope of Corporation Tax Act 2009, section 1290 et seq. - whether employee taxable upon emloyer making contributions - whether NIC liability on contribution - wether earnings - taxation of pensions where pensioner resident abroad - sale of annuity: capital gains tax acquisition basis and exemption for pension rights; whether income tax liability; whether IHT disposal by company; whether within section 12 or section 10 of the Inheritance Tax Act 1984 - Postlethwaite v HMRC [2007] STC (SCD) 83.

week ending 16th April 2010

Hearing before for First Tier Tribunal (Tax Chamber) (Judge Roger F Berner with Philip J Gillett FCA Member) - EIS capital gains tax roll-over relief - whether value received from the company - money advanced to subsidiary when it should have been subscribed for shares - shareholder delegated responsibility for his affairs to 'right hand man' (a chartered accountant) - right hand man causing funds to be advanced to subsidiary without issue of shares - right hand man stealing funds from other companies - right hand man stealing funds from shareholder's personal account and causing those funds to be forwarded to subsidiary of investee company - principal in prison - thefts discovered and theif arrested - course of dealing established by thief followed by parties mistakenly - investee company then borrowing funds from bank in order to return funds stolen/recieved without authority - whether shareholder in receipt of value within the terms of TCGA 1992, Sched. 5B, para. 13(2)(b) - whether money received known to be stolen money or known to have been paid without authority or under a mistake gives rise to constructive trust or to debt - whether recipient had notice of wrongdoing or was itself victim of wrongdoing.

30th March 2010

Advising owner managed business and key team members on reorganisation from corporate vehicle to LLP with individuals and company as members. Issues included: captial gains tax reatment of goodwill introduced into LLP in light of Business Biref 03/08; interpretation of section 162(3)(4) of Corporation Tax Act 2009 (treatment of stock on cessation except where corporate sole trader admits others into partnership); consideration of ascertainment of market value on cessation/appropriation of entire trading stock (whether wholesale or retail market?); introduction of assets credited to capital account followed by withdrawal of capital - relationship with BB 03/08; commercial need to bring in key team members into LLP as memebers; roll-over relief availability on disposal of land no longer required and acquisition of new land for use in trade being transferred to LLP.

29th March 2010

25th March 2010

Back duty - advising on case progressing towards tribunal hearing - individual asked by employer's parent company to carry out transactions on the London Metal Exchange as agent for undisclosed principal - request confirmed in writing - losses accumulating - individual being pressed to settle account - dealer holding set-off agreeement under which dealer has power to off-set credit balances on accounts with other group companies - set-off effected - whether set-off for personal benefit of employee and hence emoluments - whether set-off and set-off agreement procured by parent company and consistent with employee's version of events - whether contracts between employee and dealer consistent with employee with agency - whether agent for undisclosed principal personally liable on contracts with third party

week ending 26th March 2010 and week ending 9th April

Preparation for First Tier Tribunal (Tax Chamber) hearing - EIS capital gains tax roll-over relief - whether value received from the company - money advanced to subsidiary when it should have been subscribed for shares - shareholder delegated responsibility for his affairs to 'right hand man' (a chartered accountant) - right hand man causing funds to be advanced to subsidiary wthout issue of shares - right hand man stealing funds from other companies - right hand man stealing funds from shareholder's personal account and causing those funds to be forwarded to subsidiary of investee company - investee company borrowing funds from bank in order to return funds stolen/recieved without authority - whether shareholder in receipt of value within the terms of TCGA 1992, Sched. 5B, para. 13(2)(b) - whether money received known to be stolen money or known to have been paid without authority gives rise to constructive trust or to debt

19th March 2010

EBT for hedge fund management group - drafting issues - application of section 86 of Inheriatnce Tax Act 1984 - whether section 86 ever satisfied - whether section 86 could ever be satisfied - construction of the trust document - excluded property settlement - proposed amendments to trust document

Situs of debt when money lent to UK resident individual - application of Westminster Bank Executor & Trustee Company (CI) Ltd v National Bank of Greece [1971] AC 945; specialty debts; debts secured on assets outside UK; EU Reg 44/2001 and exclusive jurisdiction clauses in agreements with parties not domiciled in Member States; obligation to withhold tax from interest payments - Income Tax Act 2007, section 874.