Welcome to this edition of Tax Voice, a monthly round-up of the most important tax news.

Top stories

HMRC loses another inheritance tax case
The Upper Tier Tribunal has made an important decision in relation to the traditional Scottish landed estate of the Earl of Balfour, rejecting HMRC’s contention that investments held as part of a business should not qualify for inheritance tax business property relief (BPR).

Controlled Foreign Corporations (CFCs): the next step
While we welcome the government’s continuing intention to simplify the existing CFC regime and its willingness to consult with the tax profession and industry, the date by which this process is due to be completed has been put back another year, from 2011 to 2012.
 
Big giving in big society
More than US$150 billion has been promised to charity by 40 US billionaires led by Bill Gates and Warren Buffett. Enormous benefits would follow if giving on this scale could extend to the UK. Unfortunately, apart from the fact that there aren’t as many billionaires in the UK, three major problems deter large scale donations in the UK.

ECJ confirms that VAT is due from employers
On 29 July the European Court of Justice ruled that employers must account for output tax on the supply of salary sacrifice retail vouchers to employees. 

Other tax news

Businesses finally receive some positive news in compound interest appeals  
Businesses finally received a ruling in their favour in their fight to receive compound interest on overpaid VAT.

Be careful when combining pleasure with business
Anyone travelling abroad on business may take one look at the UK’s weather forecast and decide to extend their stay overseas into a holiday. Great idea but what are the tax consequences?

Graduate tax – university funding deserves better than this  
With the introduction of the Office of Tax Simplification, the government has proclaimed a commitment to increasing the predictability, stability and simplicity of the UK tax system.

Benefit like Beckham: a pensions poser for early retirees
Early retirees need to think carefully before drawing on their pension because doing so both reduces the permitted size of the pot from which they may pay for their pension and restricts their scope for making further contributions in future.

Claim CGT losses on failed companies promptly but don’t be panicked into hasty action  
As the recession took its toll, a number of companies fell into administration, never to emerge, and are now approaching the point where they will be struck off.

Travellers entitled to bring back more duty-free goods this summer
Many travellers will not have realised that they are now entitled to bring back more goods free from VAT and duty than ever before.