Mediation and Tax: When preparation meets opportunity?

Maximising the return on Mediation Settlement Payments

WORKSHOP: In-Person & In-Depth

17 October 2023 - Doubletree by Hilton Angel Kings, London

This Seminar is about UK Tax and Mediation Settlements which are essentially contractual settlements.

In just one day understand:

There are no special UK rules
for Tax and a settlement
by Mediation

Usual rules concerning settlement payments apply
for UK tax purposes. Income tax, CGT, Corporation
Tax and VAT are all particularly relevant

Careful analysis is needed of what the payment
is for and how that is to be treated
for UK tax purposes

Complex and not always
obvious rules

Careful preparation and ability to deal
with unexpected when needed

Why you should attend:

After attending this workshop, advisers will feel equipped to engage in the dispute process, which may either be with a specialist tax litigator but also taking a case themselves. There will be a range of disputes where due to cost constraints the client may prefer to use the original adviser whilst more complex disputes will require the participation of a specialist.

Your Workshop Leaders

Adrian Shipwright Barrister
Addington Chambers

Julian Hickey Barrister
Addington Chambers

All Speakers

Workshop style and timings

This workshop is designed to be participative throughout. There will be ample opportunity for delegates to benchmark experiences with industry peers and raise issues of most concern to their organisation, either confidentially or in open. Two tax barristers will guide you through some of the complexities of:

6.5 Hours Of In-Depth Content

9:30 - 4.00pm

Workshop Topic	Subject Matter
Introduction	Not considering tax can be expensive and lead to unhappy clients for the adviser. Not a matter for the meditator ? Mediation is facilitated negotiation between the parties who reach the solution. The UK Tax rules also often require clarity as to what it is that is being settled or brought to an end and how.
Importance of preparation and consideration of outcomes in advance	Need for preparation because of complexity and uncertainty etc. UK tax position can be complex and in need of careful detailed analysis. What the parties agreed? Ascertain on a contractual basis NB in tax cases the onus of proof is on the taxpayer and not HMRC. Not unusual for out of the ordinary and unexpected matters to arise and form the basis of a settlement. What does the client want? What do other parties want? “Gameplay” potential outcomes in advance see what possible and where there may be a “landing zone” Reporting
What is the payment for?	Difficult but vital question Payer and payee’s position is not the same
Relevant taxes	Main UK taxes to consider Income tax (“IT”) Capital Gains Tax (“CGT”) Corporation Tax (“CT”) Value Added Tax (“VAT”)
IT	The capital or income question “Hole in the Profits” The sterilization principle Termination of a Contract Withholding Tax Reimbursement Overview Summary Deductions Some unusual cases that may be useful
CGT	The Charge to CGT Deemed Disposals S 22 TCGA Zim Properties v Proctor [ 1985] STC 90. Compensation and capital gains taxation
CT	Broadly similar principles to those for IT and CGT apply for CT purposes.
VAT	General The Charge to UK VAT
Consideration: Settlement of Disputes: Disputes involving suits for damages	As a final point, there is no supply for VAT purposes simply because a party agrees to settle out of court Settlement of disputes involving claims for payments of supplies made Termination of a contract on payment Payment in kind - Double supply?
Tax risks and the mediation settlement agreement	General Contractual Risk Allocation Any overarching principle that could be agreed? Terms of the Settlement Agreement VAT Payment VAT inclusive or exclusive? Transfer of business as a going concern? Income tax Care is needed with the anti avoidance provisions Hole in profits? Withholding tax is there annual interest being paid? are there royalties? Capital gains tax Capital sum derived from an asset Reliefs Double disposal if payment inspected Corporation tax SDLT etc S 53 Double charge if in effect to swap

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