INCOME TAX/VALUE ADDED TAX – whether Appellant had undeclared trading income – time limit for issuing discovery assessment – whether Appellant’s VAT returns were inaccurate – whether Appellant liable for penalty for failure to file self-assessment tax returns – s 93 Taxes Management Act 1970 – whether Appellant’s conduct dishonest/deliberate – s 60 Value Added … Continue reading Qolaminejite v Revenue and Customs (Income Tax/Value Added Tax – Undeclared Trading Income): FTTTx 2 Dec 2019
Income tax – closure notice – professional fees and subscription not within requirements of s336 Income Tax (Earnings and Pensions) Act 2003 – self-employment expenses of pounds 120,000 with income of pounds 5,000 over 46 days not genuine – no expectation of profit – s66 Income Tax Act 2007 – closure notice confirmed Citations: [2019] … Continue reading Jordan v Revenue and Customs (Income Tax – Closure Notice): FTTTx 9 Dec 2019
Citations: [2007] EWCA Civ 1041, [2008] Bus LR 663 Links: Bailii Statutes: Income and Corporation Taxes Act 1988 Part XIII Jurisdiction: England and Wales Taxes Management Updated: 19 November 2022; Ref: scu.260052
The claimant sought to enforce a judgment debt against a foreign resident company, and for this purpose to examine or have examined a director who lived abroad. The defendant said that the rules gave no such power and they did, the power was outside the rule-maker’s power. Held: Even though the rule-making power is wide … Continue reading Masri v Consolidated Contractors International Co Sal and Others: HL 30 Jul 2009
INCOME TAX – information notice under paragraph 39 of Schedule 36 to Finance Act 2007 – failure to comply with notice – penalty – claim for subsistence and training expenditure – principles to be applied – penalties for careless inaccuracies in 2016/17 self-assessment return under Schedule 24 Finance Act 2007 – appeal dismissed Citations: [2020] … Continue reading Phillips v Revenue and Customs (Income Tax – Failure To Comply With Notice): FTTTx 9 Mar 2020
INCOME TAX – CAPITAL GAINS TAX – sale of business or exploitation of name and reputation – capital or income nature of funds – goodwill – profits of trade, profession or vocation – section 5 Income Tax (Trading and Other Income) Act 2015 – Part 13, Chapter 4, Income Tax Act 2007 Citations: [2019] UKFTT … Continue reading Villar v Revenue and Customs (Income Tax/Corporation Tax : Appeal): FTTTx 21 May 2018
INCOME TAX – Whether certain alleged agent and webmaster expenses of self-employment as an adult entertainer deductible? – In the absence of evidence, no – Penalty Assessments – Schedule 24 Finance Act 2007 – Whether conduct leading to inaccuracy deliberate? – Yes, but not in relation to a return with figures which are expressly said … Continue reading LD v Revenue and Customs (Income Tax/Corporation Tax : Assessment/Self-Assessment): FTTTx 9 Aug 2019
INCOME TAX – loss relief – loss in a trade – whether yacht chartering trade carried on on a commercial basis and with a view to the realisation of profits for the purposes of Section 66 of the Income Tax Act 2007 – held that the Appellant intended to realise profits (so that the condition … Continue reading Roulette V2 Charters Llp v Revenue and Customs (Income Tax – Loss Relief – Loss In A Trade): FTTTx 15 Aug 2019
Commercial Practice is to be followed in apportioning payments under a lease between different tax years. There is no requirement that expenditure must be charged to year it in which technically falls due, but tax accounts must not give a misleading picture of trading results. Citations: Gazette 08-Sep-1993, Ind Summary 26-Jul-1993, Times 01-Jul-1993, [1994] Ch … Continue reading Gallagher v Jones (Inspector of Taxes) Threlfall v Same: CA 1 Jul 1993
Income tax – Section 28A(1) and (2) Taxes Management Act 1970 – appeal against Closure Notice and Revenue Amendment – whether appellant ‘trading’ and whether entitled to deduct payments made to family members to fund property dealings which ultimately proved abortive were an allowable business expense – no – profits correctly assessed by HMRC – … Continue reading Lim v Revenue and Customs (Income Tax/Corporation Tax : Assessment/Self-Assessment): FTTTx 2 Jul 2019
INCOME TAX – discovery assessments – Taxes Management Act 1970 ss. 9A, 12B, 28A, 29, 34, 36 – onus of proof – whether discovery ‘stale’ – whether the condition under s 29(4) met for the ordinary time limit to be extended – income returned on an accruals basis – quantum of insufficiency varied for a … Continue reading Kantopoulos v Revenue and Customs No 2 (Income Tax – Discovery Assessments): FTTTx 19 Jul 2019
Retired bank employees had previously received free tax advice. When the service was withdrawn, the bank made a payment. The Revenue said that this payment was chargeable to income tax. Held: The bank’s appeal failed. The payment was made ‘in connection with’ the former employment, and viewing that in context it was a chargeable payment … Continue reading Barclays Bank Plc and Another v HM Revenue and Customs: CA 11 May 2007
INCOME TAX – Penalty imposed on company for inaccuracy in Construction Industry Scheme return – (Sch 24 FA 2007) – Personal Liability Notice issued to director of the company (para 19 Sch 24 FA 2007) – Whether inaccuracy was ‘deliberate’ Citations: [2019] UKFTT 200 (TC) Links: Bailii Jurisdiction: England and Wales Income Tax Updated: 21 … Continue reading Farrow v Revenue and Customs (Income Tax/Corporation Tax : Sub-Contractors In The Construction Industry): FTTTx 19 Mar 2019
INCOME TAX – whether appellant had under-declared trading profits -discovery assessments – s 29 Taxes Management Act 1970 – whether discovery had become stale – penalties for inaccuracies in tax returns – schedule 24 Finance Act 2007 – whether conduct deliberate and concealed – appeal allowed in part Citations: [2019] UKFTT 99 (TC) Links: Bailii … Continue reading Chaudhary v Revenue and Customs (Income Tax/Corporation Tax : Assessment/Self-Assessment): FTTTx 14 Feb 2019
The taxpayer company entered into an arrangement in which shares were purchased by a company based in Ireland and resold. A claim was made for holdover relief. Held: The scheme failed. The restriction imposed did not infringe the right of establishment under European law since the company was not restricted from setting up business. It … Continue reading Foulser and Another v HM Inspector of Taxes: ChD 20 Dec 2005
Land at Wembley stadium had been sold to the defendants and leased back. The defendant assigned the freehold within the group, declaring that the lease was held in trust for the original freeholder. The claimant now said that the defendant assignee was not entitled to claim the service charge. Held: There had been an estoppel … Continue reading Wembley National Stadium Ltd v Wembley (London) Ltd and Others: ChD 4 Apr 2007
Member states may be liable to individuals for their failure to implement EU laws. The right of individuals to rely on directly applicable provisions of the EC Treaty before national courts is not sufficient in itself to ensure full and complete implementation of the Treaty. LMA Brasserie de Pecheur – Claim by a French brewery … Continue reading Brasserie du Pecheur v Bundesrepublik Deutschland; Regina v Secretary of State for Transport, ex parte Factortame and others (4): ECJ 5 Mar 1996
Citations: [2007] EWHC 2661 (Ch) Links: Bailii Jurisdiction: England and Wales Citing: Appeal from – Peter Clay Discretionary Trust v Revenue and Customs SCIT 27-Feb-2007 SCIT DISCRETIONARY TRUST – whether single fee for expenses of management that relate partly to income and partly to capital can be attributed partly to each for s 686(2AA) Taxes … Continue reading HM Revenue and Customs v The Trustees of the Peter Clay Discretionary Trust: ChD 15 Nov 2007
The claimant sought additional provision from her father’s estate. She said that the will failed to make reasonable provsion for her, bearing in mind her extreme financial needs. She was a single mother of three. Held: The claim failed. Michael Furness QC J said: ‘the most important factors are first the financial position of the … Continue reading Garland v Morris and Another: ChD 11 Jan 2007
Citations: [2007] EWHC 2561 (Ch) Links: Bailii Jurisdiction: England and Wales Income Tax, Construction Updated: 28 July 2022; Ref: scu.262177
The claimant government sought the return to it of historical artefacts in the possession of the defendants. The defendant said the claimant could not establish title and that if it could the title under which the claim was made was punitive and not to be applied by English law. Held: It is necessary for a … Continue reading Iran v The Barakat Galleries Ltd: QBD 29 Mar 2007
The taxpayer appealed against a finding that the value of shares in quoted companies transferred into his unapproved funded retirement benefits scheme by the employer was payment of a sum under section 595 and was taxable as such. Held: The appeal failed. The words ‘pays a sum’ were not restricted to payments of cash. To … Continue reading Irving v Revenue and Customs: ChD 8 Feb 2007
The taxpayer company had received compensation for having been excluded from its business premises for a period until a compulsory purchase process failed. It treated the receipt as capital. The revenue said it was income. Held: The court considered how to treat mistakes of law by lower courts.Buxton LJ said: ‘We were assured on all … Continue reading Able (UK) Ltd v Revenue and Customs: CA 22 Nov 2007
SCIT Capital expenditure on software – whether HMRC can raise additional contentions in an appeal beyond those indicated in the Closure Notice – whether expenditure was incurred pursuant to an unconditional contract – whether the expenditure paid 10 months after the date of the contract was still paid under a contract that required payment within … Continue reading Tower MCashback Llp1 and Llp2 v Revenue and Customs: SCIT 19 Jul 2007
IR 35 – business and data analysis contractor working on a series of three-month contracts for a five-year computer project -whether would be an employee if engaged directly by the client – yes – appeal dismissed Citations: [2007] UKSPC SPC00618 Links: Bailii Jurisdiction: England and Wales Income Tax Updated: 11 July 2022; Ref: scu.259272
(The Bahamas) The US government sought the extradition of the appellant from the Bahamas on drugs charges. The warrants were found to be void, and the defendant released unconditionally, when the nmagistrate rejected evidence from an admitted co-conspirator. It was then said thet the respondent had no right of appeal against a grant of habeas … Continue reading Gibson v United States of America: PC 23 Jul 2007
The husband and wife had each owned a share in a company which sold the services of the husband. The Revenue claimed that the payment of dividends to the wife was a settlement. Held: The Revenue failed. The share had been transferred to the wife by the formation agents. The share carried more than the … Continue reading Jones v Garnett (Her Majesty’s Inspector of Taxes): HL 25 Jul 2007
Europa Freedom of establishment – Article 52 of the EC Treaty (now, after amendment, Article 43 EC) – Non-resident taxpayer carrying out a self-employed activity – Setting of minimum tax bases applicable only to non-resident taxpayers – Justified by requirements of general interest – Effectiveness of fiscal supervision – Not justified. Citations: C-383/05, [2007] EUECJ … Continue reading Raffaele Talotta v Etat belge: ECJ 22 Mar 2007
The Revenue appealed findings as to the calculation of profits for corporation tax. The companies had sought to deduct sums from profits for depreciation of unsold stock in accordance with current accounting standards. Held: ‘the profit and loss account is concerned with revenue and expenses. A fall in the value of stock to below cost, … Continue reading Revenue and Customs v William Grant and Sons Distillers Ltd: HL 28 Mar 2007
The court was asked whether termination payments made to employees on redundancy and which had been calculated according to unexpired notice periods were liable to Schedule E income tax and national insurance. The calculations were based upon a memorandum of agreement between the company and the trades union. Held: The memorandum could not sensibly be … Continue reading SCA Packaging Ltd v HM Customs and Excise: ChD 22 Feb 2007
The court considered the treatment of losses in a London branch of the non-resident Bank. Had the company been resident it could have set off the losses. It claimed that the refusal was an unlawful discrimination. Judges: Sedley, Arden, Moses LJJ Citations: [2007] EWCA Civ 119 Links: Bailii Statutes: UK-Switzerland Double Taxation Convention of 8 … Continue reading HM Revenue and Customs v UBS Ag: CA 21 Feb 2007
Appeal against refusal of Construction Industry Scheme Certificate. Citations: [2007] EWHC 73 (Ch) Links: Bailii Statutes: Income and Corporation Taxes Act 1988 561 Jurisdiction: England and Wales Income Tax, Construction Updated: 09 July 2022; Ref: scu.248325
The defendants suspected a carousel VAT fraud. The defendants appealed a finding that there was a viable cause of action alleging a ‘conspiracy where the unlawful means alleged is a common law offence of cheating the public revenue’. The defendants argued (inter alia) that the attempted recovery was void under the Billl of Rights. Held: … Continue reading Total Network Sl v Customs and Excise Commissioners: CA 31 Jan 2007
The appellants challenged an assessment to income tax, saying that they had not been supported by a bona fide discovery of any loss of tax, and was otherwise unsupported by evidence. Held: ‘The appellants have over a period of many years denied the true facts and have failed to provide any evidence of their partnership … Continue reading Momin and others v HM Revenue and Customs: ChD 15 Jun 2007
Husband and wife had been shareholders in a company, the wife being recorded as company secretary. The company paid dividenceds to both. The husband appealed a decision that the payment to his wife was by way of a settlement and was taxable in his hands. Held: The appeal succeeded. ‘there can be no doubt but … Continue reading Jones v Michael Vincent Garnett (HM Inspector of Taxes): CA 15 Dec 2005
SCIT SCHEDULE A – income from land – whether agreements for lease gave rise to an immediate right to rent or whether the right was conditional on obtaining the landlord’s consent to subletting – whether the Landlord and Tenant (Covenants) Act 1995 enables retention of a future rent payment on a sale of the reversion … Continue reading A Property Company v HM Inspector of Taxes: SCIT 5 Oct 2004
The taxpayer worked as an information technology specialist. His earnings were channelled through a limited company. The company paid on part of its income to his wife, with the result that the total tax paid was reduced. The inspector sought to tax the sum paid to the taxpayer’s wife as a settlement made on her … Continue reading Jones v Garnett (Inspector of Taxes): ChD 28 Apr 2005
Income tax – transactions in securities – Part 13 Chapter 1 Income Tax Act 2007 – section 684 (1)(c) – whether the main purpose or one of the main purposes of the person being a party to the transactions in securities is to obtain an income tax advantage Citations: [2022] UKFTT 143 (TC) Links: Bailii … Continue reading Wroe, Stephen Rimmer, Colin Timms v Revenue and Customs (Income Tax – Transactions In Securities): FTTTx 27 Apr 2022
Judges: Lightman J Citations: [2006] EWHC 1535 (Ch) Links: Bailii Jurisdiction: England and Wales Cited by: See Also – Able (UK) Ltd v Revenue and Customs ChD 19-Oct-2006 Appeal by way of case stated against a decision of the General Commissioners as to whether a certain compensation payment received by the appellant under section 31(3) … Continue reading Able (UK) Holdings Ltd v HM Inspector of Taxes: ChD 30 Jun 2006
The European Court had found the UK to have unlawfully treated differently payment of franked dividends between subsidiaries of UK companies according to whether all the UK subsidiaries were themselves UK based, thus prejudicing European subsidiaries, breach of EU Treaty guarantees of freedom of establishment and of movement of capital. The court was now asked … Continue reading Test Claimants In The Franked Investment Income Group Litigation v Inland Revenue: SC 23 May 2012
Chattels which became affixed to a lessee’s land became fixtures, and were not available for tax allowances calculations. Lord Browne-Wilkinson said: ‘The terms expressly or implicitly agreed between the fixer of the chattel and the owner of the land cannot affect the determination of the question whether, in law, the chattel has become a fixture … Continue reading Melluish (Inspector of Taxes) v BMI (No 3) Ltd and Related Appeals: HL 16 Oct 1995
The House was asked whether a particular transaction was ‘an adventure in the nature of trade’. Held: Although the House accepted that this was ‘an inference of fact’, on the primary facts as found by the Commissioners ‘the true and only reasonable conclusion’ contradicted that decision. The House set out principles for establishing that decisions … Continue reading Edwards (Inspector of Taxes) v Bairstow: HL 25 Jul 1955
(High Court of Australia) Latham CJ considered how the Inland Revenue might make an assessment of a taxpayer’s income and said: ‘In the absence of some record in the mind or in the books of the taxpayer, it would often be quite impossible to make a correct assessment. The assessment would necessarily be a guess … Continue reading Trautwein v Federal Commissioner of Taxation: 9 Sep 1936
The court considered what it was for the Revenue to ‘discover’. It accepted previous judicial statements that ‘discover’ means ‘comes to the conclusion from the examination it makes and from any information it may choose to receive’ or ‘has reason to believe’ or ‘satisfies himself’. Lord Reading CJ said: ‘The surveyor may be mistaken in … Continue reading Regina v Commissioner of Taxes, ex parte Hooper: QBD 1915
Reference to Parliamentary Papers behind Statute The inspector sought to tax the benefits in kind received by teachers at a private school in having their children educated at the school for free. Having agreed this was a taxable emolument, it was argued as to whether the taxable benefit was the cost to the employer, or … Continue reading Pepper (Inspector of Taxes) v Hart: HL 26 Nov 1992
The parties disputed the domicile of the tax-payer. He had a domicile of origin in the UK, but asserted that he had acquired a domicile of choice in the Seychelles. The Special Commissioners had allowed, in assessing the domicile at any time, of evidence of later events. Held: The taxpayer’s appeal failed. The Commissioners could … Continue reading Gaines-Cooper v HM Revenue and Customs: ChD 13 Nov 2007
FTTTx INCOME TAX – self assessment – closure notices – discovery assessments – whether business records adequate – whether sales omitted – whether full disclosure of bank accounts – onus of proof – presumption of continuity – Taxes Management Act 1970 ss. 9A, 12B, 28A, 29, 34, 36, 49G, 50 and 95; Finance Act 2007 … Continue reading Allan v Revenue and Customs (Income Tax/Corporation Tax : Assessment/Self-Assessment): FTTTx 20 Jul 2016
Income Tax – Claim under S 131 Income Tax Act 2007 for Share Loss Relief against income – whether taxpayer subscribed for shares – held yes – whether shares were valueless when acquired by taxpayer – held not – acquisition cost to be determined at market value – appeal allowed [2016] UKFTT 254 (TC) Bailii … Continue reading Lewis v Revenue and Customs (Income Tax/Corporation Tax : Losses): FTTTx 18 Apr 2016
FTTTx Income Tax – penalty assessment – Schedule 24 – Finance Act 2007 – policy proceeds from surrendered investment bond-whether error on income tax return was careless – Yes – Appeal dismissed. [2016] UKFTT 103 (TC) Bailii England and Wales Income Tax Updated: 10 January 2022; Ref: scu.560223
Preliminary judgment. Park J [2006] EWHC 811 (Ch), 8 ITL Rep 1012, [2006] BTC 346, [2006] 3 CMLR 8, [2006] STC 1235, [2006] STI 1352 Bailii Income and Corporation Taxes Act 1988 England and Wales Citing: See Also – Marks and Spencer Plc v Halsey (Inspector of Taxes) 2003 Marks and Spencer Plc appealed against … Continue reading Marks and Spencer Plc v Halsey (HM Inspector of Taxes): ChD 10 Apr 2006
FTTTx INCOME TAX – HMRC determinations for 2006-07 and 2007-08 – Appellant’s Self-Assessment returns filed out of time to displace determinations – Illness and Death of previous accountant – Claim for Special Relief – Schedule 1AB Taxes Management Act 1970 – Nature of the Tribunal’s jurisdiction – Maxwell v HMRC [2013] UKFTT 459 (TC) and … Continue reading Scott v Revenue and Customs (Income Tax/Corporation Tax : Exemptions and Reliefs): FTTTx 27 Aug 2015
FTTTx INCOME TAX – penalties – Schedule 24 Finance Act 2007 – inaccuracy in self-assessment return – carelessness – amount of penalty – special circumstances – suspension of penalty – appeal dismissed [2015] UKFTT 389 (TC) Bailii Finance Act 2007 England and Wales Income Tax Updated: 03 January 2022; Ref: scu.551520
Sub-contractors in the construction industry – Contractors’ returns – Income Tax (Sub-contractors in the Construction Industry) Regulations 1993 – late submission of return – sections 98A and 118 Taxes Management Act 1970 – amendment to section 98A from 6th April 2007 – reasonable excuse [2010] UKFTT 507 (TC) Bailii England and Wales Taxes Management Updated: … Continue reading Lawton (T/A C B Lawton Drywall and Plastering Contractors) v Revenue and Customs: FTTTx 15 Oct 2010
Settlements legislation – chapter 5 Part 5 Income Tax (Trading and Other Income) Act 2005 – meaning of ‘settlement’ – meaning of ‘settlor’ – multiple settlors – application of s644 and s645 Income Tax (Trading and Other Income) Act 2005 – whether dividend or distribution taxable under s383 Income Tax (Trading and Other Income) Act … Continue reading Dunsby v Revenue and Customs (Income Tax – Settlements Legislation): FTTTx 24 Jun 2020
The House considered the meaning of the word ‘bounty’ in an income tax context, where it had been used by the courts: ‘My Lords, I would venture to point out that the word ‘bounty’ appears nowhere in the statute. It is a judicial gloss upon the statute descriptive of those classes of cases which are … Continue reading Chinn v Hochstrasser (Inspector of Taxes): HL 11 Dec 1980
HL Income tax, Schedule E – Non-resident employer – Employees working in U.K. sector of North Sea – Whether employer liable to deduct tax from emoluments – Income Tax (Employments) Regulations 1973 – Income and Corporation Taxes Act 1970, s 181 and s 204 – Finance Act 1973, 5 38 – Continental Shelf Act 1964 … Continue reading Clark (Inspector of Taxes) v Oceanic Contractors Inc: HL 16 Dec 1982
The House was asked whether the liability of a credit card company under the 1974 Act applied where the contract was performed abroad and subject to foreign law. Held: The principle which disapplied an English statute in an extra-territorial situation did not apply where the creditor was within the UK. Section 75(2) is therefore an … Continue reading Office of Fair Trading v Lloyds TSB Bank PlC and Others: HL 31 Oct 2007
Gilt repo – purchase and resale of gilts – interest paid to interim holder not required to be paid to original holder but recognised in repurchase price – application of paragraph 15 Schedule 9 FA 96 – related transaction – effect of section 737A to 737C and 730A TA 88 – effect of section 97 … Continue reading DCC Holdings (UK) Ltd v Revenue and Customs: SCIT 8 May 2007
ECJ Articles 43 EC and 48 EC – Corporation tax – Groups of companies – Tax relief – Profits of parent companies – Deduction of losses incurred by a resident subsidiary- Allowed – Deduction of losses incurred in another Member State by a non-resident subsidiary – Not included.Article 43 EC did not preclude provisions of … Continue reading Marks and Spencer v David Halsey (Inspector of Taxes): ECJ 13 Dec 2005
The House gave guidance how it would treat an invitation to depart from a previous decision of the House. Such a course was possible, but the direction was not an ‘open sesame’ for a differently constituted committee to prefer their views to those of the committee which determined the decision unanimously or by a majority. … Continue reading Practice Statement (Judicial Precedent): HL 1966
The parties had cohabited for a long time, in a home bought by Ms Dowden. After the breakdown of the relationship, Mr Stack claimed an equal interest in the second family home, which they had bought in joint names. The House was asked whether, when a conveyance into joint names indicates only that each party … Continue reading Stack v Dowden: HL 25 Apr 2007
The revenue appealed against a decision that provisions which did not allow the defendants, as companies with foreign parents, the right to make group income elections which would have allowed them to pay on their profits to their parent companies free of advance corporation tax, were discriminatory. Held: The discrimination was not on the basis … Continue reading Boake Allen Ltd and others v Revenue and Customs: HL 23 May 2007
The taxpayer companies had paid funds into a trust for employees. They sought to set off the payments against their liability to corporation tax. The revenue argued that they were deductible only in the year in which they were paid to the employees. . .
The defendant appealed against an order regarding the remuneration of a receiver appointed to administer a restraint order placed on the assets of the defendant under the 1988 Act on the basis of an allegation that the defendant had been involved in . .
FTTTx INCOME TAX – loss relief for farming losses – whether restriction on loss relief in section 67 Income Tax Act 2007 only applies to ‘hobby’ farming – no – whether Appellant’s farming activities met the . .
1267 – 1278 – 1285 – 1297 – 1361 – 1449 – 1491 – 1533 – 1677 – 1688 – 1689 – 1700 – 1706 – 1710 – 1730 – 1737 – 1738 – 1751 – 1774 – 1792 – 1793 – 1804 – 1814 – 1819 – 1824 – 1828 – 1831 – 1832 … Continue reading Acts
Carry back of losses – Sections 66, 72 and 74 Income Tax Act 2007 – Was the Appellant carrying on a trade on a commercial basis and with a reasonable expectation of profit – were closure notices issued outside any statutory time limit – Section 34 . .
INCOME TAX – judicial review – s809L Income Tax Act 2007 – remittance basis – application for permission to bring judicial review refused. . .
INCOME TAX – sideways loss relief for farming losses -application of test in s68(3)(b) Income Tax Act 2007 regarding period for expectation of profitability – appeal allowed. Citations: [2020] UKUT 30 (TCC) Links: Bailii Jurisdiction: England and Wales Income Tax Updated: 19 November 2022; Ref: scu.650128
Tax Credits – Child Tax Credit – no valid claim for capital allowance by the time Her Majesty’s Revenue and Customs made its decision on his entitlement to tax credits – not operating or carrying on any overseas property business at the time of the decision and expenditure on a property could not constitute a … Continue reading JQ v Her Majestys Revenue and Customs: UTAA 18 Jun 2020
INCOME TAX – Loss Relief – Trade – Race Horse Bloodstock Breeding and Training – whether a taxable activity – Yes in part – whether on a commercial basis with a view to the realisation of profits – No – Appeal dismissed. Income Tax Act 2007 Sections 64 and 66. Citations: [2014] UKFTT 338 (TC) … Continue reading Murray v Revenue and Customs: FTTTx 10 Apr 2014
Mr Cotter’s accountants had submitted a second tax return adding claims to loss relief in the following year. The claims were contentious, but he invited a review by the Revenue asserting that the losses wiped out any liability to tax. The Revenue said they would investigate but pursued the tax it said was due in … Continue reading HM Revenue and Customs v Cotter: CA 8 Feb 2012
Income Tax – Forfeiture of relief in relation to Enterprise Investment Scheme (‘EIS’) – Acquisition of the company in which the Appellants and many others held shares, the subscription for which had qualified for EIS relief, by another company – Whether that acquisition had occasioned a fatal ‘change of control’ and a ‘disposal’ of the … Continue reading Finn and Others v Revenue and Customs: FTTTx 9 May 2014
The taxpayer’s accountants had submitted a tax return amending the taxpayer’s own return adding claims for losses. The accountant acknowledged the contentious nature of the claim and invited a review. The Revenue sought now to recover the tax due under the initial return. Held: The County Court had jurisdiction to determine in collection proceedings whether … Continue reading Revenue and Customs v Cotter: ChD 14 Apr 2011
Income Tax – Loss Relief – Transfer of A Trade – section 86 of Income Tax Act 2007 Citations: [2022] UKFTT 274 (TC) Links: Bailii Jurisdiction: England and Wales Income Tax Updated: 07 September 2022; Ref: scu.680662
FTTTx Self assessment- how loss relief is calculated – Taxes Management Act 1970 – Income Tax Act 2007 – appeal against assessment Citations: [2010] UKFTT 57 (TC) Links: Bailii Statutes: Taxes Management Act 1970, Income Tax Act 2007 Income Tax Updated: 17 August 2022; Ref: scu.408918
FTTTx Income tax – trust – copyright royalties – direction not to distribute as income – whether accumulation of income – whether taxable at the rate applicable to trusts – Income and Corporation Taxes Act 1988, s 686 – whether taxable at the trust rate – Income Tax Act 2007, s 479 Citations: [2013] UKFTT … Continue reading Travers Will Trust v Revenue and Customs: FTTTx 14 Aug 2013
Executors appealed against a decision that a residual gift in a will was not charitable and that it was therefore subject to Inheritance Tax arguing that the section if construed in this way was an unlawful restriction on the free movement of capital. The revenue contended that the gift by a Jersey resident was to … Continue reading Routier and Another v Revenue and Customs: CA 16 Sep 2016
This appeal asked as to the boundary between the jurisdiction of the First-tier Tribunal (Tax Chamber) and that of the county court or the High Court, and the legality of the approach which the Revenue took to entries which Mr Cotter, had made in a tax return. He had submitted a tax return but then … Continue reading Cotter v Revenue and Customs: SC 6 Nov 2013
D bought 500,000 shares in TY 2009/10 for pounds 500,000 in Media Pro Four Ltd. In tax year 2010/11 he sold them to ‘Island House Private Charitable Trust’ for pounds 85,500, realising a loss of pounds 414,500. His 2009/10 tax return claimed share loss relief for that amount against income for that year under section … Continue reading Derry, Regina (on The Application of) v Revenue and Customs: SC 10 Apr 2019
‘The structure of Schedule 1B is that it applies to certain specified claims for relief involving two or more years. The provisions relating to loss relief are contained in paragraph 2. The remaining paragraphs deal with entirely separate claims, for example relief for fluctuating profits of farming etc in paragraph 3, and the carry-back of … Continue reading Derry, Regina (on The Application of) v HM Revenue and Customs: CA 20 Jun 2017
UTTC Application for judicial review – self-assessment in annual return – claim to relief under Chapter 6 of Part 4 of Income Tax Act 2007 (dealing with share loss relief) – whether such a claim governed by section 42(11A) of, and Schedule 1B, to Taxes Management Act 1970 – whether any enquiry into claim should … Continue reading Derry, Regina (on The Application of) v Revenue and Customs: UTTC 28 Jul 2015
INCOME TAX – settlements legislation – chapter 5 Part 5 Income Tax (Trading and Other Income) Act 2005 – meaning of ‘settlement’ – meaning of ‘settlor’ – whether there were multiple settlors – application of s 644 and s 645 Income Tax (Trading and Other Income) Act 2005 – whether dividend or distribution taxable under … Continue reading Dunsby v Revenue and Customs: UTTC 23 Nov 2021
INCOME TAX – losses from activities related to eleven properties purchased by Appellant and subsequently let – Appellant contending that properties were purchased with the intention of being sold at a profit within a short period, and were let temporarily when it became apparent that a deterioration in the property market made sale at a … Continue reading Azam v Revenue and Customs: FTTTx 14 Jan 2011
UTTC INCOME TAX – Enterprise Investment Scheme – ordinary and deferred shares – whether ordinary shares carried a preferential right to assets on a winding up – section 173 Income Tax Act 2007 – purposive construction and de minimis rule of interpretation – appeal dismissed [2016] UKUT 301 (TCC) Bailii England and Wales Income Tax … Continue reading Flix Innovations Ltd v Revenue and Customs: UTTC 5 Jul 2016
The case concerned the liability of Captain Barnato for super-tax on the sums which he received under a judgment for an account against his former partners in the dissolved firm of Barnato Brothers. The sums found due on the taking of the account included an award of interest on the capital sums due down to … Continue reading Inland Revenue Commissioners v Barnato: CA 1936
A defaulting trustee who had misappropriated trust property entered into a deed dated 27 March 1930 by which he covenanted to pay a principal sum which was made up of the amount of the trust monies he was obliged to account for together with compound interest at 5 per cent per annum up to 1 … Continue reading Barlow v Inland Revenue Commissioners: 1937
Lady Justice Gloster Vice-President of the Court of Appeal, Civil Division, Lord Justice Patten, and Lord Justice David Richards [2017] EWCA Civ 2124, [2018] Bus LR 730, [2018] STI 259, [2018] STC 385, [2018] BTC 5 Bailii England and Wales Citing: Appeal from – Lomas and Others v HM Revenue and Customs ChD 11-Oct-2016 Receivers’ … Continue reading Revenue and Customs v Lomas and Others (Administrators of Lehman Brothers International (Europe)): CA 19 Dec 2017
The defendant solicitors had acted for a purchaser, Crowngate, which had agreed to buy a property from a company called Mirage for andpound;775,000. Crowngate had arranged however that the property would first be passed through a chain of two intermediate purchaser companies, Panther and Kohli, with Kohli then selling to Crowngate at a stated price … Continue reading Target Holdings Ltd v Redferns (A Firm) and Another: HL 21 Jul 1995
The courts of Scotland followed the civil law in the award of interest on damages. The court gave examples of the way in which they apply the ex mora rule when calculating the interest payable in a judgment. If money was wrongfully withheld, then the courts had power to award interest during the period of … Continue reading Jefford v Gee: CA 4 Mar 1970
The Court was asked whether interest payable under rule 14.23(7) of the Insolvency Rules 2016 is ‘yearly interest’ within the meaning of section 874 of the Income Tax Act 2007. If so, the administrators must deduct income tax before paying interest to creditors. Lehmann Brothers had become insolvent, but in the administration a substantial surplus … Continue reading Revenue and Customs v Joint Administrators of Lehman Brothers International (Europe): SC 13 Mar 2019
Where a person already has contractual relations with another, his assumption of a fiduciary role in relation to that other will not necessarily require him to abandon his own contractual interests. (1874-5) LR 7 HL 318, (1872) LR 8 LRCh App 309 England and Wales Citing: Appeal from – Vyse v Foster CA 1872 James … Continue reading Vyse v Foster: HL 1874
In the course of the insolvent administration of the bank, substantial additional sums were received. Parties appealed against some orders made on the application to court for directions as to what was to be done with the surplus. Held: The Court considered the so called waterfall of distributions made on liquidation which proved to be … Continue reading LB Holdings Intermediate 2 Ltd, The Joint Administrators of v Lehman Brothers International (Europe), The Joint Administrators of and Others: SC 17 May 2017
Receivers’ payment of statutory interest gross Substantial sums were to be repaid to creditors after the administration of Lehman Brothers produced a substantial surplus. The sums were to carry interest and the court now considered whether the sums due amounted to ‘yearly interest’ under section 874. Held: The statutory interest to be paid under Rule … Continue reading Lomas and Others v HM Revenue and Customs: ChD 11 Oct 2016
The amount of interest payable on compulsory purchase of land depends upon the value given to the land and the length of the period from the time of entry until reinstatement, the period during which the claimant is dispossessed. During that time, and possibly thereafter the owner has neither the land nor its value, and … Continue reading Riches v Westminster Bank Ltd: HL 1947
A purchaser liable to pay interest on his purchase-money may deduct income tax from such interest. It was the practice to deduct the tax from the interest on debts upon promissory notes and the like in the offices of the Masters in Chancery. The tax is not deducted on payment of purchase-money into Court ; … Continue reading Bebb v Bunny: 22 Dec 1854
The question was as to the scope of the words ‘yearly interest’ used in the Income Tax Acts of 1842 and 1853. The bankers of certain overseers for the poor allowed the latter by arrangement half-yearly interest at an agreed-on rate on the daily balances standing at their credit. The overseers claimed exemption for income … Continue reading Garston Overseers v Carlisle: 1915
The plaintiffs, as the urban authority of a borough, had under s. 150 of the Public Health Act, 1875, and the Gateshead Improvement Act 1867, some years before action brought paved and made up certain streets, and had from time to time apportioned the expenses thereof among the owners of the premises fronting thereon. The … Continue reading Mayor and Others of Gateshead v Lumsden: CA 10 Mar 1914
Lord Maugham said that for a payment to be an ‘annual payment’ within the meaning of rule 21 it ‘must be taken to have, like interest on money or an annuity, the quality of being recurrent or being capable of recurrence’. Lord Maugham [1937] AC 785, [1937] 3 All ER 381 England and Wales Cited … Continue reading Moss Empires Ltd v Inland Revenue Comrs: HL 1937
(1911) 2 KB 550, [1911] UKLawRpKQB 118 Commolii England and Wales Cited by: Cited – Revenue and Customs v Joint Administrators of Lehman Brothers International (Europe) SC 13-Mar-2019 The Court was asked whether interest payable under rule 14.23(7) of the Insolvency Rules 2016 is ‘yearly interest’ within the meaning of section 874 of the Income … Continue reading In Re T Cooper: CA 2 Jun 1911
