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 – 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
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 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
(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 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
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
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
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
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
References: (1966) 42 TC 675 Coram: Lord Clyde, Lord Guthrie A co-operative society carried on business as general merchants. Its objects included manufacturing of all kinds. A substantial part of its business was the sale of coal in 1cwt bags and in bulk, distributed by lorry from the society’s coal yard or depot. It also … Continue reading Kilmarnock Equitable Co-operative Society Ltd v Inland Revenue Commissioners: SCS 1966
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
FTTTx INCOME TAX – loss relief – section 66 Income Tax Act 2007 – whether trades carried on on a commercial basis – whether trades carried on with a view to the realisation of profits – no – appeal allowed by consent in relation to two tax years where assessments were out of time – … Continue reading Patel v Revenue and Customs: FTTTx 9 Jan 2015
FTTTx Income Tax -Self Assessment Tax Return – Appeal against Closure Notice – loss relief – section 66 Income Tax Act 2007 – was trade carried on with a view to the realisation of profits – no – appeal dismissed [2014] UKFTT 730 (TC) Bailii Income Tax Act 2007 66 Income Tax Updated: 20 December … Continue reading Thorne v Revenue and Customs: FTTTx 30 Jul 2014
FTTTx INCOME TAX – loss relief – section 66 Income Tax Act 2007 – whether trade carried on with a view to the realisation of profits – no – appeal dismissed [2013] UKFTT 374 (TC) Bailii Income Tax Act 2007 66 England and Wales Income Tax Updated: 17 November 2021; Ref: scu.513512
VAT – Default Surcharges – Section 59(7) and 71 VAT Act 1994 – INCOME TAX — late filing and late payment penalties – paragraphs 23 and 16 of Schedules 55 and 56 to the Finance Act 2009 – forty-one penalties between 2007 and 2017 – issue: reasonable excuse – CEC v Steptoe, Perrin v HMRC … Continue reading Robin St John Sellers v Revenue and Customs (VAT – Default Surcharges): FTTTx 26 Jan 2021
The applicants complained that as an unmarried couple they had been excluded from consideration as adopters. Held: Northern Ireland legislation had not moved in the same way as it had for other jurisdictions within the UK. The greater commitment to traditional family structures did not however justify the difference. The rules were unlawful discrimination.Lord Hoffmann … Continue reading In re P and Others, (Adoption: Unmarried couple) (Northern Ireland); In re G: HL 18 Jun 2008
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
Income Tax – Penalty assessment – Schedule 24 Finance Act 2007 – whether error on income tax return was careless – whether special circumstances under Paragraph 11 of Schedule 24. Appeal refused. Citations: [2011] UKFTT 829 (TC) Links: Bailii Jurisdiction: England and Wales Income Tax Updated: 28 September 2022; Ref: scu.450932
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
Two widowers complained that the widows bereavement tax allowance given only to women after the death of a husband was discriminatory. Held: Whilst article 14 did not prevent different treatment in order to correct factual inequalities between the sexes, it would be discriminatory if, as here, there was no objective and reasonable justification. The original … Continue reading Hobbs, Richard, Walsh And Geen v United Kingdom: ECHR 14 Nov 2006
The court considered the availablilty of a first year allowance for the full first year expenditure on software licence agreements. The revenue sought to bring new points on appeal. Held: The LLPs’ appeals on the procedural issue as to the re-opening of the assessments was allowed. Henderson J set out also why he would have … Continue reading Tower Mcashback Llp and Another v HM Revenue and Customs: ChD 13 Oct 2008
The Revenue sought to disallow for industrial buildings allowance sums expended on warehouse premises which were to be used to store window products imported for use in other manufacturing processes. Held: The Revenue’s appeal succeeded. ‘The question under s.18(1) is whether the warehouse is in use for the purposes of a trade which consists in … Continue reading Revenue and Customs v Maco Door and Window Hardware (Uk) Ltd: ChD 19 Jul 2006
The claimant companies had paid corporation tax under rules which had later been found to be discriminatory. They now sought repayment by virtue of double taxation agreements with the countries in which the parent companies were based. Held: The double agreements required the taxation provisions should not treat worse ‘other similar enterprises of that first-mentioned … Continue reading Boake Allen Ltd and others v HM Revenue and Customs: CA 31 Jan 2006
The Court was asked whether and in what circumstances a lower court may follow a decision of the Privy Council which has reached a different conclusion from that of the House of Lords (or the Supreme Court or Court of Appeal) on an earlier occasion. Held: The court set out the position in law and … Continue reading Willers v Joyce and Another (Re: Gubay (Deceased) No 2): SC 20 Jul 2016
Income tax – Schedule D, Cases III and VI – Payments of interest and ground rent incurred when property was being developed – Whether capitalised or paid out of profits or gains brought into charge to tax – Income Tax Act 1952 (15 and 16 Geo. 6 and 1 Eliz. 2, c. 10), j. 170.The … Continue reading Fitzleet Estates Ltd v Cherry: HL 9 Nov 1977
A notice was given to the holder of a waste disposal licence to require certain information to be provided on pain of prosecution. The provision of such information could also then be evidence against the provider of the commission of a criminal offence. Held: Nevertheless, the provision of such information was required in this case, … Continue reading Regina v Hertfordshire County Council, ex parte Green Environmental Industries Ltd and Another: HL 17 Feb 2000
Two brothers acquired a company and were the sole directors. 19 shares each were acquired by the children with their own money. Two later born children also acquired 19 shares therein with their own money from their respective fathers and others, and that the brothers had no shares. The company developed a site by building … Continue reading Butler v Wildin: 1988
Income Tax and Vat – COP9 Investigation – Suppression of Business Income – assessments for under-declared VAT – discovery amendments and closure notice in respect of under-declaration of income tax – penalties for dishonest, and for deliberate and concealed behaviours – ss 60(1) and 73 VAT Act 1994, ss 28B and 30B Taxes Management Act … Continue reading Best On Convenience Store (A Firm) v Revenue and Customs: FTTTx 16 Mar 2022
Mutual Knowledge admissible to construe contract The parties had entered into a development contract in respect of a site in Wandsworth, under which balancing compensation was to be paid. They disagreed as to its calculation. Persimmon sought rectification to reflect the negotiations. Held: The appeal succeeded. There were difficulties in construing the contract. The contract … Continue reading Chartbrook Ltd v Persimmon Homes Ltd and Others: HL 1 Jul 2009
Separated parents shared the care of their child. The father complained that all the Child Tax Credit was given to the mother. Held: The appeal failed. Although the rule does happen to be indirectly discriminatory against fathers, the complaint would be exactly the same if it did not discriminate between the sexes. Mothers who share … Continue reading Humphreys v Revenue and Customs: SC 16 May 2012
The claimant appellant alleged that properties she owned were transferred to the first defendant under undue influence or other unconscionable conduct by the second and third defendants. The claim was dismissed. Three years later she claimed to set that judgment aside having been obtained by fraud. To support the allegation she brought evidence not available … Continue reading Takhar v Gracefield Developments Ltd and Others: SC 20 Mar 2019
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
FTTTx Income Tax/Corporation Tax : Assessment/Self-Assessment – overpayment by employer of amount paid on account of sums they should have deducted under PAYE – whether excess repayable to employee directly – no – Reg 185 Income Tax (PAYE) Regulations 2003 Penalty – whether penalty correctly applied for deliberate and concealed behaviour in relation to errors … Continue reading Ward v Revenue and Customs: FTTTx 20 Jun 2016
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
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
The claimants challenged the 2004 Order which prevented their return to their homes on the Chagos Islands. The islanders had been taken off the island to leave it for use as a US airbase. In 2004, the island was no longer needed, and payment had been made (ineffectively) to assist the dispossessed islanders, but an … Continue reading Bancoult, Regina (on the Application of) v Secretary of State for Foreign and Commonwealth Affairs (No 2): HL 22 Oct 2008
Income Tax – Exemptions and Reliefs – Trade loss relief for loss made in the trade of farming – Whether a ‘loss in the trade in each of the previous 5 tax years’ (Income Tax Act 2007 s 67(2)) – Appeal dismissed [2015] UKFTT 661 (TC) Bailii England and Wales Income Tax Updated: 08 January … Continue reading Donaldson v Revenue and Customs: FTTTX 14 Dec 2015
FTTTx INCOME TAX- whether a capital loss was available for offset against net income – sections 131 and 132 of the Income Tax Act 2007 – held that the loss was an allowable loss on the basis that the appellant was ordinarily resident during part of the tax year – appeal allowed [2015] UKFTT 466 … Continue reading Carey v Revenue and Customs: FTTTx 14 Sep 2015
In each case the local authority sought to recover possession of its own land. In the Lambeth case, they asserted this right as against an overstaying former tenant, and in the Leeds case as against gypsies. In each case the occupiers said that the recovery of possession interfered with their right respect for their family … Continue reading Kay and Another v London Borough of Lambeth and others; Leeds City Council v Price and others and others: HL 8 Mar 2006
Ban on Prisoners talking to Journalists unlawful The two prisoners, serving life sentences for murder, had had their appeals rejected. They continued to protest innocence, and sought to bring their campaigns to public attention through the press, having oral interviews with journalists without undertakings from the journalists not to publish any element of the interview. … Continue reading Regina v Secretary of State for The Home Department Ex Parte Simms: HL 8 Jul 1999
Taxation of assets transferred abroad [2021] EWCA Civ 1438 Bailii, Judiciary Income Tax Act 2007 England and Wales Income Tax Updated: 29 December 2021; Ref: scu.668370
Income Tax/Corporation Tax : Losses – – sideways relief for farming losses – application of sections 67 and 68 Income Tax Act 2007 – reasonable expectation of profits test – appeal allowed [2018] UKFTT 453 (TC) Bailii England and Wales Income Tax Updated: 28 November 2021; Ref: scu.622364
The prosecutor had lead and relied at trial on evidence obtained by compulsory questioning under the 1986 Act. Held: In doing so the prosecutor was acting to give effect to section 433. The decision in Lambert to disallow retrospective effect of Human Rights decisions in appeal cases may have been incorrect, but will be followed. … Continue reading Regina v Kansal (2): HL 29 Nov 2001
The parties disputed ownership of various valuable properties. The father asserted that they were held under trusts following the Mitakshara Hindu code, under a common intention constructive trust. The son said that properties held in his own name were his own. Held: The considerable evidence did not establish an intent that the family property should … Continue reading Singh v Singh and Another: ChD 8 Apr 2014
The parties agreed in writing for the sale of leasehold property to the claimant. One document had been signed, but later one said that it had not included an aportionment. Another document then set out the apportionment. When the defendant refused to proceed, the claimant registered a unilateral notice which the defendant challenged. The parties … Continue reading Oun v Ahmad: ChD 19 Mar 2008
The House was asked whether a warehouse used to store purchases made by the company from its parent company in Austria, was an ‘industrial building or structure’. It was agreed that the facility was used for the storage of materials for use in later manufacture, but the Revenue said that no part of the company’s … Continue reading Maco Door and Window Hardware (UK) Ltd v Revenue and Customs: HL 30 Jul 2008
The parties were not married, but had brought together their resources to purchase a home in the name of one of them. Nothing had been said about the respective shares on which the property was to be held. Held: The shares were to be assessed as at the time of the sale, not the time … Continue reading Oxley v Hiscock: CA 6 May 2004
The taxpayer had entered into a ‘repo’ loan to its bank, agreeing to purchase a block of gilt edged securities, and to resell them at a later date at a fixed figure. The profit and figures included an allowance for the interest payments to be made. The company now appealed against being refused permission to … Continue reading Revenue and Customs v DCC Holdings (UK) Ltd: SC 15 Dec 2010
The society had set out to assert that regulations were unlawful in creating a double taxation. It paid money on account of the tax demanded. It won and recovered the sums paid, but the revenue refused to pay any interest accrued on the sums paid. The Society sought to challenge the decision by judicial review. … Continue reading Woolwich Equitable Building Society v Inland Revenue Commissioners (2): HL 20 Jul 1992
INCOME TAX and PENALTIES – self-assessment return – enquiry and closure notice – s 34 of ITTOIA 2005 – deductibility of payments to father – lack of business records as required by s 12B TMA – taxpayer’s object in incurring expenditure – whether . .
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 . .
The appellants had overpaid under a mistake of law very substantial sums in VAT over several years. The excess had been repaid, but with simple interest and not compound interest, which the now claimed (together with other taxpayers amounting to 17 . .
INCOME TAX – adjustments to self-assessment – discovery assessment – penalty under Schedule 24 of the Finance Act 2007 – whether discovery – yes – whether insufficiency of tax brought about deliberately – no – careless behaviour – appeal dismissed . .
The two prisoners, serving life sentences for murder, had had their appeals rejected. They continued to protest innocence, and sought to bring their campaigns to public attention through the press, having oral interviews with journalists without . .
