No re-opening after closure notices The taxpayer had purchased software licences (SLA), and set out to claim the full cost against its tax liabiilities under the 2001 Act in the first year. The taxpayer said that after the Revenue had issued closure notices, it was not able to re-open the assessments for the year in … Continue reading Revenue and Customs v Tower MCashback Llp 1 and Another: SC 11 May 2011
INCOME TAX – discovery assessments and penalties – appeal to HMRC made 20 months after assessments issued – HMRC refused to admit late appeal – Section 49(2) Taxes Management Act 1970 – whether Tribunal should grant permission for the appeal to HMRC to be admitted out of time – Martland applied – Katib considered – … Continue reading Kaur v Revenue and Customs (Income Tax/Corporation Tax – Discovery Assessments and Penalties : Appeal): FTTTx 15 Nov 2019
The taxpayer company was a non-trading company owing shareholders substantial sums. Rather than pay dividends it waived dividends it held in a public company, and the shareholder waived interest on the loans. The IR apportioned the income of the company between the shareholders pro rata according to their interest on a winding up. The commissioners … Continue reading Lothbury Investment Corporation Ltd v Inland Revenue Commissioners: 1979
Income tax – Diamond broker – Schedule D, Case I – Whether payment received as compensation for losing client assessable as profit of trade – Income and Corporation Taxes Act 1970, ss 108(l)(a)(i) and 109(2). Citations: [1982] EWCA Civ TC – 55 – 585, (1981) 55 TC 585, [1982] STC 53 Links: Bailii Statutes: Income … Continue reading Rolfe (Inspector of Taxes) v Nagel: CA 6 Oct 1981
INCOME TAX – enquiry – absence of any accounting records – appellant’s evidence on amount of trading income and expenditure not credible – appeal dismissed – s28A Taxes Management Act 1970 Citations: [2019] UKFTT 613 (TC) Links: Bailii Statutes: Taxes Management Act 1970 28A Jurisdiction: England and Wales Income Tax, Taxes Management Updated: 05 November … Continue reading Adelekun v Revenue and Customs (Income Tax/Corporation Tax : Profits): FTTTx 4 Oct 2019
The taxpayer sought double taxation relief in respect of partnership profits earned in Jersey. Two sections appeared to be in direct contradiction. The earlier section had been superceded by the 1988 Act which was a consolidating Act. Consolidating legislation was intended to be read without reference to earlier legislation wherever possible save only in the … Continue reading Padmore v Inland Revenue Commissioners (No 2): ChD 8 Feb 2001
FTTTx Income tax – limited liability partnership acquired licence to film rights and sub-licensed rights to distributor – complex financing arrangements involving loans to members of the partnership and defeasance deposit by the distributor – whether partnership carrying on a trade (a precondition for members to claim relief for a prepayment of interest on their … Continue reading Eclipse Film Partners No 35 Llp v Revenue and Customs: FTTTx 20 Apr 2012
A severance payment made after an employee had ceased to reside in the UK remained liable to tax under Schedule E. Citations: Times 09-Jul-1996 Statutes: Income and Corporation Taxes Act 1970 187 Jurisdiction: England and Wales Citing: Appeal from – Nichols v Gibson (Inspector of Taxes) ChD 25-Jan-1995 Income in the form of a termination … Continue reading Nichols v Gibson (Inspector of Taxes): CA 9 Jul 1996
The consideration deemed to have been given on the acquisition of shares of parent company is to be at market value not at the base price. The Acts provisions for intra group transfer of assets do not apply to oust Capital Gains rules. Citations: Gazette 08-Dec-1993, Times 15-Jul-1993, Ind Summary 09-Aug-1993 Statutes: Income and Corporation … Continue reading NAP Holdings UK Ltd v Whittles (Inspector of Taxes): CA 15 Jul 1993
INCOME TAX – penalties for late delivery of partnership returns – whether evidence that appellant was the person required to deliver the return by s 12AA(2) Taxes Management Act 1970 – penalties cancelled. Citations: [2018] UKFTT 540 (TC) Links: Bailii Jurisdiction: England and Wales Income Tax Updated: 26 October 2022; Ref: scu.632309
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 – assessments and penalties in respect of inaccuracies in the Appellant’s self-assessment returns for 2011-12 and 2012-13 – s 28 Taxes Management Act 1970 and Schedule 55 to Finance Act 2009 – appeal to HMRC out of time – application for permission to appeal – whether reasonable excuse – guidance in Data Select … Continue reading Lalic v Revenue and Customs (Income Tax/Corporation Tax : Assessment/Self-Assessment): FTTTx 15 Oct 2018
INCOME TAX – application for closure notice under section 28A(4) Taxes Management Act 1970 – application granted Citations: [2018] UKFTT 561 (TC) Links: Bailii Jurisdiction: England and Wales Income Tax Updated: 25 October 2022; Ref: scu.632316
INCOME TAX – self assessment – whether the Notice to File issued to the Appellant was issued under Section 8 of Taxes Management Act 1970 – yes – whether the Appellant’s tax return was filed late – yes – whether this late filing rendered the Appellant liable to a penalty imposed under Paragraph 3 of … Continue reading Collado v Revenue and Customs (Income Tax/Corporation Tax : Self Assessment – Penalty): FTTTx 22 Nov 2018
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
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
Citations: [2005] EWHC 1558 (Ch) Links: Bailii Statutes: Taxes Management Act 1970 56(6), General Commissioners (Jurisdiction and Procedure) Rules 1994 20, Income and Corporation Taxes Act 1988 561(9) Jurisdiction: England and Wales Income Tax, Construction Updated: 25 September 2022; Ref: scu.228595
SCIT SHARE OPTIONS – unapproved scheme – gains by employee – whether charge to income tax arises when options exercised but shares not sold – yes – ICTA 1988 s 135(1). ASSESSMENT – power to raise assessment – whether loss of tax attributable to negligent conduct on the part of the Appellant or the person … Continue reading An Employee v Revenue and Customs: SCIT 19 Mar 2008
Legal expenses incurred by a professional in defending disciplinary proceedings are deductible from taxable profits. Citations: Times 12-May-1997, [1997] EWCA Civ 1627 Statutes: Income and Corporation Taxes Act 1970 130(a) Jurisdiction: England and Wales Citing: Appeal From – McKnight (Inspector of Taxes) v Sheppard; Sheppard v McKnight ChD 21-May-1996 Legal costs and fines not deductible … Continue reading David McKnight (Inspector of Taxes) v Sheppard: CA 7 May 1997
In computing company’s tax liability excessive pay not deductible. Citations: Times 28-May-1993 Statutes: Income and Corporation Taxes Act 1970 130 Jurisdiction: England and Wales Citing: Appealed to – Earlspring Properties Ltd v Guest (Inspector of Taxes) CA 1-May-1995 A close company has an additional obligation to notify the Revenue that a loan was chargeable to … Continue reading Earlspring Properties Ltd v Guest (Inspector of Taxes): ChD 28 May 1993
The Court was asked whether an employee’s remuneration is taxable as his or her emoluments or earnings when it is paid to a third party in circumstances in which the employee had no prior entitlement to receive it himself or herself. Held: The company’s appeal failed. The purposive approach to the interpretation of the general … Continue reading RFC 2012 Plc (Formerly The Rangers Football Club Plc) v Advocate General for Scotland: SC 5 Jul 2017
A taxpayer may challenge an assessment if it was raised more than 12 months after the relevant year. Citations: Times 13-Jul-1993 Statutes: Income and Corporation Taxes Act 1970 206 Jurisdiction: England and Wales Citing: See Also – Walters (Inspector of Taxes) v Tickner ChD 6-May-1992 A taxpayer is entitled to have his liability decided by … Continue reading Walters (Inspector of Taxes) v Tickner: QBD 13 Jul 1993
Losses which had been incurred in speculative non-commercial trading in shares and commodities were not ‘trade’ losses for income tax purposes, even though the tax payer intended to become involved in fund management as a career, and had intended these activities to be a commercially successful series. The taxpayer had claimed up to sixteen calls … Continue reading Wannell v Rothwell (Inspector of Taxes): ChD 29 Mar 1996
ICI set up a trust fund to make discretionary payments to its employees to assist meeting the costs of further education. Payments made to children were treated as scholarship income and exempt under the 1970 Act. The revenue claimed it to be an employment benefit. Held: The benefit was paid to the taxpayer’s son ‘by … Continue reading Wicks v Firth (Inspector of Taxes); Johnson v Firth: CA 1981
The taxpayer company had been refused a statutory Construction Industry Scheme certificate. The General Commissioners allowed the company’s appeal and itself issued a certificate. The revenue said the Commissioners had no jurisdiction either to hear an appeal or to issue such a certificate. Held: The scheme created by the 1971 Act was a special one. … Continue reading Tom Hudson (HM Inspector of Taxes) v JDC Services Limited: ChD 26 Mar 2004
SCIT Income tax and corporation tax – self-assessment – enquiry into return – section 28A Taxes Management Act 1970 – scope of power to direct that an enquiry be closed – whether power should be exercised – decision on own facts. Citations: [2008] UKSPC SPC00715 Links: Bailii Statutes: Taxes Management Act 1970 28A Income Tax … Continue reading Lee and Another v Revenue and Customs: SCIT 7 Nov 2008
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 taxpayer made arrangement for the sale of securities in the form of loan notes with accrued income. It appealed a decision denying to the arrangement treatment of the full sum as capital. Held: The appeal failed. The agreements provided for irregular repayments, they did so with an apparent standard interest rate. The agreements fell … Continue reading Cadbury Schweppes Plc and Another v Williams (Her Majesty’s Inspector of Taxes): CA 24 May 2006
SCIT Income Tax – Schedule E – Benefit in kind – Whether expenses paid by company assessable as income of director – Apportionment of expenses – Income and Corporation Taxes Act 1988 ss.154, 156 – Discovery Assessment – Taxes Management Act 1970, Section 29 Citations: [2004] UKSC SPC00450 Links: Bailii Statutes: Income and Corporation Taxes … Continue reading Xi Software Ltd v HM Inspector of Taxes: SCIT 3 Dec 2004
HL Income tax and surtax – Transactions in securities – Tax advantage – Counteraction – Sale of shares in property companies – Subsequent payments of abnormal dividends by property companies – Whether relevant circumstances present – Whether sale of shares transactions ‘whereby’ another person received abnormal dividends – Whether purchase price of shares received ‘in … Continue reading Inland Revenue Commissioners v Garvin and Rose: HL 14 May 1981
Income tax, Schedule E – Office – Inspector appointed to hold public local inquiries by Secretary of State for the Environment – Income and Corporation Taxes Act 1970, s 181(1). Citations: [1981] UKHL TC – 56 – 367, [1981] 3 All ER 543, [1981] STC 617, [1982] AC 845, [1981] 3 WLR 707, [1981] TR … Continue reading Edwards (Inspector of Taxes) v Clinch: HL 22 Oct 1981
Expenditure does not qualify for deduction if the object of the expenditure was to serve another private purpose in addition to the business purpose for which it was purportedly incurred. HL Income Tax – Schedule D Case II – Computation of partnership profits – Large firm of Accountants – Reimbursement of removal expenses of partners … Continue reading MacKinlay (Inspector of Taxes) v Arthur Young McClelland Moores and Co: HL 23 Nov 1989
The taxpayers sought determination by the court of their various claims for group tax relief. The High Court had declined jurisdiction. Held: The appeal was allowed. The judge’s attitude was one which would perhaps appeal to most lawyers experienced in tax matters if Community law considerations could be left out of account, but Community law … Continue reading Loss Relief Group, Test Claimants In v Inland Revenue: CA 28 May 2004
Corporation tax – Losses – Relief Time-limit – Substantive Fairness – Judicial review-Claims for relief against other profits of same period-Claims refused-Whether estimated figures delivered within two-year time-limit constituted claims-Express claims made after expiry of time-limit-Previous late claims admitted without question-Whether Revenue wrongly refused claims-Income and Corporation Taxes Act 1970, s 177(2) and {10), Taxes … Continue reading Unilever Plc, Regina (on The Application of) v Inland Revenue: CA 13 Feb 1996
The company director taxpayer had retired from his company but stayed on as an unpaid non-executive director. The trust deed for the company’s pension scheme provided for payments to be made to an employee. The director sought relief from payment of income tax under Schedule E. Held: (Majority) The appeal by the taxpayer was allowed. … Continue reading Venables and others v Hornby (Her Majesty’s Inspector of Taxes): HL 4 Dec 2003
The claimant had not received the same tax allowance following his wife’s death as would have been received by a woman surviving her husband. That law had been declared incompatible with Human Rtights law as discriminatory, but the respondent refused to make good any claim which had not been originally pursued to the European Court, … Continue reading Regina on the Application of Wilkinson v The Commissioners of Inland Revenue: CA 18 Jun 2003
The case concerned the differential tax treatment between men and women, which granted to widows a tax allowance that was not granted to widowers. Held: The court made a ‘declaration of incompatibility’ pursuant to section 4. 1(1) of the TMA gives to the Commissioners a wide statutory power to grant concessions to taxpayers which derogate … Continue reading Wilkinson v Commissioners of Inland Revenue: Admn 14 Feb 2002
Profits were taxable as a whole for a new business purchased and existing business. Business bought to incorporate in existing taxed on preceding year basis. Citations: Ind Summary 12-Jul-1993, Times 12-Jul-1993 Statutes: Income and Corporation Taxes Act 1970 154, Income and Corporation Taxes Act 1988 113 Jurisdiction: England and Wales Income Tax Updated: 04 June … Continue reading Maidment (Inspector of Taxes) v Kibby: ChD 12 Jul 1993
CORPORATION TAX, CAPITAL GAINS TAX, INCOME TAX – expenditure allowable under s38(1)(b) of TCGA 1992 – penalties imposed under s95 of TMA 1970 – interaction of s393A of ICTA 1988, paragraphs 58 and 59 of Schedule 18 FA 1998 and Schedule 1A of TMA 1970 in relation to carry back of losses for corporation tax … Continue reading Hadee Engineering Co Ltd and Others v Revenue and Customs: UTTC 17 Mar 2022
A Charity Tax avoidance plan was lawful. A company made payments to a charity which then employed them as charity trustees. Since the result was clearly to benefit the charity, and its purposes. The obtaining of a relief from tax, and the making use of an exemption are different for this purpose. The claiming of … Continue reading Sheppard and Another v Inland Revenue Commissioners, Inland Revenue Commissioners v Sheppard: ChD 23 Feb 1993
Before the appeal had been concluded under section 45(3), one of the two commissioners was incapacitated. The taxpayer appealed the refusal of a de novo hearing and the replacement of the tax commissioner. Held: The reconstitution of the panel did not require the consent of the parties. The balance of authority was that the incapacity … Continue reading Hitch, Regina (on the Application of) v Commissioners for the Special Purposes of the Income Tax Acts: Admn 4 Mar 2005
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
Steps which had been inserted into a commercial transaction, but which had no purpose other than the saving of tax are to be disregarded when assessing the tax effect of the scheme. The modern approach to statutory construction is to have regard to the purpose of a particular provision and interpret its language, so far … Continue reading Commissioners of Inland Revenue v McGuckian: HL 21 May 1997
Where an employer has not deducted tax, the employee can be liable to a tax assessment. The recipient of Schedule E income can still be directly assessable. HL Income Tax – Schedule E – Employment – Gain on sale of shares – Whether taxable under Schedule E – Whether purchaser liable to deduct tax under … Continue reading Inland Revenue Commissioners v Herd: HL 17 Jun 1993
The will left land for a sports centre to a local authority which no longer existed. If the gift was charitable, the gift would be applied cy pres, but if not it would fail and pass to the family and be subect to Inheritance Tax. Held: A gift to a local authority of land on … Continue reading Guild v Inland Revenue Commissioners: HL 6 May 1992
The appellants resisted disclosure to the revenue of advice it had received. It claimed legal advice privilege (LAP), though the advice was from its accountants. Held: (Lords Sumption and Clarke dissenting) LAP applies to all communications passing between a client and its lawyers, acting in their professional capacity, in connection with the provision of legal … Continue reading Prudential Plc and Another, Regina (on The Application of) v Special Commissioner of Income Tax and Another: SC 23 Jan 2013
An allowance paid to a journalist by his employer to pay for newspapers he was to buy and read as part of his work was taxable under Sch E. It was not actually part of his job to read them. Citations: Times 18-Feb-1994, Independent 18-Feb-1994 Statutes: Income and Corporation Taxes Act 1970 189(1) Jurisdiction: Scotland … Continue reading Smith (Inspector of Taxes) v Woodhouse and Others; Fitzpatrick and Others v Commissioners of Inland Revenue: HL 18 Feb 1994
Where a company ceased to be resident in the UK, and there was deemed as a result to be a transfer of shares between companies within the group, that transfer gave rise to a chargeable gain which was chargeable to Corporation Tax. Citations: Times 05-Oct-1999 Statutes: Income and Corporation Taxes Act 1970, Taxation of Chargeable … Continue reading Dunlop International Ag v Pardoe (Inspector of Taxes): CA 5 Oct 1999
The court considered the nature of allowable expenses for an investment company: ‘the notion behind this Section may be thought to be that the expenditure is something which if you were looking at the profits and gains under Schedule D would be deductible as a sum of money wholly and exclusive expended for the purpose … Continue reading Norman v Golder (Inspector of Taxes): 1944
Income Tax/Corporation Tax : Assessment/Self-Assessment – INCOME TAX- preliminary issue – ‘voluntary returns’ – no notice given by HMRC under s.8(1) Taxes Management Act 1970 (TMA) requiring a taxpayer to file a return – HMRC treating returns as made under s 8 TMA – enquiry commenced under s. 9A TMA – closure notice issued under … Continue reading Patel and Another v Revenue and Customs: FTTTx 5 Apr 2018
The commissioners obtained court orders directing the applicant bank to disclose confidential information in their possession. The bank resisted on the ground that the demand breached their rights to confidentiality and to privacy. Although the orders did infringe the Bank’s article 8 rights, the notices were valid because the interference was justified under article 8(2). … Continue reading Regina v Inland Revenue Commissioners Ex Parte Banque Internationale a Luxembourg Sa: Admn 23 Jun 2000
The commissioners obtained court orders directing the applicant bank to disclose confidential information in their possession. The bank resisted on the ground that the demand breached their rights to confidentiality and to privacy. Although the orders did infringe the Bank’s article 8 rights, the notices were valid because the interference was justified under article 8(2). … Continue reading Regina v Inland Revenue Commissioners Ex Parte Banque Internationale A Luxembourg Sa: QBD 27 Jul 2000
Shares purchased from parent company after a re-organisation are to be valued at the base cost of their acquisition by the parent company. Citations: Gazette 08-Feb-1995, Times 22-Nov-1994, Ind Summary 30-Jan-1995 Statutes: Income and Corporation Taxes Act 1970 273(1) Capital Gains Tax Updated: 09 April 2022; Ref: scu.84164
A scheme was devised to sell annuities to charities. They then used the capital sum paid to purchase promissory notes from the charity, which were in turn used to secure annuity payments. Held: The scheme was entirely self cancelling and void. Payments made in pursuance of the scheme fell outside the ambit of the section.There … Continue reading Moodie v Inland Revenue Commissioners and Another and similar: HL 7 Apr 1993
A ‘Holding company’ under the Act meant a company resident in the UK; A reference was made of the issues to the European Court. Citations: Times 15-Mar-1996 Statutes: Income and Corporation Taxes Act 1970 285(5)(b) Citing: Appeal from – Imperial Chemical Industries v Colmer (Inspector of Taxes) CA 9-Aug-1993 Group tax relief was available despite … Continue reading ICI Plc v Colmer (Inspector of Taxes): HL 15 Mar 1996
The claimant said that the widows’ bereavement tax allowance available to a wife surviving her husband should be available to a man also if it was not to be discriminatory. Held: Similar claims had been taken before the Human Rights Act to the ECHR, and been settled. The 1998 Act made it unlawful to act … Continue reading Wilkinson, Regina (on the Application Of) v Inland Revenue: HL 5 May 2005
(Income Tax/Corporation Tax : Penalty) – INCOME TAX – penalty for delay in filing return – delay by taxpayer in filing appeal to HMRC against penalty – HMRC refuse to admit appeal out of time – application to Tribunal under Section 49 Taxes Management Act 1970 for appeal to HMRC to be admitted out of … Continue reading Madonna Halley’s Hotel v Revenue and Customs: FTTTx 29 Aug 2017
(Income Tax/Corporation Tax : Appeal) Income tax – undeclared income – whether notification prior to assessment is a valid notice of appeal – no – application for permission to appeal out of time – section 49 taxes management act 1970 – application refused Citations: [2017] UKFTT 154 (TC) Links: Bailii Jurisdiction: England and Wales Income … Continue reading Singh v Revenue and Customs: FTTTx 3 Feb 2017
(Income Tax/Corporation Tax : Appeal) INCOME TAX – late notice of appeal – section 49G and section 49H Taxes Management Act 1970 (‘TMA’) – whether leave to appeal out of time should be granted – no – application dismissed [2016] UKFTT 737 (TC) Bailii England and Wales Income Tax Updated: 26 January 2022; Ref: scu.571844
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
FTTTx INCOME TAX – application for the tribunal to direct HMRC to issue a closure notice under s 28A Taxes Management Act 1970 – appeal against information notice issued under schedule 36 of the Finance Act 2008 and related penalties – application refused, information notice varied and appeal otherwise dismissed [2016] UKFTT 316 TC Bailii … Continue reading Cherian v Revenue and Customs (Income Tax/Corporation Tax : Other): FTTTx 9 May 2016
FTTTx INCOME TAX – Penalty assessment (s 95 Taxes Management Act 1970) – Relevance of Offshore Disclosure Facility – Calculation of tax difference – Appropriate levels of abatement for disclosure, co-operation and seriousness – Appeal dismissed [2016] UKFTT 276 TC Bailii Taxes Management Act 1970 95 England and Wales Income Tax, Taxes Management Updated: 16 … Continue reading Townend v Revenue and Customs (Income Tax/Corporation Tax : Penalty): FTTTx 22 Apr 2016
Ftttx INCOME TAX – late submission of tax returns – assessments under Section 36 Taxes Management Act 1970 – imposition of penalties under Schedule 41 to Finance Act 2008 – whether properly notified by HMRC – no – penalties imposed under Schedule 56 to Finance Act 2009 – whether reasonable excuse – no – whether … Continue reading Catal v Revenue and Customs (Income Tax/Corporation Tax : Appeal): FTTTx 6 May 2016
FTTTx SELF ASSESSMENT – notice of enquiry into return given under Section 9A Taxes Management Act 1970 – whether notice of enquiry valid if return incorrectly described in notice – no – whether notice saved by Section 114 Taxes Management Act 1970 – no [2016] UKFTT 306 TC Bailii England and Wales Income Tax Updated: … Continue reading Mabbutt v Revenue and Customs (Income Tax/Corporation Tax : Appeal): FTTTx 5 May 2016
FTTTx INCOME TAX – self-assessment – barrister – move from cash to true and fair basis – overpayment tax year between two underpayment tax years – tax paid twice on same profits – application of European Convention on Human Rights and Human Rights Act 1998 – held Section 29 of the Taxes Management Act 1970 … Continue reading Fessal v Revenue and Customs (Income Tax/Corporation Tax : Human Rights): FTTTx 26 Apr 2016
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
Duty of Fairness to taxpayer – Written Assurance The applicant was assured by the Inland Revenue that it would not raise further inquiries on certain tax affairs if he agreed to forgo interest relief which he had claimed and to pay a certain sum in capital gains tax. Held: Where the lawfulness of the section … Continue reading Regina v Inland Revenue Commission ex parte Preston; In re Preston: HL 1984
FTTTx INCOME TAX- whether appellant served with valid notice to file return – no-whether valid enquiry opened into return and valid closure notice issued – no – appeal allowed – ss 8, 9, 28A, 34 and 115 TMA 1970 [2016] UKFTT 97 (TC) Bailii Taxes Management Act 1970 8 9 828A 34 115 England and … Continue reading Revell v Revenue and Customs (Income Tax/Corporation Tax : Assessment/Self-Assessment): FTTTx 16 Feb 2016
FTTTx INCOME TAX – PAYE – penalties for late submission of P35 End of Year Returns for tax years 2009-10, 2010-11 and 2011-12 – whether a reasonable excuse for late appeal to be allowed – No – Sections 49 and 98A Taxes Management Act 1970 – Appeal dismissed. [2016] UKFTT 102 (TC) Bailii Taxes Management … Continue reading Perth and District Five-A-Side League v Revenue and Customs (Income Tax/Corporation Tax : Appeal): FTTTx 17 Feb 2016
FTTTx INFORMATION NOTICES – whether certain documents and information required were statutory records- yes – whether notices issued other than to check the taxpayer’s tax position – no – whether the appellant’s offer of conditional compliance was compliance – no – whether reasonable excuse for non-compliance – no – appeal against notices and penalties dismissed … Continue reading Qualapharm Ltd v Revenue and Customs (Income Tax/Corporation Tax : Other): FTTTx 17 Feb 2016
Income Tax/Corporation Tax : Penalty [2016] UKFTT 57 (TC) Bailii Taxes Management Act 1970 98A England and Wales Taxes Management Updated: 10 January 2022; Ref: scu.559944
Capital gains tax – Disposal from husband to wife – Whether relief governed by condition as to residence of spouses – Whether person resident in U.K. for a year of assessment when so resident for part only of year – Whether relief applied even if one spouse not resident in U.K. – Finance Act 1965, … Continue reading Gubay v Kington (Inspector of Taxes): HL 26 Jan 1984
Income tax – Schedule E – Benefits – Higher paid employees – Educational awards to children – Whether assessable as benefits to employees – Whether Benefits exempt as scholarship income – Finance Act 1976, 5 61, Income and Corporation Taxes Act 1970, s 75. [1983] 1 All ER 151, [1982] UKHL TC – 56 – … Continue reading Wicks v Firth (Inspector of Taxes): HL 16 Dec 1982
HL Capital gains tax – Settled property – Gift in settlement – Part disposal – Connected persons – Assignment of reversion followed by assignment of life interest – Whether the first assignment was only a part disposal – Finance Act 1965 (c 25), ss 22(2), 22(4), 25(2) and Sch 7, paras 17 and 21; Income … Continue reading Berry v Warnett (Inspector of Taxes): HL 6 May 1982
Income tax – Schedule E – Trusts for the benefit of employees – Employing company taken over – Trust funds distributed among former employees after employment ceased – Whether emoluments of former employment – If so, in C which year or years of assessment, if any, they fell to be assessed – Income and Corporation … Continue reading Bray (Inspector of Taxes) v Best: HL 23 Feb 1989
Income tax – Schedule D Case V – Discretionary settlements – Mixed residence trustees – Whether single United Kingdom trustee (the two other trustees being non-resident) liable to income tax and additional rate tax on income from foreign possessions – Income and Corporation Taxes Act 1970, ss 108, 114, 122 Finance Act 1973, s 16 … Continue reading Dawson v Inland Revenue Commissioners: HL 4 May 1989
HL Double taxation relief – UK resident company in receipt of dividends from companies resident abroad – Whether relief by way of credit to be given for foreign taxes on such dividends before or after advance corporation tax in respect of distributions made by it is set against its liability to corporation tax – Double … Continue reading Collard (Inspector of Taxes) v Mining and Industrial Holdings Ltd: HL 13 Apr 1989
hl Corporation tax – Group relief – What constitutes valid claim to group relief and whether such claim had been made within two-year time-limit – Claim made in notice of appeal and accounts without identifying surrendering companies – Income and Corporation Taxes Act 1970, 55 258, 264(l)(c), Taxes Management Act 1970, ss 42(5), 114. [1991] … Continue reading Gallic Leasing Ltd v Coburn (Inspector of Taxes): HL 28 Nov 1991
HL Corporation tax – Group relief – Trading stock – Whether assets acquired as trading stock by one group company from another – Whether prospective capital loss effectively transmuted into a trading loss available for group relief – Income and Corporation Taxes Act 1970, ss 273, 274(1) – Finance Act 1965, Sch 7 para 1(1) … Continue reading Coates and Reed (Inspectors of Taxes) v Nova Securities Ltd and Arndale Properties: HL 31 Jan 1985
HL Corporation Tax – Deductibility of expenditure – Capital or revenue expenditure – Group relief – Individuals involved in a joint venture, several companies being involved – One company advancing funds – Whether those monies deductible as wholly and exclusively expended in the course of a trade – Income and Corporation Taxes Act 1970, s … Continue reading NAP Holdings UK v Whittles (Inspector of Taxes): HL 17 Nov 1994
CONSTRUCTION INDUSTRY SCHEME – late filing of monthly returns – obligation delegated to bookkeeper – Appellant asserted that yearly P35’s contained details of CIS deductions – whether a reasonable excuse – no – Section 98A Taxes Management Act 1970 – Schedule 55 to the Finance Act 2009 – CIS tax deductions not accounted for to … Continue reading Agnew (T/A B and I Plastering) v Revenue and Customs (Income Tax/Corporation Tax : Sub-Contractors In The Construction Industry): FTTTx 25 Nov 2015
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
The pension scheme had been approved, but that approval later withdraw. HMRC issued assessment for the years in which it had been approved. The taxpayer argued that such assessments applied to the date with effect from which the approval is withdraw, HMRC contended that it was in the year in which withdrawal was notified. The … Continue reading John Mander Pension Trustees Ltd v Revenue and Customs: SC 29 Jul 2015
FTTTx PAYE – late submission of P35 form – penalties – (1) whether leave to appeal late appropriate – No – (2) whether ‘reasonable excuse’ – No – Taxes Management Act 1970 and Income Tax (PAYE) Regulations 2003 – Appeal dismissed [2015] UKFTT 359 (TC) Bailii Income Tax (PAYE) Regulations 2003, Taxes Management Act 1970 … Continue reading Camping-On-Tyne v Revenue and Customs (Income Tax/Corporation Tax : Penalty): FTTTx 17 Jul 2015
FTTTx Penalties – Section 98A (2) and (3) Taxes Management Act 1970 – Employer’s End of Year return P35 late for 2010, 2011 and 2012 – whether reasonable excuse – no – application for permission out of time appeal – not allowed [2015] UKFTT 210 (TC) Bailii England and Wales Income Tax Updated: 30 December … Continue reading Ross v Revenue and Customs (Income Tax/Corporation Tax : Penalty): FTTTx 12 May 2015
CONSTRUCTION INDUSTRY SCHEME – penalties for late filing of CIS returns – s 98A Taxes Management Act 1970 – schedule 55 to Finance Act 2009 – proportionality – special circumstances – reasonable excuse – effect of paragraph 17(3) of Schedule 55 to Finance Act 2009 – appeal allowed in part [2018] UKFTT 744 (TC) Bailii … Continue reading Advanced Scaffolding (Bristol) Ltd v Revenue and Customs (Income Tax/Corporation Tax : Sub-Contractors In The Construction Industry): FTTTx 18 Dec 2018
Income tax – Benefits in kind – Employees contributed 4% and 5% respectively to purchase price of cars jointly owned with employer – Whether car ‘made available (without any transfer of the property in it’ – Income and Corporation Taxes Act 1988 ss.1564, 156, 157 and Income Tax (Earnings and Pensions Act 2003 ss.120-140 – … Continue reading Samson Publishing Ltd and Others v Revenue and Customs: FTTTx 14 Oct 2010
A company went into liquidation, being owed substantial sums by another company in the same group, but itself insolvent. A settlement did not include accrued interest, but was claimed to be taxed as if it had, and on an accruals basis. If so, was this an expense properly arising in the insolvency, and payable as … Continue reading Kahn and Another v Commissioners of Inland Revenue; In re Toshoku Finance plc: HL 20 Feb 2002
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 court was asked whether section 43 of the 1970 Act which imposes time limits on claims, applied to a claim for payments made by the Trustees of the BT Pension Scheme under section 231 of ICTA. If so, subject to questions of community law which remain to be decided, many of these claims were … Continue reading BT Pension Scheme Trustees v HM Revenue and Customs: CA 17 Jan 2014
INCOME TAX – Permission to appeal out of time -penalties for failure to make returns – Section 93 of the Taxes Management Act 1970 and Schedule 55 of the Finance Act 2009 [2020] UKFTT 309 (TC) Bailii England and Wales Income Tax Updated: 22 November 2021; Ref: scu.653148
In the course of ancillary relief proceedings in a divorce, questions arose regarding company assets owned by the husband. The court was asked as to the power of the court to order the transfer of assets owned entirely in the company’s names. The judge had made such an order, finding evidence that the companies had … Continue reading Prest v Petrodel Resources Ltd and Others: SC 12 Jun 2013
HL Surtax – Tax advantage – Transaction in securities – Company recon- struction – Surplus assets o f old company distributed in voluntary liquidation – Agreement for liquidation providing for agreed methods o f valuation and distribution – Whether (a) whole scheme o f reconstruction, (b) liquidation agreement, (c) distribution in liquidation a transaction in … Continue reading Inland Revenue Commissioners v Joiner: HL 26 Nov 1975
Limitations on HMRC discretion on investigation The Commissioners had been concerned at tax evasion of up to 1 million pounds a year by casual workers employed in Fleet Street. They agreed with the employers and unions to collect tax in the future, but that they would not pursue those who had evaded taxes in the … Continue reading Regina v Inland Revenue Commissioners, ex parte the National Federation of Self-Employed and Small Businesses Ltd: HL 9 Apr 1981
Taxpayer companies challenged the way that the revenue restricted claims for group Corporation Tax relief for subsidiary companies in Europe. The issue was awaiting a decision of the European Court. The Revenue said that the claims now being made by other companies should proceed through the Commissioners who could implement European law directly. The taxpayers … Continue reading Autologic Holdings Plc and others v Commissioners of Inland Revenue: HL 28 Jul 2005
FTTTx Income Tax – Anti-avoidance – transfer of assets abroad code – s739 ICTA 1988 – appellants were shareholders in UK bookmaker which transferred its telebetting business to Gibraltar – purpose of avoiding betting duty found but not corporation tax or other income tax Relevance and compatibility of EU freedom of establishment and free movement … Continue reading Fisher and Others v Revenue and Customs: FTTTx 14 Aug 2014
The company had obtained legal advice but had taken it from their accountants. The Revenue sought its disclosure, and the company said that as legal advice it was protected by legal professional privilege. Held: The material was not protected. The privilege given under the Act by virtue of the Morgan Grenfell decision was limited to … Continue reading Prudential Plc and Another, Regina (on the Application of) v Special Commissioner of Income Tax and Another: Admn 14 Oct 2009
FTTTx Income Tax/Corporation Tax : Human Rights – INCOME TAX – preliminary issue – discovery assessments – extended time limits – ss 29 and 36 TMA 1970 – death of taxpayer – whether art 6 Human Rights Convention engaged – whether contrary to overriding objective in Tribunal Procedure Rule 2 to allow proceedings to continue … Continue reading Wood v Revenue and Customs: FTTTx 12 Jun 2015
FTTTx INCOME TAX/CORPORATION TAX – Taxes Management Act 1970 s.12B(1) – whether requisite records kept – transfer of profit on construction contract from sole trader’s accounts to company partially owned by sole trader – loss of tax. Appeal dismissed. W Ruthven Gemmell, WS [2011] UKFTT 57 (TC) Bailii Taxes Management Act 1970 12B(1) England and … Continue reading Johnstone v Revenue and Customs: FTTTx 17 Jan 2011
The court was asked whether the Commissioners had been correct to disallow in a closure notice, the attribution in part to income in the year 2000-01 of expenses incurred by the trustees of a United Kingdom resident discretionary trust. The expenses claimed were (i) trustees’ fees, (ii) investment management fees, (iii) bank charges, (iv) custodian … Continue reading HM Revenue and Customs v Trustees of the Peter Clay Discretionary Trust: CA 19 Dec 2008
