Amendments to employee share option schemes were due Inland revenue approval. Citations: Times 08-Aug-1995 Statutes: Income and Corporation Taxes Act 1988 135, 185 Jurisdiction: England and Wales Income Tax Updated: 20 December 2022; Ref: scu.82360
Wynchgate Construction Ltd, an associated company of the taxpayer company, (‘WCL’), commenced a trade in 1994 of providing the services of British construction workers to a contractor operating in Germany. The trade only lasted for about 5 months. WCL discontinued it in May 1994 but had not received payment, or ‘full payment’ for its services. … Continue reading Jowett (Inspector of Taxes) v O’Neill and Brennan Construction Ltd: ChD 25 Mar 1998
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
The taxpayer sought to set off against tax some pounds 200,000 spent defending professional disciplinary proceedings. The House was asked whether this was ‘money wholly and exclusively laid out or expended for the purposes of the trade.’ Held: Where legal costs had been incurred in the defence of professional misconduct proceedings in order to protect … Continue reading McKnight (Inspector of Taxes) v Sheppard: HL 18 Jun 1999
Housing association which was registered under Act is an investment company and is to carry a profit charge. Citations: Times 01-Jan-1997 Statutes: Industrial and Provident Act 1965, Income and Corporation Taxes Act 1988 130 Jurisdiction: England and Wales Corporation Tax Updated: 19 May 2022; Ref: scu.79477
The power of the Inland Revenue to attribute to company members powers to control the company not given by their holdings, by associating them with other members is a limited one and is to be used only when the association is real.Small company relief. Citations: Times 09-Mar-1999, [1999] EWHC Admin 149 Statutes: Income and Corporation … Continue reading Regina v Commissioners of Inland Revenue ex parte Newfields Developments Limited: Admn 17 Feb 1999
SCIT Payments for the release of share options chargeable under Income and Corporation Taxes Act 1988, s. 135 – Application of PAYE Regulations – Whether obligation to deduct tax under existing law prior to its . .
Anti-avoidance provisions do not catch a transfer of assets which were located abroad and which made at a time when the taxpayer was a non UK resident. Citations: Gazette 08-Mar-1995, Ind Summary 13-Feb-1995, Times 06-Jan-1995 Statutes: Income and Corporation Taxes Act 1988 739-741 Jurisdiction: England and Wales Citing: Appealed to – Inland Revenue Commissioners v … Continue reading Inland Revenue Commissioners v Willoughby and Another: CA 6 Jan 1995
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
The appellants were widowers whose wives had died at a time when the benefits a widow would have received were denied to widowers. The legislation had since changed but they variously sought compensation for the unpaid sums. Held: The appeal succeeded. By 1995 discrimination as to pensions was no longer supportable. And those appellants pursuing … Continue reading Hooper and Others, Regina (on the Application of) v Secretary of State for Work and Pensions: CA 18 Jun 2003
The claimant sought damages from the revenue for their failure properly to process his claim for a sub-contractor’s certificate which had led to losses. Held: The revenue owed no common law duty of care to the claimant and nor were damages claimable under the section, and the claim failed. The Act imposed no statutory time … Continue reading Neil Martin Ltd v Revenue and Customs Commissioners: 28 Sep 2006
Section 790 of the 1988 Act should be construed to accord with European law so far as necessary to allow for the grant of tax credits for foreign dividends. Judges: Henderson J Citations: [2013] EWHC 3249 (Ch), [2013] WLR(D) 411, [2013] BTC 751, [2014] 2 CMLR 10, [2014] STC 1236, [2013] STI 3391 Links: Bailii, … Continue reading The Prudential Assurance Company Ltd and Another v Revenue and Customs: ChD 24 Oct 2013
FTTTx CORPORATION TAX – Whether arrears of rent as between associated companies should be allowed on a bad debt, or disallowed for S74(1) ICTA 1988 – question of intention – Appeal Dismissed Citations: [2013] UKFTT 778 (TC) Links: Bailii Statutes: Income and Corporation Taxes Act 1988 74(1) Corporation Tax Updated: 17 November 2022; Ref: scu.472782
Life company’s management expenses were allowable against income under Sch D Case 1, but not allowable on income minus expenses basis. Citations: Times 24-Feb-1998, [1998] EWCA Civ 244 Statutes: Income and Corporation Taxes Act 1988 75 76 Jurisdiction: England and Wales Cited by: Cited – Camas Plc v HM Inspector of Taxes ChD 7-Jul-2003 An … Continue reading Prudential Assurance Company Limited v Johnson (HM Inspector of Taxes): CA 13 Feb 1998
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
FTTTx Corporation tax – deductibility of expenditure – sponsorship payments intended to improve fortunes of sports club – expectation of trade benefits principally as a result of recognition by others involved with the club of taxpayer’s benefaction – dual purpose of benefitting sports club and taxpayer’s trade – payments not deductible – direct promotion of … Continue reading Interfish Ltd v Revenue and Customs: FTTTx 4 Apr 2012
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
FTTTx Income tax – charge on retirement benefits scheme administrator under s591C ICTA 88 on cessation of approval of scheme – whether notice validly given – whether assessments valid – whether raised in respect of correct year of assessment – whether raised in name of correct person – whether out of timeThe taxpayer appealed against … Continue reading John Mander Pension Trustees Ltd v Revenue and Customs: FTTTx 28 Oct 2011
The Court considered the interpretation of the sections which applied corporation tax to post-cessation receipts. Companies had received from the Inland Revenue substantial repayments of VAT together with interest. There had been reorganisations of the group, the company which had made the overpayment did not exist, and the payee of the repayment had only later … Continue reading Shop Direct Group v Revenue and Customs: SC 17 Feb 2016
The company sought to challenge the assessment to corporation tax of a very large repayment of VAT, together with an even larger amount of interest. Held: The appeal failed. Judges: Rimer, Briggs LJJ, Sir Stanley Burnton Citations: [2014] EWCA Civ 255 Links: Bailii Statutes: Income and Corporation Taxes Act 1988 103 106 Jurisdiction: England and … Continue reading Shop Direct Group v Revenue and Customs: CA 11 Mar 2014
The novation of a debt to a company was a release incurring income tax liability. Citations: Gazette 16-Sep-1992 Statutes: Income and Corporation Taxes Act 1988 287-1 Jurisdiction: England and Wales Income Tax Updated: 13 September 2022; Ref: scu.79279
An investment company made an abortive attempt to take over another. It sought to set off against its Corporation Tax, the costs of the professional advice incurred. Held: The expenses were deductible. Judges: Lord Justice Chadwick Vice-Chancellor, The Vice-Chancellor Lord Justice Carnwath Citations: [2004] EWCA Civ 541, Times 27-May-2004, Gazette 03-Jun-2004, [2004] BTC 190, [2004] … Continue reading Atkinson (HM Inspector of Taxes) v Camas Plc: CA 6 May 2004
FTTTx Corporation tax – deductibility of expenditure – sponsorship payments intended to improve fortunes of sports club – expectation of trade benefits principally as a result of recognition by others involved with the club of taxpayer’s benefaction – dual purpose of benefitting sports club and taxpayer’s trade – payments not deductible – Income and Corporation … Continue reading Interfish Ltd v Revenue and Customs: FTTTx 13 May 2010
CORPORATION TAX – computation of profits – deductions – payments by Appellant before 2001 to employee benefit trust and after 2002 to family benefit trust – whether wholly and exclusively expended for the purposes of the Appellant’s trade – yes – whether Appellant’s profits computed in accordance with generally accepted accountancy practice – yes – … Continue reading Sempra Metals Ltd v Revenue and Customs: SCIT 7 Jul 2008
FTTTx Income Tax and NIC – Schedule E – emoluments/earnings – tax avoidance scheme – Remuneration Trust – employees’ individual sub-trusts – ‘protectors’ – (1) whether payments by employer into trust represent emoluments subject to PAYE and NIC; – (2) whether benefits (particularly loans) derived by employees from the Remuneration Trust represent emoluments subject to … Continue reading Murray Group Holdings and Others v Revenue and Customs: FTTTx 29 Oct 2012
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
Second Division Inner House) The AG appealed from a finding that a tax avoidance was not a sham. TH AG brought a new argument, that the payment of the sums to the remuneration trust involved a redirection of the employee’s earnings and accordingly did not exclude those earnings from the charge to income tax. Held: … Continue reading The Advocate General for Scotland v A Decision of The Upper Tribunal, Re Assessments To Tax Made On Murray Group Holdings Ltd and Others: SCS 4 Nov 2015
Inner House – The Court analysed the nature of the rights which a tax avoidance scheme, involving an offshore employee benefits trust and family benefit trusts and shares in Isle of Man companies, had conferred on the relevant employees. The employing company had accepted that the sums which it had paid though the employee benefits … Continue reading Aberdeen Asset Management Plc v HM Revenue and Customs: SCS 23 Oct 2013
UTTC Income Tax; emoluments; tax avoidance scheme; transfer of shares; whether a payment -No; whether shares a readily convertible asset – Yes; Income and Corporation Taxes Act 1988 sections 1, 19, 131, 202AandB, 203, 203A, 203F, The Income Tax (Employments) Regulations 1993 Regulation 2- appeal dismissed Citations: [2012] UKUT 43 (TCC) Links: Bailii Statutes: Income … Continue reading Aberdeen Asset Management Plc v HMRC: UTTC 9 Dec 2011
Income Tax; emoluments; money’s worth; transfer of shares; readily convertible asset; Ramsay approach; tax avoidance scheme; Employee Benefit Trust; Discounted Options Scheme for employees in financial services industry; establishment of employee benefit trust; offshore companies established; money box company; family trust established; grant of option by offshore company in favour of family trust; transfer of … Continue reading Aberdeen Asset Management Plc v Revenue and Customs: FTTTx 29 Oct 2010
FTTTx DOUBLE TAXATION RELIEF – individual investor in Delaware LLC – whether entitled to the profits as they arise – yes – accordingly the Appellant is entitled to credit for US tax paid by him, the LLC being transparent for US tax purposes – if wrong, the LLC is not treated as transparent by s … Continue reading Swift v Revenue and Customs: FTTTx 22 Feb 2010
SXIT EMPLOYEE BENEFIT TRUST – whether deduction of contributions postponed until taxable as emoluments under FA 1989 s.43(11) – no – whether sub-funds in favour of directors who controlled the company taxable as emoluments on Ramsay principles or as a benefit in kind under TA 1988 s.154 – no — whether loans to directors taxable … Continue reading Dextra Accessories Ltd and others v Inspector of Taxes: SCIT 25 Jul 2002
A payment made out of a pension scheme which had subsequently been found unlawful and ordered to be repaid, was not a taxable payment as such. The payment had been made in good faith and on advice. Citations: Times 13-May-1999, [1999] EWHC Admin 219 Links: Bailii Statutes: Income and Corporation Taxes Act 1988 601 Jurisdiction: … Continue reading Hillsdown Holdings Plc and HF Meat and Foods Processing Pension Scheme Trustees Limited v Commissioners of Inland Revenue: ChD 13 May 1999
An employee changing cars during the tax year has to make separate computations of benefit for each car. Citations: Times 14-May-1997, Gazette 21-May-1997 Statutes: Income and Corporation Taxes Act 1988 157 sch 6 Jurisdiction: England and Wales Income Tax Updated: 05 August 2022; Ref: scu.81328
UK companies were subsidiaries of companies resident abroad, and complained that they were unable to make group income elections. Held: The prohibition infringed non-discrimination provisions of double taxation agreements – non-discrimination provisions had not been given effect in domestic law in respect of advance corporation tax. It did not greatly matter whether the High Court … Continue reading NEC Semi-Conductors Limited and Other Test Claimants v The Commissioners of Inland Revenue: ChD 24 Nov 2003
The court considered whether the taxpayer, a BA airline pilot, was resident or ordinarily resident in the UK. Judges: Lewison J Citations: [2008] EWHC 2708 (Ch), [2008] BTC 843, [2008] STI 2503, [2009] STC 213 Links: Bailii Statutes: Income and Corporation Taxes Act 1988 19(1) Jurisdiction: England and Wales Income Tax Updated: 21 July 2022; … Continue reading Revenue and Customs v Grace: ChD 11 Nov 2008
The Revenue had published a booklet, IR20, setting out their approach to the interpretation of the phrases ‘residence’ and ‘ordinary residence’. The taxpayer said that this was a more generous definition than the statutory one, and that having acted on it he had a legitimate expectation that the booklet’s interpretation would continue to be applied. … Continue reading Davies and Another, Regina (on The Application of) v Revenue and Customs: SC 19 Oct 2011
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 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
Under s247 of the 1988 Act, a company paying dividends to a parent company need not withhold ACT. This option was not offered where either subsidiary or parent was not UK resident until the decision in Hoechst which found the restriction contrary to European law. The Revenue now appealed a decision allowing recovery of the … Continue reading Pirelli Cable Holding Nv and others v Inland Revenue: HL 8 Feb 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 defendant had been convicted of offences in which he had operated to purchase companies and use false debentures to evade corporation tax. Compensation had been sought under the 1988 Act. It was argued that the confiscation order should be quashed because the defendant had not benefitted as alleged. Held: The appeals failed. The court … Continue reading Regina v Stannard: CACD 1 Nov 2005
The claim against the defendant at the tribunal had been settled by a compromise which had then been the subject of an order by the tribunal. The Revenue sought to charge the payment to income tax. Held: It had been paid ‘in connection with’ the termination of his employment, was less than pounds 30,000 and … Continue reading Wilson (HM Inspector of Taxes) v Clayton: CA 7 Dec 2004
It was difficult to reconcile different decisions of the higher courts. Nevertheless, the declaration and payment of a dividend which did not involve any transaction in securities, or alteration of rights attaching to securities, was not itself a dealing in securities. The arrangement involved the declaration of abnormally large dividends in purchasing another company so … Continue reading Inland Revenue Commissioners v Laird Group Plc: ChD 13 Mar 2001
The taxpayers were trustees of a trust which had received bonuses by way of shares issued in lieu. They appealed a finding of being taxable on the payments as income and subject to higher rates of tax. Held: The section was poorly worded, but the argument presented by the trustess would present anomolous results. The … Continue reading Paul Jonathan Howell, Alan James Morton v Linda Trippier (HM Inspector of Taxes): CA 13 Jul 2004
Taxability of compensation paid on compromise of claims after dismissal. The employer introduced new terms, withdrawing car benefits. Having refused the new terms the taxpayer was dismissed. A tribunal held him unfairly dismissed. The council re-instated him and others and made a compensatory payment. The Revenue contended that the re-instatement made the payment taxable. Held: … Continue reading Wilson (HM Inspector of Taxes) v Clayton: ChD 29 Apr 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
Was the payment of a dividend in respect of shares ‘a transaction in securities’ or ‘a transaction relating to securities’ within the meaning of section 703. Held: ‘As a matter of ordinary language, the creation, issue, sale, purchase, exchange, redemption and extinguishment of shares or debentures are all ‘transaction[s] in securities’. The word ‘securities’ includes … Continue reading Her Majesty’s Commissioners of Inland Revenue v Laird Group plc: HL 16 Oct 2003
The taxpayers appealed a notice under section 703(3) to counteract the tax advantage received by them from a share buy-back scheme. The scheme was an approved pension scheme, under which the quoted company agreed to buy back its own shares. Held: The excess paid over the market value by the company was to be treated … Continue reading Inland Revenue Commissioners v Sema Group Pension Scheme Trustees: CA 19 Dec 2002
The defendant appealed against a finding that he had concealed an emolument, namely accommodation. He said that, as a shadow director of the company within the extended meaning of that phrase under the Act, the deeming provisions under Income Tax law did not apply. The defendant argued that a shadow director could not be an … Continue reading Regina v Allen: HL 11 Oct 2001
Income tax was payable under Schedule D on the sale of a builder’s own house. He was shown to have been, in effect, trading taking into account his past record, and doubts about his intention ever to occupy the house as his residence. Some element of permanent residence was required to apply for relief. Citations: … Continue reading Kirkby v Hughes: Chd 22 Feb 1993
The question was whether sub-underwriting commissions received by the Trustees are chargeable to tax under Case I of Schedule D and whether they are also liable to the additional rate of tax applicable to trusts. The investment managers appointed to manage the huge scheme assets were allowed to sub-underwrite their duties, and accounted for their … Continue reading Paul Alexander Clark (Her Majesty’s Inspector of Taxes) v The Trustees of The British Telecom Pension Scheme and Others: ChD 14 Oct 1998
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
The claimant sought to make arrangements with a view to collecting substantial arrears of tax due to South Africa. The revenue said that it had that power by virtue of the double taxation treaty with South Aftrica. The company replied that the liabilities arose for years prior to the Convention embodied in the Regulations, andtat … Continue reading Revenue and Customs and Another v Ben Nevis (Holdings) Ltd and Others: ChD 20 Jul 2012
Payments which were made in lieu of a termination notice were taxable, because the right to make such payments had been explicitly reserved in the contract of employment, and the payment was therefore under that contract. Citations: Times 14-Nov-1997, Gazette 12-Nov-1997 Statutes: Income and Corporation Taxes Act 1988 19(1) Jurisdiction: England and Wales Income Tax, … Continue reading EMI Group Electronics Ltd v Coldicutt (Inspector of Taxes): ChD 12 Nov 1997
Where a company which had ceased trading and fallen outside the tax regime, subsequently declared a dividend, it was deemed to be a new accounting period, and the dividend did fall to be taxed, and any advance corporation tax could be set off against any corporation tax payments made whilst previously trading.Lord Hoffmann said: ‘I … Continue reading Walker (Her Majesty’s Inspector of Taxes) v Centaur Clothes Group Limited: HL 16 Mar 2000
A deeming section could create a taxation liability, even where the liability appeared to be duplicated. The clause under which the foreign income of a company came to be chargeable did not affect the existing liability to pay tax on the sums so charged, and charges of conspiracy to cheat the public revenue stood by … Continue reading Regina v Dimsey; Regina v Allen: CA 14 Jul 1999
Shares are allotted to a person when that person acquires an unconditional right to be entered on a company’s register of members. The issue of shares only becomes complete after they are registered in the company’s books for the purposes of the BES scheme.Lord Templeman said: ‘The Act of 1985 preserves the distinction in English … Continue reading National Westminster Bank Plc and Another v Inland Revenue Commissioners: HL 24 Jun 1994
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
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
Citations: [2013] EWHC 942 (Ch) Statutes: Income and Corporation Taxes Act 1988 103 106 Jurisdiction: England and Wales Citing: At FTTTx – Shop Direct Group and Others v Revenue and Customs FTTTx 14-Feb-2012 FTTTx Corporation tax – receipts of payments in respect of overpaid VAT and statutory interest – whether VAT repayments trading receipts – … Continue reading Shop Direct Group and Others v HM Revenue and Customs: ChD 19 Apr 2013
The revenue appealed against an order by the general commissioners to grant to the taxpayer, a construction industry subcontractor, a fresh exemption certficate where he had been consistently late in submitting tax and NI payments of several thousand pounds. Held: The determination was incorrect as a matter of law. The breaches could not be described … Continue reading Arnold (Inspector of Taxes) v G Con Ltd: ChD 4 Mar 2005
The test in the section, provided the conclusive test to establish who had control of a company. The commissioners had no discretion as to how or when to apply the criteria. The first part listed several ways in which the identity and number of people with control was to be calculated, and the second limb … Continue reading Regina v Inland Revenue Commissioners, Ex Parte Newfields Developments Ltd: CA 15 Feb 2000
Yearly interest payment is treated as having been paid when it is debited to bank account. Citations: Times 13-Nov-1995 Statutes: Income and Corporation Taxes Act 1988 338 Jurisdiction: England and Wales Corporation Tax Updated: 28 April 2022; Ref: scu.83266
The income from investments set aside to cover future liabilities was not trading income. Citations: Gazette 09-May-1996, Times 29-Mar-1996 Statutes: Income and Corporation Taxes Act 1988 393(8) Citing: Appeal from – Nuclear Electric Plc v Bradley (Inspector of Taxes) CA 13-Nov-1995 Income on funds set aside but not allocated for expenditure not trading income . … Continue reading Nuclear Electric Plc v Bradley (Inspector of Taxes): HL 29 Mar 1996
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
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
UTTC Corporation tax – deductibility of expenditure – sponsorship payments intended to improve fortunes of sports club – expectation of trade benefits principally as a result of recognition by others involved with the club of taxpayer’s benefaction – dual purpose of benefiting sports club and taxpayer’s trade – payments not deductible – Income and Corporation … Continue reading Interfish Ltd v HM Revenue and Customs: UTTC 16 Jul 2013
The taxpayers used schemes to create allowable losses, and now appealed assessment to tax. The schemes involved a series of transactions none of which were a sham, but which had the effect of cancelling each other out. Held: If the true nature of the transactions could be seen by looking at them all together, then … Continue reading W T Ramsay Ltd v Inland Revenue Commissioners: HL 12 Mar 1981
The tax payer sought to have reflected in his PAYE coding, his substantial trading losses arising from his activities as a Name /underwriter at Lloyds in 2003. Held: The underwriting year 2003 ends in the year of assessment 2003/4, and therefore ‘corresponds’ to that year of assessment. Accordingly, losses declared in May 2003, and other … Continue reading Blackburn (HM Inspector of Taxes) v Keeling: CA 21 Aug 2003
Tax relief for smaller companies was to be reduced where a person controlling the company was associated with other companies. The taxpayer was found to be in control of two companies by virtue of her associations with two trusts with control of two companies. She argued that the section gave a discretion as to the … Continue reading Regina v Inland Revenue Commissioners, ex parte Newfields Developments Ltd: HL 21 Jun 2001
PAC sought to recover excess advance corporation tax paid under a UK system contrary to EU law. It was now agreed that some was repayable but now the quantum. Five issues separated the parties. Issue I: does EU law require the tax credit to be set by reference to the overseas tax actually paid, as … Continue reading Prudential Assurance Company Ltd v Revenue and Customs: SC 25 Jul 2018
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
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
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
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
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
CORPORATION TAX – Loss relief – Yacht chartering business carried out on a commercial basis – Whether it was also carried out with a view to the realisation of profits of trade in the accounting periods for the years ended 31 March 2009 and 2010 (as required by s 393A (3) and (4) of the … Continue reading Beacon Estates (Chepstow) Ltd v Revenue and Customs: FTTTx 16 Jul 2014
The company sought to set payments it had made to support a local rugby club off against its income for Corporation Tax purposes. Held: The appeal failed. The requirement was that the expenditure be wholly necessarily and exclusively for the requisite purpose. The mixed purpose here did not suffice. Lord Dyson MR, Moses, Patten LJJ … Continue reading Interfish Ltd v HM Revenue and Customs: CA 27 Jun 2014
The taxpayer used a motor home/camper van as a base for his business. The inspector sought to tax it as a benefit received. Held: The taxpayer’s appeal failed. It was not a car in the ordinary sense, and it was used mainly not for transport but as an office. The section gave a wide definition … Continue reading Morris v Commissioners of Revenue and Customs: ChD 8 Mar 2006
The court was asked whether the Commissioners for Her Majesty’s Revenue and Customs have assessed the appellant for tax in the wrong tax year. The scheme had ceased to be approved, and HMRC issued assessments for the earlier years in which the income had arisen. The taxpayer argued that the assessments hould apply for the … Continue reading John Mander Pension Scheme Trustees Ltd v Revenue and Customs: CA 19 Dec 2013
FTTTx Corporation tax – receipts of payments in respect of overpaid VAT and statutory interest – whether VAT repayments trading receipts – whether payments in respect of supplies made in discontinued trades chargeable to tax as post-cessation receipts – ICTA 1988, ss 103 and 106(2) – whether payments in respect of interest taxable under Sch … Continue reading Shop Direct Group and Others v Revenue and Customs: FTTTx 14 Feb 2012
An assessment to income tax had been raised after the employee resold shares in the company issued through the employees’ share scheme at a price which the Revenue said was above the share value. The company appealed against a finding that tax was payable. Held: The appeal failed. The Revenue should calculate the price which … Continue reading Grays Timber Products Ltd v Revenue and Customs: SC 3 Feb 2010
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
Convertible loan notes had been issued as a channel for future gains. Held: The loan notes were not a normal commercial loan as defined in Schedule 18 to the 1988 Act, and therefore did not fall within the section so as to allow qualification for exemption from liability to tax. The conditions relating to ‘normal … Continue reading Weston v Garnett (HM Inspector of Taxes): CA 16 Jun 2005
Corporation Tax – s13A Income and Corporation Taxes Act 1988 – meaning of ‘purpose’ – Appeal dismissed. [2011] UKFTT 395 (TC) Bailii England and Wales Corporation Tax Updated: 10 November 2021; Ref: scu.443137
The Bank anticipated criticism in an ad hoc enquiry which was called to investigate its handling of a matter involving the claimant. The claimant sought disclosure of the documents created when the solicitors advised employees of the Bank in preparing to present the Bank’s case, and the Bank now appealed an order granting such access, … Continue reading Three Rivers District Council and others v Governor and Company of the Bank of England (No 6): HL 11 Nov 2004
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
Non-resident parents in each case appealed against suspended orders of imprisonment for non-payment of child support. They argued that the procedures used were indistinguishable from those held to be human rights non-compliant in Mubarak. Held: The Commission had not taken all alternative enforcement steps first as required by the Act, and accordingly it was ot … Continue reading Child Maintenance and Enforcement Commission v Gibbons; Same v Karoonian: CA 30 Oct 2012
UTTC Corporation Tax: Effect of receipt by trader or successor to trade of sums in respect of VAT repaid under s80 VATA to representative member of VAT group plus interest paid under s78 VATA. Question of beneficial ownership of sums received and whether ‘arising from the trade’. Application of sections 103 and 106 ICTA 1988. … Continue reading Shop Direct Group, Littlewoods Retail Ltd and Others v HMRC: UTTC 19 Apr 2013
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
Interpretation of Double Taxation Agreements This appeal is concerned with the interpretation and application of a double taxation agreement between the United Kingdom and the United States of America. A had been a member of an LLP in Delaware, and he was resident within the UK, but not domiciled here. He was liable to UK … Continue reading Anson v Revenue and Customs: SC 1 Jul 2015
Foreign Public Law Not Enforceable Here The claimant alleged a conspiracy by the defendants for his overthrow by means of a private coup d’etat. The defendants denied that the court had jurisdiction. The claimants appealed dismissal of their claim to damages. Held: The claims were not justiciable here. Public laws, like penal laws, may not … Continue reading Mbasogo, President of the State of Equatorial Guinea and Another v Logo Ltd and others: CA 23 Oct 2006
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
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
Corporation tax – joint referral – FA 1998, Sch 18, para 31A – group relief – consortium – surrendering company indirectly partly owned by Luxembourg company – condition that ‘link company’ must be UK resident or carry on a trade in the UK through a permanent establishment – s 402(3), (3A) and (3B) ICTA 1988 … Continue reading The Felixstowe Dock and Railway Company Ltd and Others v Revenue and Customs: FTTTx 19 Dec 2011
UTTC Income tax – charge on retirement benefits scheme administrator under s591C ICTA 88 on cessation of approval of scheme – whether assessments raised in respect of correct year of assessment – whether raised . .
The revenue sought to levy income tax on the taxpayers share of revenue in a Delaware Limited liability company. In the US the company would itself be liable for and pay all tax on the members’ profits. Mr Anson was resident but not domiciled in the . .
UTTC Income tax – double taxation – United Kingdom and United States – whether computation by reference to the same income or profits – whether taxpayer entitled to profits as they arise . .