A professional rugby player bought and consumed dietary supplements to make it easier to maintain the physical standards required by his employers. He claimed the cost of the supplements against his income tax. The commissioners allowed his claim, and the revenue appealed. Held: The commissioners had erred. The requirements for the deduction were stringent, exacting … Continue reading Ansell (Inspector of Taxes) v Brown: ChD 23 May 2001
There was not necessarily subsumed in the concession that a payment constituted an emolument from employment a conclusion that the payment must therefore be for a chargeable period within the aggregate period during which the employment subsisted. . .
The taxpayer’s employer had created a scheme to provide to him with a motor vehicle, but seeking to reduce his liabilty for income tax. The company purchased two cars and transferred to him a five per cent interest in each for which he paid. The cars were rather later sold to him at an independent … Continue reading Christensen (Inspector of Taxes) v Vasili: ChD 19 Mar 2004
Change in the employees’ share option scheme allowed the Inland Revenue to withdraw approval.Inland Revenue may refuse approval to amendment of share option schemes. Citations: Ind Summary 21-Mar-1994, Times 10-Mar-1994 Statutes: Income and Corporation Taxes Act 1988 Jurisdiction: England and Wales Income Tax Updated: 17 June 2022; Ref: scu.82359
The taxpayer was transferred from one football club to another. He was paid andpound;75,000 to persuade him to move. The revenue appealed a decision that this was not a sum taxable as an emolument under Schedule E by the new employer. Held: The appeal was allowed. A payment was ‘from’ an employment if it was … Continue reading Shilton v Wilmshurst: HL 7 Feb 1991
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
SCIT TRANSACTIONS IN SECURITIES – share buy-backs – trustees of exempt approved scheme purchased shares in Powergen which subsequently bought back the shares – trustees claimed tax credit – whether the scheme received an abnormal amount -no – whether the scheme obtained a tax advantage – yes – whether the sales back to Powergen were … Continue reading Omega Group Pension Scheme v Inland Revenue: SCIT 22 Jun 2001
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 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
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
Whether pension fund trustees were engaging in the sub-under-writing of share issues in return for commission payments, was a question of fact for the original court hearing the case, and it was not for an appeal court to set aside that finding of fact because of a mistake in the law. In this case the … Continue reading Trustees of BT Pension Schemes and others v Clark (HM Inspector of Taxes): CA 24 Feb 2000
A payment made by an employer on the termination of a contract in lieu of notice was taxable as an emolument, where the right to notice was reserved by the employment contract The reason for a notice period from an employee’s point of view was not that they wanted to work, but that they wanted … Continue reading EMI Group Electronics Ltd v Coldicott (Inspector of Taxes): CA 16 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
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,  EWHC Admin 219 Links: Bailii Statutes: Income and Corporation Taxes Act 1988 601 Corporation … Continue reading Hillsdown Holdings Plc and HF Meat and Foods Processing Pension Scheme Trustees Limited v Commissioners of Inland Revenue: ChD 13 May 1999
Where a group of companies sought consortium group relief, but the majority of the companies within the group were based outside the European Union, the court need not apply European Union standards to the test, but could instead apply the standards appropriate to the UK, and accordingly refuse the relief. Citations: Times 24-Nov-1999, Gazette 01-Dec-1999, … Continue reading Imperial Chemical Industries Plc v Colmer (Inspector of Taxes) (No 2): HL 18 Nov 1999
A scheme by which an employer paid bonuses to senior staff by purchasing contingent reversionary interests in an overseas trust, and then assigning them to the staff without admitting liability for income tax or national insurance contributions when the interests fell into possession. The scheme failed under anti-avoidance provisions under Ramsay principles. The cash payment … Continue reading DTE Financial Services Ltd v Wilson (Inspector of Taxes): CA 24 May 2001
A scheme involving the use of offshore discretionary trusts resulting in the payment of funds to the directors of the company from which the payments originated was not effective to exclude such payments from liability to tax. Overall the scheme had the characteristics of artificiality allowing all but one steps to be disregarded. Nevertheless the … Continue reading D T E Financial Services Ltd v Wilson (Inspector of Taxes): ChD 9 Nov 1999
The relief of foreign earnings given to those working as seafarers, did not apply to those working on a jack-up drilling rig with floating hull, and retractable legs., since this was not a ship. Being a seafarer involved the performance of duties on a ship. Definition in other acts suggested a vessel used in navigation. … Continue reading Clarke (Inspector of Taxes) v Perks; MacLeod (Inspector of Taxes) v Same; Guild (Inspector of Taxes) v Newrick and Another: ChD 3 May 2000
The taxpayer had claimed tax relief for certain periods (approximately six years) when he was living abroad. The Crown appealed a decision of the commissioners discharging their assessment to tax. Held: There is a distinction in law between the residence abroad and absence for the purposes of tax relief. The taxpayer can be resident, but … Continue reading Carstairs (Inspector of Taxes) v Sykes: ChD 20 Dec 2000
The taxpayer was a goalkeeper employed by Nottingham Forest Football Club. On his transfer to Southampton, he was paid pounds 75,000. The revenue appealed a finding that this was not taxable under Schedule E. Held: To be taxcable it had to be referrable to the services provided by him under the contract of employment. This … Continue reading Shilton v Wilmshurst (Inspector of Taxes): CA 1990
The court considered whether corporation tax had to be paid as an expense of the liquidation in priority to other claims. In that case it had arisen not on profits but on chargeable gains, on sales of the company’s properties after the commencement of the winding up. Held: ‘section 243(2) of the Income and Corporation … Continue reading In re Mesco Properties Ltd: ChD 1979
Members of a partnership between them holding shares in a limited company, were not disqualified from claiming relief from tax under appropriate circumstances under the Business Expansion Scheme. Their separate interests were not to be aggregated because of the partnership. Citations: Times 08-Jun-1999, Gazette 09-Jun-1999 Statutes: Income and Corporation Taxes Act 1988 291 (1) Income … Continue reading Cook (Inspector of Taxes) v Billings and Related Appeals: ChD 8 Jun 1999
Loans made between associated companies for the sole purpose of creating a charge to tax were ineffective as avoidance scheme. Citations: Times 19-Aug-1997 Statutes: Income and Corporation Taxes Act 1988 338 Jurisdiction: England and Wales Cited by: At ChD – McNiven (Inspector of Taxes) v Westmoreland Investments Ltd CA 26-Oct-1998 Cross loans were made between … Continue reading McNiven (Inspector of Taxes) v Westmoreland Investments Ltd: ChD 19 Aug 1997
The system of tax relief called the business expansion scheme did not apply when land was given in exchange for shares in the qualifying company. The scheme gave relief for efforts in raising money. That could not be satisfied by property given in money’s worth. Citations: Times 24-Apr-2000 Statutes: Income and Corporation Taxes Act 1988 … Continue reading Thompson (Inspector of Taxes) v Hart: ChD 24 Apr 2000
Where pension fund trustees engaged in the sub-under-writing of share issues in return for commission payments they became engaged in a trade and made themselves liable to taxation on the profits as such a trader. Citations: Gazette 11-Nov-1998 Statutes: Income and Corporation Taxes Act 1988 Sch D Case 1 Income Tax Updated: 05 May 2022; … Continue reading Clark (Inspector of Taxes) v Trustees of the BT Pension Scheme and Others: ChD 11 Nov 1998
Control of a company within the section means shareholder control. Citations:  STC 785 Statutes: Income and Corporation Taxes Act 1988 416 Jurisdiction: England and Wales Cited by: Cited – Foulser and Another v HM Inspector of Taxes ChD 20-Dec-2005 The taxpayer company entered into an arrangement in which shares were purchased by a company … Continue reading Steele v EVC International NV: 1996
The Trustees of an exempt approved pension scheme bought shares, and sold them at a lower price to the company. Under the 1988 Act, this operated to create a tax credit. The revenue issued a notice and assessment under Schedule F to defeat that tax credit. The trustees successfully appealed that to the Commissioners, and … Continue reading Inland Revenue Commissioners v Sema Group Pension Scheme Trustees: ChD 7 Feb 2002
The Respondent was trustee of the British Coal Staff Superannuation Scheme, a registered pension fund holding a large portfolio of shares in UK and overseas companies. Between 2002 and 2008, the pension fund undertook ‘stock lending’ transactions, transferring overseas shares to borrowers on the basis that the borrowers would retransfer to it the same or … Continue reading Revenue and Customs v Coal Staff Superannuation Scheme Trustees Ltd: SC 27 Apr 2022
A business expansion tax plan was valid if it was issued before the Income and Corporation Taxes Act. Shares were issued on the sending of the allotment letter, not when the shares came to be registered in the company’s books. Citations: Ind Summary 30-Aug-1993, Times 06-Aug-1993 Statutes: Income and Corporation Taxes Act 1988 289 299A … Continue reading National Westminster Bank Plc and Another and Barclays Bank Plc and Another v Inland Revenue Commissioners: ChD 6 Aug 1993
Workers on North Sea drilling rigs which were capable of being moved, claimed relief as seafarers, since they were employed on a ship. The first instance court said the rigs were not ships. They appealed. Held: The word ‘ship’ is an ordinary English word, and its meaning is one of fact not law. Accordingly the … Continue reading Perks and Others v Clark and Others: CA 27 Jul 2001
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 growing of trees as Christmas trees was not a use of land as forestry. It was not growing woodland, but was rather a gardening nursery. It was not a use for timber. Tax benefits were lost accordingly. Citations: Gazette 03-Dec-1997, Times 10-Dec-1997 Statutes: Income and Corporation Taxes Act 1988 53 SchD 1, Income and … Continue reading Jaggers (Trading As Shide Trees) v Ellis (Inspector of Taxes): ChD 3 Dec 1997
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 Income Tax Updated: 08 April 2022; Ref: scu.81328
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 Authority appealed from refusal of judicial review of a circular issued by the respondent as to the supply of Plastic Baton Rounds and CS gas from central resources only. The authority suggested that the circular amounted to permission for the use of plastic baton rounds for the first time in England and Wales and … Continue reading Regina v Secretary of State for the Home Department, ex Parte Northumbria Police Authority: CA 18 Nov 1987
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
FTTTX CORPORATION TAX – Derivative contracts – Derecognition of financial asset – Whether accounting debit fairly represents a loss from derivative contracts – Whether necessary to meet requirements of paragraph 15 of schedule 26 to Finance Act 2002 if debit within paragraph 25A of that schedule – Whether transfer pricing provisions of schedule 28AA Income … Continue reading The Union Castle Mail Streamship Company Ltd v Revenue and Customs: FTTTx 27 Jul 2016
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
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 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 Income Tax/Corporation Tax : Anti-Avoidance – Income Tax – Claim for capital allowances in respect of expenditure on scientific research – Scheme to claim the allowances for a substantially higher amount than that actually applied in undertaking such research – whether the partnership’s whole activity or any part of its activity constituted trading for … Continue reading The Brain Disorders Research Limited Partnership, Hockin v Revenue and Customs: FTTTx 2 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
The tax payer played tennis and was paid sums for when he played in England. The sums were paid to his overseas based company. Held: The revenue’s appeal succeeded. The ‘legislative intendment in relation to sections 555 and 556, and their statutory predecessors in the 1986 Act, was that foreign entertainers and sportsmen who, or … Continue reading Agassi v Her Majesty’s Inspector of Taxes: HL 17 May 2006
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
The Metallgesellschaft case had established that it was contrary to European law to withhold the right to ACT on dividends paid by a UK holding company to a non-Uk subsidiary. The Revenue claimed that that rule did not apply here because the non-Uk subsidiary operated from a country with a double taxation agreement with the … Continue reading Pirelli Cable Holding NV and Others v Inland Revenue Commissioners: ChD 22 Jan 2003
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. Rimer, Briggs LJJ, Sir Stanley Burnton  EWCA Civ 255 Bailii Income and Corporation Taxes Act 1988 103 106 England and Wales Citing: At FTTTx – … Continue reading Shop Direct Group v Revenue and Customs: CA 11 Mar 2014
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
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
Gilt repo – purchase and resale of gilts – interest paid to interim holder not required to be paid to original holder but recognised in repurchase price – application of paragraph 15 Schedule 9 FA 96 – related transaction – effect of section 737A to 737C and 730A TA 88 – effect of section 97 … Continue reading DCC Holdings (UK) Ltd v Revenue and Customs: SCIT 8 May 2007
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
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
‘This judgment is about the tax effectiveness of a ‘rate-boosting’ scheme (‘the Scheme’), that is, a scheme to boost claims to double tax credit relief (‘DTR’) in the hands of a UK parent company (‘the UK ultimate parent’) on a dividend (‘a Case V dividend’) received by it from any of its overseas subsidiaries and … Continue reading Peninsular and Oriental Steam Navigation Company v Revenue and Customs: CA 20 May 2016
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
Memec plc, was a partner in a German silent partnership (stille Gesellschaft). The partnership had no separate legal personality, but was a contractual arrangement under which Plc had the right to receive a share of the profits of the business carried on by the other partner, in return for a capital payment. The other partner, … Continue reading Memec Plc v Commissioners of Inland Revenue: CA 9 Jun 1998
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
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 company had entered into an agreement to purchase gilts, and at the same time to resell them at a future date for a fixed sum. In effect they provided a loan against the gilts. It sought to offset the profit against its trading losses.
The court considered the taxation of ‘repo’ transactions. The revenue had charged to tax, an element of interest paid on a block og gilts purchased by the taxpayer company under a resale agreement at a price which allowed for the interest payments . .
The taxpayer companies had paid funds into a trust for employees. They sought to set off the payments against their liability to corporation tax. The revenue argued that they were deductible only in the year in which they were paid to the employees. . .
The British law which meant that non-resident parent companies of British based businesses were not able to recover interest on payments of advance corporation tax, was discriminatory against other European based companies. Accordingly the law was . .
The fact that a payment of interest was made only to create a tax advantage did not prevent its being properly claimed. Interest was paid for the purposes of setting it against tax, when the debt was discharged. A company with substantial losses had . .
The General Commissioner had held that an inspector’s refusal to renew a certificate allowing the taxpayer construction company to pay its sub-contractors without deducting income tax, infringed that company’s rights. The inspector appealed.
The revenue had refused to renew the respondent’s certificate, and now itself appealed against the contractor’ success on appeal to the General Commissioners. . .
The taxpayer was obliged to visit an office in Leeds once a week. He lived in Norfolk. He sought to set off the travel expenses against his schedule E Income Tax. As a home worker, he also sought the expenses of maintaining an office at home. Both . .
Amendments to employee share option schemes were due Inland revenue approval. . .
Damages which had been recovered in the Lloyd’s litigation for negligent underwriting were subject to income tax as trading income. . .
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 . .
Corporation Tax – group relief – claimant company resident in the United Kingdom – subsidiaries resident in other EU member states – whether making a claim for group relief implies the withdrawal of an earlier claim for group relief in respect of . .
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 . .
Cross loans were made between an investment company and pension schemes. The overall effect was to create payments which could be set off against Corporation Tax. They were not a pre-ordained series of transactions where the underlying loans were . .
Life company’s management expenses were allowable against income under Sch D Case 1, but not allowable on income minus expenses basis. . .
Retired bank employees had previously received free tax advice. When the service was withdrawn, the bank made a payment. The Revenue said that this payment was chargeable to income tax.
Held: The bank’s appeal failed. The payment was made ‘in . .
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 . .
The company made available to certain employees discretionary annual bonuses which were paid instead by way of shares and received dividends. It now appealed against findings that the payments were taxable subject to Schedule F rates and were liable . .
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 . .
The taxpayer sought tax relief for assorted pension contributions. She had made contributions to schemes before and after the 1988 Act. The tax scheme allowed unused allowances to be carried forward. The taxpayer sought to prevent aggregation of the . .
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. . .
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 . .
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 . .
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 . .
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, . .
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 . .
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 . .
UTTC Income Tax and NIC – emoluments/earnings – tax avoidance scheme – remuneration trust – employees’ individual sub-trusts – ‘protectors’ – (1) whether payments into sub-trusts were emoluments/earnings subject . .
FTTTx Income tax – pension payable to husband – claim that half of pension should be assessed on wife – Income and Corporation Taxes Act 1988 sections 1 and 19, Schedule E paragraph 2 – Income Tax (Earnings and . .
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 . .
The taxpayer entered into a scheme for the issue and disposal of corporate loans. He appealed a finding that the loans were caught by section 115 which disallowed exemption because they did not represent a normal commercial loan.
Held: It was . .
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 . .
The husband and wife had each owned a share in a company which sold the services of the husband. The Revenue claimed that the payment of dividends to the wife was a settlement.
Held: The Revenue failed. The share had been transferred to the . .
SCIT CAPITAL GAINS TAX – tax avoidance scheme – whether subscription for shares followed by the return of the subscription money by way of dividend (by an unlimited company), followed by disposal of the shares . .
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 . .
The court was asked whether termination payments made to employees on redundancy and which had been calculated according to unexpired notice periods were liable to Schedule E income tax and national insurance. The calculations were based upon a . .