FTTTx Income Tax – Claimed under-payment of Income Tax under the PAYE Regulations – payments to part-time bar workers (generally students) – Penalties under section 98A(2)(a) Taxes Management Act 1970 for failing to deliver returns for PAYE purposes – whether there was neglect, enabling HMRC to make assessments for earlier years – Appeal allowed in … Continue reading Brown and Another (T/A Gamekeeper Inn) v Revenue and Customs: FTTTx 9 Apr 2013
FTTTx INCOME TAX – Taxes Management Act 1970 ss. 8, 9A, 9ZA, 19A, 28A, 42, 43 and 50(6) – Appeal against amendment made by a closure notice – burden of proof – Whether amendment to an ‘unsolicited’ tax return subject to the time limit in s.9ZA – Appeal allowed Citations: [2013] UKFTT 144 (TC) Links: … Continue reading Weerasinghe v Revenue and Customs: FTTTx 13 Feb 2013
FTTTx Penalty – late filing of partnership return – s 93A TMA 1970 – appellant maintained return had been filed on time – appellant’s evidence accepted – appeal allowed Citations: [2013] UKFTT 108 (TC) Links: Bailii Statutes: Taxes Management Act 1970 93A Jurisdiction: England and Wales Taxes Management Updated: 14 November 2022; Ref: scu.472368
INCOME TAX – whether name of appellant incorrect on Notice to File self-assessment tax return – if so, whether this invalidates the Notice – TMA s 114 considered – self-assessment return filed late – whether reasonable excuse – appeal dismissed and penalty confirmed. Citations: [2013] UKFTT 88 (TC) Links: Bailii Statutes: Taxes Management Act 1970 … Continue reading McGuinness v Revenue and Customs: FTTTx 31 Jan 2013
CAPITAL GAINS TAX – late payment – first and second surcharges – section 59C Taxes Management Act 1970 – taxpayer allegedly misled by telephone advice from HMRC – whether reasonable excuse – no – appeal dismissed. Citations: [2013] UKFTT 85 (TC) Links: Bailii Statutes: Taxes Management Act 1970 59C Capital Gains Tax Updated: 14 November … Continue reading Brucciani v Revenue and Customs: FTTTx 30 Jan 2013
FTTTx INCOME TAX – Losses – whether losses relating to purchase and resale of commercial properties by appellant attributable to appellant’s UK property business (s264 Income Tax (Trading and Other Income Act) 2005) or whether the losses were trading losses – losses were trading losses – whether ‘discovery amendment’ under s30B(1) Taxes Management Act 1970 … Continue reading Albermarle 4 Llp v Revenue and Customs: FTTTx 30 Jan 2013
Auctioneers were required to report their trading returns to the Inland Revenue so as to show the income of the sellers. Citations: Times 27-Dec-1996, [1996] EWCA Civ 1093 Statutes: Taxes Management Act 1970 13 Jurisdiction: England and Wales Income Tax, Taxes Management Updated: 03 November 2022; Ref: scu.140960
One of several partners may appeal against the firm’s tax assessment without his partners’ approval. Citations: Ind Summary 28-Feb-1994, Gazette 13-Apr-1994, Times 04-Mar-1994 Statutes: Taxes Management Act 1970 31 56 Jurisdiction: England and Wales Citing: Appeal from – Sutherland and Others v Gustar (Inspector of Taxes) ChD 17-May-1993 One partner may not appeal against an … Continue reading Sutherland and Others v Gustar (Inspector of Taxes): CA 28 Feb 1994
INCOME TAX – Discovery Assessment – Section 29 Taxes Management Act 1970 – whether HMRC made a discovery of an insufficiency to tax – whether it was ‘stale’ – Beagles applied – duty of candour – obligation on HMRC to assist the Tribunal in furthering the overriding objective of dealing with cases fairly and justly’ … Continue reading Jafari v Revenue and Customs (Income Tax – Discovery Assessment): FTTTx 13 Nov 2019
P35 return-Penalty for late return (Taxes Management Act 1970 s.98A)-Reasonable excuse-Appeal dismissed Citations: [2011] UKFTT 820 (TC) Links: Bailii Jurisdiction: England and Wales Taxes Management Updated: 21 October 2022; Ref: scu.450947
P35 return – Penalty for late return (Taxes Management Act 1970 s.98A) – Reasonable excuse – Appeal dismissed Citations: [2011] UKFTT 819 (TC) Links: Bailii Jurisdiction: England and Wales Taxes Management Updated: 21 October 2022; Ref: scu.450902
FTTTx Income tax – claim for repayment of supposedly overpaid tax – Schedule 1AB and 1A Taxes Management Act 1970 – HMRC issued closure notice rejecting the claim – appeal against HMRC’s rejection of claim – Tribunal not satisfied on the evidence that HMRC’s rejection of the claim was incorrect – appeal dismissed Citations: [2013] … Continue reading Simpson v Revenue and Customs: FTTTx 14 Nov 2013
FTTTx INCOME TAX-PENALTY-Failure to produce documents in accordance with section 19 TMA 1970 order – daily penalties imposed under section 97AA(1)(b)TMA 1970 – was the penalty a criminal charge within the meaning given by Strasbourg cases – no – was article 6(3)(a) ECHR engaged – no – did the penalty determination comply with section 100 … Continue reading Flaxmode Ltd v Revenue and Customs: FTTTx 13 Jan 2010
Citations: [2007] EWHC 2967 (Ch) Links: Bailii Statutes: Taxes Management Act 1970 Jurisdiction: England and Wales Taxes Management Updated: 28 July 2022; Ref: scu.262178
The court considered the availablilty of a first year allowance for the full first year expenditure on software licence agreements. The revenue sought to bring new points on appeal. Held: The LLPs’ appeals on the procedural issue as to the re-opening of the assessments was allowed. Henderson J set out also why he would have … Continue reading Tower Mcashback Llp and Another v HM Revenue and Customs: ChD 13 Oct 2008
LT CAPITAL GAINS TAX- s47(1) of Taxes Management Act 1970 – valuation of half-share in house and garden – value as a vacant house – comparables – evidential value of anonymised comparables – whether adjustment to reflect lettings – development value of rear garden – adjustment to reflect half share – whether sale prices disclosed … Continue reading HM Inspector of Taxes v Hatt: LT 13 Nov 2001
The tax inspector had sought to re-open a tax assessment outside the time limit provided. He had discovered that a house had been given to the tax payer by his employers. The taxpayer said this had been discoverable from his self-assessment tax return. The inspector had been aware of the possible deficiency for more than … Continue reading Langham (HM Inspector of Taxes) v Veltema: CA 26 Feb 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
Section 98A (2) and (3) Taxes Management Act 1970 – Employer’s End of Year P35 late – andpound;2300 penalties – ignorance of obligation to file return – Appeal not allowed Citations: [2014] UKFTT 27 (TC) Links: Bailii Statutes: Taxes Management Act 1970 98A Jurisdiction: England and Wales Taxes Management Updated: 26 May 2022; Ref: scu.519573
The thirty day time limit for the forwarding of a case stated is mandatory. The Court of Appeal has no discretion to extend the time limit. Millett LJ analysed the position by reference to the traditional dichotomy of directory or mandatory provisions, saying: ‘The question whether strict compliance with a statutory requirement is necessary has … Continue reading Petch v Gurney (Inspector of Taxes): CA 8 Jun 1994
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
The court considered whether a scheme was for the purposes of reconstruction or amalgamation in a capital gains tax context. Citing South African Supply: ‘In the context I think it is clear that when the learned judge referred to the persons carrying on an undertaking, he had in mind the shareholders who were carrying it … Continue reading Fallon v Fellows (Inspector of Taxes): ChD 2001
An auctioneer was not required to report to the Inland Revenue on the gross receipts of other traders on sales where he had acted as agent. Citations: Gazette 01-Mar-1995, Times 31-Dec-1994, Ind Summary 13-Feb-1995 Statutes: Taxes Management Act 1970 13 Jurisdiction: England and Wales Income Tax Updated: 08 April 2022; Ref: scu.80485
UTTC Procedure – costs – whether, in a case where the taxpayer has opted out of the Complex costs regime, the First-tier Tribunal has the power to order that the parties share the costs of the appellant complying with a direction for preparation of hearing bundles – Tribunal Procedure (First-tier Tribunal) (Tax Chamber) Rules – … Continue reading HM Revenue and Customs v Eclipse Film Partners No35 Llp: UTTC 22 Mar 2013
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
A taxpayer’s inactive acquiescence in an inspector’s mistaken acceptance did not create an agreement which could restrain correction of the error. Times 25-Feb-1998 Taxes Management Act 1970 54 England and Wales Citing: Appealed to – Schuldenfrei v Hilton (Her Majesty’s Inspector of Taxes) CA 16-Jul-1999 Where an inspector issued an assessment to tax, but mistakenly … Continue reading Schuldenfrei v Hilton (Inspector of Taxes): ChD 25 Feb 1998
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
FTTTx P35 and P14 return – Penalty for Late Return (Taxes Management Act 1970 s.98A) – Reasonable excuse – Appeal dismissed [2014] UKFTT 28 (TC) Bailii Taxes Management Act 1970 98A England and Wales Taxes Management Updated: 28 November 2021; Ref: scu.519555
FTTTx Joint application by Appellant and Respondent under Section 28Z TMA 1970 – Capital Gains tax – Private residence relief – Sale of part of grounds for residential development -Construction work commenced before contractual disposal – Whether land fell to be regarded as part of grounds -Yes – Whether relief due – Yes [2013] UKFTT … Continue reading Dickinson v Revenue and Customs: FTTTx 30 Sep 2013
FTTTx INCOME TAX – section 424 Income Tax (Earnings and Pensions) Act 2003 – whether gain chargeable to income tax as employment income – whether shares disposed of by Appellant were conditional shares – yes – penalty under section 95(1)(a) Taxes Management Act 1970 – whether Appellant negligently delivered a tax return – yes – … Continue reading Stratton v Revenue and Customs: FTTTx 15 Oct 2013
FTTTx Penalty – late submission of employer annual return – Whether a reasonable excuse for late submission – Yes – Appeal allowed [2013] UKFTT 485 (TC) Bailii Taxes Management Act 1970 89 England and Wales Taxes – Other Updated: 20 November 2021; Ref: scu.515569
FTTTx INCOME TAX – late filing of appeal – Sections 49 C, D and H Taxes Management Act 1970 – whether late appeal allowed — Yes. Appeal allowed. [2013] UKFTT 376 (TC) Bailii Taxes Management Act 1970 49 England and Wales Income Tax Updated: 17 November 2021; Ref: scu.513513
FTTTx Income Tax – relief for error or mistake – section 33 Taxes Management Act 1970 – self assessment return made on basis of self-employment – Appellant an employee -claim for relief by way of repayment of tax – is repayment just and reasonable – no – appeal dismissed [2013] UKFTT 346 (TC) Bailii Taxes … Continue reading Tindale v Revenue and Customs: FTTTx 22 May 2013
The claimant sought judicial review of the lawfulness of search warrants given to the Commissioners and executed at their various offices. The Revenue had suspect the dishonest implementation of a tax avoidance scheme. The claimants said that there were no sufficient ground for the request for and issue of the warrants. The investigation had been … Continue reading Mercury Tax Group Ltd and Another, Regina (On the Application of) v HM Revenue and Customs and Others: Admn 13 Nov 2008
FTTTX CAPITAL GAINS TAX – Claim for relief for overpaid tax – Schedule 1AB Taxes Management Act 1970 – return showing disposal of shares giving rise to a chargeable gain – capital gains tax paid – taxpayer later claiming that the transaction was fraudulent and the capital gains tax should be repaid to her – … Continue reading Sehgal v Revenue and Customs: FTTTx 19 Nov 2013
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
The court was asked whether advice given by an accountant could be protected against disclosure by legal professional privilege. The company had taken advice from its accountants, and objected to disclosure of that advice to the tax authorities under a notice issued under section 20 of the 1970 Act. Held: Legal professional privilege was not … Continue reading Prudential Plc and Another, Regina (on The Application of) v Special Commissioner of Income Tax and Others: CA 13 Oct 2010
The House considered the power of an officer of the Board of Inland Revenue to seize and remove materials found on premises which a warrant obtained on application to the Common Serjeant authorised him to enter and search; but where the source of the power limited the power of seizure and removal to things ‘which … Continue reading Regina v Inland Revenue Commissioners ex parte Rossminster Ltd: HL 13 Dec 1979
Settling of appeals by agreement – s 54, Taxes Management Act 1970 – s 5, Commissioners for Revenue and Customs Act 2005 – preliminary issues2002/03: whether 2004 settlement agreement precluded issue of closure notices – whether agreement reached on basis of assessment such that liability treated as settled under 2004 settlement agreement – whether certain … Continue reading Thomas and Another v Revenue and Customs: FTTTx 6 Mar 2013
FTTtx INCOME TAX – whether interest earned on joint account in names of taxpayer and family members all properly to be assessed on taxpayer alone as the provider of the funds -yes; resulting trust; settlements legislation; s.29 TMA 1970 – out of time assessments set aside; penalties inappropriate- no negligence. Hacking TJ [2013] UKFTT 110 … Continue reading Bingham v Revenue and Customs: FTTTx 11 Feb 2013
UTTC CAPITAL GAINS TAX – validity of a ‘discovery’ assessment under section 29(1) of the Taxes Management Act 1970 – whether a ‘discovery’ – whether conditions of section 29(4) and (5) of the Act satisfied Newey J [2013] UKUT 623 (TCC), [2014] STC 915, [2014] STI 433, [2014] BTC 502 Bailii Taxes Management Act 1970 … Continue reading Sanderson v HM Revenue and Customs: UTTC 6 Dec 2013
INCOME TAX – daily penalties for failure to file tax returns – authority of Parliament to legislate following accession of United Kingdom to European Communities – right to property – section 93(3) Taxes Management Act 1970 – appeal dismissed . .
UTTC CONSTRUCTION INDUSTRY SCHEME – fixed and month 13 penalties -late filing of returns – no reasonable excuse – proportionality of penalties – whether within wide margin of appreciation – interpretation of s . .
References: [2013] UKUT 1041 (TCC) Links: Bailii UTTC Procedure – costs – whether, in a case where the taxpayer has opted out of the Complex costs regime, the First-tier Tribunal has the power to order that the parties share the costs of the appellant complying with a direction for preparation of hearing bundles – Tribunal … Continue reading HM Revenue and Customs v Eclipse Film Partners No35 Llp; UTTC 22 Mar 2013
References: [2013] UKUT 579 (TCC) Links: Bailii UTTC CONSTRUCTION INDUSTRY SCHEME – fixed and month 13 penalties -late filing of returns – no reasonable excuse – proportionality of penalties – whether within wide margin of appreciation – interpretation of s 100B Taxes Management Act 1970 – Human Rights Act 1998 – appeal allowed’
References: [2013] UKUT 623 (TCC) Links: Bailii Coram: Newey J UTTC CAPITAL GAINS TAX – validity of a ‘discovery’ assessment under section 29(1) of the Taxes Management Act 1970 – whether a ‘discovery’ – whether conditions of section 29(4) and (5) of the Act satisfied Statutes: Taxes Management Act 1970
1267 – 1278 – 1285 – 1297 – 1361 – 1449 – 1491 – 1533 – 1677 – 1688 – 1689 – 1700 – 1706 – 1710 – 1730 – 1737 – 1738 – 1751 – 1774 – 1792 – 1793 – 1804 – 1814 – 1819 – 1824 – 1828 – 1831 – 1832 … Continue reading Acts
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/VALUE ADDED TAX – whether Appellant had undeclared trading income – time limit for issuing discovery assessment – whether Appellant’s VAT returns were inaccurate – whether Appellant liable for penalty for failure to file self-assessment tax returns – s 93 Taxes Management Act 1970 – whether Appellant’s conduct dishonest/deliberate – s 60 Value Added … Continue reading Qolaminejite v Revenue and Customs (Income Tax/Value Added Tax – Undeclared Trading Income): FTTTx 2 Dec 2019
INCOME TAX, JUDICIAL REVIEW – Whether adjustments made under s28B(4) of Taxes Management Act 1970 are ‘closure notices’ – whether requirements necessary for issue of accelerated payment notices met – whether HMRC entitled to issue a new accelerated payment notice having withdrawn an earlier notice Citations: [2020] UKUT 61 (TCC) Links: Bailii Jurisdiction: England and … Continue reading Reid, Emblin v Revenue and Customs: UTTC 3 Mar 2020
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
Judges: Arden, Gloster, Simon LJJ Citations: [2016] BTC 6, [2016] EWCA Civ 40, [2016] STC 1333, [2016] STI 303 Links: Bailii Statutes: Finance (No 2) Act 1992 42, Taxes Management Act 1970 12AC(1) Jurisdiction: England and Wales Citing: Appeal from – De Silva and Another v Revenue and Customs UTTC 15-Apr-2014 Film partnerships – partnership … Continue reading De Silva and Another, Regina (on The Application of) v HM Revenue and Customs: CA 2 Feb 2016
The appellants had entered into certain partnerships designed to mitigate liability too income tax by creating trading losses through investments in films. HMRC rejected the claims. HMRC then sought to backdate adjustments to the carry-back claims involved. The tax payers now appealed from findings that the adjustments were not outside the statutory time limit, saying … Continue reading De Silva and Another, Regina (on The Application of) v Revenue and Customs: SC 15 Nov 2017
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
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
Appeal against estimated and further assessments for 1994-95 and 1995-96 Whether Appellant a Partnership – Whether Notice of Hearing valid – Appeal dismissed – Rules 11, 13 and 31 of the Tribunal (First-tier Tribunal) (Tax Chamber) Rules 2009 – sections 50 and 111 Taxes Management Act 1970 Citations: [2009] UKFTT 371 (TC) Links: Bailii Jurisdiction: … Continue reading London and Essex Cleaning Services (Southern) v Revenue and Customs: FTTTx 17 Dec 2009
FTTTx Section 98A(2) TMA 1970 – penalties for late Employer’s End of Year Return – cessation of Appellant’s business – HMRC did not impose penalties until after cessation – whether reasonable excuse – appeal allowed in part Citations: [2012] UKFTT 139 (TC) Links: Bailii Statutes: Taxes Management Act 1970 98A(2) Taxes Management Updated: 05 October … Continue reading Dent (T/A Tony’s Meats) v Revenue and Customs: FTTTx 17 Feb 2012
INCOME TAX – late payment surcharge – section 59C Taxes Management Act 1970 – was payment sent in sufficient time to reach HMRC by due date – reasonable excuse – no – appeal dismissed Citations: [2012] UKFTT 135 (TC) Links: Bailii Taxes Management Updated: 05 October 2022; Ref: scu.451967
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
FTTTx Income Tax – Repayment claim for 2008/09 – Whether outwith time-limit – Yes – Schedule 1AB Taxes Management Act 1970 – Application for strike-out under Rule 8(2) of the Tribunal Procedure (First-tier Tribunal) (Tax Chamber) Rules 2009 – Application granted Citations: [2014] UKFTT 694 (TC) Links: Bailii Jurisdiction: England and Wales Income Tax Updated: … Continue reading Bbosa v Revenue and Customs: FTTTx 18 Jul 2014
FTTTx Income tax – determination under section 28C TMA – whether right of appeal to the tribunal- held: no. Citations: [2011] UKFTT 471 (TC) Links: Bailii Statutes: Taxes Management Act 1970 28C Jurisdiction: England and Wales Income Tax Updated: 17 September 2022; Ref: scu.443159
FTTTx PROCEDURE – Appeal – Application for permission to notify to Tribunal -Appeal made to HMRC before 1 April 2009 – After 1 April 2009 HMRC offered Applicant a review – Offer not accepted and matter not notified to Tribunal within ‘acceptance period’ – Whether Tribunal should give permission to notify appeal out of time … Continue reading Roberts v Revenue and Customs: FTTTx 10 Jun 2011
FTTTx Expert evidence – application for a direction to exclude expert evidence – whether expert evidence inadmissible on grounds that it is an opinion as to UK tax and therefore trespasses on the special expertise of the Tribunal – whether decision as to admissibility of the evidence should be a case management matter or deferred … Continue reading Eclipse Film Partners No 35 Llp v Revenue and Customs: FTTTx 22 Jun 2011
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
FTTTx Penalty; late filing; fairness; s98A(2)(a) TMA 1970. Common law fairness. Conscionable conduct. Burden of proof. Jusilla v Finland. Article 6 ECHR. Citations: [2011] UKFTT 479 (TC) Links: Bailii Statutes: Taxes Management Act 1970 98A(2)(a) Jurisdiction: England and Wales Taxes Management, Human Rights Updated: 03 September 2022; Ref: scu.449472
FTTTx VAT Penalties – First and second surcharges imposed under S.59(C) TMA 1970 – Appellant unable to pay due to difficult trading conditions – says may have been able to pay had he known a surcharge would be imposed – whether reasonable excuse – no – surcharges confirmed. Citations: [2011] UKFTT 496 (TC) Links: Bailii … Continue reading Westwood v Revenue and Customs: FTTTx 25 Jul 2011
Late payment surcharge – Whether reasonable excuse on the facts – No – Appeal dismissed – Section 59C Taxes Management Act 1970 Citations: [2011] UKFTT 519 (TC) Links: Bailii Jurisdiction: England and Wales Taxes Management Updated: 31 August 2022; Ref: scu.449465
The taxpayer appealed against a decision confirming the Commissioners’ power to impose a penalty on him. It was said that his solicitors’ firm had negligently understated its profits. A settlement was proposed allowing a withdrawal of the return, which the claimant said was inconsistent with a penalty. Held: There had been no error of law … Continue reading Stockler v HM Revenue and Customs: ChD 22 Sep 2009
FTTTx INCOME TAX – Applications by the parties for further directions – whether departure by HMRC unilaterally from the timetable for preparation for the appeal set down in agreed directions, causing additional delay in bringing the appeal on for hearing to the detriment of partners in the Appellant who had an interest in the outcome … Continue reading Eclipse Film Partners No. 35 Llp v Revenue and Customs: FTTTx 22 Sep 2010
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
The taxpayer had sought to set off the entire cost of software licences against tax in the year of purchase, and challenged the re-opening of tax assessments after their closure by the Revenue. The Revenue appealed. Held: The Revenue could re-open the assessments, but the taxpayer was able to set off the expense as a … Continue reading Revenue and Customs v Tower MCashback Llp 1 and Another: CA 2 Feb 2010
SCIT Closure notice – application for direction to close enquiry into tax return – limited liability partnership – s 28B Taxes Management Act 1970 – direction for closure within three months Citations: [2009] UKSPC SPC00736, [2009] STI 627, [2009] STC (SCD) 293 Links: Bailii Statutes: Taxes Management Act 1970 28B Jurisdiction: England and Wales Cited … Continue reading Eclipse Film Partners No 35 Llp v Revenue and Customs: SCIT 17 Feb 2009
INCOME TAX – surcharge under section 59C(2) Taxes Management Act 1970 – whether reasonable excuse – test for reasonable excuse: objective or subjective – authorities considered – appeal dismissed Citations: [2012] UKFTT 477 (TC), [2012] STI 3069, [2012] SFTD 1371 Links: Bailii Jurisdiction: England and Wales Income Tax Updated: 28 July 2022; Ref: scu.466027
S98((2)(a) Taxes Management Act 1970:penalty for failure to file P35 (end of year return) on time; disputed on-line filing; ‘reasonable excuse’ for failure. Citations: [2011] UKFTT 779 (TC) Links: Bailii Jurisdiction: England and Wales Taxes Management Updated: 19 July 2022; Ref: scu.450963
Judges: Floyd J Citations: [2008] EWHC 2132 (Ch) Links: Bailii Statutes: Taxes Management Act 1970 19A Jurisdiction: England and Wales Taxes Management Updated: 19 July 2022; Ref: scu.276221
SCIT Capital expenditure on software – whether HMRC can raise additional contentions in an appeal beyond those indicated in the Closure Notice – whether expenditure was incurred pursuant to an unconditional contract – whether the expenditure paid 10 months after the date of the contract was still paid under a contract that required payment within … Continue reading Tower MCashback Llp1 and Llp2 v Revenue and Customs: SCIT 19 Jul 2007
The appellant sought judicial review of the seizure by the respondents of computers found on its premises in the course of executing warrants under the Act, even though the computers might contain other matters not relevant to any investigation. Held: It had been impossible to make arrangements at the appellant’s home to copy the hard … Continue reading H, Regina (on the Application of) v Commissioners of Inland Revenue: Admn 23 Oct 2002
Application for permission to appeal against an order refusing the claimant permission to apply for judicial review of a notice given to him by an inspector of taxes pursuant to s.20(1) of the Taxes Management Act 1970. The application before Newman J was a renewed application, the application having been refused on the papers by … Continue reading Werner, Regina (on the Application of) v Commissioners of Inland Revenue and others: CA 12 Jul 2002
The father challenged a ruling that in calculating his liability to pay child support he was not entitled first to deduct, as a self-employed person, all the allowances he might claim against income tax by way of capital allowances. Held: The legislation is sloppy, muddled and would lead to unjust and absurd results. Nevertheless the … Continue reading Smith v Smith and Another: CA 19 Oct 2004
The principle to the effect that the court should exercise its discretion to restrain a distress levied by a landlord before the commencement of a winding-up only where there were special circumstances rendering it inequitable that he should be permitted to do so, applies also to a distress levied by the Crown under a statutory … Continue reading Herbert Berry Associates Ltd v Inland Revenue Commissioners; re Herbert BerrySP, Regina (on The Application of) v The Lord Chancellor: HL 1977
SCIT Income Tax; tax return; enquiry into returns; requests for information; notice requiring the production of documents; failure to produce adequate or sufficient information and documents; enquiry closed; notice amending return; appeal against amended self assessment; Taxes Management Act 1970 Sections 9A, 19A, 28A, 114; Notices of Determination under Regulations 49 and 55 of the … Continue reading Siwek (T/A Siwek Ltd) v Inland Revenue: SCIT 8 Sep 2004
INCOME TAX – Surcharge on unpaid income tax (Taxes Management Act 1970 s.59C) – Whether a reasonable excuse for late payment – Appeal dismissed Citations: [2011] UKFTT 139 (TC) Links: Bailii Statutes: Taxes Management 1970 59C Jurisdiction: England and Wales Income Tax, Taxes Management Updated: 07 June 2022; Ref: scu.442895
INCOME TAX – Assessments following investigation – whether a taxpayer has failed to notify chargeability to income tax – yes; – whether taxpayer has failed to notify tax liabilities – yes; – whether taxpayer has failed to accurately return his total income – yes; – whether assessments made are excessive – no; – whether taxpayer … Continue reading Rafferty v Revenue and Customs: FTTTx 10 May 2022
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
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
Judges: Longmore, Lewison, Asplin LJJ Citations: [2017] EWCA Civ 1962, [2018] BPIR 273, [2018] STC 38, [2017] WLR(D) 797, [2018] BTC 1 Links: Bailii, WLRD Statutes: Taxes Management Act 1970 Jurisdiction: England and Wales Taxes Management Updated: 26 May 2022; Ref: scu.601132
INCOME TAX – Surcharges on late payment of income tax (Taxes Management Act 1970 s.59C) – Whether a reasonable excuse for late payment – Appeal dismissed Citations: [2011] UKFTT 552 (TC) Links: Bailii Statutes: Taxes Management Act 1970 59C Jurisdiction: England and Wales Income Tax Updated: 25 May 2022; Ref: scu.449482
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
Construction Industry Scheme – Penalties for late returns (Taxes Management Act 1970 s.98A) – Appeal dismissed Citations: [2011] UKFTT 562 (TC) Links: Bailii Jurisdiction: England and Wales Taxes Management Updated: 16 May 2022; Ref: scu.449513
The Revenue and the taxpayer had agreed that the latter should pay andpound;15,000 in consideration of the Revenue taking no proceedings against him for tax penalties or interest. The taxpayer paid only andpound;5,000 and the Revenue sought summary judgment for the rest. The taxpayer, who claimed that the agreement made was ultra vires the Revenue, … Continue reading Inland Revenue Commissioners v Nuttall: CA 1990
The 1889 Act gave statutory undertakers who had incurred expenditure in removing a sunken vessel a right ‘to recover such expenses from the owner of such vessel in a court of summary jurisdiction.’ the undertakers began their action in the High Court, and appealed dismissal of the claim. Held: The appeal failed. Such expenses were … Continue reading Barraclough v Brown: HL 1897
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
The claimant appellant alleged that properties she owned were transferred to the first defendant under undue influence or other unconscionable conduct by the second and third defendants. The claim was dismissed. Three years later she claimed to set that judgment aside having been obtained by fraud. To support the allegation she brought evidence not available … Continue reading Takhar v Gracefield Developments Ltd and Others: SC 20 Mar 2019
D bought 500,000 shares in TY 2009/10 for pounds 500,000 in Media Pro Four Ltd. In tax year 2010/11 he sold them to ‘Island House Private Charitable Trust’ for pounds 85,500, realising a loss of pounds 414,500. His 2009/10 tax return claimed share loss relief for that amount against income for that year under section … Continue reading Derry, Regina (on The Application of) v Revenue and Customs: SC 10 Apr 2019
P35 return – Penalty for late return (Taxes Management Act 1970 s.98A) – Reasonable excuse – Appeal dismissed Citations: [2011] UKFTT 671 (TC) Links: Bailii Statutes: Taxes Management Act 1970 98A Jurisdiction: England and Wales Taxes Management Updated: 30 January 2022; Ref: scu.449603
Annual Tax On Enveloped Dwellings – Tax Returns – s 159 and schedule 35 Finance Act 2013 – penalty for late filing of returns – schedule 55 Finance Act 2009 – whether defects in the penalty notices affected the penalties – yes – section 114 Taxes Management Act 1970 – whether taxpayer had a reasonable … Continue reading Chartridge Development Ltd v Revenue and Customs: FTTTx 16 Nov 2016
CONSTRUCTION INDUSTRY SCHEME – fixed and month 13 penalties – late filing of returns – no reasonable excuse – proportionality of penalties – whether within wide margin of appreciation – interpretation of s100B Taxes Management Act 1970 – Human Rights Act 1998 – appeal allowed in part [2012] UKFTT 631 (TC) Bailii Taxes Management Act … Continue reading Bosher v Revenue and Customs: FTTTx 8 Oct 2012
Power to call in is administrative in nature The powers of the Secretary of State to call in a planning application for his decision, and certain other planning powers, were essentially an administrative power, and not a judicial one, and therefore it was not a breach of the applicants’ rights to a fair hearing before … Continue reading Regina (Holding and Barnes plc) v Secretary of State for Environment Transport and the Regions; Regina (Alconbury Developments Ltd and Others) v Same and Others: HL 9 May 2001
Leave to appeal out of time — section 49 Taxes Management Act 1970 — factors to be taken into consideration — leave to appeal granted [2011] UKFTT 277 (TC) Bailii England and Wales Taxes Management Updated: 14 January 2022; Ref: scu.443000
