The receiver had been appointed under the 1968 Act, to manage the affairs of the defendant on his prosecution for tax fraud. She now sought a declaration as to her personal liability for tax which fell due. She had paid over some andpound;2 million to the court which she had realised. Held: A receiver was … Continue reading In re Inland Revenue Commissioners v Placentini (Defendant) Dayman (receiver), In re Criminal Justice Act 1988, and Taxes Management Act 1970: QBD 4 Feb 2003
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
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 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
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
A management buy-out was to be allowed tax relief on interest on bank loans. Citations: Times 24-May-1993 Statutes: Income and Corporation Taxes Act 1988 353 360 Income Tax Updated: 09 April 2022; Ref: scu.83198
A Close company has a duty to notify the Inland Revenue of its liability with regard to loans made to participants. Citations: Ind Summary 07-Feb-1994, Times 21-Jan-1994 Statutes: Taxes Management Act 1988 Corporation Tax, Taxes Management Updated: 09 April 2022; Ref: scu.82572
An arrangement which had the effect of mitigating tax by a pre-ordained series of steps was nevertheless upheld as valid. Transactions were not caught by anti-avoidance provisions, where they were not in fact one composite whole. Citations: Gazette 01-Mar-1995, Times 07-Feb-1995 Statutes: Income and Corporation Taxes Act 1988 239 Jurisdiction: England and Wales Corporation Tax, … Continue reading Piggott (Inspector of Taxes) v Staines Investment Ltd: ChD 1 Mar 1995
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
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
Landlords had sold flats to Frogmore without serving a section 5 notice under the 1987 Act. Prior to receipt of a purchase notice, Frogmore granted certain leases in the block of flats to another party.
Held: The agreements were upheld, and . .
Life company’s management expenses were allowable against income under Sch D Case 1, but not allowable on income minus expenses basis. . .
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. . .
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, . .
Losses which had been incurred in speculative non-commercial trading in shares and commodities were not ‘trade’ losses for income tax purposes, even though the tax payer intended to become involved in fund management as a career, and had intended . .
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 made arrangement for the sale of securities in the form of loan notes with accrued income. It appealed a decision denying to the arrangement treatment of the full sum as capital.
Held: The appeal failed. The agreements provided . .
SCIT Income Tax – Schedule E – Benefit in kind – Whether expenses paid by company assessable as income of director – Apportionment of expenses – Income and Corporation Taxes Act 1988 ss.154, 156 – Discovery . .
The inspector disallowed a claim for enterprise investment relief, saying that not all the funds raised were to be used for a qualifying purpose.
Held: The proceeds of a share issue had been used in part to pay a dividend. The issue did not . .
Buxton LJ: ‘The issue therefore is one of simple statutory construction. Can the expression ‘payment’ when used in section 87 of the 1970 Act, or ‘pays’ when used both in section 246N(2) of the 1988 Act and section 239 of the 1988 Act, encompass a . .
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 . .
References:  UKUT 43 (TCC) Links: Bailii UTTC Income Tax; emoluments; tax avoidance scheme; transfer of shares; whether a payment -No; whether shares a readily convertible asset – Yes; Income & Corporation Taxes Act 1988 sections 1, 19, 131, 202A&B, 203, 203A, 203F, The Income Tax (Employments) Regulations 1993 Regulation 2- appeal dismissed Statutes: Income … Continue reading Aberdeen Asset Management Plc v HMRC; UTTC 9 Dec 2011
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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 defendant pleaded guilty to making false statements, and cheating the public revenue by understating his profits as a market trader over a protracted period. The judge made a confiscation order equal to the amount of undeclared profit. On appeal, that element was set aside. The section referred to the pecuniary advantage obtained by the … Continue reading Regina v Frank Adam Moran (Attorney General’s Reference No 25 of 2001): CACD 27 Jul 2001
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
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
The commissioners obtained court orders directing the applicant bank to disclose confidential information in their possession. The bank resisted on the ground that the demand breached their rights to confidentiality and to privacy. Although the orders did infringe the Bank’s article 8 rights, the notices were valid because the interference was justified under article 8(2). … Continue reading Regina v Inland Revenue Commissioners Ex Parte Banque Internationale a Luxembourg Sa: Admn 23 Jun 2000
The commissioners obtained court orders directing the applicant bank to disclose confidential information in their possession. The bank resisted on the ground that the demand breached their rights to confidentiality and to privacy. Although the orders did infringe the Bank’s article 8 rights, the notices were valid because the interference was justified under article 8(2). … Continue reading Regina v Inland Revenue Commissioners Ex Parte Banque Internationale A Luxembourg Sa: QBD 27 Jul 2000
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
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 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 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 taxpayer had a domicile of origin in England but her family had moved to Guernsey. She remained in England principally for the purpose of completing her education. She intended when she had finished her training and had some experience working in this country to return to Guernsey, where she spent part of her time. … Continue reading Plummer v Inland Revenue Commissioners: ChD 1987
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 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 inspector issued a notice requiring production of certain documents. The respondents refused to produce them, saying that they were protected by legal professional privilege. Held: Legal professional privilege is a fundamental part of ensuring human rights as a right of privacy, and is recognised in European law (A M and S Europe Ltd). A … Continue reading Regina v Special Commissioner And Another, ex parte Morgan Grenfell and Co Ltd: HL 16 May 2002
Income tax – Benefits in kind – Employees contributed 4% and 5% respectively to purchase price of cars jointly owned with employer – Whether car ‘made available (without any transfer of the property in it’ – Income and Corporation Taxes Act 1988 ss.1564, 156, 157 and Income Tax (Earnings and Pensions Act 2003 ss.120-140 – … Continue reading Samson Publishing Ltd and Others v Revenue and Customs: FTTTx 14 Oct 2010
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 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
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
A builder was sued for his failure to complete the works he had contracted for. The buider sought a set-off against that claim of three of his one claims. One, under the contract, was for losses from the defendant’s refusal to allow his workmen access, the second was in quantum meruit for the works completed, … Continue reading Hanak v Green: CA 1958
The appellant challenged the appointment of a receiver in respect of property registered in his name, but said to be the realisable property of a man convicted of cheating the revenue. He said that he had funded the property, and that he had not been given appropriate opportunity to become involved in the earlier proceedings. … Continue reading Lamb v Revenue and Customs Prosecutions Office: CA 18 Mar 2010
In each case it was said that the requested patent concerned an invention consisting of a computer program, and was not therefore an invention and was unpatentable. In one case a patent had been revoked on being challenged, and in the other, the appeal was against refusal. Held: Jacob LJ said: ‘the court must approach … Continue reading Aerotel Ltd v Telco Holdings Ltd and others, In re Patent Application GB 0314464.9 in the name of Neal Macrossan Rev 1: CA 27 Oct 2006
Contractor and Client Copyrights The plaintiff had contributed a design for a system of classifying and selecting tracks to be played on a radio station. He did so under a consultancy contract. Held: A Joint authorship claim required that the contributor had made some direct contribution to the words appearing in the eventual published item. … Continue reading Robin Ray v Classic FM Plc: PatC 18 Mar 1998
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 court was asked whether the supervisory jurisdiction of the High Court, exercisable by way of judicial review, extends to such decisions of the Special Immigration Appeals Commission (SIAC) and the Upper Tribunal (UT) as are not amenable to any . .
A design for sunglasses was challenged for prior publication. However the law in England differed from that apparently imposed from Europe as to the existence of a 12 month period of grace before applying for registration.
Held: Instruments . .
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 . .
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 . .
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 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 . .
FTTTx Seafarers’ earnings; ship; offshore installation; whether vessels offshore installations; Mineral Workings (Offshore Installations) Act 1971 sections 1 and 12; Income and Corporation Taxes Act 1988 section . .
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 . .
The claimant had not received the same tax allowance following his wife’s death as would have been received by a woman surviving her husband. That law had been declared incompatible with Human Rtights law as discriminatory, but the respondent . .
The case concerned the differential tax treatment between men and women, which granted to widows a tax allowance that was not granted to widowers.
Held: The court made a ‘declaration of incompatibility’ pursuant to section 4. 1(1) of the TMA . .
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 . .