CORPORATION TAX, VALUE ADDED TAX – penalties – inaccuracies in tax returns – cash sales largely not recorded – were inaccuracies deliberate on the second and third appellants’ parts? – yes – were they attributable to the first appellant? – yes – did the penalty percentages reflect the quality of disclosure? – yes – was it right to reduce the penalties because of special circumstances affecting family of first appellant? – yes – did the Tribunal have the power to do so? – yes – appeal allowed in part

Citations:

[2020] UKFTT 233 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

Corporation Tax

Updated: 06 February 2022; Ref: scu.652259

s1219 Corporation Tax Act 2009 – company with investment business – expenditure in connection with disposal of assets – whether expenses of management of the company’s investment business – whether expenditure was capital in nature

Citations:

[2021] UKUT 200

Links:

Bailii

Statutes:

Corporation Tax Act 2009 219

Jurisdiction:

England and Wales

Corporation Tax

Updated: 05 February 2022; Ref: scu.671196

UTTC CORPORATION TAX – avoidance scheme – transfer of contingent, unrecognised, claim against third party to subsidiary in exchange for shares – subsidiary recognising value of asset despite contingency but parent not recognising shares – whether accounting GAAP-compliant – yes – loan relationship rules – whether FA 1996 s 84(1) engaged – yes – recognised value of asset to be brought into account as credit in parent’s corporation tax computation -appeal dismissed
PROCEDURE – opening of enquiry – whether error in identification of accounting period invalidates enquiry – no, if intention clear.

Citations:

[2017] UKUT 68 (TCC)

Links:

Bailii

Jurisdiction:

England and Wales

Corporation Tax

Updated: 04 February 2022; Ref: scu.577814

Corporation tax – Closure notice applications under Schedule 18 FA 2008 – Categorisation of proceedings under Tribunal Procedure Rule 23 – criteria for recategorisation as a Complex case

Citations:

[2011] UKFTT 342 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

Corporation Tax

Updated: 03 February 2022; Ref: scu.443038

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 finding of an association. The wording placed no discretion in any person, and the words were not facultative, but conditional. The concluding words of the section were not part of the definition of control, but were a special qualification of the definition to be used in a case where it fell to be decided whether one limb of the definition was satisfied.
HL Corporation tax – Reliefs – Small companies relief- – Amount of relief – Restrictions on amount of relief – Restriction where company has one or more associated companies – Control of companies – Attribution to individual of rights and powers of associates – Individual associated to two sets of trustees who respectively controlled two companies – Whether the two companies associated – Whether attribution of rights and powers of associates a matter of general discretion to be exercised by Revenue only if considered appropriate to facts of the particular case – Income and Corporation Taxes Act 1988, s 13, 416 and 417.
The phrase ‘may be attributed’ does not confer a discretion on HMRC and ‘may’ in effect means ‘shall’ and ‘Even without subsection (6), the definition of control is wide and can apply to people who have no real control over the company’s affairs.’
‘The effect of these cumulative definitions [in sections 416 and 417] is that for the purposes of deciding whether a person ‘shall be taken to have control of a company’ under section 416(2) it may be necessary to attribute to him the rights and powers of persons over whom he may in real life have little or no power of control. Plainly the intention of the legislature was to spread the net very wide.’

Citations:

Times 08-Jun-2001, Gazette 21-Jun-2001, [2001] STC 901, [2001] UKHL 27, [2001] 1 WLR 1111, [2001] UKHL TC – 73 – 532, [2001] BTC 196, [2001] STI 851, [2001] 4 All ER 400, 73 TC 532

Links:

Bailii, House of Lords, Bailii

Statutes:

Income and Corporation Taxes Act 1988 416(6), 13

Jurisdiction:

England and Wales

Citing:

Appeal from – Regina v Inland Revenue Commissioners, Ex Parte Newfields Developments Ltd CA 15-Feb-2000
The test in the section, provided the conclusive test to establish who had control of a company. The commissioners had no discretion as to how or when to apply the criteria. The first part listed several ways in which the identity and number of . .
At first instance – Regina v Commissioners of Inland Revenue ex parte Newfields Developments Limited Admn 17-Feb-1999
The power of the Inland Revenue to attribute to company members powers to control the company not given by their holdings, by associating them with other members is a limited one and is to be used only when the association is real.
Small . .

Cited by:

Cited – Gascoines Group Limited, Newark Cattle Market Company Limited, Saracens Securities Limited v HM Inspector of Taxes ChD 30-Mar-2004
Small companies relief – associated companies
Lightman J said: ‘As is apparent from its terms associated companies are defined in section 13(4) of the 1988 Act as companies of which one company controls or is controlled by another or which are . .
Cited – Waterside Escapes Ltd v Revenue and Customs FTTTx 13-Oct-2020
Qualifying Property Rental – Stamp Duty Relief
SDLT – higher threshold interest 15% rate – relief for a qualifying property rental business – intention that a non-qualifying individual be permitted to occupy a dwelling on the land (paragraph 5(2), Schedule 4A, FA 2003) – whether a non-qualifying . .
Lists of cited by and citing cases may be incomplete.

Corporation Tax

Updated: 01 February 2022; Ref: scu.88512

Small companies relief – associated companies
Lightman J said: ‘As is apparent from its terms associated companies are defined in section 13(4) of the 1988 Act as companies of which one company controls or is controlled by another or which are both under the control of the same person or persons. Again as is apparent from its terms section 416 of the 1988 Act identifies not merely those who have control of a company but also the much wider class or group of those who shall be taken to have control. The consequences of actual control and attributed control are the same.’

Judges:

The Hon Mr Justice Lightman

Citations:

[2004] EWHC 640 (Ch)

Links:

Bailii

Jurisdiction:

England and Wales

Citing:

Cited – Regina v Inland Revenue Commissioners, ex parte Newfields Developments Ltd HL 21-Jun-2001
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 . .

Cited by:

Cited – Waterside Escapes Ltd v Revenue and Customs FTTTx 13-Oct-2020
Qualifying Property Rental – Stamp Duty Relief
SDLT – higher threshold interest 15% rate – relief for a qualifying property rental business – intention that a non-qualifying individual be permitted to occupy a dwelling on the land (paragraph 5(2), Schedule 4A, FA 2003) – whether a non-qualifying . .
Lists of cited by and citing cases may be incomplete.

Corporation Tax

Updated: 01 February 2022; Ref: scu.195039

CORPORATION TAX – amortisation of goodwill – whether the ‘business in question’ was a business carried on by a related party before 1 April 2002 – yes – whether a valid discovery had been made – yes – whether the discovery was stale – no – appeal dismissed

Citations:

[2020] UKFTT 296 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

Corporation Tax

Updated: 31 January 2022; Ref: scu.653133

INCOME TAX – CORPORATION TAX – appeals against Sch 36 Notices and against penalties – applications to close enquiries – whether to stay the appeals and applications behind Mr Budhdeo’s judicial review application – Veolia distinguished – whether dominant purpose of the enquiries and Sch 36 Notices to obtain information to prosecute Mr Budhdeo – whether information can be a statutory record – whether the Sch 36 Notices should be upheld, varied or set aside – whether to confirm the penalties – whether to close the enquiries

Citations:

[2017] UKFTT 84 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

Citing:

See Also – Gold Nuts Ltd and Others v Revenue and Customs (Procedure : Other) FTTTx 20-Feb-2015
FTTTx PROCEDURE – whether there is an interaction between self-assessment enquiries, corporation tax enquiries and Schedule 36 Notices and penalties on the one hand, and possible criminal prosecution on the other . .
See Also – Gold Nuts Ltd and Others v Revenue and Customs FTTTx 8-Feb-2016
INCOME TAX – CORPORATION TAX – preliminary hearing on matters of law – COP9 letter issued to Mr Budhdeo (‘Mr B’) – contractual disclosure offered and refused – whether FTT has jurisdiction to close a ‘COP9 enquiry’ – no -whether HMRC using SA and CT . .

Cited by:

See Also – Gold Nuts Ltd and Others v Revenue and Customs (Corporation Tax – Appeals Against Sch 36 Notices and Applications To Close Enquiries) FTTTx 25-Apr-2017
Corporation Tax – Appeals Against Sch 36 Notices and Applications To Close Enquiries . .
Lists of cited by and citing cases may be incomplete.

Corporation Tax

Updated: 29 January 2022; Ref: scu.574047

CORPORATION TAX – mutual trading – complex insurance arrangements – whether premium element adjustment falls within mutuality exemption – discovery assessment – sufficiency of information provided to HMRC – s979 Corporation Tax Act 2009

[2020] UKFTT 227 (TC)
Bailii
Corporation Tax Act 2009
England and Wales

Corporation Tax

Updated: 26 January 2022; Ref: scu.652269

Corporation tax – oil royalties received by overseas bank and applied to outstanding debt of insolvent oil exploration borrower – whether bank’s rights amounted to ‘immovable property’ under UK/Canada double tax treaty Article 6(2) – whether royalty payments subject to corporation tax as ring fence profits of deemed UK permanent establishment under s 1313 CTA09 – whether certain discovery assessments invalid – appeal dismissed

[2020] UKFTT 267 (TC)
Bailii
England and Wales

Corporation Tax

Updated: 26 January 2022; Ref: scu.652732

Claim for research and development tax credit – whether the activity in respect of which the expenditure was incurred qualified as research and development in accordance with the terms of the guidelines published by the Department for Business, Innovation and Skills – no, because the Appellant had failed to establish on the balance of probabilities that the activity involved a project seeking to achieve a technological advance through the resolution of a technological uncertainty – appeal dismissed

[2021] UKFTT 348 (TC)
Bailii
England and Wales

Corporation Tax

Updated: 25 January 2022; Ref: scu.669741

Meaning of ‘beneficial entitlement’, ‘Group Relief’ ‘Consortium Relief’. Section 403C and sch 18 Taxes Act 1988

[2014] UKUT 262 (TCC)
Bailii
England and Wales

Corporation Tax

Updated: 24 January 2022; Ref: scu.534513

Claims for cross border group relief – expert evidence required as to the law in two other jurisdictions – whether joint experts to be appointed against the wishes of one party – yes

[2021] UKFTT 359 (TC)
Bailii
England and Wales

Corporation Tax

Updated: 23 January 2022; Ref: scu.669766

CORPORATION TAX/INCOME TAX – Acquisition by Cayman Islands limited partnership (of which Cayman Islands limited company general partner) of 19% interest in UK limited partnership financed through borrowing – Profit allocation of UK limited partnership made to general partner of Cayman Islands limited partnership – Whether all members of Cayman Islands limited partnership members of UK limited partnership – Whether entitled to a deduction for interest on borrowing – If so, should any deduction be reduced under loan relationship provisions – Whether bank loan and loan notes classified as ‘trading loan relationships’ or ‘non-trading loan relationships’ – Whether discovery amendment valid – Appeal dismissed

[2020] UKFTT 298 (TC)
Bailii
England and Wales

Corporation Tax

Updated: 22 January 2022; Ref: scu.653135

Income Tax/Corporation Tax : Penalty – Application to appeal late against Construction Industry Scheme penalties for late returns – Whether reasonable excuse for late appeal – No. Whether appellant’s appeal against the penalties would have a realistic chance of success – No.

[2018] UKFTT 508 (TC)
Bailii
England and Wales

Corporation Tax

Updated: 22 January 2022; Ref: scu.632241

Corporation Tax – computation of trading profits – s 74 TA 1988 deductibility of penalty imposed by motoring organisation and not by statute – appeal allowed

[2012] UKFTT 601 (TC), [2013] SFTD 18
Bailii
England and Wales

Corporation Tax

Updated: 22 January 2022; Ref: scu.466176

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 and Corporations Taxes Act 1988 applicable – Appeal dismissed

[2016] UKFTT 526 (TC)
Bailii
England and Wales

Corporation Tax

Updated: 21 January 2022; Ref: scu.567979

National Insurance Contributions – late submission of Employer’s Annual Return P11D(b) – whether reasonable excuse for late submission of return – No.

[2016] UKFTT 528 (TC)
Bailii
England and Wales

Corporation Tax

Updated: 20 January 2022; Ref: scu.567959

This appeal concerns the assessment of liability to corporation tax under the code for taxing ‘loan relationships’ of companies in Chapter II of Part IV of the Finance Act 1996

The Chancellor (Sir Terence Etherton), Patten, Sales LJJ
[2016] EWCA Civ 782
Bailii
England and Wales

Corporation Tax

Updated: 20 January 2022; Ref: scu.567825

Legitimate expectations

[2010] UKFTT 596 (TC)
Bailii
England and Wales

Corporation Tax

Updated: 20 January 2022; Ref: scu.567597

Corporation Tax – intangible fixed assets – goodwill – Finance Act 2002 Schedule 29 – taxpayer purchased business and internally generated goodwill from associated company after commencement date – whether internally generated goodwill within definition in para 4(2) – whether goodwill created by taxpayer after commencement date within para 118(1)(a)

[2011] STC 1582, [2011] UKUT B11 (TCC), [2011] UKUT 155 (TCC), [2011] STI 1547, [2011] BTC 1696
Bailii
England and Wales

Corporation Tax

Updated: 20 January 2022; Ref: scu.440818

UTTC CORPORATION TAX – validity of amendment to return made under paragraph 34(2A) Schedule 18 Finance Act 1998 – appeal dismissed

[2016] UKUT 264 (TCC)
Bailii
England and Wales

Corporation Tax

Updated: 20 January 2022; Ref: scu.567360

An investment company sought to set against its liability to corporation tax, the various costs of taking over another company. They argued that as an investment company these were not costs of the purchase and could be set against tax.
Held: The phrase ‘expenses of management’ is an ordinary expression not made up of words which carry a recognised or technical meaning. The decision of the Commissioners was one of fact not law, and the court was not bound by them to that extent. The expenses referred to would be not costs of the purchase. Appeal allowed.

The Honourable Mr Justice Patten
[2003] EWHC 1600 (Ch), Times 18-Jul-2003, Gazette 18-Sep-2003, [2003] STC 968
Bailii
Income and Corporation Taxes Act 1998 75(1) 130
England and Wales
Citing:
Cited – Simpson (HM Inspector of Taxes) v The Grange Trust, Ltd HL 15-Mar-1935
Income Tax – Investment trust company not assessable under Case I of Schedule D – Claim for relief in respect of expenses of management – Income Tax Act, 1918 s 8
Wright L said: ‘An ordinary trading company assessed on the balance of its . .
Cited – Capital and National Trust Limited v Golder 1949
The court asked as a question of principle as to whether Parliament ever intended to allow capital expenditure to be deductible as an expense against income.
Held: ‘the expenditure is something which if you were looking at profits and gains . .
Cited – Sun Life Assurance Society v Davidson HL 4-Jul-1957
The court considered the question of what was meant by the phrase ‘expenses of management’
Held: The phrase (s75) could be seen ‘as apt to cover the expenses which would normally be deductible in respect of its life assurance business if an . .
Cited – Prudential Assurance Company Limited v Johnson (HM Inspector of Taxes) CA 13-Feb-1998
Life company’s management expenses were allowable against income under Sch D Case 1, but not allowable on income minus expenses basis. . .
Cited – Sargent v Eayrs 1973
Abortive expenditure on the proposed acquisition of a capital asset is usually capital in nature. . .
Cited – Hoechst Finance Limited v Gumbrell CA 1983
The issue was whether the appellant company, a member of an international group of trading companies, could recover as expenses of management a commission of 0.25% per annum it had to pay to its parent as the price of obtaining a guarantee for the . .
Cited – Edwards (Inspector of Taxes) v Bairstow HL 25-Jul-1955
The House was asked whether a particular transaction was ‘an adventure in the nature of trade’.
Held: Although the House accepted that this was ‘an inference of fact’, on the primary facts as found by the Commissioners ‘the true and only . .

Cited by:
Appeal from – Atkinson (HM Inspector of Taxes) v Camas Plc CA 6-May-2004
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. . .

Lists of cited by and citing cases may be incomplete.

Corporation Tax

Updated: 20 January 2022; Ref: scu.184468

FTTTx CORPORATION TAX – declaration under s.153A TCGA 1992 (business assets roll-over relief) ceasing to have effect – s.153A(4) providing that all necessary adjustment shall be made – whether that provides for a ‘free-standing’ power or alternatively incorporates a reference to the assessment and amendment powers in Sch. 18, FA 1998 – held s.153A(4) TCGA incorporates such a reference – HMRC’s decision under s.153A(4), the subject of the appeal, purporting to be an amendment to the Appellant’s self-assessment in its company tax return, of no effect as no power under Sch. 18 FA 1998 enabled the making of it – there being no provision for an appeal against that decision, the Tribunal had no jurisdiction to entertain the appeal and the appeal is therefore struck out

[2016] UKFTT 330 TC
Bailii
England and Wales

Corporation Tax

Updated: 17 January 2022; Ref: scu.564820

Tax Legislation – Corporation Tax – Transfer of A Company’s Place of Effective Management To A Member State Other Than Its Registered Seat – Judgment – Reference for a preliminary ruling – Article 49 TFEU – Freedom of establishment – Tax legislation – Corporation tax – Transfer of a company’s place of effective management to a Member State other than its registered seat – Transfer of tax residency to that other Member State – National legislation not allowing a tax loss incurred in the Member State of incorporation before the transfer of its seat to be claimed

C-405/18, [2020] EUECJ C-405/18, ECLI:EU:C:2020:127, [2019] EUECJ C-405/18_O
Bailii, Bailii
European

Corporation Tax

Updated: 17 January 2022; Ref: scu.654754

CORPORATION TAX – Whether units purchased by appellant property development company in a collective investment scheme were trading stock? – No – Appeal dismissed

[2016] UKFTT 258 (TC)
Bailii
England and Wales

Corporation Tax

Updated: 14 January 2022; Ref: scu.562869

PENALTY – failure to comply with taxpayer information notice – Part 7 sch 36 FA 2008

[2016] UKFTT 265 (TC)
Bailii
England and Wales

Corporation Tax

Updated: 14 January 2022; Ref: scu.562863

INFORMATION NOTICE – daily penalties – whether further time for compliance allowed – whether abuse of process to raise issues that could have been raised in earlier appeal – whether penalties should imposed while appeal outstanding – to what extent if any partial compliance should reduce penalties – appeal dismissed

[2016] UKFTT 232 (TC)
Bailii
England and Wales

Corporation Tax

Updated: 14 January 2022; Ref: scu.562875

INFORMATION NOTICE- whether validly issued – whether enquiry opened – whether Condition B satisfied – yes – appeal dismissed

[2016] UKFTT 246 (TC)
Bailii
England and Wales

Corporation Tax

Updated: 14 January 2022; Ref: scu.562876

FTTTx Corporation Tax – Novation of swaps from transferor within the regime of FA 2002 to transferee in the same group but not yet within that regime – whether adjustments to return precluded by issue of closure notice in error – application of paragraph 28 Schedule 26 – treatment of existing accruals at the time of the novation if the novation was disregarded – secondary computational issue – Appeal dismissed

[2013] UKFTT 216 (TC)
Bailii
England and Wales

Corporation Tax

Updated: 13 January 2022; Ref: scu.472796

UTTC Taxation of profits made on sale or transfer of derivatives under Finance Act 2002. Whether transfer disregarded between subsidiaries where one of the companies is not subject to the regime under the 2002 Act. Closure Notice – whether effective when sent by mistake known to the tax payer company.
Held: The transfer was not to be disregarded for the purposes of the 2002 Act but the Closure Notice was effective and prevented HMRC from seeking to claim tax in that tax year arising out of the transfer between the two companies. Appeal allowed.

Peter Smith J
[2014] UKUT 73 (TCC)
Bailii
England and Wales

Corporation Tax

Updated: 13 January 2022; Ref: scu.523483

Profits Tax – Computation of profits – Company carrying on a number of trades-Nationalisation of colliery undertaking – Interim income payments under Coal Industry Acts, 1946 and 1949 – Finance Act, 1937 (1 Edw. VIII and 1 Geo. VI, c. 54), Sections 19 and 20 (1) and Fourth Schedule, Paragraph 7 ; Finance Act, 1947 (10

[1956] UKHL TC – 36 – 411
Bailii
England and Wales

Corporation Tax

Updated: 10 January 2022; Ref: scu.560142

INCOME TAX – CORPORATION TAX – preliminary hearing on matters of law – COP9 letter issued to Mr Budhdeo (‘Mr B’) – contractual disclosure offered and refused – whether FTT has jurisdiction to close a ‘COP9 enquiry’ – no -whether HMRC using SA and CT enquiries and Sch 36 Notices to obtain information to allow them to decide whether to prosecute – whether Mr B has Article 6 right not to self-incriminate – yes – whether companies have right not to self-incriminate in reliance on Mr B’s right – no – whether Mr B can refuse to respond to Sch 36 Notices in reliance on that right – no, having considered Funke v France; Saunders v UK; JB v Switzerland; Allen v UK and other ECtHR authorities – whether the Civil Evidence Act and/or the common law changes that answer – no — similar questions about SA and CT enquiries – relevance of answers when Tribunal decides appeals against Sch 36 Notices and related penalties and applications to close enquiries – whether Police and Criminal Evidence Act (PACE) relevant to the above matters in the context of the Tribunal proceedings – no – application for disclosure of HMRC’s information underpinning COP9 letter refused – directions given for substantive hearing of appeals and applications in issue

[2016] UKFTT 8, [2016] Lloyd’s Rep FC 249, [2016] STI 134, [2016] SFTD 371
Bailii
England and Wales
Citing:
See Also – Gold Nuts Ltd and Others v Revenue and Customs (Procedure : Other) FTTTx 20-Feb-2015
FTTTx PROCEDURE – whether there is an interaction between self-assessment enquiries, corporation tax enquiries and Schedule 36 Notices and penalties on the one hand, and possible criminal prosecution on the other . .
Cited – Regina v Hertfordshire County Council, ex parte Green Environmental Industries Ltd and Another HL 17-Feb-2000
A notice was given to the holder of a waste disposal licence to require certain information to be provided on pain of prosecution. The provision of such information could also then be evidence against the provider of the commission of a criminal . .
Cited – Saunders v The United Kingdom ECHR 17-Dec-1996
(Grand Chamber) The subsequent use against a defendant in a prosecution, of evidence which had been obtained under compulsion in company insolvency procedures was a convention breach of Art 6. Although not specifically mentioned in Article 6 of the . .

Cited by:
See Also – Gold Nuts Ltd and Others v Revenue and Customs (Income Tax/Corporation Tax : Other) FTTTx 16-Jan-2017
INCOME TAX – CORPORATION TAX – appeals against Sch 36 Notices and against penalties – applications to close enquiries – whether to stay the appeals and applications behind Mr Budhdeo’s judicial review application – Veolia distinguished – whether . .
See Also – Gold Nuts Ltd and Others v Revenue and Customs (Corporation Tax – Appeals Against Sch 36 Notices and Applications To Close Enquiries) FTTTx 25-Apr-2017
Corporation Tax – Appeals Against Sch 36 Notices and Applications To Close Enquiries . .

Lists of cited by and citing cases may be incomplete.

Corporation Tax

Updated: 10 January 2022; Ref: scu.559925

HL Corporation tax – Chargeable gains – Allowable losses – Tax avoidance scheme involving disposal of shares by parent company following rights issue by subsidiary company – Consideration for rights issue – Whether market value or issue price – Finance Act 1965, s 22(4), Sch 7, para 4 – Whether loss to which scheme gave rise to be disregarded.

[1981] UKHL TC – 54 – 200, 1982 SLT 348, [1982] STC 30, 1982 SC (HL) 114, 54 TC 200, [1982] TR 535, [1980] TR 397
Bailii
Finance Act 1965 22(4)
Scotland
Cited by:
Cited – UBS Ag and Another v Revenue and Customs SC 9-Mar-2016
UBS AG devised an employee bonus scheme to take advantage of the provisions of Chapter 2 of the 2003 Act, with the sole purpose other than tax avoidance, and such consequential advantages as would flow from tax avoidance. Several pre-ordained steps . .

Lists of cited by and citing cases may be incomplete.

Corporation Tax

Updated: 10 January 2022; Ref: scu.559846

HL Corporation tax – Stock relief – Whether available to builder on stock of houses and flats received from purchasers in part satisfaction of price of new houses, such houses and flats being sold on in existing state – Whether relief excluded for site of house or merely for its unbuilt-on-garden – Finance Act 1976, Sch 5, para 29.

[1984] UKHL TC – 58 – 311, 58 TC 311, [1985] RVR 156, [1985] CILL 156, [1985] 1 All ER 257, [1985] 1 WLR 1, [1985] STC 40
Bailii
England and Wales

Corporation Tax

Updated: 10 January 2022; Ref: scu.559851

HL Double taxation relief – UK resident company in receipt of dividends from companies resident abroad – Whether relief by way of credit to be given for foreign taxes on such dividends before or after advance corporation tax in respect of distributions made by it is set against its liability to corporation tax – Double Taxation Relief (Taxes on Income) (Australia) Order 1968, (S.I. 1968 No.305), Article 19(1); Income and Corporation Taxes Act 1970, ss 497(1), 501, 505; Finance Act 1972, 5 85(1), s 100(4) and (6) – Construction of Act – Whether legislative gap to be filled.

[1989] UKHL TC – 62 – 448
Bailii
England and Wales

Corporation Tax

Updated: 10 January 2022; Ref: scu.559783

HL Corporation tax – Capital allowances – Lighting and other apparatus installed in shop premises – Whether ‘plant’ or ‘setting’ within which merchandise was sold – Finance Act 1971, s 41.

[1982] UKHL TC – 55 – 188, [1982] 1 WLR 1450, 55 TC 188, [1982] STC 307, [1982] 2 All ER 247
Bailii
England and Wales

Corporation Tax

Updated: 10 January 2022; Ref: scu.559772

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] UKHL TC – 64 – 399, [1991] STC 699, [1991] 1 WLR 1399, [1991] STI 1082, [1992] 1 All ER 336, 64 TC 399
Bailii
Income and Corporation Taxes Act 1970 55 258 264IC, Taxes Management Act 1970 42(5) 114
England and Wales

Corporation tax

Updated: 10 January 2022; Ref: scu.559765

Corporation tax – Capital allowances – Scheme for the sale of allowances in respect of a new ship by shipowners to a company having no other connection with shipping – Purchasing company made member of same group as shipowners subsidiary which ordered ship – Whether scheme involved ‘arrangements’ within s 29(1) (b) (ii), Finance Act 1973, such as to render it ineffective.

[1982] UKHL TC – 55 – 705
Bailii
Finance Act 1973
England and Wales

Corporation Tax

Updated: 10 January 2022; Ref: scu.559771

Corporation tax – Capital allowances – Machinery and plant – First year allowances – Oil rig – Whether commitment fees and interest on loans form part of expenditure on the provision of machinery or plant – Finance Act 1971 (c 68), s 41(1).

[1978] UKHL TC – 52 – 459, [1978] 2 All ER 1111, [1978] STC 460, [1978] TR 359, [1978] 1 WLR 1093, 52 TC 459
Bailii
England and Wales

Corporation Tax

Updated: 10 January 2022; Ref: scu.559762

HL Corporation tax – Group relief – Trading stock – Whether assets acquired as trading stock by one group company from another – Whether prospective capital loss effectively transmuted into a trading loss available for group relief – Income and Corporation Taxes Act 1970, ss 273, 274(1) – Finance Act 1965, Sch 7 para 1(1) and (3).

[1985] UKHL TC – 59 – 516, [1985] 1 WLR 193, [1985] STC 124, [1985] PCC 209, [1985] 1 All ER 686, 59 TC 516
Bailii
England and Wales

Corporation Tax

Updated: 10 January 2022; Ref: scu.559758

HL Corporation Tax – Deductibility of expenditure – Capital or revenue expenditure – Group relief – Individuals involved in a joint venture, several companies being involved – One company advancing funds – Whether those monies deductible as wholly and exclusively expended in the course of a trade – Income and Corporation Taxes Act 1970, s 130.

[1994] UKHL TC – 67 – 166
Bailii
Income and Corporation Taxes Act 1970 130
England and Wales

Corporation Tax

Updated: 10 January 2022; Ref: scu.559757

HL Judicial review – Capital allowances – Assurance given by local Inspector that capital allowances would be available under arrangements proposed by Enterprise Zone Property Unit Trust – Earlier letter from Revenue Head Office indicating that local level assurances would not be binding – Inspector’s assurance revoked by Head Office – Whether full and accurate disclosure by applicant for assurance – Whether Revenue bound by assurance – Whether withdrawal of assurance unfair as abuse of power – Capital Allowances Act 1990, s 10A.

[1994] UKHL TC – 66 – 587
Bailii
Capital Allowances Act 1990 10A
England and Wales

Corporation Tax

Updated: 10 January 2022; Ref: scu.559754

Application for closure notices – whether HMRC had sufficient information to close the enquiries – yes – whether the existence of an ongoing diverted profits tax review period provided reasonable grounds for refusing to issue a closure notice – no – application upheld.

[2021] UKFTT 353 (TC)
Bailii
England and Wales

Corporation Tax

Updated: 10 January 2022; Ref: scu.669757

CORPORATION TAX – late filing of company tax return – penalties under paragraph 17(2) and 18(2) Schedule 18 Finance Act 1998 – serious illness of company’s accountant and agent – whether reasonable excuse

[2012] UKFTT 524 (TC)
Bailii
England and Wales

Corporation Tax

Updated: 10 January 2022; Ref: scu.466140

Profits Tax – Gross relevant distributions – Principal and subsidiary companies – Grouping notice followed by division of subsidiary’s accounting period into two chargeable accounting periods by reference to date of entry into group – Dividend declared for second period – Whether apportionable over whole accounting period – Whether retrospective division valid – Finance Act, 1937 (1 Edw. V III and 1 Geo. V I, c. 54), Section 22 ; Finance Act, 1947 (10 and 11 Geo. V I, c. 35), Sections 35(1), 37 and 38.

[1964] UKHL TC – 41 – 598
Bailii
Finance Act 1937
England and Wales

Corporation Tax

Updated: 09 January 2022; Ref: scu.559263

Seven applications by claimants enrolled in the FII Group Litigation for summary judgment, or alternatively interim payments, in respect of their claims for restitution of advance corporation tax paid on foreign income dividends

Henderson J
[2016] EWHC 86 (Ch)
Bailii
England and Wales

Corporation Tax

Updated: 09 January 2022; Ref: scu.559185

The court was asked whether a gain accruing to one company in a group of companies can be set off against a loss accruing to another company in the same group for the purposes of corporation tax on capital gains.

[2015] EWCA Civ 1036
Bailii
England and Wales

Corporation Tax

Updated: 05 January 2022; Ref: scu.553681

CORPORATION TAX – Group Relief – Section 154 CTA 2010 – Appointment of receivers over the whole of the property of a company – Whether Effect 2 of section 154(3) of CTA 2010 engaged? – Yes – Whether group relief could be surrendered to the Appellants? – No – Appeals dismissed

[2016] UKFTT 431 (TC), [2016] SFTD 826
Bailii
England and Wales

Corporation Tax

Updated: 04 January 2022; Ref: scu.566693

FTTTx Income Tax/Corporation Tax : Profits – Corporation tax – loan relationships- transfer of contingent debt asset – no profit recognised in accounts – s 84 Finance Act 1996 – ‘fairly represents’ profits – whether accepted accounting method – impact of override in s 84 – held – taxpayer’s accounts GAAP compliant – no alternative set of GAAP compliant accounts – FRS 5 substance approach does not produce fair representation of profits- s 84 override applied – appeal dismissed.

[2015] UKFTT 413 (TC)
Bailii
England and Wales

Corporation Tax

Updated: 03 January 2022; Ref: scu.551538

FTTTx Income Tax/Corporation Tax : Capital Allowance – CORPORATION TAX – writing-down allowances – ships – Capital Allowances Act 2001 s 123(4) – whether obtaining of allowance ‘main object, or one of the main objects’ of the relevant transactions – yes – appeal dismissed

[2015] UKFTT 401 (TC)
Bailii
Capital Allowances Act 2001 123(4)
England and Wales

Corporation Tax

Updated: 03 January 2022; Ref: scu.551542

FTTTx Penalty – late payment of PAYE and NICs – FA 2009 Schedule 56 – whether a reasonable excuse for late payment – no – whether any special circumstances existed to justify a reduction in the penalty amount – no – application to bring a late appeal – appeal dismissed

[2015] UKFTT 361 (TC)
Bailii
Finance Act 2009 Sch56
England and Wales

Corporation Tax

Updated: 03 January 2022; Ref: scu.550634

FTTTx Income Tax/Corporation Tax : Exemptions and Reliefs – Corporation tax – small and medium enterprises – enhanced research and development relief at 75% – SME – s 1119 CTA 2009 -Commission Recommendation EC 2003/361 – state aid -interpreted strictly – partner enterprise – meaning of institutional investor -whether must be investing on pooled basis – meaning of venture capital company – Held – Institutional investor not limited to pooled investment vehicles – investment bank and its subsidiary are institutional investors – insufficient evidence to conclude whether subsidiary venture capital company – appeal allowed.

[2015] UKFTT 357 (TC)
Bailii
England and Wales

Corporation Tax

Updated: 02 January 2022; Ref: scu.550567

Income Tax/Corporation Tax : Losses – Corporation tax – loan relationship rules -debit relating to ‘tracker shares’ linked to in the money swap receipts -derecognised for accounting purposes-whether deductible debit for loan relationship rules – legal and accounting concepts of loss – whether arising from derivative contract – whether transfer pricing rules at Schedule 28AA applied to tracker shares – whether shares are a provision for transfer pricing purposes – HELD -Debit did not reflect fair representation of loss from transactions -debit did not arise from derivative contract – transfer pricing rules broad ambit – share issue could amount to a provision – transfer pricing rules applied to issue price of tracker shares – appeal dismissed.

[2015] UKFTT 341 (TC)
Bailii
England and Wales

Corporation Tax

Updated: 02 January 2022; Ref: scu.550557

FTTTx Corporation Tax – Whether reasonable excuse for late submission of returns – No.

[2015] UKFTT 302 (TC)
Bailii
England and Wales

Corporation Tax

Updated: 02 January 2022; Ref: scu.550280

Appeals against decisions of the Revenue to disallow claims for payment of tax credits.

Patten, Briggs LJJ, Sir Colin Rimer
[2015] BTC 22, [2016] STC 66, [2015] STI 2450, [2015] EWCA Civ 713
Bailii
England and Wales

Corporation Tax

Updated: 01 January 2022; Ref: scu.549765

UTTC CORPORATION TAX – company lends money to another group company on terms that shares are paid to a different group company – is the value of the shares income of the lender under the loan relationship rules? – no, but only because of the effect of s. 80(5) of the Finance Act 1996 – is the value of the shares income of the share recipient? – yes – appeals dismissed.

[2015] UKUT 75 (TCC)
Bailii
England and Wales

Corporation Tax

Updated: 01 January 2022; Ref: scu.549071

ECJ Judgment – Reference for a preliminary ruling – Article 49 TFEU – Freedom of establishment – Tax legislation – Corporation tax – Holdings for business purposes – Legislation of a Member State exempting capital gains and, by the same token, excluding deduction of capital losses – Transfer by a resident company of shares in a non-resident subsidiary – Capital loss resulting from a currency loss

C-686/13, [2015] EUECJ C-686/13, ECLI:EU:C:2015:375
Bailii
TFEU 49
European

Corporation Tax

Updated: 30 December 2021; Ref: scu.548010

Corporation tax – penalties for late filing of Corporation Tax returns – Appellant delegated preparation and submission of return to accountants who failed to submit the accounts on time – paragraph 23 Schedule 55 FA 2009 – whether reasonable excuse – no – appeal dismissed

[2018] UKFTT 752 (TC)
Bailii
England and Wales

Corporation Tax

Updated: 29 December 2021; Ref: scu.632475

FTTTx Corporation Tax – small and medium-sized enterprises – research and development costs – whether deductible – Yes – Section 1119 CTA 2009, Commission Recommendation (EC) No 2003/361 – Appeal allowed

[2015] UKFTT 123 (TC)
Bailii
England and Wales

Corporation Tax

Updated: 28 December 2021; Ref: scu.544591

FTTTx CORPORATION TAX – chargeable gains – group relief – sections 170,171 TCGA 1992 – tax avoidance scheme – Ramsay principle – purposive construction of the group relief provisions – whether the transactions fell within the group relief provisions – appeal allowed

[2015] UKFTT 97 (TC)
Bailii
England and Wales

Corporation Tax

Updated: 28 December 2021; Ref: scu.544581

FTTTx Corporation tax – loss relief on succession to trade – streaming of losses against profits of predecessor trade – interpretation of s 343(3) ICTA – Falmer Jeans v Rodin considered – HELD – No explicit streaming rules in s 343(3) – streaming could not be implied – succession gave rise to single surviving trade – all losses of predecessor available to successor – appeal allowed.

[2015] UKFTT 93 (TC)
Bailii
England and Wales

Corporation Tax

Updated: 28 December 2021; Ref: scu.544571

FTTTx CORPORATION TAX – capital allowances – plant and machinery – conservatory-type enclosure for swimming pool – whether a building or a structure – yes – just and reasonable apportionment of consideration paid for qualifying assets – appeal dismissed, subject to any further hearing necessary to determine the value of the swimming pool

[2015] UKFTT 94 (TC)
Bailii
England and Wales

Corporation Tax

Updated: 28 December 2021; Ref: scu.544565

Corporation Tax – Schedule D – expenditure involving substantial alterations and improvements – whether cost of works were allowable expenditure in computing the Company’s taxable profits or non-deductible capital expenditure

[2010] UKFTT 500 (TC)
Bailii
England and Wales

Corporation Tax

Updated: 28 December 2021; Ref: scu.426632