INCOME TAX – failure to deduct PAYE – whether determinations properly made – yes – whether penalty assessments correctly made – yes – appeal dismissed

Citations:

[2020] UKFTT 244 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

Income Tax

Updated: 21 January 2023; Ref: scu.652287

INCOME TAX – loan interest relief disallowed- whether open to HMRC to issue discovery assessments – appeal dismissed

Citations:

[2020] UKFTT 266 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

Income Tax

Updated: 21 January 2023; Ref: scu.652286

Taxpayer had liability but did not complete a tax return – HMRC discovered HICB charge liability and raised discovery assessment under s29(1)(a) TMA 1970 – was there discovery that income which ought to have been assessed to income tax had not been assessed? – held: no, as HICBC charge was a self-standing liability to income tax, not income assessable to income tax – assessment invalid – appeal allowed

Citations:

[2020] UKFTT 256 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

Income Tax

Updated: 31 December 2022; Ref: scu.652297

INCOME TAX – directions to recover PAYE income tax from individuals – whether Appellants were aware that employer had wilfully failed to deduct PAYE – whether 20 year extended time limit for assessments applied – Regulation 72, Income Tax (PAYE) Regulations 2003

Citations:

[2020] UKFTT 193 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

Income Tax

Updated: 31 December 2022; Ref: scu.651565

Citations:

[2019] UKFTT 539 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

Income Tax

Updated: 31 December 2022; Ref: scu.641334

Income tax – penalty for late filing of returns – late appeal – permission to appeal late – whether reasonable excuse – no – appeal discussed.

Citations:

[2019] UKFTT 697 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

Income Tax

Updated: 31 December 2022; Ref: scu.646889

Application for admission of a late appeal – late payment penalties – PPN – Martland applied – application refused

Citations:

[2018] UKFTT 544 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

Income Tax

Updated: 31 December 2022; Ref: scu.632305

INCOME TAX – penalties for late filing of tax return and late payment of income tax – whether or not taxpayer had reasonable excuse – held not

Citations:

[2018] UKFTT 539 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

Income Tax

Updated: 31 December 2022; Ref: scu.632306

INCOME TAX – self assessment – late filing penalties – whether a Notice to File was served – yes – whether the Appellant was under a duty to file a return – yes – whether the Appellant had a reasonable excuse for his delay – no – appeal dismissed

Citations:

[2018] UKFTT 652 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

Income Tax

Updated: 31 December 2022; Ref: scu.632415

INCOME TAX – late filing penalties – individual returns – whether reasonable excuse – no – partnership returns – whether in partnership – no – appeal partly dismissed

Citations:

[2018] UKFTT 602 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

Income Tax

Updated: 31 December 2022; Ref: scu.632335

Appeal against an assessment to recover an over-repayment of income tax following the failure by the Respondents properly to record information contained in a paper return -reliance placed on the terms of an extra-statutory concession and, more generally, on the behaviour of the Respondents’ officers and the fact that the repayment has been spent – jurisdiction of the First-tier Tribunal considered – appeal dismissed

Citations:

[2018] UKFTT 560 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

Income Tax

Updated: 31 December 2022; Ref: scu.632302

INCOME TAX – penalty for failure to make payment on time – whether reasonable excuse – no – appeal dismissed

Citations:

[2018] UKFTT 585 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

Income Tax

Updated: 31 December 2022; Ref: scu.632336

INCOME TAX – compensation for mis-sold interest Rate Hedging Products basic redress and interest- whether income or capital – whether taxable

Citations:

[2018] UKFTT 600 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

Income Tax

Updated: 31 December 2022; Ref: scu.632338

INCOME TAX – repayment claims by non-resident – personal allowances s 56 ITA 2007 – claims under s 788 ICTA 1988 and s 6 TIOPA – whether reasonable excuse for late claims in some years – Raftopoulou applied – whether in date claims refused had been enquired into – Portland Gas and Raftopoulou considered.
INCOME TAX – penalties for late filing of returns – whether returns delivered before the due date.

Citations:

[2018] UKFTT 485 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

Income Tax

Updated: 31 December 2022; Ref: scu.632267

SCIT INCOME TAX – Settlement – Company owned by husband and wife – Allotment of shares in company to their minor children on subscription at par – Payment of dividends to children – Whether settlement by virtue or in consequence of which dividends were paid within meaning of Income and Corporation Taxes Act 1988 ss. 660A(1) and 660G(1) – Yes – Appeal dismissed.
ASSESSMENT – Extended time limits – Negligent conduct – Husband and wife owned all shares in company – Husband and wife allowed minor children to subscribe for shares at par – Dividends paid to daughters – Whether husband and wife were negligent in omitting daughters’ dividends as dividend income of husband and wife in their tax returns – No.

Citations:

[2008] UKSPC SPC00720

Links:

Bailii

Jurisdiction:

England and Wales

Income Tax

Updated: 20 December 2022; Ref: scu.278757

The taxpayer was obliged to visit an office in Leeds once a week. He lived in Norfolk. He sought to set off the travel expenses against his schedule E Income Tax. As a home worker, he also sought the expenses of maintaining an office at home. Both requirements were imposed by his employers as part of their home-working scheme.
Held: The tests for setting off such expenses were strict. To come within the new definition, the travelling expenses had to be incurred performing employment duties, but also attributable to the necessary attendance of the employee in the performance of those duties, and not to be excluded by the definitions of ordinary commuting or private travel. Under those definitions the travel was part of his ordinary commuting. The home expenses were not necessary for the employment because the home working scheme was optional.

Judges:

Patten J

Citations:

Gazette 06-Mar-2002, Times 05-Feb-2002

Statutes:

Income and Corporation Taxes Act 1988 198(1) and (1A), Schedule 12, Finance Act 1998 61(1)

Jurisdiction:

England and Wales

Income Tax

Updated: 20 December 2022; Ref: scu.167554

Income Tax – penalties for failure to deliver form P35

Citations:

[2018] UKFTT 598 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

Income Tax

Updated: 20 December 2022; Ref: scu.632340

INCOME TAX – Schedule 56 Finance Act 2009 – penalties for late payment – whether taxpayer had a reasonable excuse for his late payment – appeal dismissed. Permission to appeal out of time – refused.

Citations:

[2021] UKFTT 32 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

Income Tax

Updated: 20 December 2022; Ref: scu.661773

PROCEDURE – Income tax – whether to give permission for late appeal to be made – whether reasonable excuse – no – appeal dismissed.

Citations:

[2021] UKFTT 22 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

Income Tax

Updated: 20 December 2022; Ref: scu.661751

High Income Child Benefit Charge, reasonable excuse for failure to file return, appeal allowed in part

Citations:

[2021] UKFTT 51 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

Income Tax

Updated: 20 December 2022; Ref: scu.661761

Taxation of rent receipts

Citations:

[1900] UKHL TC – 4 – 265, [1900] 1 QB 192

Links:

Bailii

Jurisdiction:

England and Wales

Income Tax

Updated: 20 December 2022; Ref: scu.631504

INCOME TAX – tax effects of a partnership incentive plan – whether the appellants are taxable on sums allocated to a corporate member of Odey Asset Management LLP in the year of allocation – no – whether the appellants are taxable on sums received on reallocation of special capital to them in the year of receipt under s 687 ITTOIA 2005 (miscellaneous income) – yes – or under ss 773 to 778 ITA 2007 (sales of occupational income) – no – whether an amendment and various discovery amendments were made validly under s 29 and 30B TMA – appeal allowed in part

Citations:

[2021] UKFTT 31 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

Income Tax

Updated: 09 December 2022; Ref: scu.661768

INCOME TAX – settlements legislation – chapter 5 Part 5 Income Tax (Trading and Other Income) Act 2005 – meaning of ‘settlement’ – meaning of ‘settlor’ – whether dividend or distribution taxable under s383 Income Tax (Trading and Other Income) Act 2005 – appeal dismissed

Citations:

[2021] UKFTT 12 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

Income Tax

Updated: 09 December 2022; Ref: scu.661733

INCOME TAX – partnership established for purposes of constructing a building in Montenegro – claims for sideways loss relief by partners – whether activities of Appellants amounted to a trade – if a trade, whether various payments were trading expenses – basis on which Appellants should calculate any trading loss – application of paragraph 51 of FRS 5 to Appellants’ accounts – ss 25, 26, 33, 34 ITTOIA 2005

Citations:

[2021] UKFTT 18 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

Income Tax

Updated: 09 December 2022; Ref: scu.661736

INCOME TAX – late filing penalties – individual returns – whether reasonable excuse -no – appeal dismissed.

Citations:

[2018] UKFTT 651 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

Income Tax

Updated: 09 December 2022; Ref: scu.632417

Income Tax – Procedure – application to make a late appeal. Permission refused.

Citations:

[2019] UKFTT 58 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

Income Tax

Updated: 09 December 2022; Ref: scu.635664

A resident in the United Kingdom was the life tenant under a trust administered in accordance with the law of the State of New York. She directed the trustees to pay out of the income to which she was entitled allowances to her children resident in England. The payments were made by way of bills of exchange drawn on London, payable to the child in question and posted to such child or his or her banker. She was assessed to tax in the United Kingdom on the amount of those allowances on the ground that they were her income and had been remitted to the United Kingdom.
Held: The assessment stood. The income represented by the bills of exchange was income to which the life tenant was entitled, though not received by her, when it came to the United Kingdom because the gift to the children was not complete prior to collection of the proceeds of the bills of exchange in the United Kingdom. She was liable for tax on the basis of entitlement not receipt. The Court left open the question of liability if the gift had been completed outside the United Kingdom.

Citations:

(1936) 20 TC 155, [1936] 1 KB 645

Jurisdiction:

England and Wales

Cited by:

Cited – Grimm v Newman Chantry Vellacott DFK CA 7-Nov-2002
Accountants appealed a finding of professional negligence. They had advised an american resident in Britain that he could transfer assets to his wife here without adverse tax consequences. At the trial the judge had considered an alternative scheme . .
Lists of cited by and citing cases may be incomplete.

Income Tax

Updated: 09 December 2022; Ref: scu.183428

Income Tax – penalty under s 208 FA 2014 for failure to take corrective action following service of Follower Notice: (a) taxpayer advised that scheme worked – was it reasonable in all the circumstances not to take corrective action, (b) reduction in penalty under s 210.

Citations:

[2020] UKFTT 486 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

Income Tax

Updated: 07 December 2022; Ref: scu.661797

Income tax – Schedule 36 information notice – failure to comply – penalties – reasonable excuse- appeal dismissed

Citations:

[2021] UKFTT 64 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

Income Tax

Updated: 07 December 2022; Ref: scu.661780

INCOME TAX – ENHANCED PENSION PROTECTION — application made years late – taxpayer believed Lifetime Allowance inapplicable to him – no advice taken nor further enquiries made – not objectively reasonable – no reasonable excuse found – appeal dismissed

Citations:

[2021] UKFTT 26 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

Income Tax

Updated: 07 December 2022; Ref: scu.661727

INCOME TAX – penalty for failure to make returns – director registered for self-assessment – whether required to make returns issued under s8 TMA – yes – whether return validly issued – yes – whether returns should have been withdrawn – no – whether reasonable excuse for late filing – no

Citations:

[2018] UKFTT 659 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

Income Tax

Updated: 07 December 2022; Ref: scu.632408

Penalties – late payment – Sch.56 of FA 2009 – No UTR – never completed a tax return –whether a reasonable excuse – whether special circumstances – no -appeal dismissed in part -reduction in penalty

Citations:

[2019] UKFTT 670 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

Income Tax

Updated: 07 December 2022; Ref: scu.646891

INCOME TAX – Payment of redress for mis-sold interest rate hedging products – Penalty for failure to declare payment in tax return (FA 2007 Sch 24) – Special circumstances

Citations:

[2019] UKFTT 42 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

Income Tax

Updated: 06 December 2022; Ref: scu.635671

INCOME TAX – failure to file returns by due date – Schedule 55 FA 2009 – change of address – HMRC not informed – whether reasonable excuse – No – appeal dismissed

Citations:

[2019] UKFTT 672 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

Income Tax

Updated: 06 December 2022; Ref: scu.646878

INCOME TAX – PAY AS YOU EARN – NATIONAL INSURANCE CONTRIBUTIONS – Intermediaries Legislation – IR35 – Personal Service Companies (PSC) – s.49 of the Income Tax (Pay As you Earn) Act 2003 (ITEPA) – Determinations under Regulation 80 of the ITEPA Regulations 2003 – Provision of IT consultancy services – notional or hypothetical contracts to be constructed —four links in chain between Mr Alcock, the Appellant PSC (RALC), the agencies (Networkers and Capita) and end clients (DWP or Accenture) – notional contracts of service (employment) or contracts for services (self-employed) – Ready Mixed Concrete Test – four year time limit under s. 34 of the Taxes Management Act 1970 (TMA) – carelessness of Appellant or its adviser under s. 118 of the TMA – extended time limits of six years under s. 36(1) or (1B) TMA – appeal allowed

Citations:

[2019] UKFTT 703 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

Income Tax

Updated: 06 December 2022; Ref: scu.646873

Income tax – 100% relief for expenditure on qualifying film – s 42 Finance (No 2) Act 1992 and s 48 Finance (No 2) Act 1997 – delay in obtaining certificate as to status of film – whether claim made out of time – alternative claim for subsequent year under s 140 Income Tax (Trading and Other Income) Act 2005 – whether allocation of expenditure to relevant year made out of time – whether valid provisional claim made – whether certification of film by Hungarian authorities under European Convention on Cinematic Co-production sufficient – appeal dismissed

Citations:

[2019] UKFTT 66 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

Income Tax

Updated: 06 December 2022; Ref: scu.635668

INCOME TAX – penalties under Schedule 56 FA 2009 for not paying tax by relevant date – interaction with failure to notify liability in time – whether reasonable excuse: yes, but once it ceased not remedied without unreasonable delay – appeal dismissed.

Citations:

[2019] UKFTT 57 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

Income Tax

Updated: 06 December 2022; Ref: scu.635666

Income tax – Schedule 55 Finance Act 2009 – fixed and daily penalties for partnership’s failure to file self-assessment return on time – whether reasonable excuse – no – appeal dismissed

Citations:

[2018] UKFTT 695 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

Income Tax

Updated: 06 December 2022; Ref: scu.632402

Income Tax, Schedule D-Foreign dividends not remitted to United Kingdom -British trustees of foreign beneficiaries.

Citations:

7 TC 387

Links:

Bailii

Jurisdiction:

England and Wales

Income Tax

Updated: 06 December 2022; Ref: scu.631520

the meaning of ‘relevant discounted securities’ as defined by schedule 13 to the Finance Act 1996

Citations:

[2009] EWCA Civ 1010, [2009] STI 2745, [2009] BTC 631

Links:

Bailii

Jurisdiction:

England and Wales

Income Tax

Updated: 06 December 2022; Ref: scu.375938

Citations:

[2007] EWHC 871 (Admin)

Links:

Bailii

Jurisdiction:

England and Wales

Income Tax

Updated: 06 December 2022; Ref: scu.253561

INCOME TAX – follower notices – necessary corrective action not taken – penalties for that failure – not reasonable in all the circumstances not to have taken corrective action – penalties reduced – appeal allowed to that extent

Citations:

[2021] UKFTT 5 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

Income Tax

Updated: 06 December 2022; Ref: scu.661729

INCOME TAX – ENHANCED PENSION PROTECTION — application made years late – reasonable excuse accepted by HMRC but post excuse delay alleged – taxpayer remained reliant on advice – objectively reasonable – reasonable excuse found – appeal allowed

Citations:

[2021] UKFTT 49 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

Income Tax

Updated: 06 December 2022; Ref: scu.661759

Income tax – fixed and daily penalties for late filing of self-assessment return – Appellant asserts that she relied on an agent to file the return, that her knowledge of English is limited and that she was unaware of her obligations – whether reasonable excuse – no – appeal refused

Citations:

[2020] UKFTT 485 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

Income Tax

Updated: 06 December 2022; Ref: scu.661798

Income Tax – whether reasonable excuse for late filing penalties under section 56 FA2009 – No – Whether special circumstances for reduction of penalties – No – Appeal Dismissed

Citations:

[2020] UKFTT 211 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

Income Tax

Updated: 05 December 2022; Ref: scu.651610

FTTTx PAYE penalties – notification by HMRC – jurisdiction of Tribunal – Hok applied.

Citations:

[2013] UKFTT 246 (TC)

Links:

Bailii

Income Tax

Updated: 05 December 2022; Ref: scu.491864

FTTTx PAYE – appeal against the penalty imposed for the late payment of PAYE – Schedule 56 Finance Act 2009 – whether fact that appellant was given no specific warning was a reasonable excuse- no – whether lack of knowledge was a reasonable excuse – no – whether penalty was unfair – no- appeal dismissed

Citations:

[2013] UKFTT 237 (TC)

Links:

Bailii

Income Tax

Updated: 05 December 2022; Ref: scu.491872

FTTTX INCOME TAX – payments treated as earnings – employee share option – gain on purported exercise by employee – ‘due amount’ of tax accounted for to HMRC by employer – whether ‘due amount’ to be treated as earnings of employee – no – IT(EP)A 2003 s.222

Citations:

[2013] UKFTT 252 (TC)

Links:

Bailii

Income Tax

Updated: 05 December 2022; Ref: scu.491866

FTTTx Income tax – Appeal against closure notice – ‘Investment bonus’ to be paid to hedge fund managers in connection with the transfer of management of the hedge fund from one company to another – Whether payment a capital sum – In the circumstances, no – Appeal dismissed

Citations:

[2013] UKFTT 234 (TC)

Links:

Bailii

Income Tax

Updated: 05 December 2022; Ref: scu.491865

FTTTx INCOME TAX – Taxpayer a British national resident in the Republic of Ireland – taxed in the UK on a civil service pension by virtue of Article 18 UK/Irish Double Taxation Convention – taxpayer’s wife an Irish national taxed on UK local authority pension in Ireland – taxpayer taxed less favourably in the UK than if taxed as his wife in Ireland – whether Article 18 DTC compatible with EU law – discrimination on grounds of nationality – whether Article 18 DTC compatible with Article 14 of the European Convention on Human Rights – construction of Article 23(1) of the DTC (non-discrimination clause) – appeal dismissed

Citations:

[2013] UKFTT 240 (TC)

Links:

Bailii

Income Tax

Updated: 05 December 2022; Ref: scu.491868

FTTTx PENALTIES – failure to file Employer Annual Return – enforced and unforeseen administration of subsidiary company – illness of operational director – reasonable excuse – yes – appeal allowed

Citations:

[2013] UKFTT 231 (TC)

Links:

Bailii

Income Tax

Updated: 05 December 2022; Ref: scu.491873

FTTTx Income Tax – online filing – partnership return – whether reasonable excuse if third party software not purchased – Appeal Allowed.

Citations:

[2013] UKFTT 225 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

Income Tax

Updated: 05 December 2022; Ref: scu.491847

FTTTx PENALTIES – late filing of Employer’s Annual Return – Closure of business during the year with tax obligations being brought up to date – reasonable excuse – appeal allowed.

Citations:

[2013] UKFTT 230 (TC)

Links:

Bailii

Income Tax

Updated: 05 December 2022; Ref: scu.491860

FTTTx INCOME TAX – penalty for late submission of P35 – disputes as to the facts – Tribunal making further findings of fact – whether HMRC had sent out a ‘failed transmission notice’ – no – whether company reasonably believed the return had been filed on time – yes – appeal allowed.

Citations:

[2013] UKFTT 248 (TC)

Links:

Bailii

Income Tax

Updated: 05 December 2022; Ref: scu.491856

FTTTx INCOME TAX – PENALTY FOR LATE FILING OF END OF YEAR PAYE RETURN – Whether the Appellant filed the return on time – No – Did the Appellant have a reasonable excuse for default – Yes – Appeal allowed.

Citations:

[2013] UKFTT 238 (TC)

Links:

Bailii

Income Tax

Updated: 05 December 2022; Ref: scu.491853

FTTTx INCOME TAX – PENALTY AND SURCHARGE – HMRC conceded the Appeals on surcharges and second late filing penalty for 2001/02 and late filing penalties for 2003/04 – first late filing penalty for 2001/02 cancelled – surcharges for 2003/04 confirmed – Appeal allowed in part

Citations:

[2013] UKFTT 239 (TC)

Links:

Bailii

Income Tax

Updated: 05 December 2022; Ref: scu.491855

FTTTX INCOME TAX – PENALTY FOR LATE FILING OF END OF YEAR PAYE RETURN – Whether the Appellant filed the return on time – No – Did the Appellant have a reasonable excuse for default – No – Appeal dismissed.

Citations:

[2013] UKFTT 235 (TC)

Links:

Bailii

Income Tax

Updated: 05 December 2022; Ref: scu.491854

FTTTx Appeal against amendment to Appellants tax return for 2003-04 and assessments for 1998-99 to 2002-03 and 2006-07 including penalties – property business and gardening business – deduction claimed for capital repayments in property business – accepted as incorrect but Appellant not negligent and not liable for penalties to that extent – garden business showed cash deficit – could this be explained otherwise than by reference to under declarations of income – Appellant’s explanations allowed in part – in part Appellant failed to discharge this conclusion – presumption of continuance for previous and later years accepted but on the basis of reduced under declaration – Appellant failed to keep adequate records and was negligent and Respondent’s method of calculating penalties accepted – Appeal allowed in part

Citations:

[2013] UKFTT 247 (TC)

Links:

Bailii

Income Tax

Updated: 05 December 2022; Ref: scu.491851

Issues of general importance about the power of Her Majesty’s Revenue and Customs (in this context ‘the Revenue’) to make what is generally known as a discovery assessment.

Judges:

Lord Reed, President, Lord Briggs, Lord Sales,Lord Leggatt, Lord Burrows

Citations:

[2021] UKSC 17

Links:

Bailii, Bailii Press Summary, Bailii Issues and Facts

Jurisdiction:

England and Wales

Citing:

Appeal from (CA) – Revenue and Customs v Tooth CA 15-May-2019
Participation in tax avoidance scheme – carry back of losses. . .
At UTTC – Revenue and Customs v Tooth UTTC 7-Feb-2018
INCOME TAX – discovery assessment – whether ‘discovery’ – whether insufficiency of tax brought about deliberately . .
Lists of cited by and citing cases may be incomplete.

Income Tax

Updated: 05 December 2022; Ref: scu.662467

INCOME TAX – discovery assessments – whether or not there was a discovery for each of the relevant years – yes – whether or not the appellant’s agents’ role affected the position – no – penalties – whether or not the appellant was careless – yes – whether or not the penalties should be reduced – yes to the extent agreed by the parties – appeal allowed in part

Citations:

[2021] UKFTT 33 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

Income Tax

Updated: 05 December 2022; Ref: scu.661754

INCOME TAX – discovery assessments – valid – reduced – appeal allowed to that extent

Citations:

[2020] UKFTT 512 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

Income Tax

Updated: 05 December 2022; Ref: scu.661824

Income Tax – application to make a late appeal – fixed and daily penalties for the late filing of individual SA return – significant delay in submitting return – appellant asserts that she was depressed and received no income during the default year – delay in submitting appeal against the penalties – whether reasonable excuse for delay in appealing – on the facts, no – application for permission to make a late appeal refused

Citations:

[2020] UKFTT 491 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

Income Tax

Updated: 05 December 2022; Ref: scu.661821

INCOME TAX – discovery assessment – tax avoidance scheme – ground of appeal against the quantum of assessment and not the efficacy of the scheme – ss 29 and 34 of Taxes Management Act 1970 – whether assessment validly made – pre-condition under s 29(5) -whether a hypothetical officer could have been reasonably expected to be aware of the insufficiency from the information made available; no – whether assessment stands good; yes – onus for displacing assessment regarding quantum on the appellant – appeal dismissed

Citations:

[2021] UKFTT 54 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

Income Tax

Updated: 05 December 2022; Ref: scu.661755

(Tax Credits and Family Credit – Other)

Citations:

[2019] UKUT 386 (AAC)

Links:

Bailii

Jurisdiction:

England and Wales

Income Tax

Updated: 04 December 2022; Ref: scu.651682

Tax credits – ‘Main responsibility’ – Held that the First-tier Tribunal’s decision that the person who was the contact point for the children’s school, GP and dentist was ultimately determinative as the person who had the main responsibility was an error of law for the reasons in paragraph 8. The Judge directed the new tribunal to follow the approach set out by Judge Jacobs in paragraph 38 of PG v Commissioners of HMRC and NG (TC) [2016] UKUT 216 (AAC)

Citations:

[2019] UKUT 410 (AAC)

Links:

Bailii

Jurisdiction:

England and Wales

Income Tax

Updated: 04 December 2022; Ref: scu.651674

Tax treatment of certain payments under management training contract – whether FTT erred in conclusion termination payment trading revenue receipt (consideration for cancellation of the contract to provide training) rather than capital (compensation for loss of a secret process in proprietary performance management system) – House of Lords’ decision in Evans Medical Supplies Ltd v Moriarty (H M Inspector of Taxes) ([1957] 37 TC 540) considered – no – whether FTT erred in conclusion other contractual payments gave rise to tax liability on appellant (as opposed, through a multiparty agreement, to other entities appellant owned) – no – appeal dismissed

Citations:

[2020] UKUT 119 (TCC)

Links:

Bailii

Jurisdiction:

England and Wales

Income Tax

Updated: 04 December 2022; Ref: scu.651190

Participation in tax avoidance scheme – carry back of losses.

Judges:

Lord Justice Floyd

Citations:

[2019] EWCA Civ 826

Links:

Bailii

Jurisdiction:

England and Wales

Citing:

Appeal from – Revenue and Customs v Tooth UTTC 7-Feb-2018
INCOME TAX – discovery assessment – whether ‘discovery’ – whether insufficiency of tax brought about deliberately . .

Cited by:

Appeal from (CA) – Revenue and Customs v Tooth SC 14-May-2021
Issues of general importance about the power of Her Majesty’s Revenue and Customs (in this context ‘the Revenue’) to make what is generally known as a discovery assessment. . .
Lists of cited by and citing cases may be incomplete.

Income Tax

Updated: 04 December 2022; Ref: scu.637328

(Victoria)

Citations:

[1906] UKPC 75

Links:

Bailii

Jurisdiction:

Australia

Income Tax

Updated: 04 December 2022; Ref: scu.419807

(High Court of Australia) The taxpayer newspaper sought to set off against its liability to income tax, sums which it had paid out in damages for defamation.
Held: They were deductible. Such claims against a newspaper are a ‘regular and almost unavoidable incident of publishing it’ and the damages are compensatory rather than punitive.

Judges:

Gavan Duffy CJ and Dixon J

Citations:

(1932) 48 CLR 113, [1932] HCA 56

Links:

Austlii

Jurisdiction:

Australia

Cited by:

Cited – McKnight (Inspector of Taxes) v Sheppard HL 18-Jun-1999
The taxpayer sought to set off against tax some pounds 200,000 spent defending professional disciplinary proceedings. The House was asked whether this was ‘money wholly and exclusively laid out or expended for the purposes of the trade.’
Held: . .
Lists of cited by and citing cases may be incomplete.

Income Tax

Updated: 04 December 2022; Ref: scu.266054

Citations:

[1970] 1WLR 260, [1970] 46 TC 169

Jurisdiction:

England and Wales

Cited by:

Cited – Mallalieu v Drummond HL 27-Jul-1983
The taxpayer was a barrister. To comply with Bar guidance on court dress, she wore, in court and in and to and from chambers black dresses, suits and shoes and white blouses. The clothing were perfectly ordinary articles suitable for everyday wear. . .
Lists of cited by and citing cases may be incomplete.

Income Tax

Updated: 04 December 2022; Ref: scu.266053

When computing profits for tax purposes, the taxpayer is not allowed to deduct any sums for depreciation of capital assets. Lord Deas: ‘I think it is better not to run the risk of making any confusion in the grounds of judgment by adding anything to what your Lordship has said.’

Judges:

Lord Deas

Citations:

(1875) 2 R 431

Jurisdiction:

England and Wales

Cited by:

Cited – Revenue and Customs v William Grant and Sons Distillers Ltd HL 28-Mar-2007
The Revenue appealed findings as to the calculation of profits for corporation tax. The companies had sought to deduct sums from profits for depreciation of unsold stock in accordance with current accounting standards.
Held: ‘the profit and . .
Lists of cited by and citing cases may be incomplete.

Income Tax

Updated: 01 December 2022; Ref: scu.251451

The respondent taxpayer company, had transferred to a third party its licence to exploit various patents for the manufacture of a marine steam turbine engine in return for the payment of a royalty on every engine sold by the third party and whose only business consisted of receiving the royalties, was not ‘carrying on a trade or business’ within the meaning of the Finance (No. 2) Act 1915.
Held: The word ‘business’ was used in the sense of ‘an active occupation or profession continuously carried on’.

Judges:

Rowlatt J

Citations:

[1920] 1 KB 193

Statutes:

Finance (No. 2) Act 1915

Jurisdiction:

England and Wales

Cited by:

Cited – GE Capital Bank Ltd v Rushton and Another CA 14-Dec-2005
The bank had entered into a master trading agreement with a trader under which the trader bought motor vehicles as agent for the bank for resale. The vehicles belonged to the bank. The defendant bought all the trader’s vehicles. The defendant now . .
Lists of cited by and citing cases may be incomplete.

Income Tax

Updated: 01 December 2022; Ref: scu.236666

A British subject resident in England but domiciled in the United States was the life tenant of trusts administered in accordance with the law of the State of New York. The income of the trusts was paid in US$ into the beneficiary’s bank account with a bank in New York. The beneficiary drew cheques on that account in favour of banks in England and instructed them to convert them into sterling and credit the sterling equivalent to the beneficiary’s account with that bank. The English bank sold the US$ to the Bank of England, as required by the Exchange Control legislation then in force, and credited the proceeds of sale in sterling to the beneficiary’s account in England. The beneficiary was assessed to tax under Case V of Schedule D. The Special Commissioners discharged the assessments on the grounds that the American income had not been brought into the United Kingdom. Their decision was upheld by Wynn-Parry J and a majority of the Court of Appeal.
Held: The House reinstated the assessments. The beneficiary had received sums ‘from money or value arising from property not imported’. The beneficiary was liable for the tax claimed on the grounds that the ‘bringing in’ of a person’s income means the effecting of its transmission from one country to the other by whatever means. It is neither here nor there to ask whether anything, items of property or instrument of transfer, has actually been brought into the country or not. No more is it relevant to know what has happened to the taxpayer’s money in the country where the income arises. Ex hypothesi he has transferred it – in this case the dollar credit – to the purchaser who is to provide him with sterling. What use the purchaser may make of the dollars has no bearing on the question whether the taxpayer has received sums of sterling through remittance of his American income. The rule lists sources from which sums to be computed may have been received; and this additional wording has caused some of the mystificationin this branch of the law. These several instances of the way in which income may be remitted have been thought to limit the generality of the phrase ‘ actual sums received in the United Kingdom’. It was not intended to say in effect that whereas under Case IV all sums of foreign income were to be computable, if received in the United Kingdom, under Case V only those sums of income received were to be computable which were attributable to the specified operations or sources. There could be no reason for such a distinction. The sub-heads should be treated as illustrationsand construed generally.

Judges:

Lords Reid, Denning, Lord Radcliffe, Viscount Simmonds, Lord Cohen, Lord Tucker

Citations:

(1958) 39 TC 291

Jurisdiction:

England and Wales

Cited by:

Cited – Grimm v Newman Chantry Vellacott DFK CA 7-Nov-2002
Accountants appealed a finding of professional negligence. They had advised an american resident in Britain that he could transfer assets to his wife here without adverse tax consequences. At the trial the judge had considered an alternative scheme . .
Cited – Harmel v Wright ChD 1973
The taxpayer was domiciled in South Africa but resident in England. Before he came to England he arranged for the incorporation of two companies, Artemis Ltd and Lodestar Ltd. Artemis was controlled by the taxpayer but Lodestar, in which he had no . .
Lists of cited by and citing cases may be incomplete.

Income Tax

Updated: 01 December 2022; Ref: scu.183430

Income tax – Schedule 55 Finance Act 2009 – fixed penalty for late filing of self-assessment return – Appellant not self-employed but issued with notice to file together with an explanation that this was because of an underpayment of PAYE in an earlier year – he nonetheless failed to file his return until after the filing date – whether reasonable excuse – no – appeal dismissed

Citations:

[2020] UKFTT 484 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

Income Tax

Updated: 01 December 2022; Ref: scu.661799

INCOME TAX – penalty for failure to make returns – reasonable excuse – special circumstances – appeal dismissed

Citations:

[2021] UKFTT 40 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

Income Tax

Updated: 01 December 2022; Ref: scu.661763

INCOME TAX – whether amounts were partnership profits – appeals allowed – whether amounts taxable under s687 ITTOIA 2005 – yes – whether discovery stale – no – appeals dismissed

Citations:

[2021] UKFTT 36 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

Income Tax

Updated: 01 December 2022; Ref: scu.661762

INCOME TAX – unauthorised payments from registered pension scheme – whether HMRC have power to assess scheme sanction charge – yes – whether taxpayer careless – no – whether scheme sanction charge should be set aside – no

Citations:

[2020] UKUT 120 (TCC)

Links:

Bailii

Jurisdiction:

England and Wales

Income Tax

Updated: 01 December 2022; Ref: scu.651194

PAYE – Self Assessment – Discovery assessments – penalties for failure to notify – taxable source of funds – gambling – record keeping obligations – appeal allowed

Citations:

[2020] UKFTT 82 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

Income Tax

Updated: 30 November 2022; Ref: scu.649134