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		Income Tax - From: 2004 To: 2004 This page lists 68 cases, and was prepared on 08 August 2015. Â Â MacDonald (HM Inspector of Taxes) -v- Dextra Accessories Ltd and others; CA 28-Jan-2004 - Times, 03 February 2004; [2004] EWCA Civ 22; Gazette, 04 March 2004; [2004] STC 339 Â Â Bluck -v- HM Inspector of Taxes; SCIT 9-Feb-2004 - [2004] UKSC SPC00400 Â Alan Porter Ltd -v- Hm Inspector of Taxes [2004] UKSC SPC00398 9 Feb 2004 SCIT Income Tax [ Bailii ] Â Taylor -v- Inland Revenue [2004] EWCA Civ 174 20 Feb 2004 CA Benefits, Income Tax Social Security Contributions and Benefits Act 1992 129 [ Bailii ] Â Sir Graham Stanley Latimer and others - Trustees for the Crown Forestry Rental Trust -v- The Commissioner of Inland Revenue [2004] UKPC 13; Times, 19 March 2004 25 Feb 2004 PC Lord Nicholls of Birkenhead, Lord Millett, Lord Walker of Gestingthorpe, Sir Martin Nourse, Sir Kenneth Keith Commonwealth, Income Tax, Charity PC (New Zealand) The Crown created a charitable trust for certain Maori people. Upon exhaustion of the purpose, the fund was to revert to the Crown. The trustees appealed a finding of liability to income tax. Held: A charitable trust could co-exist with a non-charitable trust. "The distinction is between ends, means and consequences. The ends must be exclusively charitable. But if the non-charitable benefits are merely the means or the incidental consequences of carrying out the charitable purposes and are not ends in themselves, charitable status is not lost." The fact that some residue might revert to a non-charitable purpose on the trust coming to an end need not defeat the charitable nature of the trust. The trust was exempt. 1 Cites [ PC ] - [ Bailii ] Â Langham (HM Inspector of Taxes) -v- Veltema [2004] EWCA Civ 193; Times, 11 March 2004; [2004] STC 544 26 Feb 2004 CA Lord Justice Auld, Lord Justice Chadwick and Lady Justice Arden Income Tax, Taxes Management The tax inspector had sought to re-open a tax assessment outside the time limit provided. He had discovered that a house had been given to the tax payer by his employers. The taxpayer said this had been discoverable from his self-assessment tax return. The inspector had been aware of the possible deficiency for more than 12 months, but had taken no action, and was now out of time. The inspector appealed against refusal of permission by the High Court after a similar refusal by the General Commissioners. Held: The purpose of the self-assessment scheme was to simplify and speed matters up, and worked on the assumption of honesty in the tax-payer. The tax payer had miscalculated, but without fraud or negligence. Nevertheless the inspector should be shut out from a re-opening only when he had received a clear indication of error and did nothing. "[T]he key to the scheme is that the Inspector is to be shut out from making a discovery assessment under the section only when the taxpayer or his representatives, in making an honest and accurate return or in responding to a section 9A enquiry, have clearly alerted him to the insufficiency of the assessment, not where the Inspector may have some other information, not normally part of his checks, that may put the sufficiency of the assessment in question. If that other information when seen by the Inspector does cause him to question the assessment, he has the option of making a section 9A enquiry before the discovery provisions of section 29(5) come into play. "[A]pplying the proper statutory test, there was no basis upon which they could have found that the Inspector ought reasonably to have been aware, in the terms provided by section 29(5), of the insufficiency of the assessment on the basis of the information contained in Mr. Veltema's tax return " and the tax inspector's appeal was allowed. Leave was given to appeal to the House of Lords. Taxes Management Act 1970 29 1 Cites 1 Citers [ Bailii ] Â Norton -v- HM Inspector of Taxes [2004] UKSC SPC00399 26 Feb 2004 SCIT Income Tax [ Bailii ] Â Sillare and Another -v- Inland Revenue [2004] UKSC SPC00401 3 Mar 2004 SCIT Income Tax [ Bailii ] Â Mv Endearvour and others -v- Inland Revenue [2004] UKSC SPC18440 4 Mar 2004 SCIT Income Tax [ Bailii ] Â Mars UK Ltd and Another -v- Inspector of Taxes and Another [2004] UKSC SPC00408 8 Mar 2004 SCIT Income Tax [ Bailii ] Â Stanley and others -v- Hm Inspector of Taxes [2004] UKSC SPC00402 8 Mar 2004 SCIT Income Tax [ Bailii ] Â Powell -v- Jackman (Inspector of Taxes) Times, 01 April 2004 10 Mar 2004 ChD Lewison J Income Tax The taxpayer was a milkman. He sought to set off against his liability to income tax, the expenses of his daily journey between his home and the depot from which he collected the milk for distribution. Held: The only test was whether the expense was wholly necessarily and exclusively incurred for the purposes of the trade. In this case the milkman kept his float at the depot, and the travel was to his base of operations. He was therefore unable to make the reclaim. 1 Cites Â Usetech Ltd -v- HM Inspector of Taxes [2004] UKSC SPC00404 12 Mar 2004 SCIT Income Tax 1 Cites 1 Citers [ Bailii ] Â Andre Agassi -v- S Robinson (HM Inspector of Taxes) [2004] EWHC 487 (Ch); Times, 01 April 2004 17 Mar 2004 ChD The Hon Mr Justice Lightman Income Tax The non-resident taxpayer appealed a charge to tax in respect of payments made for his sporting activities within the UK, made by overseas companies to other overseas companies owned by the taxpayer. Held: The Act provided that the activities of sportsmen were to be treated as trade payments, and any payment made in respect of those activities was to be attributed to the sportsman. The sections intended to tax the activities irrespective of the tax presence here of the sportsman. Income and Corporation Taxes Act 1988 556 1 Citers [ Bailii ] Â Christensen (Inspector of Taxes) -v- Vasili Times, 15 April 2004 19 Mar 2004 ChD Pumfrey J Income Tax The taxpayer's employer had created a scheme to provide to him with a motor vehicle, but seeking to reduce his liabilty for income tax. The company purchased two cars and transferred to him a five per cent interest in each for which he paid. The cars were rather later sold to him at an independent valuation. Held: The scheme failed. The situation of co-ownership of a car had not been anticipated by parliament. A special regime had been established for cars, and could reasionably be interpreted to encompass the present case. The revenue were correct, and the benefit was taxable. Income and Corporation Taxes Act 1988 157 168D 1 Cites 1 Citers Â Â Tom Hudson (HM Inspector of Taxes) -v- JDC Services Limited; ChD 26-Mar-2004 - Times, 16 April 2004; [2004] EWHC 602 (Ch) Â Â HM Inspector of Taxes -v- JDC Services Ltd; ChD 26-Mar-2004 - [2004] EWHC 602 (Ch) Â Future on Line Ltd. -v- Hm Inspector of Taxes [2004] UKSC SPC00406 31 Mar 2004 SCIT Income Tax [ Bailii ] Â Morris and Another -v- Roberts [2004] UKSC SPC00407 31 Mar 2004 SCIT Income Tax [ Bailii ] Â Hallamshire Estates Ltd -v- Hm Inspector of Taxes [2004] UKSC SPC00412 19 Apr 2004 SCIT Income Tax [ Bailii ] Â Meditor Capital Management Ltd -v- Inspector of Taxes [2004] UKSC SPC00409 28 Apr 2004 SCIT Income Tax [ Bailii ] Â Ian Wilson (Hm Inspector of Taxes) -v- Stephen Clayton [2004] EWHC 898 (Ch); Times, 07 June 2004; Gazette, 13 May 2004; [2004] STC 1022 29 Apr 2004 ChD The Honourable Mr Justice Patten Income Tax, Employment Taxability of compensation paid on compromise of claims after dismissal. The employer introduced new terms, withdrawing car benefits. Having refused the new terms the taxpayer was dismissed. A tribunal held him unfairly dismissed. The council re-instated him and others and made a compensatory payment. The Revenue contended that the re-instatement made the payment taxable. Held: The cases of Hochstrasser and Wilmshurst set the test for what wa staxable pay. This payment resulted from a negotiated settlement, and was directly consequential of the dismissal and finding of unfair dismissal. The payment was not taxable because it was under £30,000. Income and Corporation Taxes Act 1988 148 1 Cites 1 Citers [ Bailii ] Â Parto -v- Hm Inspector of Taxes [2004] UKSC SPC00414 10 May 2004 SCIT Income Tax [ Bailii ] Â Hanson -v- Hm Inspector of Taxes [2004] UK SPC00410 11 May 2004 SCIT Income Tax [ Bailii ] Â R and Another -v- Hm Inspector of Taxes [2004] UK SPC00422 18 May 2004 SCIT Income Tax [ Bailii ] Â Stevens and others -v- Inland Revenue [2004] UK SPC00411 20 May 2004 SCIT Income Tax [ Bailii ] Â Woodbury Investments Ltd -v- Hm Inspector of Taxes [2004] UKSC SPC00413 24 May 2004 SCIT Income Tax [ Bailii ] Â Cadbury Schweeps Plc -v- HM Inspector of Taxes [2004] UK SPC00415 6 Jun 2004 SCIT Income Tax [ Bailii ] Â Crosby (Trustees) -v- Hm Inspector of Taxes [2004] UKSC SPC00416 8 Jun 2004 SCIT Income Tax [ Bailii ] Â Sharifee and others (T/A Cafe Flutist) -v- HM Inspector of Taxes [2004] UKSC SPC00423 21 Jun 2004 SCIT Income Tax SCIT Income tax - Profits - Determination of the profits of the opening years of a partnership business [ Bailii ] Â Jimenez -v- Inland Revenue [2004] UK SPC00419 23 Jun 2004 SCIT Income Tax SCIT INCOME TAX – Appeal against a refusal of an "error or mistake" claim: s.33 TMA 1970 – claim for exemption from UK income tax on emoluments received by reason of employment as member of the service staff of a diplomatic mission: article 37(3) of the Vienna Convention on Diplomatic Relations, 1961, having the force of law in the United Kingdom by virtue of section 2 of the Diplomatic Privileges Act 1964 – held that the Appellant, although a member of the service staff of a diplomatic mission was permanently resident in the United Kingdom within the meaning of article 37(3) and therefore disqualified from exemption – held further that even if she was not so permanently resident she was in any case prevented from enjoying such exemption because there was no appropriate notification of her appointment as required by article 39(1) of the Convention – appeal dismissed: Article 10 of the Convention, article 31 of the Vienna Convention on the Law of Treaties, 1980, section 4 of the Diplomatic Privileges Act 1964, IRC v Commerzbank AG [1990] STC 285, R v Secretary of State for the Home Department, ex parte Adan [2002] 1 WLR 143, R v Secretary of State for the Home Department, ex parte Bagga [1991] 1 All ER 777 also considered. Taxes Management Act 1970 33 [ Bailii ] Â Â McCullough (HMIT) -v- Ahluwalia; CA 23-Jun-2004 - [2004] EWCA Civ 889; Times, 09 August 2004 Â Hall -v- HM Inspector of Taxes [2004] UK SPC00417 23 Jun 2004 SCIT Income Tax SCIT PROFITS - incomplete records - estimates of car expenses and wife's wages - figures for earlier years' profits amended by applying the same percentage uplift as in the latest year rather than by applying the amount of omitted profits [ Bailii ] Â Wallentin -v- Riksskatteverket C-169/03; [2004] EUECJ C-169/03 1 Jul 2004 ECJ European, Income Tax ECJ Free movement of persons - Workers - Income tax - Restricted liability of a taxpayer receiving a small part of his income in one Member State and residing in another Member State [ Bailii ] Â Campbell -v- Inland Revenue Commissioners [2004] UK SPC00421; [2004] STC (SCD) 396 6 Jul 2004 SCIT Theodore Wallace and Julian Ghosh Income Tax SCIT INCOME TAX – Anti-Avoidance – Relevant discounted security – Loss on gift to wife – Subscription for security and gift part of scheme to produce loss – Avoidance not the Appellant's sole purpose in subscribing – Ramsay (1982), Westmoreland (2003) and Arrowtown (2003) considered – FA 1996, Sch 13, para 2 – Appeal allowed Finance Act 1996 Sch 13 1 Cites 1 Citers [ Bailii ] Â Frost Skip Hire (Newcastle) Ltd -v- HM Inspector of Taxes [2004] UK SPC00420 7 Jul 2004 SCIT Income Tax Directions [ Bailii ] Â Â Paul Jonathan Howell, Alan James Morton -v- Linda Trippier (HM Inspector of Taxes); CA 13-Jul-2004 - [2004] EWCA Civ 885; Times, 17 August 2004 Â Marion Lonsdale -v- Rosemary F. Braisby (HMIT) Times, 10 August 2004; [2004] 1811 EWHC (Ch) 23 Jul 2004 ChD The Honourable Mr Justice Lewison Financial Services, Income Tax The taxpayer sought tax relief for assorted pension contributions. She had made contributions to schemes before and after the 1988 Act. The tax scheme allowed unused allowances to be carried forward. The taxpayer sought to prevent aggregation of the allowances in respect of the separate schemes. Held: The unused refiefs under each scheme had to be aggregated in each year and any balance carried forward only after deduction of the total of contributions made for that year. Income and Corporation Taxes Act 1988 655 1 Citers [ Bailii ] Â Ansell Computer Services Ltd -v- HM Inspector of Taxes [2004] UKSC SPC00425 29 Jul 2004 SCIT Income Tax SCIT National insurance - earnings of workers supplied by service companies etc. - provision of services through intermediary - worker establishing information technology company - company contracting with agency for provision of information technology services to client of agency - whether company liable for national insurance contributions on earnings of worker - whether, if arrangements had taken the form of a contract between worker and client, worker would have been regarded as gainfully employed by the client - Social Security Contributions (Intermediaries) Regulations 2000 SI 2000/727, Reg 6(1)(c) - Social Security Contributions and Benefits Act 1992, section 4A. 1 Cites [ Bailii ] Â County Pharmacy Ltd -v- Revenue and Customs [2005] UKSPC SPC00495 3 Aug 2004 SCIT Income Tax [ Bailii ] Â Robertson -v- Revenue and Customs [2005] UKSPC SPC00494 4 Aug 2004 SCIT Income Tax [ Bailii ] Â Hudson Contract Services Ltd -v- Revenue and Customs [2005] UKSPC SPC00496 23 Aug 2004 SCIT Income Tax [ Bailii ] Â Williams -v- Revenue and Customs [2005] UKSPC SPC00500 26 Aug 2004 SCIT Income Tax [ Bailii ] Â Doyle -v- Revenue and Customs [2005] UKSPC SPC00499 30 Aug 2004 SCIT Income Tax [ Bailii ] Â Glaze & Frame Ltd -v- Revenue and Customs [2005] UKSPC SPC00497 30 Aug 2004 SCIT Income Tax [ Bailii ] Â Smith -v- Revenue and Customs [2005] UKSPC SPC00498 30 Aug 2004 SCIT Income Tax [ Bailii ] Â Siwek (T/A Siwek Ltd) -v- Inland Revenue [2004] UKUKSPC SPC00427 8 Sep 2004 SCIT Income Tax SCIT Income Tax; tax return; enquiry into returns; requests for information; notice requiring the production of documents; failure to produce adequate or sufficient information and documents; enquiry closed; notice amending return; appeal against amended self assessment; Taxes Management Act 1970 Sections 9A, 19A, 28A, 114; Notices of Determination under Regulations 49 & 55 of the Income Tax (Employments) Regulations 1993; Notice of Decision relating to National Insurance Contributions. [ Bailii ] Â Marks -v- HM Inspector of Taxes [2004] UKUKSPC SPC00428; [2004] STI 2259; [2004] STC (SCD) 503 8 Sep 2004 SCIT Income Tax, Capital Gains Tax SCIT Income tax - loss relief - TA 1988 s 574 - whether allowable loss for capital gains tax purposes Capital gains tax - whether shares becoming of negligible value - whether claim made - form of claim - whether date specified Capital gains tax - whether share issue a bargain other than at arm's length - whether a reorganisation Jurisdiction - estoppel - whether available against Crown - conditions for claim based on "legitimate expectation" - method of seeking remedies [ Bailii ] Â Jones -v- Hm Inspector of Taxes [2004] UKSC SPC00432 28 Sep 2004 SCIT Income Tax [ Bailii ] Â A Property Company -v- HM Inspector of Taxes [2004] UK SPC00433 5 Oct 2004 SCIT Income Tax, Landlord and Tenant SCIT SCHEDULE A – income from land – whether agreements for lease gave rise to an immediate right to rent or whether the right was conditional on obtaining the landlord's consent to subletting – whether the Landlord and Tenant (Covenants) Act 1995 enables retention of a future rent payment on a sale of the reversion – no – whether the definition of the retained rent payment is void for uncertainty – no – whether contractual right to such rent is within Schedule A – no CASE VI OF SCHEDULE D – profits – as to the rent payable under agreements entered into before the 1995 Act, it is not taxable under Case VI because the only possible head of charge is Schedule A which does not apply because the source has ceased – as to the rent caught by the 1995 Act which passed automatically to the purchaser, the sum equal to the rent purported to be retained on sale that the purchaser was liable to pay to give business effect to the agreement is taxable under Case VI Landlord and Tenant (Covenants) Act 1995 1 Cites 1 Citers [ Bailii ] Â Usetech Ltd -v- HM Inspector of Taxes Times, 22 October 2004 8 Oct 2004 ChD Park J Income Tax The taxpayer operated through a one man limited company employed by a recruitment agency to provide IT services to a customer. He appealed a finding that he was liable to pay tax as an employee. Held: The appeal was dismissed. The legislative scheme anticipated only two contracts and here there were three, but it also anticipated the rolling up of more than one contract into just one contract. The decision of the commissioner was one properly open to him and was not to be disturbed. Finance Act 2000 60 - Social Security Contributions (Intermediaries) Regulations2000 (2000 No 727) 6 1 Cites 1 Citers Â Preston Meats Ltd and Another -v- Hm Inspector of Taxes [2004] UKSPC SPC00435 18 Oct 2004 SCIT Income Tax [ Bailii ] Â O'Sullivan -v- Hm Inspector of Taxes [2004] UKSC SPC00437 25 Oct 2004 SCIT Income Tax [ Bailii ] Â Conlon -v- Hm Inspector of Taxes [2004] UKSC SPC00436 25 Oct 2004 SCIT Income Tax [ Bailii ] Â A and Another, Re an Application To Vary Underatkings [2004] UKSC SPC00439 27 Oct 2004 SCIT Income Tax [ Bailii ] Â Cadbury Schweppes Plc and Another -v- Hm Inspector of Taxes [2004] UKSC SPC00441 9 Nov 2004 SCIT Income Tax SCIT TRANSFERS OF SECURITIES - loan notes provided for a fixed rate of interest of 7.43375% from issue to redemption but also provided for interest to be paid on irregular days and in irregular amounts - whether loan notes carried interest at a rate which was a fixed rate which was the same throughout the period from issue to redemption - no - whether inspector made a just and reasonable determination - yes - appeal dismissed - ICTA 1988 S717(2)(a) and (9) [ Bailii ] Â Siwek and Another -v- Inland Revenue [2004] UKSC SPC00442 10 Nov 2004 SCIT Income Tax SCIT Procedure; Special Commissioners (Jurisdiction and Procedure) Regulations 1994, Rule 19; failure of appellants to appear or be represented; application under Rule 19 dismissed [ Bailii ] Â Andre Agassi -v- Robinson (Inspector of Taxes) [2004] EWCA Civ 1518 19 Nov 2004 CA Lord Justice Buxton Lord Justice Sedlay Lord Justice Jacob Income Tax 1 Cites 1 Citers [ Bailii ] Â Akkum and Another -v- Hm Inspector of Taxes [2004] UKSC SPC00446 25 Nov 2004 SCIT Income Tax [ Bailii ] Â Cook -v- HM Inspector of Taxes [2004] UKSC SPC00451 29 Nov 2004 SCIT Income Tax SCIT INCOME TAX - relief for error or mistake - TMA 1970 s 33 - whether part of claim out of time - yes - whether conditions for relief satisfied - motoring expenses - returns made on basis of actual cost but taxpayer seeking to benefit from fixed profit car scheme - conditions not satisfied - appeal dismissed Taxes Management Act 1970 33 [ Bailii ] Â Carvill -v- HM Inspector of Taxes [2004] UKSC SPC00447 29 Nov 2004 SCIT Income Tax, Costs SCIT COSTS - Special Commissioners' power to award costs - Revenue withdrew opposition to appeal shortly before hearing - Appellant claimed costs of proceedings while matter was before Special Commissioners - Matter had been before Special Commissioners for nearly four years - Whether costs claimed by Appellant were costs "of and incidental to a hearing" - Yes - Whether Revenue had acted wholly unreasonably in connection with hearing - Yes - Special Commissioners (Jurisdiction and Procedure) Regulations 1994, SI 1994/1811, reg 21(1) Special Commissioners (Jurisdiction and Procedure) Regulations 1994 21(1) [ Bailii ] Â Xi Software Ltd -v- HM Inspector of Taxes [2004] UKSC SPC00450 3 Dec 2004 SCIT Income Tax 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 Assessment – Taxes Management Act 1970, Section 29 Income and Corporation Taxes Act 1988 154 156 [ Bailii ] Â Demon Internet Ltd -v- HM Inspector of Taxes [2004] UKSC SPC00449 7 Dec 2004 SCIT Income Tax SCIT Payments for the release of share options chargeable under Income and Corporation Taxes Act 1988, s. 135 – Application of PAYE Regulations – Whether obligation to deduct tax under existing law prior to its amendment by Finance Act 1998, s. 67 – Payments made after Budget announcement of change but prior to enactment of amending legislation – Whether obligation to deduct tax imposed retrospectively by s. 67 and SI 1998 No 1891 – Effect of budget resolution pending enactment of Finance Bill – Appeal allowed Income and Corporation Taxes Act 1988 135 - Finance Act 1998 67 [ Bailii ] Â Wilson (HM Inspector of Taxes) -v- Clayton [2004] EWCA Civ 1657; Times, 12 January 2005 7 Dec 2004 CA Lord Justice Peter Gibson Lady Justice Arden Lord Justice Clarke Income Tax, Employment The claim against the defendant at the tribunal had been settled by a compromise which had then been the subject of an order by the tribunal. The Revenue sought to charge the payment to income tax. Held: It had been paid 'in connection with' the termination of his employment, was less than £30,000 and so was outside a charge to tax. S131(1) extended the meaning of 'emolument' and the extended meaning included such payments. Income and Corporation Taxes Act 1988 148 1 Cites 1 Citers [ Bailii ] Â Kw Lee & Hong Kong Chop Suey -v- Inland Revenue [2004] UKSC SPC00453 8 Dec 2004 SCIT Income Tax SCIT Return Self Assessment; Taxes Management Act 1970 Section 19A Notice; compromise; appeals settled and withdrawn Taxes Management Act 1970 19A [ Bailii ] Â Wakefield -v- HM Inspector of Taxes [2005] UKSPC SPC00471 13 Dec 2004 SCIT Income Tax [ Bailii ] Â CB Simkin Trust and Another -v- Inland Revenue [2004] UKPC 55 14 Dec 2004 PC Lord Bingham of Cornhill, Lord Clyde, Lord Millett, Lord Scott of Foscote, Lord Brown of Eaton-under-Heywood Commonwealth, Income Tax, Intellectual Property (New Zealand) The taxpayers sought to set off against liability for tax write downs by depreciation of the values of trade marks. The revenue said that these were not "depreciable property" or "depreciable intangible property" within the relevant Act. [ Bailii ] - [ PC ] Â Guest House Proprietor -v- HM Inspector of Taxes [2004] UKSC SPC00454 20 Dec 2004 SCIT Income Tax SCIT Income tax – notice to taxpayer to produce documents in taxpayer's possession or power – whether terms of notice reasonable - section 19A, Taxes Management Act 1970 Taxes Management Act 1970 19A [ Bailii ] Â
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Income Tax - From: 2004 To: 2004