Claim for loss relief – section 574 Income and Corporation taxes Act 1988 – was money provided for shares – company records not produced – no share certificate produced – company in liquidation – no convincing evidence of subscription for shares – no prior dealings to support an implied agreement with the company to issue … Continue reading Halnan and Another v Revenue and Customs: FTTTx 7 Sep 2011
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 … Continue reading Christensen (Inspector of Taxes) v Vasili: ChD 19 Mar 2004
It was difficult to reconcile different decisions of the higher courts. Nevertheless, the declaration and payment of a dividend which did not involve any transaction in securities, or alteration of rights attaching to securities, was not itself a dealing in securities. The arrangement involved the declaration of abnormally large dividends in purchasing another company so … Continue reading Inland Revenue Commissioners v Laird Group Plc: ChD 13 Mar 2001
Change in the employees’ share option scheme allowed the Inland Revenue to withdraw approval.Inland Revenue may refuse approval to amendment of share option schemes. Citations: Ind Summary 21-Mar-1994, Times 10-Mar-1994 Statutes: Income and Corporation Taxes Act 1988 Jurisdiction: England and Wales Income Tax Updated: 17 June 2022; Ref: scu.82359
FTTTx DIRECT TAX – Husband and wife jointly fund share purchase – over 97% shares purchased transferred to husband- new class of shares allotted to wife – wife receives approximately 40% of dividends – whether settlement under s660A ICTA 88. Citations: [2010] UKFTT 334 (TC) Links: Bailii Statutes: Income and Corporation Taxes Act 1988 660A … Continue reading Patmore v Revenue and Customs: FTTTx 14 Jul 2010
The taxpayers were trustees of a trust which had received bonuses by way of shares issued in lieu. They appealed a finding of being taxable on the payments as income and subject to higher rates of tax. Held: The section was poorly worded, but the argument presented by the trustess would present anomolous results. The … Continue reading Paul Jonathan Howell, Alan James Morton v Linda Trippier (HM Inspector of Taxes): CA 13 Jul 2004
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: … Continue reading Wilson (HM Inspector of Taxes) v Clayton: ChD 29 Apr 2004
FOREIGN COMPANY – motive test – captive insurance – whether main purpose of transaction with the captives was to obtain tax reduction – no – whether main reason for the existence of the captives was to achieve a reduction of tax by diversion of profits from the UK – yes -Taxes Act 1988 s.748(3). Citations: … Continue reading Association of British Travel Agents Ltd v Inland Revenue: SCIT 22 Nov 2002
SCIT TRANSACTIONS IN SECURITIES – share buy-backs – trustees of exempt approved scheme purchased shares in Powergen which subsequently bought back the shares – trustees claimed tax credit – whether the scheme received an abnormal amount -no – whether the scheme obtained a tax advantage – yes – whether the sales back to Powergen were … Continue reading Omega Group Pension Scheme v Inland Revenue: SCIT 22 Jun 2001
Corporation tax – Losses – Relief Time-limit – Substantive Fairness – Judicial review-Claims for relief against other profits of same period-Claims refused-Whether estimated figures delivered within two-year time-limit constituted claims-Express claims made after expiry of time-limit-Previous late claims admitted without question-Whether Revenue wrongly refused claims-Income and Corporation Taxes Act 1970, s 177(2) and {10), Taxes … Continue reading Unilever Plc, Regina (on The Application of) v Inland Revenue: CA 13 Feb 1996
The taxpayer company made a smaller profit than its charges, and sought to reallocate the charges against income for other companies within the group. It could do so, but the difference arose over the period for which surrender would be alowed. Held: The term ‘relief’ is not a term of art. The Income and chargeable … Continue reading Taylor (Her Majesty’s Inspector of Taxes) v MEPC Holdings Limited: HL 18 Dec 2003
The company director taxpayer had retired from his company but stayed on as an unpaid non-executive director. The trust deed for the company’s pension scheme provided for payments to be made to an employee. The director sought relief from payment of income tax under Schedule E. Held: (Majority) The appeal by the taxpayer was allowed. … Continue reading Venables and others v Hornby (Her Majesty’s Inspector of Taxes): HL 4 Dec 2003
Was the payment of a dividend in respect of shares ‘a transaction in securities’ or ‘a transaction relating to securities’ within the meaning of section 703. Held: ‘As a matter of ordinary language, the creation, issue, sale, purchase, exchange, redemption and extinguishment of shares or debentures are all ‘transaction[s] in securities’. The word ‘securities’ includes … Continue reading Her Majesty’s Commissioners of Inland Revenue v Laird Group plc: HL 16 Oct 2003
The claimant had not received the same tax allowance following his wife’s death as would have been received by a woman surviving her husband. That law had been declared incompatible with Human Rtights law as discriminatory, but the respondent refused to make good any claim which had not been originally pursued to the European Court, … Continue reading Regina on the Application of Wilkinson v The Commissioners of Inland Revenue: CA 18 Jun 2003
The taxpayers appealed a notice under section 703(3) to counteract the tax advantage received by them from a share buy-back scheme. The scheme was an approved pension scheme, under which the quoted company agreed to buy back its own shares. Held: The excess paid over the market value by the company was to be treated … Continue reading Inland Revenue Commissioners v Sema Group Pension Scheme Trustees: CA 19 Dec 2002
The case concerned the differential tax treatment between men and women, which granted to widows a tax allowance that was not granted to widowers. Held: The court made a ‘declaration of incompatibility’ pursuant to section 4. 1(1) of the TMA gives to the Commissioners a wide statutory power to grant concessions to taxpayers which derogate … Continue reading Wilkinson v Commissioners of Inland Revenue: Admn 14 Feb 2002
Where a father paid child support to the mother through the Child Support Agency, and where the mother had re-married and that subsequent marriage had also ended in divorce, the maintenance paid did not attract income tax relief under the section. The payment remained a ‘qualifying payment’ for claiming the tax relief only until the … Continue reading Norris (Inspector of Taxes) v Edgson: ChD 30 May 2000
Income which was received from the investment of funds set aside for possible claims or otherwise, was to be to be set off against trading losses. Citations: Times 28-Feb-1995 Statutes: Income and Corporation Taxes Act 1988 393-8 Jurisdiction: England and Wales Income Tax Updated: 05 June 2022; Ref: scu.84387
Travel of consultant to and from home at weekends to place of work not deductible. A strict application of the travel to work expenses rules was correct for consultant. Citations: Gazette 24-Jan-1996, Times 28-Nov-1995 Statutes: Income and Corporation Taxes Act 1988 198(1) Jurisdiction: England and Wales Income Tax Updated: 05 June 2022; Ref: scu.83739
Premiums which had been paid were not relevant earnings for annuity relief purposes. It was not income derived from the any trade or profession. Citations: Ind Summary 31-May-1993, Times 25-May-1993 Statutes: Income and Corporation Taxes Act 1988 619 Jurisdiction: England and Wales Citing: Appealed to – Koenigsberger v Mellor (Inspector of Taxes) CA 15-May-1995 External … Continue reading Koenigsberger v Mellor (Inspector of Taxes): ChD 25 May 1993
Interest payments capitalized for stated period deductible as charge on income. Citations: Ind Summary 18-Dec-1995 Statutes: Income and Corporation Taxes Act 1988 338 Jurisdiction: England and Wales Income Tax Updated: 04 June 2022; Ref: scu.83265
Where a Building Society employee had a loan on favourable terms unavailable to the public, but switched to a mortgage on a publicly available fixed rate, the new arrangement was not a new loan as such, and did not qualify for tax exemption. Citations: Times 09-Feb-1999 Statutes: Income and Corporation Taxes Act 1988 161(1A) Jurisdiction: … Continue reading West (Inspector of Taxes) v O’Neill; Same v Crosland: ChD 9 Feb 1999
The question was whether sub-underwriting commissions received by the Trustees are chargeable to tax under Case I of Schedule D and whether they are also liable to the additional rate of tax applicable to trusts. The investment managers appointed to manage the huge scheme assets were allowed to sub-underwrite their duties, and accounted for their … Continue reading Paul Alexander Clark (Her Majesty’s Inspector of Taxes) v The Trustees of The British Telecom Pension Scheme and Others: ChD 14 Oct 1998
Legal costs and fines not deductible – insufficiently connected with trade. Citations: Times 21-May-1996 Statutes: Income and Corporation Taxes Act 1988 74(1) Jurisdiction: England and Wales Citing: 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 … Continue reading McKnight (Inspector of Taxes) v Sheppard; Sheppard v McKnight: ChD 21 May 1996
A publican’s payment for the domestic rental of a flat above the public house was not deductible for income tax purposes, since it was not incurred entirely and exclusively for business purposes. Citations: Times 02-Aug-1996, Gazette 16-Oct-1996 Statutes: Income and Corporation Taxes Act 1988 74 Jurisdiction: England and Wales Income Tax Updated: 04 June 2022; … Continue reading Mclaren v Mumford (Inspector of Taxes): ChD 2 Aug 1996
Profits were taxable as a whole for a new business purchased and existing business. Business bought to incorporate in existing taxed on preceding year basis. Citations: Ind Summary 12-Jul-1993, Times 12-Jul-1993 Statutes: Income and Corporation Taxes Act 1970 154, Income and Corporation Taxes Act 1988 113 Jurisdiction: England and Wales Income Tax Updated: 04 June … Continue reading Maidment (Inspector of Taxes) v Kibby: ChD 12 Jul 1993
CORPORATION TAX, CAPITAL GAINS TAX, INCOME TAX – expenditure allowable under s38(1)(b) of TCGA 1992 – penalties imposed under s95 of TMA 1970 – interaction of s393A of ICTA 1988, paragraphs 58 and 59 of Schedule 18 FA 1998 and Schedule 1A of TMA 1970 in relation to carry back of losses for corporation tax … Continue reading Hadee Engineering Co Ltd and Others v Revenue and Customs: UTTC 17 Mar 2022
A Charity Tax avoidance plan was lawful. A company made payments to a charity which then employed them as charity trustees. Since the result was clearly to benefit the charity, and its purposes. The obtaining of a relief from tax, and the making use of an exemption are different for this purpose. The claiming of … Continue reading Sheppard and Another v Inland Revenue Commissioners, Inland Revenue Commissioners v Sheppard: ChD 23 Feb 1993
The claimant sought to make arrangements with a view to collecting substantial arrears of tax due to South Africa. The revenue said that it had that power by virtue of the double taxation treaty with South Aftrica. The company replied that the liabilities arose for years prior to the Convention embodied in the Regulations, andtat … Continue reading Revenue and Customs and Another v Ben Nevis (Holdings) Ltd and Others: ChD 20 Jul 2012
(Hong Kong) The taxpayer company was winding down its business. As it closed it made substantial redundancy payments to its employees. The Commissioners rejected a suggestion that such payments could be set off against income, saying that the payments had not been made, as required by the statute, ‘for the purpose of producing such profits; … Continue reading Commissioner of Inland Revenue v Cosmotron Manufacturing Company Limited: PC 28 Jul 1997
Between them, several shareholders held all the shares of a company, but each owned less than thirty per cent. They claimed BES relief. The tax inspector asserted that they were deemed to be associates of each other under the section, and that accordingly each had an interest in more than thirty per cent of the … Continue reading Barry Clarke Cook (Her Majesty’s Inspector of Taxes) v Andrew John Billings and others: CA 7 Dec 2000
Whether pension fund trustees were engaging in the sub-under-writing of share issues in return for commission payments, was a question of fact for the original court hearing the case, and it was not for an appeal court to set aside that finding of fact because of a mistake in the law. In this case the … Continue reading Trustees of BT Pension Schemes and others v Clark (HM Inspector of Taxes): CA 24 Feb 2000
A payment made by an employer on the termination of a contract in lieu of notice was taxable as an emolument, where the right to notice was reserved by the employment contract The reason for a notice period from an employee’s point of view was not that they wanted to work, but that they wanted … Continue reading EMI Group Electronics Ltd v Coldicott (Inspector of Taxes): CA 16 Jul 1999
Payments which were made in lieu of a termination notice were taxable, because the right to make such payments had been explicitly reserved in the contract of employment, and the payment was therefore under that contract. Citations: Times 14-Nov-1997, Gazette 12-Nov-1997 Statutes: Income and Corporation Taxes Act 1988 19(1) Jurisdiction: England and Wales Income Tax, … Continue reading EMI Group Electronics Ltd v Coldicutt (Inspector of Taxes): ChD 12 Nov 1997
Income Tax/Corporation Tax – Group Relief – Whether s 403D(1)(c) Income and Corporation Taxes Act 1988 unlawful restriction on freedom of establishment – If so, whether it should be disapplied or a conforming construction applied – Appeals allowed Citations: [2020] UKFTT 476 (TC) Links: Bailii Jurisdiction: England and Wales Corporation Tax Updated: 21 May 2022; … Continue reading Volkerrail Plant Ltd and Others v Revenue and Customs: FTTTx 16 Nov 2020
Where a company which had ceased trading and fallen outside the tax regime, subsequently declared a dividend, it was deemed to be a new accounting period, and the dividend did fall to be taxed, and any advance corporation tax could be set off against any corporation tax payments made whilst previously trading.Lord Hoffmann said: ‘I … Continue reading Walker (Her Majesty’s Inspector of Taxes) v Centaur Clothes Group Limited: HL 16 Mar 2000
After the transfer of a business to a subsidiary with payment left outstanding and no provision for interest but receiving dividends, it was not able to recover Advance Corporation Tax on that payment since it was no longer trading and had no income source. Citations: Gazette 09-Sep-1998, [1998] EWCA Civ 1098 Statutes: Income and Corporation … Continue reading Walker (Inspector of Taxes) v Centaur Clothes Group Ltd: CA 25 Jun 1998
Shares are allotted to a person when that person acquires an unconditional right to be entered on a company’s register of members. The issue of shares only becomes complete after they are registered in the company’s books for the purposes of the BES scheme.Lord Templeman said: ‘The Act of 1985 preserves the distinction in English … Continue reading National Westminster Bank Plc and Another v Inland Revenue Commissioners: HL 24 Jun 1994
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: Where legal costs had been incurred in the defence of professional misconduct proceedings in order to protect … Continue reading McKnight (Inspector of Taxes) v Sheppard: HL 18 Jun 1999
Rules which disallowed exemption from tax for the transfer of assets abroad in order to avoid income tax do not apply where the taxpayer is not ordinarily resident here. Citations: Times 16-Jul-1997, Gazette 23-Jul-1997, [1997] STC 995, [1997] UKHL TC – 70 – 57, [1997] UKHL 29, [1997] 1 WLR 1071 Links: House of Lords, … Continue reading Inland Revenue Commissioners v Willoughby: HL 16 Jul 1997
Where a group of companies sought consortium group relief, but the majority of the companies within the group were based outside the European Union, the court need not apply European Union standards to the test, but could instead apply the standards appropriate to the UK, and accordingly refuse the relief. Citations: Times 24-Nov-1999, Gazette 01-Dec-1999, … Continue reading Imperial Chemical Industries Plc v Colmer (Inspector of Taxes) (No 2): HL 18 Nov 1999
A scheme by which an employer paid bonuses to senior staff by purchasing contingent reversionary interests in an overseas trust, and then assigning them to the staff without admitting liability for income tax or national insurance contributions when the interests fell into possession. The scheme failed under anti-avoidance provisions under Ramsay principles. The cash payment … Continue reading DTE Financial Services Ltd v Wilson (Inspector of Taxes): CA 24 May 2001
Housing association which was registered under Act is an investment company and is to carry a profit charge. Citations: Times 01-Jan-1997 Statutes: Industrial and Provident Act 1965, Income and Corporation Taxes Act 1988 130 Jurisdiction: England and Wales Corporation Tax Updated: 19 May 2022; Ref: scu.79477
The relief of foreign earnings given to those working as seafarers, did not apply to those working on a jack-up drilling rig with floating hull, and retractable legs., since this was not a ship. Being a seafarer involved the performance of duties on a ship. Definition in other acts suggested a vessel used in navigation. … Continue reading Clarke (Inspector of Taxes) v Perks; MacLeod (Inspector of Taxes) v Same; Guild (Inspector of Taxes) v Newrick and Another: ChD 3 May 2000
The taxpayer had claimed tax relief for certain periods (approximately six years) when he was living abroad. The Crown appealed a decision of the commissioners discharging their assessment to tax. Held: There is a distinction in law between the residence abroad and absence for the purposes of tax relief. The taxpayer can be resident, but … Continue reading Carstairs (Inspector of Taxes) v Sykes: ChD 20 Dec 2000
The remission by the High Court of tax appeals to the general commissioner is a practical way of dealing with matters. Citations: Times 24-Jan-1996, Ind Summary 19-Feb-1996 Statutes: Income and Corporation Taxes Act 1988 739 Income Tax Updated: 19 May 2022; Ref: scu.78928
Where a company sought to claim reliefs going back over different tax years, there was no rule requiring such reliefs to be claimed chronologically, but the company could arrange the claims against the several tax years as they best thought fit. There was no express power to order them, but the test was the absence … Continue reading Carr (Inspector of Taxes) v Armpledge Ltd; Same v Fielden and Ashworth Ltd: CA 24 May 2000
FTTTx Income tax – trust – copyright royalties – direction not to distribute as income – whether accumulation of income – whether taxable at the rate applicable to trusts – Income and Corporation Taxes Act 1988, s 686 – whether taxable at the trust rate – Income Tax Act 2007, s 479 Citations: [2013] UKFTT … Continue reading Travers Will Trust v Revenue and Customs: FTTTx 14 Aug 2013
Maintenance payments which were made direct to a child were not ‘qualifying payments’ under the Act allowing them to be set off against the tax payer’s income tax liability. Citations: Times 22-Dec-1997 Statutes: Income and Corporation Taxes Act 1988 347B(1) Child Support, Income Tax Updated: 18 May 2022; Ref: scu.78400
A clerk to the commissioners, though required to maintain an office for his post, could not set off the costs against tax, where the cost of interest payments on a mortgage to purchase the office were not wholly and exclusively incurred for that purpose. Citations: Times 25-May-1999, Gazette 03-Jun-1999 Statutes: Income and Corporation Taxes Act … Continue reading Baird v Williams (Inspector of Taxes): ChD 25 May 1999
The appellants resisted disclosure to the revenue of advice it had received. It claimed legal advice privilege (LAP), though the advice was from its accountants. Held: (Lords Sumption and Clarke dissenting) LAP applies to all communications passing between a client and its lawyers, acting in their professional capacity, in connection with the provision of legal … Continue reading Prudential Plc and Another, Regina (on The Application of) v Special Commissioner of Income Tax and Another: SC 23 Jan 2013
A professional rugby player bought and consumed dietary supplements to make it easier to maintain the physical standards required by his employers. He claimed the cost of the supplements against his income tax. The commissioners allowed his claim, and the revenue appealed. Held: The commissioners had erred. The requirements for the deduction were stringent, exacting … Continue reading Ansell (Inspector of Taxes) v Brown: ChD 23 May 2001
The taxpayer was a goalkeeper employed by Nottingham Forest Football Club. On his transfer to Southampton, he was paid pounds 75,000. The revenue appealed a finding that this was not taxable under Schedule E. Held: To be taxcable it had to be referrable to the services provided by him under the contract of employment. This … Continue reading Shilton v Wilmshurst (Inspector of Taxes): CA 1990
Citations: [2013] EWHC 942 (Ch) Statutes: Income and Corporation Taxes Act 1988 103 106 Jurisdiction: England and Wales Citing: At FTTTx – Shop Direct Group and Others v Revenue and Customs FTTTx 14-Feb-2012 FTTTx Corporation tax – receipts of payments in respect of overpaid VAT and statutory interest – whether VAT repayments trading receipts – … Continue reading Shop Direct Group and Others v HM Revenue and Customs: ChD 19 Apr 2013
Expenditure incurred by an employee directly mainly to keep himself qualified to do his work. Reading of newspapers is an necessary part of a journalist’s occupation and the cost of buying them is a deductible expense. Citations: Gazette 22-Jan-1992 Statutes: Income and Corporation Taxes Act 1988 s198 (1) Jurisdiction: England and Wales Income Tax Updated: … Continue reading Smith (Inspector of Taxes) v Abbott; Same v Holt; Same v Scovell Etc: ChD 22 Jan 1992
Journalists can claim the costs of newspapers as expenses against his taxes. Citations: Independent 16-Mar-1993 Statutes: Income and Corporation Taxes Act 1988 Jurisdiction: England and Wales Income Tax Updated: 15 May 2022; Ref: scu.89320
Two brothers acquired a company and were the sole directors. 19 shares each were acquired by the children with their own money. Two later born children also acquired 19 shares therein with their own money from their respective fathers and others, and that the brothers had no shares. The company developed a site by building … Continue reading Butler v Wildin: 1988
The revenue appealed against an order by the general commissioners to grant to the taxpayer, a construction industry subcontractor, a fresh exemption certficate where he had been consistently late in submitting tax and NI payments of several thousand pounds. Held: The determination was incorrect as a matter of law. The breaches could not be described … Continue reading Arnold (Inspector of Taxes) v G Con Ltd: ChD 4 Mar 2005
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 people with control was to be calculated, and the second limb … Continue reading Regina v Inland Revenue Commissioners, Ex Parte Newfields Developments Ltd: CA 15 Feb 2000
Loans made between associated companies for the sole purpose of creating a charge to tax were ineffective as avoidance scheme. Citations: Times 19-Aug-1997 Statutes: Income and Corporation Taxes Act 1988 338 Jurisdiction: England and Wales Cited by: At ChD – McNiven (Inspector of Taxes) v Westmoreland Investments Ltd CA 26-Oct-1998 Cross loans were made between … Continue reading McNiven (Inspector of Taxes) v Westmoreland Investments Ltd: ChD 19 Aug 1997
Interest relief against tax was allowed to residents in England farming in partnership in Scotland on interest payments on loan. Citations: Times 18-Mar-1998 Statutes: Income and Corporation Taxes Act 1988 353(1) 362(1)(b) Jurisdiction: England and Wales Income Tax Updated: 10 May 2022; Ref: scu.83340
A taxpayer had transferred shares into an off-shore trust which was prohibited from benefiting himself or his wife. The trust however contained two powers, one to transfer any assets to any other trust, with no specification of possible beneficiaries, and a second power to obtain and act upon any counsel’s opinion upon any matter relating … Continue reading Inland Revenue Commissioners v Botnar: CA 6 Jul 1999
A company is not allowed to allocate set offs of interest payments against foreign income in such a way as merely served with double taxation relief to carry forward the maximum amount of loss. Citations: Times 20-Jan-1999 Statutes: Income and Corporation Taxes Act 1988 338(1) 393(9) 797(3) Jurisdiction: England and Wales Income Tax Updated: 10 … Continue reading Commercial Union Assurance Co Plc v Shaw (Inspector of Taxes): CA 20 Jan 1999
The system of tax relief called the business expansion scheme did not apply when land was given in exchange for shares in the qualifying company. The scheme gave relief for efforts in raising money. That could not be satisfied by property given in money’s worth. Citations: Times 24-Apr-2000 Statutes: Income and Corporation Taxes Act 1988 … Continue reading Thompson (Inspector of Taxes) v Hart: ChD 24 Apr 2000
Where pension fund trustees engaged in the sub-under-writing of share issues in return for commission payments they became engaged in a trade and made themselves liable to taxation on the profits as such a trader. Citations: Gazette 11-Nov-1998 Statutes: Income and Corporation Taxes Act 1988 Sch D Case 1 Income Tax Updated: 05 May 2022; … Continue reading Clark (Inspector of Taxes) v Trustees of the BT Pension Scheme and Others: ChD 11 Nov 1998
A life insurance company which sold its ‘own purchase shares’ was not prevented by the section from reclaiming the tax credits on associated income distributions. Citations: Times 17-May-2000, Gazette 31-May-2000 Statutes: Income and Corporation Taxes Act 1988 95 438(4) Jurisdiction: England and Wales Citing: See Also – Prudential Assurance Company Ltd v Bibby (Inspector of … Continue reading Bibby (Inspector of Taxes) v Prudential Assurance Co Ltd; Oakes (Inspector of Taxes) v Equitable Life Assurance Society: ChD 17 May 2000
The taxpayer, a race track owner, sought to claim the cost of laying an artificial all-weather race track surface as a capital allowance. The commissioners had found that it retained a separate identity from the grass, requiring maintenance and so forth, and that therefore it was plant, not premises. The revenue appealed. Held: The commissioners … Continue reading Shove (Inspector of Taxes) v Lingfield Park 1991 Ltd: ChD 21 Jul 2003
The Trustees of an exempt approved pension scheme bought shares, and sold them at a lower price to the company. Under the 1988 Act, this operated to create a tax credit. The revenue issued a notice and assessment under Schedule F to defeat that tax credit. The trustees successfully appealed that to the Commissioners, and … Continue reading Inland Revenue Commissioners v Sema Group Pension Scheme Trustees: ChD 7 Feb 2002
The Respondent was trustee of the British Coal Staff Superannuation Scheme, a registered pension fund holding a large portfolio of shares in UK and overseas companies. Between 2002 and 2008, the pension fund undertook ‘stock lending’ transactions, transferring overseas shares to borrowers on the basis that the borrowers would retransfer to it the same or … Continue reading Revenue and Customs v Coal Staff Superannuation Scheme Trustees Ltd: SC 27 Apr 2022
A business expansion tax plan was valid if it was issued before the Income and Corporation Taxes Act. Shares were issued on the sending of the allotment letter, not when the shares came to be registered in the company’s books. Citations: Ind Summary 30-Aug-1993, Times 06-Aug-1993 Statutes: Income and Corporation Taxes Act 1988 289 299A … Continue reading National Westminster Bank Plc and Another and Barclays Bank Plc and Another v Inland Revenue Commissioners: ChD 6 Aug 1993
Yearly interest payment is treated as having been paid when it is debited to bank account. Citations: Times 13-Nov-1995 Statutes: Income and Corporation Taxes Act 1988 338 Jurisdiction: England and Wales Corporation Tax Updated: 28 April 2022; Ref: scu.83266
Workers on North Sea drilling rigs which were capable of being moved, claimed relief as seafarers, since they were employed on a ship. The first instance court said the rigs were not ships. They appealed. Held: The word ‘ship’ is an ordinary English word, and its meaning is one of fact not law. Accordingly the … Continue reading Perks and Others v Clark and Others: CA 27 Jul 2001
The commissioners obtained court orders directing the applicant bank to disclose confidential information in their possession. The bank resisted on the ground that the demand breached their rights to confidentiality and to privacy. Although the orders did infringe the Bank’s article 8 rights, the notices were valid because the interference was justified under article 8(2). … Continue reading Regina v Inland Revenue Commissioners Ex Parte Banque Internationale a Luxembourg Sa: Admn 23 Jun 2000
The taxpayer had acquire by allotment a proportion of the issued share capital of a company and later sold half back. The respondent sought to bring in to the tax return the associated receipts. Held: The effect of section 208 was to exclude from Corporation Tax all distributions of a UK company, save those otherwise … Continue reading Strand Futures and Options Ltd v Vojak (Inspector of Taxes): ChD 7 Feb 2003
The commissioners obtained court orders directing the applicant bank to disclose confidential information in their possession. The bank resisted on the ground that the demand breached their rights to confidentiality and to privacy. Although the orders did infringe the Bank’s article 8 rights, the notices were valid because the interference was justified under article 8(2). … Continue reading Regina v Inland Revenue Commissioners Ex Parte Banque Internationale A Luxembourg Sa: QBD 27 Jul 2000
The income from investments set aside to cover future liabilities was not trading income. Citations: Gazette 09-May-1996, Times 29-Mar-1996 Statutes: Income and Corporation Taxes Act 1988 393(8) Citing: Appeal from – Nuclear Electric Plc v Bradley (Inspector of Taxes) CA 13-Nov-1995 Income on funds set aside but not allocated for expenditure not trading income . … Continue reading Nuclear Electric Plc v Bradley (Inspector of Taxes): HL 29 Mar 1996
A scheme was devised to sell annuities to charities. They then used the capital sum paid to purchase promissory notes from the charity, which were in turn used to secure annuity payments. Held: The scheme was entirely self cancelling and void. Payments made in pursuance of the scheme fell outside the ambit of the section.There … Continue reading Moodie v Inland Revenue Commissioners and Another and similar: HL 7 Apr 1993
A management buy-out was to be allowed tax relief on interest on bank loans. Citations: Times 24-May-1993 Statutes: Income and Corporation Taxes Act 1988 353 360 Income Tax Updated: 09 April 2022; Ref: scu.83198
A Company may ‘exist wholly . . to trade’ even if a loan is made before it starts trading. Citations: Ind Summary 18-Oct-1993 Statutes: Income and Corporation Taxes Act 1988 Jurisdiction: England and Wales Income Tax Updated: 09 April 2022; Ref: scu.83200
The growing of trees as Christmas trees was not a use of land as forestry. It was not growing woodland, but was rather a gardening nursery. It was not a use for timber. Tax benefits were lost accordingly. Citations: Gazette 03-Dec-1997, Times 10-Dec-1997 Statutes: Income and Corporation Taxes Act 1988 53 SchD 1, Income and … Continue reading Jaggers (Trading As Shide Trees) v Ellis (Inspector of Taxes): ChD 3 Dec 1997
The court was asked whether Oldham TEC was established for exclusively charitable purposes. The Commisioners now appealed against a finding that tey were. Held: The appeal succeeded. The promotion of commerce is not capable of being a charitable object per se. The objects of the company contained two main objects and three subsidiary objects, that … Continue reading Inland Revenue Commissioners v Oldham Training and Enterprise Council: ChD 11 Oct 1996
Insurance payments for private use of Company car cannot be deducted from tax. Citations: Ind Summary 04-Sep-1995 Statutes: Income and Corporation Taxes Act 1988 157 1 Income Tax Updated: 08 April 2022; Ref: scu.82356
The question was whether a close company had made a loan to a director. A loan, for this purpose, would include ‘any form of credit’. Held: Where an arrangement between a company and a participator in the company was entered into which resulted in sums becoming due regularly for services provided to the participator, but … Continue reading Grant and Another v Watton (Inspector of Taxes): ChD 31 Mar 1999
A company’s settlement of its tax affairs had to be dealt with in chronological order even though it would be from it’s point of view more tax efficient to have them dealt with in reverse order. No right of choice was given to a taxpayer. Citations: Times 12-Oct-1998 Statutes: Income and Corporation Taxes Act 1988 … Continue reading Carr (Inspector of Taxes) v Armpledge Ltd; Same v Fielden and Ashworth Ltd: ChD 12 Oct 1998
The claimant said that the widows’ bereavement tax allowance available to a wife surviving her husband should be available to a man also if it was not to be discriminatory. Held: Similar claims had been taken before the Human Rights Act to the ECHR, and been settled. The 1998 Act made it unlawful to act … Continue reading Wilkinson, Regina (on the Application Of) v Inland Revenue: HL 5 May 2005
An arrangement which had the effect of mitigating tax by a pre-ordained series of steps was nevertheless upheld as valid. Transactions were not caught by anti-avoidance provisions, where they were not in fact one composite whole. Citations: Gazette 01-Mar-1995, Times 07-Feb-1995 Statutes: Income and Corporation Taxes Act 1988 239 Jurisdiction: England and Wales Corporation Tax, … Continue reading Piggott (Inspector of Taxes) v Staines Investment Ltd: ChD 1 Mar 1995
UTTC Corporation tax – deductibility of expenditure – sponsorship payments intended to improve fortunes of sports club – expectation of trade benefits principally as a result of recognition by others involved with the club of taxpayer’s benefaction – dual purpose of benefiting sports club and taxpayer’s trade – payments not deductible – Income and Corporation … Continue reading Interfish Ltd v HM Revenue and Customs: UTTC 16 Jul 2013
The taxpayers used schemes to create allowable losses, and now appealed assessment to tax. The schemes involved a series of transactions none of which were a sham, but which had the effect of cancelling each other out. Held: If the true nature of the transactions could be seen by looking at them all together, then … Continue reading W T Ramsay Ltd v Inland Revenue Commissioners: HL 12 Mar 1981
The tax payer sought to have reflected in his PAYE coding, his substantial trading losses arising from his activities as a Name /underwriter at Lloyds in 2003. Held: The underwriting year 2003 ends in the year of assessment 2003/4, and therefore ‘corresponds’ to that year of assessment. Accordingly, losses declared in May 2003, and other … Continue reading Blackburn (HM Inspector of Taxes) v Keeling: CA 21 Aug 2003
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 … Continue reading Regina v Inland Revenue Commissioners, ex parte Newfields Developments Ltd: HL 21 Jun 2001
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 company relief. Citations: Times 09-Mar-1999, [1999] EWHC Admin 149 Statutes: Income and Corporation … Continue reading Regina v Commissioners of Inland Revenue ex parte Newfields Developments Limited: Admn 17 Feb 1999
INCOME TAX – losses from activities related to eleven properties purchased by Appellant and subsequently let – Appellant contending that properties were purchased with the intention of being sold at a profit within a short period, and were let temporarily when it became apparent that a deterioration in the property market made sale at a … Continue reading Azam v Revenue and Customs: FTTTx 14 Jan 2011
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 … Continue reading The Union Castle Mail Streamship Company Ltd v Revenue and Customs: FTTTx 27 Jul 2016
PAC sought to recover excess advance corporation tax paid under a UK system contrary to EU law. It was now agreed that some was repayable but now the quantum. Five issues separated the parties. Issue I: does EU law require the tax credit to be set by reference to the overseas tax actually paid, as … Continue reading Prudential Assurance Company Ltd v Revenue and Customs: SC 25 Jul 2018
The claimants challenged the 2004 Order which prevented their return to their homes on the Chagos Islands. The islanders had been taken off the island to leave it for use as a US airbase. In 2004, the island was no longer needed, and payment had been made (ineffectively) to assist the dispossessed islanders, but an … Continue reading Bancoult, Regina (on the Application of) v Secretary of State for Foreign and Commonwealth Affairs (No 2): HL 22 Oct 2008
CORPORATION TAX – EXPENSES – Legal costs of bringing defamation proceedings – Legal costs paid solely by the Appellant company but both the Appellant company and its sole director named as claimants in the defamation proceedings – Defamation proceedings alleging that defendants had published a defamatory statement to the effect that the Appellant company’s sole … Continue reading Key IP Ltd v Revenue and Customs: FTTTx 8 Nov 2011
Preliminary judgment. Park J [2006] EWHC 811 (Ch), 8 ITL Rep 1012, [2006] BTC 346, [2006] 3 CMLR 8, [2006] STC 1235, [2006] STI 1352 Bailii Income and Corporation Taxes Act 1988 England and Wales Citing: See Also – Marks and Spencer Plc v Halsey (Inspector of Taxes) 2003 Marks and Spencer Plc appealed against … Continue reading Marks and Spencer Plc v Halsey (HM Inspector of Taxes): ChD 10 Apr 2006
The amount of loss available to a company for surrender was restricted to trading losses or capital allowances, and was not to include allowable losses. The sums to be surrendered were those which might appear in a calculation of profits for the period. Therefore allowable losses from previous years activities were not to be brought … Continue reading Taylor (Inspector of Taxes) v MEPC Holdings Ltd: ChD 12 Jun 2001
The pension scheme had been approved, but that approval later withdraw. HMRC issued assessment for the years in which it had been approved. The taxpayer argued that such assessments applied to the date with effect from which the approval is withdraw, HMRC contended that it was in the year in which withdrawal was notified. The … Continue reading John Mander Pension Trustees Ltd v Revenue and Customs: SC 29 Jul 2015
FTTTx Income Tax/Corporation Tax : Anti-Avoidance – Income Tax – Claim for capital allowances in respect of expenditure on scientific research – Scheme to claim the allowances for a substantially higher amount than that actually applied in undertaking such research – whether the partnership’s whole activity or any part of its activity constituted trading for … Continue reading The Brain Disorders Research Limited Partnership, Hockin v Revenue and Customs: FTTTx 2 Jul 2015