The House considered the meaning of the word ‘bounty’ in an income tax context, where it had been used by the courts: ‘My Lords, I would venture to point out that the word ‘bounty’ appears nowhere in the statute. It is a judicial gloss upon the statute descriptive of those classes of cases which are … Continue reading Chinn v Hochstrasser (Inspector of Taxes): HL 11 Dec 1980
Income tax – Benefits in kind – Employees contributed 4% and 5% respectively to purchase price of cars jointly owned with employer – Whether car ‘made available (without any transfer of the property in it’ – Income and Corporation Taxes Act 1988 ss.1564, 156, 157 and Income Tax (Earnings and Pensions Act 2003 ss.120-140 – … Continue reading Samson Publishing Ltd and Others v Revenue and Customs: FTTTx 14 Oct 2010
A company went into liquidation, being owed substantial sums by another company in the same group, but itself insolvent. A settlement did not include accrued interest, but was claimed to be taxed as if it had, and on an accruals basis. If so, was this an expense properly arising in the insolvency, and payable as … Continue reading Kahn and Another v Commissioners of Inland Revenue; In re Toshoku Finance plc: HL 20 Feb 2002
CORPORATION TAX – Loss relief – Yacht chartering business carried out on a commercial basis – Whether it was also carried out with a view to the realisation of profits of trade in the accounting periods for the years ended 31 March 2009 and 2010 (as required by s 393A (3) and (4) of the … Continue reading Beacon Estates (Chepstow) Ltd v Revenue and Customs: FTTTx 16 Jul 2014
The company sought to set payments it had made to support a local rugby club off against its income for Corporation Tax purposes. Held: The appeal failed. The requirement was that the expenditure be wholly necessarily and exclusively for the requisite purpose. The mixed purpose here did not suffice. Lord Dyson MR, Moses, Patten LJJ … Continue reading Interfish Ltd v HM Revenue and Customs: CA 27 Jun 2014
The taxpayer used a motor home/camper van as a base for his business. The inspector sought to tax it as a benefit received. Held: The taxpayer’s appeal failed. It was not a car in the ordinary sense, and it was used mainly not for transport but as an office. The section gave a wide definition … Continue reading Morris v Commissioners of Revenue and Customs: ChD 8 Mar 2006
The tax payer played tennis and was paid sums for when he played in England. The sums were paid to his overseas based company. Held: The revenue’s appeal succeeded. The ‘legislative intendment in relation to sections 555 and 556, and their statutory predecessors in the 1986 Act, was that foreign entertainers and sportsmen who, or … Continue reading Agassi v Her Majesty’s Inspector of Taxes: HL 17 May 2006
Arden, Sales, Henderson LJJ [2018] EWCA Civ 1185, [2018] STI 1043, [2018] 1 WLR 3837, [2018] BTC 21, [2018] STC 1245, [2018] WLR(D) 318, [2018] 4 All ER 504 Bailii, WLRD Income and Corporation Taxes Act 1988 393 England and Wales Corporation Tax Updated: 06 December 2021; Ref: scu.617308
The Metallgesellschaft case had established that it was contrary to European law to withhold the right to ACT on dividends paid by a UK holding company to a non-Uk subsidiary. The Revenue claimed that that rule did not apply here because the non-Uk subsidiary operated from a country with a double taxation agreement with the … Continue reading Pirelli Cable Holding NV and Others v Inland Revenue Commissioners: ChD 22 Jan 2003
The court was asked whether section 43 of the 1970 Act which imposes time limits on claims, applied to a claim for payments made by the Trustees of the BT Pension Scheme under section 231 of ICTA. If so, subject to questions of community law which remain to be decided, many of these claims were … Continue reading BT Pension Scheme Trustees v HM Revenue and Customs: CA 17 Jan 2014
The court was asked whether the Commissioners for Her Majesty’s Revenue and Customs have assessed the appellant for tax in the wrong tax year. The scheme had ceased to be approved, and HMRC issued assessments for the earlier years in which the income had arisen. The taxpayer argued that the assessments hould apply for the … Continue reading John Mander Pension Scheme Trustees Ltd v Revenue and Customs: CA 19 Dec 2013
Gilt repo – purchase and resale of gilts – interest paid to interim holder not required to be paid to original holder but recognised in repurchase price – application of paragraph 15 Schedule 9 FA 96 – related transaction – effect of section 737A to 737C and 730A TA 88 – effect of section 97 … Continue reading DCC Holdings (UK) Ltd v Revenue and Customs: SCIT 8 May 2007
The court was asked whether the taxpayer dermatologist could deduct the expenses of attending educational courses, conferences and meetings, including associated costs of travel and accommodation. Held: She could. The defendant requested anonymisation of the judgment – the extent to which the identity of the parties has already been revealed goes to the questions of … Continue reading HM Revenue and Customs v Banerjee (No 2): ChD 19 Jun 2009
FTTTx Corporation tax – receipts of payments in respect of overpaid VAT and statutory interest – whether VAT repayments trading receipts – whether payments in respect of supplies made in discontinued trades chargeable to tax as post-cessation receipts – ICTA 1988, ss 103 and 106(2) – whether payments in respect of interest taxable under Sch … Continue reading Shop Direct Group and Others v Revenue and Customs: FTTTx 14 Feb 2012
An assessment to income tax had been raised after the employee resold shares in the company issued through the employees’ share scheme at a price which the Revenue said was above the share value. The company appealed against a finding that tax was payable. Held: The appeal failed. The Revenue should calculate the price which … Continue reading Grays Timber Products Ltd v Revenue and Customs: SC 3 Feb 2010
ECJ Articles 43 EC and 48 EC – Corporation tax – Groups of companies – Tax relief – Profits of parent companies – Deduction of losses incurred by a resident subsidiary- Allowed – Deduction of losses incurred in another Member State by a non-resident subsidiary – Not included.Article 43 EC did not preclude provisions of … Continue reading Marks and Spencer v David Halsey (Inspector of Taxes): ECJ 13 Dec 2005
Convertible loan notes had been issued as a channel for future gains. Held: The loan notes were not a normal commercial loan as defined in Schedule 18 to the 1988 Act, and therefore did not fall within the section so as to allow qualification for exemption from liability to tax. The conditions relating to ‘normal … Continue reading Weston v Garnett (HM Inspector of Taxes): CA 16 Jun 2005
‘This judgment is about the tax effectiveness of a ‘rate-boosting’ scheme (‘the Scheme’), that is, a scheme to boost claims to double tax credit relief (‘DTR’) in the hands of a UK parent company (‘the UK ultimate parent’) on a dividend (‘a Case V dividend’) received by it from any of its overseas subsidiaries and … Continue reading Peninsular and Oriental Steam Navigation Company v Revenue and Customs: CA 20 May 2016
Corporation Tax – s13A Income and Corporation Taxes Act 1988 – meaning of ‘purpose’ – Appeal dismissed. [2011] UKFTT 395 (TC) Bailii England and Wales Corporation Tax Updated: 10 November 2021; Ref: scu.443137
SCIT Claim to set capital loss against income under S. 574 Taxes Act 1988 – Appellant’s claim to have a loss of andpound;50,400, resulting from the initial subscription of Ordinary Shares for andpound;400 and the capitalisation of andpound;50,000 of a loan in return for B Ordinary Shares with restricted rights – Respondents contention that the … Continue reading Fletcher v Revenue and Customs: SCIT 29 Sep 2008
The Bank anticipated criticism in an ad hoc enquiry which was called to investigate its handling of a matter involving the claimant. The claimant sought disclosure of the documents created when the solicitors advised employees of the Bank in preparing to present the Bank’s case, and the Bank now appealed an order granting such access, … Continue reading Three Rivers District Council and others v Governor and Company of the Bank of England (No 6): HL 11 Nov 2004
Taxpayer companies challenged the way that the revenue restricted claims for group Corporation Tax relief for subsidiary companies in Europe. The issue was awaiting a decision of the European Court. The Revenue said that the claims now being made by other companies should proceed through the Commissioners who could implement European law directly. The taxpayers … Continue reading Autologic Holdings Plc and others v Commissioners of Inland Revenue: HL 28 Jul 2005
FTTTx Income Tax – Anti-avoidance – transfer of assets abroad code – s739 ICTA 1988 – appellants were shareholders in UK bookmaker which transferred its telebetting business to Gibraltar – purpose of avoiding betting duty found but not corporation tax or other income tax Relevance and compatibility of EU freedom of establishment and free movement … Continue reading Fisher and Others v Revenue and Customs: FTTTx 14 Aug 2014
Non-resident parents in each case appealed against suspended orders of imprisonment for non-payment of child support. They argued that the procedures used were indistinguishable from those held to be human rights non-compliant in Mubarak. Held: The Commission had not taken all alternative enforcement steps first as required by the Act, and accordingly it was ot … Continue reading Child Maintenance and Enforcement Commission v Gibbons; Same v Karoonian: CA 30 Oct 2012
UTTC Corporation Tax: Effect of receipt by trader or successor to trade of sums in respect of VAT repaid under s80 VATA to representative member of VAT group plus interest paid under s78 VATA. Question of beneficial ownership of sums received and whether ‘arising from the trade’. Application of sections 103 and 106 ICTA 1988. … Continue reading Shop Direct Group, Littlewoods Retail Ltd and Others v HMRC: UTTC 19 Apr 2013
The revenue appealed against a decision that provisions which did not allow the defendants, as companies with foreign parents, the right to make group income elections which would have allowed them to pay on their profits to their parent companies free of advance corporation tax, were discriminatory. Held: The discrimination was not on the basis … Continue reading Boake Allen Ltd and others v Revenue and Customs: HL 23 May 2007
Memec plc, was a partner in a German silent partnership (stille Gesellschaft). The partnership had no separate legal personality, but was a contractual arrangement under which Plc had the right to receive a share of the profits of the business carried on by the other partner, in return for a capital payment. The other partner, … Continue reading Memec Plc v Commissioners of Inland Revenue: CA 9 Jun 1998
Interpretation of Double Taxation Agreements This appeal is concerned with the interpretation and application of a double taxation agreement between the United Kingdom and the United States of America. A had been a member of an LLP in Delaware, and he was resident within the UK, but not domiciled here. He was liable to UK … Continue reading Anson v Revenue and Customs: SC 1 Jul 2015
Foreign Public Law Not Enforceable Here The claimant alleged a conspiracy by the defendants for his overthrow by means of a private coup d’etat. The defendants denied that the court had jurisdiction. The claimants appealed dismissal of their claim to damages. Held: The claims were not justiciable here. Public laws, like penal laws, may not … Continue reading Mbasogo, President of the State of Equatorial Guinea and Another v Logo Ltd and others: CA 23 Oct 2006
The court was asked whether the Commissioners had been correct to disallow in a closure notice, the attribution in part to income in the year 2000-01 of expenses incurred by the trustees of a United Kingdom resident discretionary trust. The expenses claimed were (i) trustees’ fees, (ii) investment management fees, (iii) bank charges, (iv) custodian … Continue reading HM Revenue and Customs v Trustees of the Peter Clay Discretionary Trust: CA 19 Dec 2008
The taxpayer had entered into a ‘repo’ loan to its bank, agreeing to purchase a block of gilt edged securities, and to resell them at a later date at a fixed figure. The profit and figures included an allowance for the interest payments to be made. The company now appealed against being refused permission to … Continue reading Revenue and Customs v DCC Holdings (UK) Ltd: SC 15 Dec 2010
Corporation tax – joint referral – FA 1998, Sch 18, para 31A – group relief – consortium – surrendering company indirectly partly owned by Luxembourg company – condition that ‘link company’ must be UK resident or carry on a trade in the UK through a permanent establishment – s 402(3), (3A) and (3B) ICTA 1988 … Continue reading The Felixstowe Dock and Railway Company Ltd and Others v Revenue and Customs: FTTTx 19 Dec 2011
UTTC Income tax – charge on retirement benefits scheme administrator under s591C ICTA 88 on cessation of approval of scheme – whether assessments raised in respect of correct year of assessment – whether raised . .
The revenue sought to levy income tax on the taxpayers share of revenue in a Delaware Limited liability company. In the US the company would itself be liable for and pay all tax on the members’ profits. Mr Anson was resident but not domiciled in the . .
The company had entered into an agreement to purchase gilts, and at the same time to resell them at a future date for a fixed sum. In effect they provided a loan against the gilts. It sought to offset the profit against its trading losses.
The court considered the taxation of ‘repo’ transactions. The revenue had charged to tax, an element of interest paid on a block og gilts purchased by the taxpayer company under a resale agreement at a price which allowed for the interest payments . .
An employer decided to end the employee’s employment and negotiated payment of a lump sum. The payment was within the terms of his employment contract. It was accordingly not a payment made to him in respect of a breach of the contract and was a . .
CORPORATION TAX – Property holding company part of a larger group of companies letting its properties to the trading company of the same group – Assignment by the property company to a bank of the right to receive its rents for a five year period in . .
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 . .
The taxpayer companies had paid funds into a trust for employees. They sought to set off the payments against their liability to corporation tax. The revenue argued that they were deductible only in the year in which they were paid to the employees. . .
The British law which meant that non-resident parent companies of British based businesses were not able to recover interest on payments of advance corporation tax, was discriminatory against other European based companies. Accordingly the law was . .
A design for sunglasses was challenged for prior publication. However the law in England differed from that apparently imposed from Europe as to the existence of a 12 month period of grace before applying for registration.
Held: Instruments . .
The fact that a payment of interest was made only to create a tax advantage did not prevent its being properly claimed. Interest was paid for the purposes of setting it against tax, when the debt was discharged. A company with substantial losses had . .
The General Commissioner had held that an inspector’s refusal to renew a certificate allowing the taxpayer construction company to pay its sub-contractors without deducting income tax, infringed that company’s rights. The inspector appealed.
References: Ind Summary 05-Apr-1993, Times 23-Feb-1993, Gazette 07-Apr-1993 Ratio: 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 … Continue reading Sheppard and Another v Inland Revenue Commissioners, Inland Revenue Commissioners v Sheppard; Chd 23 Feb 1993
References: [2013] UKUT 51 (TCC), FTC/88/2011 Links: Bailii UTTC Income tax – charge on retirement benefits scheme administrator under s591C ICTA 88 on cessation of approval of scheme – whether assessments raised in respect of correct year of assessment – whether raised in the name of correct person. Statutes: Income and Corporation Taxes Act 1988 … Continue reading John Mander Pension Trustees Ltd v Revenue and Customs – FTC/88/2011; UTTC 28 Jan 2013
References: [2013] UKUT 336 (TCC) Links: Bailii Coram: Birss J 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 … Continue reading Interfish Ltd v HM Revenue and Customs; UTTC 16 Jul 2013
1267 – 1278 – 1285 – 1297 – 1361 – 1449 – 1491 – 1533 – 1677 – 1688 – 1689 – 1700 – 1706 – 1710 – 1730 – 1737 – 1738 – 1751 – 1774 – 1792 – 1793 – 1804 – 1814 – 1819 – 1824 – 1828 – 1831 – 1832 … Continue reading Acts
UTTC Income tax – whether taxpayer can invoke section 739 of the Income and Corporation Taxes Act 1988 as against HMRC – effect of sections 739-741 – can costs be awarded in the Upper Tribunal on an appeal from . .
Damages which had been recovered in the Lloyd’s litigation for negligent underwriting were subject to income tax as trading income. Citations: Gazette 08-Nov-1995, Times 19-Oct-1995, Independent 18-Oct-1995 Statutes: Income and Corporation Taxes Act 1988 Sch D Jurisdiction: England and Wales Income Tax Updated: 20 December 2022; Ref: scu.79878
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 … Continue reading Lonsdale v Braisby (HMIT): ChD 23 Jul 2004
UTTC Income Tax; emoluments; tax avoidance scheme; transfer of shares; whether a payment -No; whether shares a readily convertible asset – Yes; Income and Corporation Taxes Act 1988 sections 1, 19, 131, 202AandB, 203, 203A, 203F, The Income Tax (Employments) Regulations 1993 Regulation 2- appeal dismissed Citations: [2012] UKUT 43 (TCC) Links: Bailii Statutes: Income … Continue reading Aberdeen Asset Management Plc v HMRC: UTTC 9 Dec 2011
The taxpayer was transferred from one football club to another. He was paid andpound;75,000 to persuade him to move. The revenue appealed a decision that this was not a sum taxable as an emolument under Schedule E by the new employer. Held: The appeal was allowed. A payment was ‘from’ an employment if it was … Continue reading Shilton v Wilmshurst: HL 7 Feb 1991
The defendant provided financial services, including the provision of offshore companies for a co-defendant. They were used to secrete assets abroad. Misleading information was provided to the revenue by the applicant and others. They were charged with conspiracy. Only one charge remained effective, but it was argued that since, under s 739(2) that income was … Continue reading Regina v Dimsey: HL 11 Oct 2001
The defendant appealed against a finding that he had concealed an emolument, namely accommodation. He said that, as a shadow director of the company within the extended meaning of that phrase under the Act, the deeming provisions under Income Tax law did not apply. The defendant argued that a shadow director could not be an … Continue reading Regina v Allen: HL 11 Oct 2001
Income tax was payable under Schedule D on the sale of a builder’s own house. He was shown to have been, in effect, trading taking into account his past record, and doubts about his intention ever to occupy the house as his residence. Some element of permanent residence was required to apply for relief. Citations: … Continue reading Kirkby v Hughes: Chd 22 Feb 1993
A deeming section could create a taxation liability, even where the liability appeared to be duplicated. The clause under which the foreign income of a company came to be chargeable did not affect the existing liability to pay tax on the sums so charged, and charges of conspiracy to cheat the public revenue stood by … Continue reading Regina v Dimsey; Regina v Allen: CA 14 Jul 1999
The court considered whether corporation tax had to be paid as an expense of the liquidation in priority to other claims. In that case it had arisen not on profits but on chargeable gains, on sales of the company’s properties after the commencement of the winding up. Held: ‘section 243(2) of the Income and Corporation … Continue reading In re Mesco Properties Ltd: ChD 1979
Where a company in liquidation made profits which were to be taken into account for Corporation Tax even though they might never be realisable, the tax payable had priority over the claims of the creditors. In this case the prime asset of the company was a debt due from a connected company. It would not … Continue reading In Re Toshoko Finance Uk Plc: CA 29 Mar 2000
Control of a company within the section means shareholder control. Citations: [1996] STC 785 Statutes: Income and Corporation Taxes Act 1988 416 Jurisdiction: England and Wales Cited by: Cited – Foulser and Another v HM Inspector of Taxes ChD 20-Dec-2005 The taxpayer company entered into an arrangement in which shares were purchased by a company … Continue reading Steele v EVC International NV: 1996
Judges: Carswell LCJ Citations: [2001] NIECA 1 Links: Bailii Statutes: Income and Corporation Taxes Act 1988 419(1) Jurisdiction: Northern Ireland Income Tax Updated: 15 April 2022; Ref: scu.166286
UTTC Income tax – double taxation – United Kingdom and United States – whether computation by reference to the same income or profits – whether taxpayer entitled to profits as they arise . .
The revenue had refused to renew the respondent’s certificate, and now itself appealed against the contractor’ success on appeal to the General Commissioners. . .
There was not necessarily subsumed in the concession that a payment constituted an emolument from employment a conclusion that the payment must therefore be for a chargeable period within the aggregate period during which the employment subsisted. . .
References: Ind Summary 22-Feb-1993, (1993) 65 TC 532 Ratio: Income tax was payable under Schedule D on the sale of a builder’s own house. He was shown to have been, in effect, trading taking into account his past record, and doubts about his intention ever to occupy the house as his residence. Some element of … Continue reading Kirkby v Hughes; Chd 22 Feb 1993
References: [2012] UKUT 59 (TCC) Links: Bailii Coram: Mann J UTTC Income tax – whether taxpayer can invoke section 739 of the Income and Corporation Taxes Act 1988 as against HMRC – effect of sections 739-741 – can costs be awarded in the Upper Tribunal on an appeal from the First-Tier Tribunal. Statutes: Income and … Continue reading HMRC v Anson; UTTC 16 Feb 2012
References: [2012] UKUT 43 (TCC) Links: Bailii UTTC Income Tax; emoluments; tax avoidance scheme; transfer of shares; whether a payment -No; whether shares a readily convertible asset – Yes; Income & Corporation Taxes Act 1988 sections 1, 19, 131, 202A&B, 203, 203A, 203F, The Income Tax (Employments) Regulations 1993 Regulation 2- appeal dismissed Statutes: Income … Continue reading Aberdeen Asset Management Plc v HMRC; UTTC 9 Dec 2011
References: [1991] 1 AC 684 Coram: Lord Templeman The taxpayer was transferred from one football club to another. He was paid £75,000 to persuade him to move. The revenue appealed a decision that this was not a sum taxable as an emolument under Schedule E by the new employer. Held: The appeal was allowed. A … Continue reading Shilton v Wilmshurst: HL 1991
The taxpayers sought capital allowances on the costs of installing an artificial all-weather race track. Held: The track was not either plant or machinery, and the taxpayer was not eligible for the relief. The only reasonable conclusion was that the AWT operated as the premises. Judges: Lord Justice Mummery Lord Justice Potter Lord Justice Scott … Continue reading Lingfield Park (1991) Limited v Shove: CA 31 Mar 2004
The defendant had been convicted of offences in which he had operated to purchase companies and use false debentures to evade corporation tax. Compensation had been sought under the 1988 Act. It was argued that the confiscation order should be quashed because the defendant had not benefitted as alleged. Held: The appeals failed. The court … Continue reading Regina v Stannard: CACD 1 Nov 2005
The Authority appealed from refusal of judicial review of a circular issued by the respondent as to the supply of Plastic Baton Rounds and CS gas from central resources only. The authority suggested that the circular amounted to permission for the use of plastic baton rounds for the first time in England and Wales and … Continue reading Regina v Secretary of State for the Home Department, ex Parte Northumbria Police Authority: CA 18 Nov 1987