HM Courts & Tribunals Service (HMCTS) with effect from 1 April 2011
Special Commissioners
Case:SPC00347 
(Adobe PDF file size 37KB)
Appellant: NENA MARIA CARNEY
Respondent: DEVI NATHAN (HM INSPECTOR OF TAXES)
CHILD CARE EXPENSES of a self-employed person - whether deductible - no - whether Human Rights Act 1998 applies to a tax year before coming into force where the act of disallowance took place afterwards - no - whether the point is covered by primary legislation - yes - whether article 1 protocol 1 and article 14 of the Human Rights Convention apply - no - whether articles 8 and 14 apply - no
Case: SPC00348 (Adobe PDF file size 27KB)
Appellant: IRSHAD MAHMOOD RASHID
Respondent: M. GARCIA (STATUS INSPECTOR)
NATIONAL INSURANCE CONTRIBUTIONS - landlord - whether carrying on business and therefore a self-employed earner - no
Case: SPC00350 (Adobe PDF file size 101KB)
Appellant: KRIEMHILD ELIZABETH HOLLAND EXECUTOR OF MICHAEL JOHN HOLLAND DECEASED
Respondent: THE COMMISSIONERS OF INLAND REVENUE
INHERITANCE TAX - exemption for transfers between spouses - whether exemption also applies to transfers between persons who are not legally married but who have lived together as husband and wife - no - whether the word spouse includes someone who is not legally married - no - whether section 3 of Human Rights Act 1998 applies to a death before 2 October 2000 where a notice of determination is issued by the Inland Revenue after that date - no - if wrong on that last conclusion, have appellant's Convention rights been violated? - Respondents agreed that facts fell within Arts 8 and 14 of Convention and Art 1 of First Protocol and that there was a difference in treatment between the Appellant and married persons - whether married persons and unmarried persons in an analogous situation - no - whether difference in treatment objectively justified - yes - appeal dismissed - IHTA 1984 s 18 - HRA 1998 s 3 and Sch 1 Arts 8 and 14 and First Protocol Art 1
Case: SPC00351 (Adobe PDF file size 25KB)
Appellant: APPLETREE GROUP MISTLETOE LTD
Respondent: FRANCIS FLOOD
ICTA 1988, s.349(3)(a) (unamended) - "Payable in the UK" - Whether interest on a loan made by a UK bank remained so payable notwithstanding assignment of accrued interest debt to a company resident abroad, to which interest was subsequently paid
Case: SPC00353 (Adobe PDF file size 31KB)
Appellant: MARY JANE WARNER
Respondent: R J PRIOR (HM INSPECTOR OF TAXES)
EMOLUMENTS - deduction of home to work travel - supply teacher - nature of the job required an office at home - travel not allowable
Case: SPC00354 (Adobe PDF file size 62KB)
Appellant: ANCHOR INTERNATIONAL LIMITED
Respondent: THE COMMISSIONERS OF INLAND REVENUE
CAPITAL ALLOWANCES - artificial turf for football pitch - whether the relevant item of plant is the pitch or the turf - the turf - whether the turf is used in the trade or the setting for the trade - used in the trade
Case: SPC00355 (Adobe PDF file size 52KB)
Appellant: RCI (EUROPE) LIMITED
Respondent: KATE WOODS (HM INSPECTOR OF TAXES)
NATIONAL INSURANCE CONTRIBUTIONS- whether payable on restrictive covenant entered into after employment ceased - yes - whether Contributions limited to the case where there is a current employment - no - whether for TA 1988 s.313 a restrictive covenant is given in connection with the holding of the office of director when the office has ceased - yes
Case: SPC00356 (Adobe PDF file size 104KB)
Appellant: JOHN C MCBRIDE
Respondent: STEPHEN JOHN BLACKBURN (HM INSPECTOR OF TAXES)
INCOME TAX - Schedule E - holder of offices - in 1993 the Appellant was elected as Chairman of one Lloyd's Names Association and in 1994 the Deputy Chairman of another - in 1997, when the litigation was settled, the Associations made payments to the Appellant (and others) - whether the payments were emoluments from an office - yes - or gifts of a personal nature - no - whether payments were termination payments - whether payments were benefits in kind - appeal dismissed - ICTA 1988 Ss 19, 148 and 154
Case: SPC00357 (Adobe PDF file size 30KB)
Appellant: JONATHAN WHITE
Respondent: THE COMMISSIONERS OF INLAND REVENUE
ICTA s s202 B (1)(b)- Year of assessment- Employee's claim to a particular emolument from early 1995/96 disputed by the Employer- Claim accepted in 1997/98 and payment then made, including full arrears.- Whether amount referable to earlier years assessable in 1997/98 or in relevant earlier years- "becomes entitled to payment".
Case: SPC00358 (Adobe PDF file size 124KB)
Appellant: CHARTERED ACCOUNTANT
Respondent: (HM INSPECTOR OF TAXES)
INCOME TAX - out of time assessments - whether loss of tax attributable to fraudulent or negligent conduct of Appellant - yes - appeal dismissed - TMA 1970 s 36(1)
Case: SPC00359 (Adobe PDF file size 167KB)
Appellant: ASSOCIATION OF BRITISH TRAVEL AGENTS LIMITED
Respondent: THE COMMISSIONERS OF INLAND REVENUE
CONTROLLED 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)
Case: SPC00398
Appellant: MR B & MRS P S CUNNIFFE
Respondent: MR R J ETTY
INCOME TAX - Self-assessment - Whether rent attributed by taxpayer to private accommodation include in return excessive - Appeal settled by agreement
Case: SPC00336
Appellant: LLOYDS TSB AS PERSONAL REPRESENTATIVE OF ROSEMARY ANTROBUS DECEASED
Respondent: THE COMMISSIONERS OF INLAND REVENUE
INHERITANCE TAX - agricultural property relief - freehold house which was owned and occupied by the deceased - agreed that it was a farmhouse - whether it was of a character appropriate to the property - yes - IHTA 1984 s 115(2)
Case: SPC00325
Appellant: MISS FELICITY E SOUTTER'S EXECUTRY
Respondent: THE COMMISSIONERS OF INLAND REVENUE
INHERITANCE TAX - Inheritance Taxes Act 1984 Section 142 - Whether Executors of Deceased Liferentrix could vary the provisions of the will whereby the liferent was created - Whether said Executors had any right title or interest in the property liferented.
Case: SPC00324 (Adobe PDF file size 74KB)
Appellant: MR TEE
Respondent: (HM INSPECTOR OF TAXES)
CAPITAL GAINS TAX - "flip flop" scheme - whether settlor caught by TCGA 1992 s.77 as benefiting from "derived property" - no; whether settlor-trustee's indemnity for borrowing meant that the settlor could benefit after being cut out - no; whether settlor could benefit after being cut out as in IRC v Botnar - no; whether on the facts the cash in the second settlement was tied up until the sale of shares in the first settlement.
Case: SPC00323 (Adobe PDF file size 67KB)
Appellant: THE EXECUTORS OF ELSIE FANNY STEDMAN
Respondent: THE COMMISSIONERS OF INLAND REVENUE
INHERITANCE TAX - business relief - residential caravan park with caravan storage area - provision of services predominates over the holding of investments - business relief available.
Case: SPC00322
Appellant: TIMOTHY JOHN BANCROFT AND JAMES WILLIAM BANCROFT
Respondent: N. G. CRUTCHFIELD (HM INSPECTOR OF TAXES)
SURCHARGE FOR LATE PAYMENT OF TAX - whether reasonable excuse - no - whether Special Commissioners able to read legislation differently to give effect to Human Rights Act - no - whether Human Rights Convention applicable to automatic surcharge - no
Case: SPC00321
Appellant: ASPECTS BEAUTY COMPANY LIMITED
Respondent: CHRISTOPHER BIRNIE (H M INSPECTOR OF TAXES)
DEDUCTIBLE EXPENDITURE - premiums on key man and mortgage protection policies on the lives of directors who are shareholders - whether wholly and exclusively for the purposes of the trade -- no
Case: SPC00320
Appellant: ROSEMOOR INVESTMENTS
Respondent: (HM INSPECTOR OF TAXES)
CORPORATION TAX - Appellant a wholly owned investment subsidiary of asset finance company which negotiated a long lease and leaseback arrangement with a call option for the re-acquisition of the lease after five years - purpose of arrangement to provide finance - Appellant took lease of 999 years on six properties with machinery and plant - Appellant immediately granted under lease of 35 years to lessor - Appellant also granted to a company connected with the lessor a call option to acquire the lease after five years - call option exercised after five years - whether Appellant entitled to capital allowances for the machinery and plant - yes - whether payment made on the exercise of the option assessable to corporation tax under Case I of Schedule D - no - whether the transaction was in reality the provision of short-term five-year finance - no - whether the transaction was in reality a trading transaction because negotiated by parent asset finance company - no - whether the participation of the Appellant in the transactions was by way of trade - no - or by way of investment- yes - appeal allowed
Case:SPC00317
Appellant: PETER JOHN McKIBBIN(AS EXECUTOR OF JESSIE McKIBBIN)
Respondent: THE COMMISSIONERS OF INLAND REVENUE
INHERITANCE TAX - notice of determination confirmed in the absence of any evidence to the contrary
Case: SPC00311
Appellant: A B DAFFODIL (ADMINISTRATOR OF D E DAFFODIL DECEASED)
Respondent: THE COMMISSIONERS OF INLAND REVENUE
INHERITANCE TAX - husband died intestate in 1994 leaving his wife surviving - no grant of letters of administration in respect of the husband's estate - whether on death of wife in 2000 her interest in her husband's estate formed part of her estate - yes - appeal dismissed - IHTA 1984 sections 4(1) and 5(1)
Case: SPC00309 (Adobe PDF file size 86KB)
Appellant: JAMES KEITH ROBERTSON
Respondent: THE COMMISSIONERS OF INLAND REVENUE
INHERITANCE TAX - administration and collection; executor as personal representative delivering account of property of deceased containing estimated values; whether executor made fullest enquiries that were reasonably practicable in the circumstances; whether executor negligently delivered incorrect account; penalty; mitigation; Inheritance Tax Act 1984 sections 216, 247 and 249
Case: SPC00308 (Adobe PDF file size 86KB)
Appellant: DR C A HOWARD
Respondent: THE COMMISSIONERS OF INLAND REVENUE
BES RELIEF - Claim outside statutory time limit under TA 1988 s.306(1) - Whether error mistake relief available under TMA s.33 - No - Appeal dismissed
Case: SPC00307
Appellant: CONSULTANTS LIMITED
Respondent: HM INSPECTOR OF TAXES
Case: SPC00352
Appellant: MARKS AND SPENCER PLC
Respondent: DAVID HALSEY (HM Inspector of Taxes)
CORPORATION TAX - Group relief - losses arising in French, Belgian and German subsidiaries of UK company - UK provisions denying group relief for losses -ICTA ss 402(3A) and (3B), 403D(1)(a) and 413(5) - whether UK provisions contrary to Article 43 of the EC Treaty - no - appeal dismissed
Case: SPC00343
Appellant: MRS M E SHAW
Respondent: MRS G THATCHER (HM INSPECTOR OF TAXES)
PENALTY - 35% abatement approved - amendment to self-assessment made on same basis as earlier agreed years
Case: SPC00340
Appellant: SUN CHEMICAL LIMITED
Respondent: MRS DOROTHY J SMITH (HM INSPECTOR OF TAXES)
ASSESSMENT - whether section 54 TMA 1970 agreement included the deduction of UK bank interest as a charge on income - yes - whether further assessment made for one purpose which is under appeal can be increased for another reason - yes
CORPORATION TAX - charges on income - whether interest deductible in computing profits where section 54 TMA agreement decided that it was not in relation to a predecessor company in the previous period - no
Case: SPC00341
Appellant: CAMAS PLC
Respondent: J M ATKINSON (HM INSPECTOR OF TAXES)
CORPORATION TAX - Profits - Deduction in computing profits - Investment Company - 'Expenses of management' - Taxpayer company carrying on business as group holding company with trading subsidiaries - Taxpayer company incurs costs in connection with project to merge with or take over another quoted holding company with trading subsidiaries - Costs include legal, accountancy and investment banker's services preparatory to making offer - Project abandoned - Whether costs qualify as expenses of management - Income and Corporation Taxes Act 1988 section 75(1)
Case: SPC00342
Appellant: LIME-IT LIMITED
Respondent: The Commissioners of Inland Revenue
NATIONAL INSURANCE CONTRIBUTIONS - intermediary ("IR 35") - whether worker would be employee if there were a contract between the worker and the client - no
Case: SPC00339
Appellant: SURVEYOR
Respondent: The Commissioners of Inland Revenue
INHERITANCE TAX - transfer into trusts of settlement on 17 August 1999 - property situated outside the United Kingdom - whether excluded property - whether transferor domiciled outside the United Kingdom on that date - yes - appeal allowed - IHTA 1984 S 6(1)
Case: SPC00338
Appellant: MARTIN JOHN POWELL
Respondent: CORDELIA JACKMAN (H M INSPECTOR OF TAXES)
INCOME TAX - Schedule D - taxpayer is an independent contractor who has entered into a franchise agreement with a dairy - taxpayer carries out business activities at home - each day he travels to a depot owned by the dairy to collect his float and milk after which he delivers the milk on his round - whether expenditure on journey from home to depot deductible - whether expenditure wholly and exclusively laid out for the purposes of the trade - yes - appeal allowed - ICTA 1988 s 74(1)(a)
COSTS - application by Appellant - whether Respondent acted wholly unreasonably in connection with the hearing - no - application dismissed - Special Commissioners (Jurisdiction and Procedure) Regulations 1994 SI 1994 No 1811 Reg 21(1)
Case: SPC00335 (Adobe PDF file size 31KB)
Appellant: THE EXECUTORS OF ROBERT MOORE DECEASED
Respondent: The Commissioners of Inland Revenue
INHERITANCE TAX - whether the Deceased, a US citizen, acquired a domicile of choice in England - no
Case: SPC00334 (Adobe PDF file size 38KB)
Appellant: A M LYONS
Respondent: A J KELLY(H M INSPECTOR OF TAXES)
INCOME TAX - Schedule D - change to current year basis - transitional provisions - change of accounting period - amount of overlap profit - calculation of the amount of the profits of the basis period for the year 1997-98 which arose after the end of the basis period for 1996-97 and before 6 April 1997 - basis period for 1997-98 agreed to consist of the twenty-three months from 1 May 1996 to 31 March 1998 - dispute about the method of calculation of the profits arising before 6 April 1997 - whether this should be time-apportioned over the full twenty-three months as argued by the Appellant - no - whether this should be time-apportioned over the twelve-month period of the accounts from 1 May 1996 to 30 April 1997 as argued by the Inland Revenue - yes - appeal dismissed - TA 1988 s63A; FA 1994 Sch 20 para 2(4)Catchwords: use right arrow to move to starting point after this box
Case: SPC00327 (Adobe PDF file size 38KB)
Appellant: WILDIN & CO (A FIRM)
Respondent: ALAN N JOWETT
RELEASE OF DEBT - Taxes Act 1988 s.94 - partnership liability to service company - effect of consent order
Case: SPC00332 (Adobe PDF file size 40KB)
Appellant: CLEMENTINA SILVA
Respondent: MIKE CHARNOCK
WORK-RELATED TRAINING - whether signing-on bonus was a reimbursement of training costs - yes - whether exempt under section 200B Taxes Act 1988 - yes - whether exemption removed by section 200C --no
Case: SPC00328 (Adobe PDF file size 50KB)
Appellant: STRAND FUTURES AND OPTIONS LIMITED
Respondent: PETER WILLIAM LEWIS VOJAK
PURCHASE OF OWN SHARES - from a company - distribution treatment applicable - whether consideration included in capital gains computation as stated in SP4/89 - yes - appeal dismissed
Case: SPC00337 (Adobe PDF file size 29KB)
Appellant: EXEC'S OF JOHN SIDNEY HIGGINSON
Respondent: The Commissioners of Inland Revenue
Inheritance Tax Act 1984, s.115(2) - Agricultural relief - "Farmhouse"
Case: SPC00326 (Adobe PDF file size 14KB)
Appellant: ANTHONY KAY DEADMAN (AS PERSONAL REPRESENTATIVE OF IRENE RUBY ALICE DEADMAN DECEASED)
Respondent: The Commissioners of Inland Revenue
Inheritance Tax - Notice of Determination confirmed subject to amendment to the wording
Case: SPC00330 (Adobe PDF file size 18KB)
Appellant: LESLEY ANN SMITH (PERSONAL REPRESENTATIVE OF IVERNIA DOREEN NORCOTT deceased)
Respondent: The Commissioners of Inland Revenue
Inheritance Tax - Notice of Determination confirmed in the absence of evidence
Case: SPC00331 (Adobe PDF file size 18KB)
Appellant: DEXTRA ACCESSORIES LIMITED, PHONES 4U LIMITED, THE MOBILE PHONE REPAIR COMPANY LIMITED, 4U LIMITED, 20:20 LOGISTICS LIMITED, SINGLEPOINT 4U LIMITED, JOHN D CAUDWELL, BRIAN CAUDWELL, MRS K H CAUDWELL, MRS P CAUDWELL, MRS B J CAUDWELL AND CRAIG BENNETT
Respondent: RONALD MACDONALD
EMPLOYEE BENEFIT TRUST - whether deduction of contributions postponed until taxable as emoluments under FA 1989 s.43(11) - no - whether sub-funds in favour of directors who controlled the company taxable as emoluments on Ramsay principles or as a benefit in kind under TA 1988 s.154 - no -- whether loans to directors taxable as emoluments - no
Case: SPC00312 (Adobe PDF file size 65KB)
Appellant: WHITEHALL ELECTRIC INVESTMENTS LIMITED
Respondent: J F OWEN (H M INSPECTOR OF TAXES)
CORPORATION TAX - chargeable gains - group of companies - ultimate disposal in 1990 of shares the value of which had been materially reduced by two depreciatory transactions within the group - allowable loss accruing on the ultimate disposal - reduction of allowable loss having regard to the depreciatory transactions - whether just and reasonable to further reduce allowable loss by the equivalent of the indexation allowance from the dates of the depreciatory transactions to the date of the ultimate disposal - yes - appeal dismissed - TA 1970 s 280(4) and (5)
Case: SPC00310 (Adobe PDF file size 120KB)
Appellant: TRANSCO PLC
Respondent: DYALL
CORPORATION TAX - deduction in computing profits - expenditure on replacement of iron and steel pipes with pipes of polyethylene - whether improvements - no - whether repairs - yes - whether capital expenditure - no - whether revenue expenditure - yes - appeal allowed - ICTA 1988 s 74(1)(f)
Case: SPC00308 (Adobe PDF file size 65KB)
Appellant: SALIM MASHOOD (1) M MASHOOD & CO (2) H MASHOOD & CO (3) S MASHOOD MANAGEMENT LIMITED (4) S MASHOOD ACCOUNTANT LIMITED (5) S MASHOOD INSURANCE AGENCY LIMITED (6)
Respondent: MARTIN WHITEHEAD (H M INSPECTOR OF TAXES)
INCOME TAX - assessments and further assessments - some assessments made outside the ordinary time limit - whether in respect of the out of time assessments there was fraudulent or negligent conduct -yes - whether the assessments and further assessments should be confirmed, reduced or increased - appeals dismissed - TMA 1970 - Ss 29, 34, 36 and 50
PENALTY - for failure to comply with directions of Special Commissioners - determined at £250 - Special Commissioners (Jurisdiction and Procedure) Regulations 1994 SI 1994 No. 1811 Reg 24
Case: SPC00309 (Adobe PDF file size 86KB)
Appellant: JAMES KEITH ROBERTSON
Respondent: The Commissioners of Inland Revenue
INHERITANCE TAX - administration and collection; executor as personal representative delivering account of property of deceased containing estimated values; whether executor made fullest enquiries that were reasonably practicable in the circumstances; whether executor negligently delivered incorrect account; penalty; mitigation; Inheritance Tax Act 1984 sections 216, 247 and 249
EXPENSES - the Special Commissioners (Jurisdiction and Procedure) Regulations 1994, regulation 21 - whether Revenue acted wholly unreasonably in connection with the hearing
Case: SPC00314 (Adobe PDF file size 29KB)
Appellant: DR A G SIWEK
Respondent: The Commissioners of Inland Revenue
Notices under section 9A and 19A of the Taxes |Management Act 1970; validity
Case: SPC00306 (Adobe PDF file size 225KB)
Appellant: DELTA FINANCE NEWCO
Respondent: The Commissioners of Inland Revenue
CAPITAL ALLOWANCES - Plant and machinery - Acquisition by Appellant of equipment from Alpha Newco for £166 million - Prior purchase by Alpha Newco from US parent with leaseback for 11 years - Leaseback by Appellant to Alpha Newco for 30 years - Deposit by associate of Alpha Newco and its US parent with bank associated with Appellant of £147 million as security under lease to Alpha Newco - Whether lease by Alpha Newco to US parent relevant lease for CAA 1990 s.42 - Yes - Whether section 42(3)(d)(e) applied - Yes - Whether section 42(3)( c) applied - No - Acquisition by Appellant evidenced by unstamped Bill of Sale - Whether equipment belonged to Appellant for CAA s.24 - No - Whether only £19 million net expenditure incurred in light of Westmoreland and Ensign Tankers
Case: SPC00315 (Adobe PDF file size 94KB)
Appellant: SCOTTISH PROVIDENT INSTITUTION
Respondent: The Commissioners of Inland Revenue
TAX AVOIDANCE - cross options and collateral loan; whether cross options to be regarded as single composite transaction with no commercial purpose other than tax saving scheme; loan relationships; gilts; debt contract; Finance Act 1994 as amended sections 147-177; Finance Act 1996 sections 80 & 81
Case: SPC00305 (Adobe PDF file size 21KB)
Appellant: CONSULTANTS LIMITED
Respondent:
Consultants Limited applies to appeal out of time against a Determination made on 7 October 1997 determining losses at £63,511 for the accounting period ended 31 December 1995. Mr O appeared for the Applicant and Mr W for the Inspector.
2. The circumstances are that at the time of the Determination the Applicant was involved in litigation over unpaid fees on a substantial job and Mr O, the Principal of their Accountants, Messrs N, had been told not to run up any bills for tax work. He did however accept that he would do anything essential and continued to make PAYE returns for the Applicant.
Case: SPC00304 (Adobe PDF file size 35KB)
Appellant: M J AINSLIE
Respondent:
EMPLOYMENT - Auctioneer agreed with employer to work from his home - Agreement specifying salary and commission - No payment attributed to use of office at home - Wife joint owner of house but not mentioned in agreement - Entire payment held to be emoluments within Sch E - No part Sch A - TA 1988 s.15(1) - Appeal dismissed
Case: SPC00303 (Adobe PDF file size 51KB)
Appellant: PAUL WALL
Respondent:
ERROR OR MISTAKE - claim for relief - whether an agreement made during the course of enquiries leading to a notice of completion and the amendment of a self- assessment precludes the making of a claim - no - if so, whether there was an agreement - appeal allowed - TMA 1970 Ss 28A(3) and (5) and 33
Case: SPC00302 (Adobe PDF file size 37KB)
Appellant: CADBURY SCHWEPPES PLC
Respondent:
COSTS OF OBTAINING LOAN FINANCE - expenses of management of investment company - period for which the costs are disbursed - whether deductible when incurred or spread over the life of the loan in accordance with Financial Reporting Standard 4 - deductible when incurred
Case: SPC00300 (Adobe PDF file size 77KB)
Appellant: ABC LTD
Respondent:
CAPITAL ALLOWANCES - Purchase by a UK company of plant and machinery from XYZ, a non-UK corporation - Lease back by the company to XYZ - Sublease by XYZ to a subsidiary UK company - Various security arrangements entered into involving (inter alia) a Channel Islands company resulted in the whole of the purchase price for the pipeline paid by the company being deposited with that company with the result that the purchase price was not available to XYZ as vendor for immediate use - Claim by the purchaser UK company to writing down allowances in respect of its expenditure on the acquisition of the section of gas pipeline - Claim refused by the Inland Revenue - Capital Allowances Act 1990 section 24
Case: SPC00298 (Adobe PDF file size 43KB)
Appellant: THE ROYAL LONDON MUTUAL INSURANCE SOCIETY LIMITED
Respondent:
INSURANCE COMPANY - three contracts of reinsurance made in 1993 and 1994 - legislative changes in 1995 - whether in 1995 the three contracts were life reinsurance business - no - whether they were overseas life assurance business - no - whether they were basic life assurance and general annuity business - yes - appeal allowed - ICTA 1988 Ss 431, 431C, 431D and 431F; Finance Act 1995 Schedule 8 paras 1, 2, 55, 57 and 58; The Insurance Companies (Taxation of Reinsurance Business) Regulations 1995 SI 1995 No. 1730 Regs 1 and 11; The Insurance Companies (Taxation of Reinsurance Business)(Amendment) Regulations 1996 SI 1996 No. 1621 Regs 1, 2 and 5.
Case: SPC00297 (Adobe PDF file size 37KB)
Appellant: RACHEL JANE DIXON
Respondent:
INHERITANCE TAX - relief for agricultural property - cottage with garden and orchard extending to 0.6 acres - whether activities were agriculture - whether orchard and garden were agricultural land or pasture - whether cottage was of a character appropriate to the property - whether the property was used for the purposes of agriculture - appeal dismissed - IHTA 1984 Ss 115(2) and 117
Case: SPC00295 (Adobe PDF file size 145KB)
Appellant: HSBC LIFE (UK) LIMITED
Respondent:
Financial futures transactions - Whether the "lending of money" - Whether "money debt" or "advance" granted - Whether Ramsey approach applicable - Relevant Revenue guidance as an aid to construction - FA 1996 s.80-103 - Whether capital gain - TA 1988 s.128 - CGTA 1992 s.143
Case: SPC00294 (Adobe PDF file size 37KB)
Appellant: ABLEWAY LIMITED
Respondent:
NATIONAL INSURANCE CONTRIBUTIONS - school fees paid by company to school for the education of the sons of the directors of the company - whether payments in kind - no - whether the company discharged the parents' debt - yes - whether the liability was that of the company - no - appeal dismissed - SSCBA 1992 Ss 3 and 6(1); Social Security (Contributions) Regulations 1979 SI 1979 No. 591 Reg 19(1)(d)
Case: SPC00293 (Adobe PDF file size 32KB)
Appellant: DR ROBERT BARRY SALT
Respondent:
DEDUCTIONS - for purposes of calculating liability to Schedule D case I and II tax - research business - whether expenses in fact paid by other businesses run by appellant- whether expenses wholly or exclusively laid out for purposes of business - appeal dismissed
SCIENTIFIC RESEARCH ALLOWANCE - whether expenses incurred for purposes of appellant's trade of publishing - appeal dismissed
Case: SPC00292 (Adobe PDF file size 56KB)
Appellant: THE ADMINISTRATORS OF THE CID PENSION FUND (MR ROY LAMBERT, MRS GLORIA LAMBERT, MR KENNETH R LAMBERT AND MRS ELAINE CHARLES)
Respondent:
INCOME TAX - PENSION FUND - Establishment of a small self-administered pension scheme including amongst its trustees a Pensioneer Trustee - Approval of the pension fund by the Inland Revenue as an exempt approved scheme - Dissatisfaction by the other trustees with the performance and requirements of the Pensioneer Trustee - Subsequent resignation of the Pensioneer Trustee - Failure of the remaining trustees to appoint a replacement Pensioneer Trustee - Subsequent withdrawal of approval of the fund as an exempt approved scheme by the Inland Revenue - Issue of an assessment to Income Tax under Schedule D in the names of the trustees of the pension fund as administrators of the fund - Appeal by the trustees - section 21 Finance Act 1970: section 591B Income and Corporation Taxes Act 1988: SI 1991 No. 1614
Case: SPC00291 (Adobe PDF file size 55KB)
Appellant: H B PARMAR, B PARMAR, K B PARMAR AND Y B PARMAR
Respondent:
INCOME TAX - Partnership - whether a loss was incurred in the year ending on 31 December 1991 - no - whether the disposal value of machinery and plant destroyed by fire in 1991 exceeded the capital expenditure incurred in the provision of that machinery and plant - no - whether there was a disposal value of machinery and plant transferred on the discontinuance of the trade in 1994 where no payment was received - yes - whether the capital allowances basis periods applied on the discontinuance of the trade in 1994 - yes - appeal dismissed - ICTA 1988 s385; CAA 1990 s26 and 160(3)(b)
Case: SPC00290 (Adobe PDF file size 59KB)
Appellant: RYSAFFE TRUSTEE COMPANY (CI) LIMITED
Respondent:
INHERITANCE TAX - Settlements without interests in possession - settlor made five similar settlements dated on different days within about a month - shares in same private company subsequently transferred to trustee for each settlement - whether the property comprised in all five settlements was property comprised in "a" settlement for the purposes of the ten-year anniversary charge - whether associated operations - yes - whether dispositions by associated operations were dispositions of property whereby the property was held in trust - yes - appeal dismissed - IHTA 1984 ss 43, 64, 107 and 272
Case: SPC00289 (Adobe PDF file size 87KB)
Appellant: SPARROW LIMITED
Respondent:
APPLICATION - For determination of amount of tax the payment of which should be postponed pending determination of appeal - whether having regard to the representations made and the evidence adduced there were reasonable grounds for believing that the Appellant was overcharged to tax - no - whether there was an agreement to postpone - no - if so, whether there was any change in the circumstances of the case since such agreement - yes - application dismissed - TMA 1970 s 55 (4), (6) and (7)
Case: SPC00287 (Adobe PDF file size 42KB)
Appellant: EDDIE BATTERSBY
Respondent:
NATIONAL INSURANCE CONTRIBUTIONS - Services provided through service company - if the arrangements had taken the form of a contract between the Appellant and the client whether the Appellant would be regarded as employed - yes - appeal dismissed - Social Security Contributions and Benefits Act 1992 Ss 2 and 4A; Social Security Contributions (Intermediaries) Regulations 2000 SI 2000 No. 727 Reg 6(1)
Case: SPC00286 (Adobe PDF file size 66KB)
Appellant: NATALIE PERRO
Respondent:
Schedule E, Case II - US citizen seconded to UK firm and becoming UK resident - Tax equalisation agreement for employer to bear non-US tax - Part of emoluments when resident attributable to performance of UK duties and part not - Whether UK tax paid by employer wholly "in respect of the performance of duties in the United Kingdom" or to be apportioned - ICTA s.19(1) - Appeal dismissed
Case: SPC00284 (Adobe PDF file size 42KB)
Appellant: MICHAEL JEROME
Respondent:
CAPITAL GAINS TAX - disposal of land - after contract and before completion vendors assigned half of their beneficial interests in some of the land to the trustee of overseas settlements - whether disposal by the vendors was of all their beneficial interests as at the date of the contract - yes - whether disposal by the vendors was only of the beneficial interests to which they were still entitled at the date of completion - no - appeal dismissed - CGTA 1979 Ss 27(1) and 46(1)
Case: SPC00281 (Adobe PDF file size 34KB)
Appellant: BEN NEVIS
Respondent:
INCOME TAX
EMPLOYMENT - deductions - employee incurred legal fees in order to resolve an investigation commenced by his previous employer - until that investigation was resolved the new employer could not effect a professional registration which was a requirement of the new employment - pending the results of the investigation the employee was offered a revised contract of employment by the new employer - whether employee was necessarily obliged to expend the money on legal fees wholly, exclusively and necessarily in the performance of the duties of the revised employment - appeal dismissed - ICTA 1988 s 198(1)
Case: SPC00280 (Adobe PDF file size 102KB)
Appellant: THE TRUSTEES OF THE OMEGA GROUP PENSION SCHEME
Respondent:
INCOME TAX - 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 transactions carried out for bona fide commercial reasons or in the ordinary course of making or managing investments - yes - whether a main object of the sales was to enable tax advantages to be obtained - yes - appeal allowed - Taxes Act 1988 ss703, 704 and 709
Case: SPC00279 (Adobe PDF file size 16KB)
Appellant: MR PRIVET
Respondent:
INCOME TAX
ICTA 1988 s.380(1) - Loss relief - Time limit for claim - Power of appeal Commissioners to review Inspector's refusal to extend time
Case: SPC00278 (Adobe PDF file size 33KB)
Appellant: CHARLES RAYMOND FAULKNERTRUSTEE OF RUPERT CHARLES ADAMS DECEASED
Respondent:
INCOME TAX
INHERITANCE TAX - settled property - interest in possession - testator's will gave directions to trustees permitting two married persons to live in house so long as they so wished - after the testator's death both moved into the house until the death of the survivor - whether the survivor beneficially entitled to an interest in possession - yes - whether, if so entitled, the interest in possession subsisted in the whole of the property - yes - or whether it was shared with the three residuary beneficiaries - no - appeal dismissed - IHTA 1984 ss 49(1) and 50(5)
Case: SPC000277 (Adobe PDF file size 44KB)
Appellant: MIMTEC LIMITED
Respondent:
INCOME TAX
EMOLUMENTS - Receipts "from" office or employment - Payments in lieu of entitlements to "protective awards" - Redundancy proposals giving rise to obligation to consult in pursuance of TULR(C) Act 1992 s.188 - Employer did not go through consultation process and employees did not claim protective awards for such failure - Employer and trade union agreed that £2,500 he paid to each redundant employee "in recognition of any entitlements under the consultation process" - Whether the £2,500 payments were emoluments from employment - No - ICTA 1988 s.19
Case: SPC00276 (Adobe PDF file size 33KB)
Appellant: CASTLETON MANAGEMENT SERVICES LTD
Respondent:
INCOME TAX - ENTERPRISE INVESTMENT SCHEME -A company carried on a trade of providing staff, stationery and literature to a firm of chartered accountants - Issue by the company of eligible shares (pursuant to the Enterprise Investment Scheme) - Of the sum raised by the issue of these shares the greater part was immediately applied in paying off company debts - Claim by the company that the conditions for relief for the purposes of the Enterprise Investment Scheme were satisfied in relation to the shares issued - Income and Corporation Taxes Act 1988 sections 289, 297, 306 and 312
Case: SPC00275 (Adobe PDF file size 43KB)
Appellant: MRS FANNY WALKER DECEASED
Respondent:
Inheritance tax - Business relief - Land owned by deceased used for business of company - Deceased held 50% of shares and was chairman of directors - Whether deceased had control of powers of voting - IHTA 1994 s.105(1)(d), 269(1) - Appeal allowed
Case: SPC00274 (Adobe PDF file size 48KB)
Appellant: GEORGE HENRY GUYER
Respondent:
INCOME TAX - RETURN - self-assessment -notice of intention to inquire into return - taxpayer practising as a solicitor - notice requiring taxpayer to produce clients' ledger and clients' cash book and certain documents to support the entries in both - whether reasonably required - whether taxpayer's duty of confidentiality overrides obligation to produce - whether documents covered by legal professional privilege - whether disclosure would contravene Article 8 of the ECHR - whether disclosure would infringe the Data Protection Act 1998 - appeal dismissed - Taxes Management Act 1970 s 19A(2)
Case: SPC00273 (Adobe PDF file size 57KB)
Appellant: SCHOOL OF FINANCE AND MANAGEMENT (LONDON) LTD
Respondent:
INCOME TAX - EDUCATION - VAT Act 1994 Sch 9, Group 6, Item 1, Note 1(b) - Whether Appellant is `an eligible body' - Whether Appellant a college of a United Kingdom university
EXEMPTION - Whether supplies exempt under Article 13(1)A(i) of the Sixth Directive - Appeal allowed
Case: SPC00267 (Adobe PDF file size 72KB)
Appellant: UNILEVER (UK) HOLDINGS LIMITED
Respondent:
CAPITAL GAINS TAX - Shares - Reorganisation of share capital - All ordinary stock in subsidiary company acquired by Appellant before 6 April 1965 - Scheme of Arrangement in relation to subsidiary effected on 29 April 1965 - Calculation of loss - Whether by straightline apportionment or by reference to value at 29 April 1965 - Preference stock in subsidiary held by public cancelled as part of scheme - Appellant paid holders of preference stock £6.9m as part of scheme - Disposal by Appellant of ordinary stock in 1992 at a loss - Whether ordinary stock to be treated as having been acquired at market value on 29 April 1965 on grounds that they had been concerned in a reorganisation on that date and that they became a new holding - No - Whether the £6.9m paid to holders of preference stock as part of scheme was consideration given by Appellant for its new holding - No - Appeal dismissed - TCG Act 1992 ss.126, 127 and 128 and Sch.2 p.19
Case: SPC00268 (Adobe PDF file size 63KB)
Appellant: APPELLANT
Respondent:
INCOME TAX - Schedule E - payments received by Appellant from employer - whether received in consideration or in consequence of or in connection with termination of employment - yes - whether paid in respect of restrictive undertakings given in connection with employment - appeal dismissed - ICTA 1988 Ss 148, 188 and 313
Case: SPC00266 (Adobe PDF file size 25KB)
Appellant: KENNETH S FERGUSON, THOMAS H FERGUSON AND DAVID H FERGUSON
Respondent:
INCOME TAX - Bonus Payment in kind - Whether employee "made good" to employer tax due - FA 1994 s.144A (c)
Case: SPC00265 (Adobe PDF file size 67KB)
Appellant: DAVID JOHN VENABLES - and - THE TRUSTEES OF THE FUSSELL PENSION SCHEME
Respondent:
INCOME TAX - Pension Schemes - meaning of `retirement' - whether non-executive director can be `retired' - s.600 and s.612 ICTA 1988 - schedule E liability for payments `not expressly authorised by the rules of the scheme' - whether payments in breach of pension scheme trusts still within charge to tax - construction of scheme trusts where trust deed and rules in conflict - Revenue practice - whether relevant to construction of pension scheme - unequal treatment of taxpayers - whether breach of Article 14 of European Human Rights Convention
Case: SPC00264 (Adobe PDF file size 28KB)
Appellant: MICHAEL ANTHONY BASIL MALLENDER, RICHARD BUTLER-ADAMS AND JOSHUA CHRISTOPHER ROWLEY (As Executors of the Will of CAPTAIN PATRICK JOHN BOTELER DRURY-LOWE DECD)
Respondent:
INHERITANCE TAX - Deceased Lloyds name - Provision by the deceased of security to Lloyds in the shape of a bank guarantee - Bank guarantee supported by the deceased by a mortgage of commercial property - Whether such commercial property charged to the bank formed "relevant business property" - Sections 104, 105, 110 and 112 Inheritance Tax Act 1984
Case: SPC00263 (Adobe PDF file size 16KB)
Appellant: JOHN HENDERSON AND MARY HENDERSON THE TRUSTEES OF WILLIAM BLACK DECEASED
Respondent:
INHERITANCE TAX - Agreed variations to Notice of Determination - Notice of Determination varied by consent - IHTA 1984 s 224(5)
Case: SPC00262 (Adobe PDF file size 30KB)
Appellant: ANTONY PETER SILK
Respondent:
INCOME TAX - FINAL DETERMINATION - adjustment for cumulative depreciation - reduction by excess of debtors over creditors - amount of reduction of assessment determined - TMA 1970 s50(6)(a)
Case: SPC00261 (Adobe PDF file size 30KB)
Appellant: ERIC WOODHALL (THE PERSONAL REPRESENTATIVE OF ALAN WOODHALL DECEASED
Respondent:
INHERITANCE TAX - Settled property - testator devised his house on trust for sale and directed that the sale should be postponed so long as each or any of his three children desired to reside there - one son did reside there until his death - that son was survived by another son - whether the deceased son was beneficially entitled to an interest in possession in the house - whether the interest in possession was in the hole or half of the house - appeal allowed in part - IHTA 1984 s 49(1) and 50(5)
Case: SPC00260 (Adobe PDF file size 79KB)
Appellant: MICHAEL BLACK (1) STEPHEN BROWN (2) GREGORY GREEN (3) MALCOLM WHITE (4)
Respondent:
INCOME TAX - Schedule E - receipt by four director/employees of units in unit trust - whether paying company should have deducted income tax - appeal allowed - ICTA 1988 s 203; Income Tax (Employments) Regulations 1973 SI 1973 No. 334 Regs 2 and 6
Case: SPC00259 (Adobe PDF file size 34KB)
Appellant: MICHAEL WILLIAM HARDCASTLE AND RUTH MARGARET HARDCASTLE (EXECUTORS OF JACK RONALD VERNEDE DECEASED)
Respondent:
INHERITANCE TAX - Business property relief - Lloyd's underwriter - net value of business - money owing on accounts open at the date of death - whether "liabilities incurred for the purposes of the business" - appeal allowed - IHTA 1984 s110(b)
Case: SPC00258 (Adobe PDF file size 50KB)
Appellant: ACCOUNTANT
Respondent:
INCOME TAX - RETURN - self-assessment - power to call for documents for purposes of enquiries - accountant in sole practice - whether Inspector could reasonably require the production of documents relating to personal and undesignated clients' bank accounts - whether Inspector could reasonably require the preparation and furnishing of a balance sheet of the practice - appeal dismissed - TMA 1970 s 19A(2)(a) and (b)
Case: SPC00257 (Adobe PDF file size 28KB)
Appellant: MR BRIAN LEE
Respondent:
CAPITAL GAINS TAX - Accountancy Partnership Practice - Admission of new partners on purchase terms - Subsequent attempt by the new partners to dissolve the partnership and to recover from the original partners the sums which the new partners paid by way of purchase - Claim by the new partners that the sums which they paid were premiums - Claim by the Appellant that what the new partners purchased was a share of goodwill - High Court proceedings instituted by the new partners in an attempt to recover the sums which they had paid for admission to the partnership - The Appellant defended the proceedings maintaining that the payments were made for a share of goodwill and not as a premium - Claim by the Appellant that the legal costs which he incurred in defending the High Court action brought against him by the new partners constituted "expenditure wholly and exclusively incurred by him in establishing, preserving or defending his title to, or a right over, the asset", namely his goodwill - Section 38(1)(b) Taxation of Capital Gains Act 1992 - Appeal allowed
Case: SPC00256 (Adobe PDF file size 60KB)
Appellant: M E P C HOLDINGS LIMITED
Respondent:
CORPORATION TAX - Group relief - determination of profits of surrendering company - whether allowable losses of preceding accounting periods should be deducted from a realised chargeable gain - meaning of "profits" - meaning of "losses or allowances" - appeal allowed - ICTA 1988 s 403 (7) and (8)
Case: SPC00255 (Adobe PDF file size 50KB)
Appellant: JOHN LEWIS PROPERTIES PLC
Respondent:
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 consideration of a lump sum payment received from the bank - Whether the lump sum is to be treated and taxed as an income receipt or as a capital receipt - Whether the assignment of the rents by the property holding company was a part disposal of its properties or an entire disposal of five years' rents - Whether roll over relief is available to the property holding company - Sections 15 and 18 Income and Corporation Taxes Act 1988; sections 21, 42, 152 and 155 Taxation of Chargeable Gains Act 1992 - Appeal allowed
Case: SPC00251 (Adobe PDF file size 103KB)
Appellant: SAVE & PROSPER SECURITIES LIMITED
Respondent:
STAMP DUTY RESERVE TAX - Amalgamation of two unit trust schemes - whether an agreement to transfer chargeable securities - appeal allowed - FA 1986 s 87(1)
Case: SPC00223 (Adobe PDF file size 37KB)
Appellant: PAUL WILLIAM SANCROFT GRIMWOOD-TAYLOR AND MICHAEL ANTHONY BASIL MALLENDER (as Executors of the Will of Robin Richard Mallender, Deceased)
Respondent:
INHERITANCE TAX - Exempt transfers and relief - Business property - Relevant business property - Shares held by Deceased in two companies - Whether the business carried on by the companies was excluded from business property relief as consisting wholly or mainly of one or more of dealing in securities, stocks or shares, land or buildings or making or holding investments - Whether the relevant companies were, with one or more other companies members of a group - Whether the business of the company or either of them was carried on otherwise than for gain - Inheritance Tax Act 1984 Sections 103, 104, 105, 111 and 112
Case: SPC00254 (Adobe PDF file size 146KB)
Appellant: BP EXPLORATION OPERATING COMPANY LTD
Respondent:
OIL TAXATION - Allowable expenditure - Marine vapour recovery system - Whether expenditure incurred in bringing an asset into existence - Whether incurred in enhancing value of an asset - Whether incurred for purpose of initial treatment (safe loading) - Whether incurred for purpose of initial treatment (separating gas from oil) - Whether incurred for purpose of transportation of oil to place of delivery - Whether incurred for purpose of disposing of oil - OTA 1975 ss.3 and 12 and OTA 1983 s.3(1)
Case: SPC00253 (Adobe PDF file size 103KB)
Appellant: SPORTS CLUB (1) EVELYN (2) JOCELYN (3)
Respondent:
INCOME TAX - Schedule E - players employed by a sports club under service agreements - payments also made by club to companies under promotional agreements and a consultancy agreement - whether payments under promotional agreements and consultancy agreement were emoluments from the employments of the players - whether such payments were benefits in kind - whether some payments were made with a view to the provision of pension benefits - appeal allowed - Taxes Act 1988 ss 19, 154 203 and 595
Case: SPC00252 (Adobe PDF file size 62KB)
Appellant: LEONARD KAY BILLOWS
Respondent:
CAPITAL GAINS TAX - Gift of unquoted shares by donor to his children - Failure of donor to notify Inland Revenue of gift of shares in his return - Extended time limit assessments raised by Inland Revenue - Whether donor's failure to notify amounted to negligence - Valuation of those shares - appeal dismissed -Section 36 Taxes Management Act 1970; sections 150 and 152 Capital Gains Tax Act 1979
Case: SPC00250 (Adobe PDF file size 23KB)
Appellant: DR RUDOLPH B SINGH
Respondent:
INCOME TAX - Retired medical practitioner - Receipt of occupational pension - Claim for deduction of subscription to the General Medical Council - Whether receipt of pension payments is receipt of an emolument - Sections 19, 131, 134, 198 and 201 Income and Corporation Taxes Act 1988
Case: SPC00249 (Adobe PDF file size 35KB)
Appellant: AMERADA HESS LTD
Respondent:
PETROLEUM REVENUE TAX - Claim to allowance for expenditure on the drilling of unproductive wells - Unproductive exploration wells drilled within 5000 metres of the boundary of an existing formally determined oilfield - Whether the exploration expenditure needed to be incurred for a "field purpose" - appeal allowed - Section 3(1)(a) Oil Taxation Act 1975
Case: SPC00248 (Adobe PDF file size 57KB)
Appellant: BULLRUN INC
Respondent:
CORPORATION TAX - deductions - payment made for surrender of onerous lease - whether lease was a capital asset - whether expenditure was of a capital or revenue nature - appeal dismissed - ICTA 1988 Ss 18 and 74
Case: SPC00246 (Adobe PDF file size 29KB)
Appellant: Jonathan Marsden
Respondent:
Capital Gains Tax - Error or mistake - Sale of restaurant - Consideration partly in cash and partly in shares - Whether some of the shares were worthless - Whether the Appellant's claim to relief was made out of time - Appeal dismissed - Section 33 Taxes Management Act 1970
Case: SPC00246 (Adobe PDF file size 29KB)
Appellant: Jonathan Marsden
Respondent:
Error or mistake - Sale of restaurant - Consideration partly in cash and partly in shares - Whether some of the shares were worthless - Whether the Appellant's claim to relief was made out of time - Appeal dismissed - Section 33 Taxes Management Act 1970
Case: SPC00245 (Adobe PDF file size 35KB)
Appellant: Lawrence Michael O'Brien
Respondent:
Income Tax - Payments on retirement or removal from office - availability of "top-slicing" relief - meaning of "made in pursuance of an obligation incurred" - case that "obligation" included provision made during employment for early retirement rejected - history of legislation examined - appeal dismissed
Case: SPC00237 (Adobe PDF file size 76KB)
Appellant: AB BANK
Respondent:
Corporation Tax - LOSS RELIEF - Loans by bank to leasing subsidiary - Whether for the purposes of the bank's business or in its capacity of shareholder - Appeal allowed
Case: SPC00238 (Adobe PDF file size 37KB)
Appellant: DR GEOFFREY JOHN LONGSON
Respondent:
CAPITAL GAINS TAX - Private residence exemption - Whether gain on sale of house exempt - Extent of "the permitted area" -Appeal dismissed - Section 222 Taxation of Chargeable Gains Act 1992
Case: SPC00239 (Adobe PDF file size 259KB)
Appellant: Halifax Plc
Respondent:
Corporation Tax - DEDUCTION IN COMPUTING PROFITS - Expenditure wholly and exclusively laid out for the purposes of trade etc - Purpose of expenditure - Dual purpose - Conversion of building society into listed bank - Advisory and other costs - Whether incurred for purposes of subsidiaries' trades - No - Whether incurred partly to release value to members - No - Whether incurred partly to secure merger with another building society - No -Whether incurred partly to make shareholders members - No -Appeal allowed - Income and Corporation Taxes Act 1988 s74(1)(a) DEDUCTION IN COMPUTING PROFITS - capital or revenue expenditure - Conversion from building society to listed bank - Whether payments for advisory and other services capital or revenue expenditure- Revenue - Whether statutory cash bonuses were capital or revenue expenditure - Capital - Appeal allowed in part - Income and Corporation Taxes Act 1988 s.74(1)(f)
Case: SPC00240 (Adobe PDF file size 83KB)
Appellant: Woolwich Plc
Respondent:
Corporation Tax - DEDUCTION IN COMPUTING PROFITS - Expenditure wholly and exclusively laid out for the purposes of trade etc - Purpose of expenditure - Dual purpose - Conversion of building society into listed bank - Advisory and other costs - Whether incurred for purposes of subsidiaries' trades - No - Whether incurred partly for non-trade purpose of releasing value to members - No - Whether incurred for non-trade purpose of protecting against take-over - No - Whether incurred for non-trade purpose of making members who were customers into shareholders - No - Income and Corporation Taxes Act 1988 s.74(1)(a) DEDUCTION IN COMPUTING PROFITS - Capital or revenue expenditure - Capital withdrawn from trade - Conversion from building society to listed bank - Whether payments from advisory and other services capital or revenue expenditure - Revenue - Whether statutory cash bonuses capital expenditure - Capital - Appeal allowed in part - Income and Corporation Taxes Act 1988 s.74(1)(f)
Case: SPC00241 (Adobe PDF file size 84KB)
Appellant: Northern Rock
Respondent:
Corporation Tax - DEDUCTION IN COMPUTING PROFITS - Expenditure wholly and exclusively laid out for the purposes of trade etc - Purpose of expenditure - Dual purpose - Conversion of building society into listed bank - Advisory and other costs - Whether incurred for purposes of subsidiaries' trades - No - Whether incurred partly to release value to members - No - Whether incurred partly to secure merger with another building society - No - Whether incurred partly to transform members who were customers into shareholders - No - Income and Corporation Taxes Act 1988 s74(1)(a) DEDUCTION IN COMPUTING PROFITS - Capital or revenue expenditure - Capital withdrawn from funds - Conversion from building society to listed bank - Establishment of charitable foundation - Whether payments for advisory and other services capital or revenue expenditure - Revenue - Whether statutory cash bonuses capital expenditure - Capital - Appeal allowed in part - Income and Corporation Taxes Act 1988 s.74(1)(f)
Case: SPC00242 (Adobe PDF file size 74KB)
Appellant: Alliance and Leicester Plc
Respondent:
Corporation Tax - DEDUCTION IN COMPUTING PROFITS - Expenditure wholly and exclusively laid out for the purposes of trade etc - Purpose of expenditure - Dual purpose - Conversion of building society into listed bank - Advisory and other costs - Whether incurred partly for purposes of subsidiaries' trades -No - Whether incurred partly to release value to members - No - Whether incurred partly to resolve proprietory interests of members - No -Income and Corporation Taxes Act 1988 s.74(1)(a) DEDUCTION IN COMPUTING PROFITS - Capital or revenue expenditure - Conversion of building society to listed bank - Whether payments for advisory and other services capital expenditure - No - Whether statutory cash bonuses capital expenditure - Yes - Appeal allowed in part - Income and Corporation Taxes Act 1988 s 74(1)(f)
Case: SPC00244 (Adobe PDF file size 36KB)
Appellant: Maurice Keith Padmore (No.2)
Respondent:
Corporation Tax - Double taxation relief - Schedule D Case V - Whether income of a UK resident partner in a Jersey partnership from the partnership trade is exempt from UK tax as the commercial profits of a Jersey enterprise - Whether the result of the appeal is affected by the enactment of section 62 Finance (No.2) Act 1987, (now section 112 Income and Corporation Taxes Act 1988) - Section 497(1) Income and Corporation Taxes Act 1970 (now Section 788(3) - Appeal dismissed - Income and Corporation Taxes Act 1988)
Case: SPC00243 (Adobe PDF file size 45KB)
Appellant: Roger Denis Newman & Colin John Newman
Respondent:
Capital Gains Tax & Income Tax - Execution by the owner of farm land likely to be the subject of a housing development of a Trust Deed constituting a bare trust in his favour - Subsequent execution by the owner of the land of Deeds of gift of shares in the net proceeds of sale to arise from the said land in favour of the owners' children - Subsequent grant of an option to purchase the said land to a developer - Subsequent exercise of the option to purchase the said land by developers - Receipt of part of the proceeds of sale by the Appellants - Whether a hold over election alleged to be signed by the Appellants is genuine or a forgery - Whether a clause contained in a legal charge executed by one of the developers exonerated the Appellants from liability to pay capital gains tax - Whether the Appellants were liable to be assessed to income tax on sums which they received from the developer after the development had commenced - Section 46(1) Capital Gains Tax Act 1979 - Section 776(2) Income and Corporation Taxes Act 1988
Case: SPC00233 (Adobe PDF file size 26KB)
Appellant: Rory Carr Carrvill
Respondent:
Income Tax - Prevention of avoidance - transfer of assets abroad - whether defence in TA 1988 s.741 applies - whether test is subjective or objective - subjective - formation of Bermuda holding company - whether bona fide commercial transaction not designed for tax avoidance - whether various transactions are associated operations - whether an individual can be the transferor of assets made by another individual - appeal allowed - TA 1988 s.739, 741
Case: SPC00236 (Adobe PDF file size 33KB)
Appellant: The Manufacturers' Life Assurance Co Ltd
Respondent:
Corporation Tax - Close company - investment company - loans to associate of participator - whether loans in ordinary course of business - Appeal Allowed. ICTA 1988 s.419(1)
Case: SPC00234 (Adobe PDF file size 34KB)
Appellant: The Deanby Investment Co Ltd
Respondent:
Corporation Tax - Non-resident life assurance company carrying on business in the United Kingdom through a United Kingdom branch - Holding by that insurance company of a portfolio of United Kingdom Government securities - Whether such United Kingdom Government securities were exempt from tax in the hands of the non-resident life insurance company - The chargeable profits of the non-resident life insurance company fell to be assessed on the I minus E basis - Whether such computation of chargeable profits for Corporation Tax purposes on the I minus E basis was a computation for taxation purposes of the profits of any trade or business carried on in the United Kingdom - Appeal Dismissed. Section 47 Income and Corporation Tax Act 1988
Case: SPC00232 (Adobe PDF file size 26KB)
Appellant: A LANCASTER
Respondent:
ICTA 1988 s.353, s.362, s.787 - Whether transactions effected to obtain reduction in tax, interest claimed on loan to spouse of identical sum transferred as a gift by him to other spouse, whether money advanced to partnership - Circular transaction - Appeal refused
Case: SPC00231 (Adobe PDF file size 47KB)
Appellant: OCÉ VAN DER GRINTEN NV
Respondent:
DOUBLE TAXATION - Relief - EC "Parent-Subsidiary" Directive - Dividends paid by UK corporation to Netherlands parent corporation - Tax credit abated by 5% of the aggregate of dividend and tax credit by operation of Double Taxation Treaty - EC Directive requires profits distributed to parent company by subsidiary to be exempt from withholding tax - Whether exemption extends to 5% abatement - Whether the 5% is a withholding tax on distributed profits - Whether UK's right to abate payment to parent corporation by 5% preserved by Directive - Whether Directive invalid because of lack of explanation and consultation - UK- Netherlands Double Taxation Convention art 10(3)(a)(ii) and (c) - Council Directive 90/435 EEC arts 5.1 and 7.2 - Questions referred to ECJ
Case: SPC00230 (Adobe PDF file size 43KB)
Appellant: JOSEPH LAVERY
Respondent:
INCOME TAX - Schedule E - Claim to foreign earnings deduction - Taxpayer employed on a mobile offshore drilling unit - Whether taxpayer employed as a seafarer - Whether the mobile offshore drilling unit on which he was employed was a ship - Section 193 and Schedule 12 para 3(2A) Income and Corporation Taxes Act 1988
Case: SPC00226
Appellant: MRS E R BECKMAN
Respondent:
INHERITANCE TAX Partnership - whether retired partner has an interest in a partnership constituted under the Partnership Act 1890 - Inheritance Tax Act 1984 ss.104(1)(a) and 105(1)(a) - appeal dismissed
Case: SPC00224 (Adobe PDF file size 18KB)
Appellant: SELF ASSESSED (No.2)
Respondent:
SELF-ASSESSMENT - Notice by the Inspector to the taxpayer calling for documents - Validity of notice - Acceptance by the Inspector that the notice had been complied with and that no penalties could be imposed upon the taxpayer - Whether the appeal should continue - Application for costs by the taxpayer - Taxes Management Act 1970 section 19A
Case: SPC00223 (Adobe PDF file size 37KB)
Appellant: PAUL WILLIAM SANCROFT GRIMWOOD-TAYLOR
Respondent:
INHERITANCE TAX - Exempt transfers and relief - Business property - Relevant business property - Shares held by Deceased in two companies - Whether the business carried on by the companies was excluded from business property relief as consisting wholly or mainly of one or more of dealing in securities, stocks or shares, land or buildings or making or holding investments - Whether the relevant companies were, with one or more other companies members of a group - Whether the business of the company or either of them was carried on otherwise than for gain - Inheritance Tax Act 1984 Sections 103, 104, 105, 111 and 112
