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First-tier Tax and Upper Tribunals


(1) Anthony Hancock, (2) Tracy Lee Hancock and HMRC [2014] UKFTT 695 (TC) 

Capital gains tax – redemption of qualifying corporate bonds (QCBs) - scheme to avoid the application of s 116, TCGA to a conversion of non-QCBs into QCBs – s 116(1)(b) - whether a single conversion of non-QCBs and QCBs into QCBs or two separate conversions – whether the conversion and redemption should be treated as a single composite transaction of the disposal/redemption of non-QCBs – the Ramsay principle


Shabhaz, R (On the Application Of) v Secretary of State for the Home Department [2014] EWHC 2038 (Admin)


NHS Lothian Health Board v Revenue & Customs [2014] UKFTT 258 (TC)

Value Added Tax – Capital expenditure – recovery of residual input tax – VATA 1994, Ss 25 & 26 - Fleming rule/Section 121 FA 2008 – VAT Regulations 1995, nos. 101 & 102 - principles of quantification – onus and standard of proof


NHS Dumfries & Galloway Health Board v Revenue & Customs [2014] UKFTT 242 (TC)

Value Added Tax – (1) Recoverable output tax – Fleming rule/Section 121 FA 2008 – Principles of quantification– (2) Whether original claim susceptible of amendment – No; - Appeal allowed in part


St George’s Healthcare NHS Trust v Revenue & Customs [2014] UKFTT 170 (TC)

VAT Input tax- Fleming claim


Weston v Revenue & Customs [2014] UKFTT 11 (TC)

CAPITAL GAINS TAX – negligible value claim – asset a certificate of deposit denominated in sterling in an overseas bank which accounted in US dollars – the bank went into administration and later liquidation and was the subject of a complaint by the Securities and Exchange Commission alleging fraud – whether asset was a debt denominated in sterling – held it was – whether the appellant’s claim in the liquidation in respect of the CD was a separate asset for CGT purposes – held it was not – appeal dismissed


Hills & Anor v Revenue & Customs [2014] UKFTT 646 (TC)

VATA 1994 Sch 10 – lease and sale by pension trustee – retrospective acceptance of option to tax land – whether sale grant made by person exercising option – whether prior permission needed – revised texts of Sch 10 – appeal dismissed


The Club Company (UK) Ltd v Revenue & Customs [2014] UKFTT 576 (TC)

Application to strike out – does the appeal have a reasonable chance of succeeding – no – should the appeal be stayed – no – appeal struck out


North Weald Golf Club v Revenue & Customs [2014] UKFTT 130 (TC)

PROCEDURE – application for permission to amend grounds of appeal – delay in making application – relevance and merits of new grounds of appeal


Thomas Estates Ltd (t/a Beacon Bingo) v Revenue & Customs [2013] UKFTT 662 (TC)
BINGO DUTY – whether charges levied by operator of bingo clubs were “bingo receipts” – deduction of a sum calculated to be in respect of admission charges – s 19 of the Betting, Gaming and Duties Act 1981


Franck & Tobiesen (UK) Ltd v Revenue & Customs [2013] UKFTT 648 (TC)
Import VAT – importer was agent not principal – is onward supply relief available – no –were post clearance demands correct – yes - was penalty notice correctly issued – yes - appeals dismissed.


Macklin v HMRC[2013] UKFTT 554 (TC)

Whether the World Bank's retirement scheme was ‘established in the US’ for the purposes of the UK-US tax treaty, articles 3(1)(o) and 17(1)(b), so that UK resident former employees are eligible for relief from UK income tax. The appeal involves interpretation of the treaty establishing the World Bank, its relationship with US law, and interpretation of the UK-US tax treaty. One of very few cases around the world address taxation and International organisations. Key issues include admissibility of evidence on treaty meaning, expert evidence on foreign tax law, principles of tax treaty interpretation.


Appeal to Upper Tribunal to be heard.

Counsel for Appellant: Jonathan Schwarz


Roger Skinner Limited v R&C Commrs [2012] UKFTT 525(TC), representing the taxpayer company, led by Michael Conlon QC. The case was a claim for VAT repayment based on whether the company’s products were standard rated or zero rated; the taxpayer won the case at the FTT; HMRC appealed to the UT and in May 2014 the taxpayer again succeeded, see


European Tour Operators Association v Revenue & Customs [2014] UKFTT 213 (TC)

VAT – Exempt services – Item 1(d) of Group 9 of Schedule 9 VATA 1994 – Whether membership subscriptions of a trade association constitute exempt supplies – Matter remitted by Upper Tribunal for reconsideration – Appeal allowed


Astral Construction Ltd v Revenue & Customs [2013] UKFTT 374 VAT – zero rating – building work – construction of residential care home integrating existing church – whether taken out of zero rating by being works of enlargement, extension, or conversion – Value Added Tax Act 1994 Schedule 5 Group 8 Item 2 – appeal allowed



KDM Internation Ltd v Revenue & Customs [2013] UKFTT 315

Allchin v Revenue & Customs [2013] UKFTT 198 (TC)

Stamp Duty Land Tax – Sub-sale Relief – s45 FA 2003. Whether tax mitigation scheme qualified for relief – No. Whether discovery assessment valid – Yes. Appeal dismissed


Copthorn Holdings Ltd v Revenue & Customs [2013] UKFTT 190 (TC)

VAT – group of companies – mistaken assumptions that two companies were part of existing group registration – transactions undertaken by VAT group members with those companies – assessments made in respect of supplies – applications made for retrospective group registration of those companies – applications refused – whether Tribunal has jurisdiction to consider such appeals – yes – nature of jurisdiction as in John Dee – different jurisdiction where outright refusal of application explicitly on grounds of protection of revenue – nature of HMRC’s powers under s 43B(4) VATA 1994 – factors to be taken into account in considering “retrospective” applications – discretion open, and not to be constrained by HMRC’s published guidance – held, as HMRC had not acted within terms of s 43B(4), applications must be remitted to them for reconsideration

Option to tax – whether exercised – on facts, yes – application for belated notification refused – not established that HMRC could not reasonably have been satisfied that there were grounds for refusal

Misdeclaration penalty – held, to be confirmed in amount assessed, subject to result of reconsidered group registration application

Procedure – outcome of appeals dependent on result of relevant group registration application – time limit for further appeals adjusted


Noble v Revenue & Customs [2012] UKFTT 760 (TC)

VALUE ADDED TAX – Edwards v Bairstow - whether First-tier Tribunal erred in law in finding that that supplies shown on invoices did not take place - no - appeal dismissed



Goodman Equine Ltd v Revenue & Customs [2012] UKFTT 565 (TC)

VAT – input tax claim refused – horse trading - is business test satisfied - no


Mark Allan v HMRC [2013] UKFTT 142 (TC)

APPLICATION TO STRIKE OUT – Tribunal Procedure - First-tier Tribunal) (Tax Chamber) Rules 2009 rule 8(3)(c) — whether decision of Court of Appeal was per incuriam - no– whether taxpayer had an arguable case under the European Convention – no — application granted


Julian Martin v HMRC [2013] UKFTT 040 (TC)

INCOME TAX - Liability of employee under his employment contract to refund a proportion of a taxable Signing Bonus when the employee gave notice to resign prior to the end of the period for which the employee had committed to remain an employee - whether repayment “negative Taxable Earnings” - Appeal allowed

HMRC v Mertrux [2012] UKUT 274 (TCC)

Capital gains tax - claim by Respondent for roll-over relief basis that gain arising on sale of business was wholly in respect of goodwill - HMRC disallowed part of Respondent's claim on ground that part of consideration for sale was compensation for termination of car dealership - FFT allowed appeal - HMRC appealed on ground that FFT erred in law and reached conclusion not available on facts - appeal allowed - This case is now going to the Court of Appeal.

Boyer Allan Investment Services Ltd v HMRC [2012] UKFTT 558 (TC)

Corporation tax - discovery assessment - whether invalid - Appellant made contributions to an employee benefit trust - following Dextra - whether the Appellant's company tax return for the year ended 30 April 2000 was in fact made on the basis or in accordance with the practice generally prevailing when it was made

Segesta Ltd (formerly Blackpool Football Club Properties Ltd) v HMRC [2012] UKUT 176 (TCC)

Capital Gains Tax - (CGT) - Enterprise Investment Scheme (EIS) - reinvestment relief - TCGA 1992, Sch 5B -whether subscription for eligible shares - whether amount received by subscriber in relevant period was repayment of debt within Sch 5B - nature of conditions to be satisfied for entitlement to reinvestment relief

Chipping Sodbury Golf Club & Others v HMRC [2012] UKFTT 557 (TC)

VAT - sporting exemption for golf clubs - Article 13A (1)(m) Sixth Directive - members' subscriptions - single supply or multiple supplies - Card Protection Plan considered - held single supply 0 profit making proprietary club s - whether entitled to exemption - no - appeals dismissed

Alchemist Film Devil's Gate Film Partnership v HMRC TC/2010/01680 FTT

FILMS - Relief for expenditure on production - Deferments - unconditional obligation to pay - contracts between production company and individual members of production team - claim for relief by Partnership - Deferred amounts payable to cast and crew as and when exploitation income was received from sales agent - no exploitation income received by Partnership in year of claim - whether agreement between production company and Partnership transferred obligation to pay deferments to Partnership - whether unconditional obligation to pay deferments in year of claim - appeal dismissed - F (no 2) A 1992 s.42 and F (no 2) A 1997 s.48 - CAA 2001 s.5(1) and (5)

McLaren v HMRC [2012] UKFTT 601 (TC)

Corporation tax - computation of trading profits - s 74 TA 1988 deductibility of penalty imposed by motoring organisation and not by statute - appeal allowed


The Queen on the application of Capital Accommodation (London) Limited (In Liquidation) v HMRC [2012] UKUT 276 (TCC)

Adjustment for errors in VAT returns under regulations 35 of the VAT regulations 1995 - exercise of discretion by HMRC - time limits for correcting errors in VAT returns - time limits for reclaiming overpaid VAT

AH Field (Holdings) LTD v Revenue & Customs [2012] UKFTT 104 (TC)

Finance Act 1996 Schedule 9 paragraph 13 - whether loans made by the Appellant has an unallowable purpose - equity exchanged for shareholder debt - tax advantage main or one of main purposes - appeal dismissed

PDSA v HMRC [2012] UKFTT 362 (TC)

VAT - Input Tax - The Appellant a "not for profit" incorporated Society providing welfare and charitable services for sick and injured animals - was the Appellant entitled to recover VAT on veterinary fees - No - the Pet AID Scheme was a non-economic activity - the veterinary supplies made to the pet owners not to the Appellant - Appeal dismissed

Roden v HMRC [2012] UKFTT 586 (TC)

VAT - let of hotel accommodation by undisclosed agent - deemed supply by and to agent under s47 (3) VATA - whether deemed supply to agent necessarily has same VAT status as seemed supply by agent - no - whether Item 1(d) of Group 1 to Schedule 9 VATA only exempts supplies to physical user of accommodation - no - appeal allowed in principle

TNT (UK) Limited v HMRC [2012] UKUT 49 TCC

Customs Duties - post clearance demand - goods imported using simplified inward processing relief system - appellant acting as importer's or purported importers agent - import declarations submitted by appellant incorrect by reason of importer providing false identity - no bills of discharge provided - whether appellant liable for payment of duty and VAT - yes - appeal dismissed

Vehicle Control Services v HMRC [2012] UKUT (TCC) & [2012] UKUT 130 (TCC)

VAT - supply of parking services - whether parking charges collected and retained by operator were consideration for a supply - whether outside the scope of VAT as damages for trespass or damages for breach of contract between the operator and the motorist - whether additional consideration payable by landowner for provisional of parking control services - appeal dismissed

SHS International Limited v HMRC [2012] UKFTT 134 (TC)

Customs Duties - tariff classification - post clearance demand note - amino acid premixes imported from USA - whether to be classified as medicament (Chapter 30) or food preparations (Chapter 21) - product to be classifies under Chapter 30 as medicaments

PS Gill & Son (UK) Ltd v HMRC [2012] UKFTT 374 (TC)

VAT - MTIC fraud - contra trading - whether fraudulent VAT evasion established - only in relation to some defaults - whether connection to fraud established - yes, both directly and through contra trader - whether Appellant should have known the connection - yes - appeal dismissed

My Secrets Ltd v HMRC [2012] UKUT 173 (TC)

VAT - alleged MTIC fraud - whether the Appellant knew or ought to have known that its transactions were connected with the fraudulent evasion of VAT - whether HMRC were able to prove that in relation to the relevant transactions there had been a fraudulent evasion of tax. Allowed in part.

HMRC v European Tour Operators Association FTC/36/2011 [2012] UKUT 377 (TCC)

VAT - Exempt services - Item 1(d) of Group 9 of Schedule 9 VATA 1994 - Whether membership subscriptions of a trade association constitute exempt supplies - Case remitted to First-tier Tribunal for further findings of fact - Appeal allowed to that extent

Cameron Black (London) Ltd v HMRC [2012] UKFTT 257 (TC)

VAT section 35 VAT Act 1994 - the DIY Refund Scheme - HMRC refused the claim by the Appellants for a VAT refund on the grounds that at the time the development took place the correct statutory planning permission was not in place - appeal dismissed

Aberdeen Asser Management Plc v HMRC [2012] UKUT 43 (TCC)

Income tax: emoluments; tax avoidance scheme; transfer of shares; whether a payment - No; whether shares a readily convertible asset - Yes; Appeal Dismissed

Eclipse Film Partners No 35 LLP v HMRC [2012] UKFTT 270 (TC)

Income tax - limited liability partnership acquired licence to film rights and sub-licensed righst to distributor - complex financing arrangements involving loans to members of the partnership and defeasance deposit by the distributor - whether partnership carrying on a trade (a precondition for members to claim relief for a prepayment of interest on their borrowings) - s362 Taxes Act 1988 - whether the arrangements as a whole were designed to give a series of pre-determined cash flows with object of giving members allowable interest payments - whether licensing of film rihts was a trading activity - partnership not carrying on a trade but a non-trade business - appeal dismissed.


Deluca v Revenue & Customs [2011] UKFTT 579
COSTS – unreasonable conduct – HMRC sought to make employee liable for tax – PAYE regs required them to make employer liable – circumstances in which employee could be made liable were not present – direction that HMRC should make contribution to employer/applicant’s costs of successfully appealing in Trib.Proc (FTT)(Tax Chamber) Rules 2009 r.10(3)(a)


David Southern appeared for the Appellants.


Audley v Revenue & Customs [2011] UKFTT 219 (TC)

Income tax - Schedule 13 Finance Act 1996 – loss claimed on disposal of a relevant discounted security – house and cash transferred to family trust and loan note issued to settlor - tax avoidance scheme – purposive interpretation of the legislation – realistic view of the transaction – transfer of assets to trustees was mostly a gift and not part of the amount paid in respect of the acquisition of the security – Appeal dismissed


Richard Bramwell QC appeared for the Appellants.

Mark Stolkin v HMRC [2011] UKFTT 831 (TC)

Capital Gains Tax - Relationship between Enterprise Investment Scheme relief and taper relief in relation to properties that had been part used for business purposes and part for non-business purposes and properties used for part of the period of ownership for business purposes and part for non-business purposes - Appeal allowed


Michael Sherry appeared for the Appellants.


Abdul Omar and The Commissioners for Her Majesty's Revenue and Customs - [2011] UKFTT 722 (TC)

INCOME TAX - whether the second condition in s29(5) TMA 1970 has been met – Yes – assessments validly made


Michael Sherry appeared for the Appellants.



TLD LTD v Commissioners of South Africa Revenue Service - Case 2441 28, October 2010.

Jonathan Schwarz was instructed with Peter Solomon SC and Julia Boltar of the Johannesburg Bar in the South African Tax Court. The case concerned the application of article 13 of the Luxemburg-South Africa tax treaty to exit tax on deemed disposal, the meaning of permanent establishment in that treaty and in South African domestic law.

Jonathan Schwarz appeared for the Appellants.


Pertemps Limited v HMRC [2011] UKUT B8 (TCC)

Jonathan Schwarz appeared for the taxpayer in this appeal to the Upper Tribunal on whether payments made by mistake are receipts of a trade and concerned the meaning of trade and the application of Generally Accepted Accounting Practice.


Jonathan Schwarz appeared for the Appellants.

Western Ferries Limited v HMRC [2011] UKFTT 243

Michael Conlon QC and Jonathan Schwarz appeared for the taxpayer. This was the first appeal on tonnage tax in FA 2000 Schedule 22 and concerned whether ferries operated in the Firth of Clyde qualified for tonnage and the meaning of “qualifying vessel”, sea, estuary and harbour.


Michael Conlon QC and Jonathan Schwarz appeared for the Appellants.


Williamson Tea Holdings Ltd v Revenue & Customs [2010] UKFTT 301 (TC)

Disposal of a substantial shareholding by a company - exemption from corporation tax under Sch 7AC TCGA 1992 – whether a non-compete agreement pursuant to share sale agreement and for which part of agreed share sale price had been apportioned should be treated as a separate sale or deemed disposal of goodwill and therefore taxable as a corporate chargeable gain under s.22 TCGA


Finmeccanica Group Services SPA v Revenue & Customs TC/2010/8647