HMRC Tax Tribunal Victories, Tax Tribunal Decisions

HMRC has recorded three tribunal victories against the users and promoters of tax avoidance schemes. The victory is estimated to be worth more than £260m in tax to HMRC.

Despite appeals from the defendants heard by the Upper Tribunal, the rulings upheld the original judgments in the First-Tier Tax Tribunal.

One ruling saw the HMRC claim victory in two cases relating to tax avoidance schemes developed and sold by banks for substantial fees. The tax avoidance schemes were developed to provide investors with tax-free higher returns on their deposits.

In this instance, the court joined the two separate cases given the similarity between the schemes.

In the other case, an appeal was brought by the investors in a tax avoidance scheme that was promoted by NT Advisers. Again, HMRC claimed victory as the appeal was dismissed by the court.

The scheme in this case was developed to create artificial losses in order to offset tax by using a combination of the employment income and capital gains tax rules on share options.

This is the ninth and most recent victory for HMRC against tax avoidance schemes promoted by NT Advisers.

In the recently announced Budget, George Osbourne outlined additional plans to clampdown further on tax avoidance in the UK, including the early closure of the Liechtenstein Disclosure Facility (LDF) and the announcement of additional tax disclosure facilities.

The latest victories for HMRC will go some way to supporting this goal and also outlines the robust approach to serious tax avoidance and evasion in order to reduce the tax deficit.

HMRC will continue to try and close the net on those it suspects of tax avoidance or, more seriously, tax evasion, and for many individuals, the time to act is now in order to avoid criminal prosecution and potentially reduce your penalties.

To discuss your tax position in complete confidence with our tax investigations professionals call us on 0113 387 5670 or fill out an Enquiry Form and we will get back to you straight away.