Hanson v HMRC [2012] UKFTT 95 (TC)
May 2012 #119Joseph Nicholas Hanson (the appellant) appealed against a notice of determination dated 3 October 2005 that had determined that a farmhouse occupied by the appellant as his home at 11 The Green, Great Horwood, Milton Keynes (the house) was not agricultural property for the purposes of inheritance tax relief. HMRC’s position was that the required nexus between a farm building and agricultural land was common ownership and common occupation. The appellant submitted that the required nexus was common occupation only. It was further submitted by the appellant that his father, Joseph Ch...
Pawson (dec’d) v HMRCC [2012] UKFTT 51 (TC)
May 2012 #119The appellants were the personal representatives of Nicolette Vivian Pawson (Mrs Pawson) and appealed against a notice of determination dated 1 October 2008. The notice had determined that Mrs Pawson’s 25% interest in a property known as Fairhaven, Thorpeness, Suffolk (Fairhaven) was subject to inheritance tax on a deemed disposal at the date of her death. The appellants contended that Fairhaven was entitled to relief as a relevant business property. Fairhaven was a large bungalow overlooking the sea in a holiday area. It had made a profit for each year since 2003, save for 2005/06...
Watkins & anor v HMRC [2011] UKFTT 745 (TC)
May 2012 #119The appellants were the personal representatives of Mrs Kathleen Mary Watkins (the deceased) who died on 18 March 2006 aged 91 years and one day. On 21 December 2004, when she was 89 years and 9 months, the deceased settled her 50% interest in a Royal Skandia Collective Redemption Bond obtained for a premium of £340,000 (the settlement). The deceased’s sons David and Keith were appointed as trustees of the settlement.
The settlement was divided into two funds, ‘the settlor’s fund’ for the absolute benefit of the deceased and ‘the residual fund’ ...
Burgess & anr v Hawes & ors [2011] UKFTT 687 (TC)
April 2012 #118Zoe Hamar (Z) was notified of an assessment to capital gains tax (CGT) for 2002/03 under s282 of the Taxation of Chargeable Gains Act (TCGA) 1992, in a letter dated 18 August 2009. Prior to that date she had been unaware of the liability that arose from her father, Mr Rogerson (R)’s transfer of three flats to her, one in 2001/02 and two in 2002/03. These transfers gave rise to a CGT liability which was unpaid at his death in June 2003. Following an enquiry by HMRC into R’s tax returns, an amendment was made to his 2002/03 return on 25 July 2007 and, although...
Rogge & ors v HMRCC [2012] UKFTT 49 (TC)
April 2012 #118There were three joined appeals, namely that of R who had paid interest under a loan to the trustees of a trust of which he was the settlor and those of K and the trustees of a trust in which K, the settlor, was interested. K had paid rent to the trustees of a trust under which he was a settlor and of which he was the life tenant. All appealed income tax assessments on the basis that it is impossible for a taxpayer to be taxed on his own expense. Parliament could not have intended s660A(1) of the Income and Corporation Taxes Act 1988 to have this effect. Section 660...
Erdal v HMRCC [2011] UKFTT 87 (TC)
December 2011 #115E owned shares in a company involved in the manufacture of paper. E owned 17,131 ordinary shares and 53,476 A shares in the company. A charitable trust owned the majority shareholding in the company and the terms of the trust meant that it was unlikely that the company would ever be floated. The A shares were non-voting. The company’s articles restricted the sale or other transfer of the company shares.
The question at issue was the value of those shares as at 31 March 1982 for the purposes of Capital Gains Tax (CGT). E appealed against assessments in respect of CGT in the ...
Lawson v HMRCC [2011] UKFTT 346 (TC)
December 2011 #115The appellant appealed from an amendment to self assessment for the year ended April 2006. Between February 2002 and August 2005 the appellant had been the sole legal owner of a property. The appellant had calculated her capital gains tax liability on the basis that she and her husband were each entitled to claim annual capital gains tax exemption because they were joint beneficial owners. HMRC opened an enquiry and determined that the appellant was the sole beneficial owner. A review affirmed the determination on the basis that:
- (a) sole legal title was vested in the appel...
Atkins, The Executors of v HMRCC [2011] UKFTT 468 (TC)
December 2011 #115David Atkins (the deceased) had been a Lloyd’s ‘name’ and, during the final year prior to his death, he had made a loss which was disclosed in his tax return. However, there existed a special reserve account for the purpose of meeting anticipated claims and it was the accepted practice that the balance was deductible from what would otherwise have been profits of particular years or subjected to tax if and when subsequently released. While ordinarily income accruing to the executors would be taxed at 20%, legislation provided for any relief to be added back to the ...
Hok v HRCC [2011] UKFTT 433 (TC)
November 2011 #114On 27 September 2010 HMRC sent H Ltd a penalty notice in the sum of £400 on the basis that H Ltd had failed to file its employer’s end of year annual returns by 19 May 2010. The penalty was calculated at £100 per month for four months. On 21 October 2010 a further penalty notice in the sum of £100 was issued given that the necessary filing had taken place on 15 October 2010 once H Ltd had been alerted to its default.
H Ltd acknowledged that it did not comply with the duty to file the returns. It did so because it believed that as its only employee had ceased employment part ...