½Û×ÓÊÓƵ

Weekly case highlights ― 17 March 2025

Produced by a Tolley Owner-Managed Businesses expert
Owner-Managed Businesses
Guidance

Weekly case highlights ― 17 March 2025

Produced by a Tolley Owner-Managed Businesses expert
Owner-Managed Businesses
Guidance
imgtext

Income tax

Lynch v HMRC

This are a number of distinct features in this case, and it should be studied carefully by all who are interested in the courts’ approach to tax avoidance.

The taxpayer here took part in several rounds of a marketed avoidance scheme which was designed to produce a loss in the form of interest relief. It was however accepted by all parties that the interest relief claim failed because it was caught by the main benefit test.

The dispute was about the interest receivable element of the scheme. The taxpayer argued that the entire structure should be disregarded on Ramsay grounds and therefore no tax liability arose on the interest. HMRC disagreed and applied what the court called a ‘single transaction view’ under which it argued that the interest received (which took the form of a discount) should be treated separately. There was, it argued, no reason to disregard this taxable income because of the failure to obtain interest relief.

The tribunal agreed and accepted that a tax charge arose.

Continue reading the full document
To gain access to additional expert tax guidance, workflow tools, and tax research, register for a free trial of Tolley+â„¢
Powered by
  • 17 Mar 2025 15:10

Popular Articles

Allowable expenses for property businesses

Allowable expenses for property businessesGeneral itemsMany of the principles applying to allowable expenses for property businesses are similar to those that apply for trading and the rules for individuals in a property business are generally the same as for companies with some exceptions which are

14 Jul 2020 13:26 | Produced by Tolley in association with Rob Durrant-Walker of Crane Dale Tax, part of AMS Group Read more Read more

Fuel-related payments / mileage payments

Fuel-related payments / mileage paymentsIntroductionMost employers will make payments to employees in relation to business travel. Among the most common payments in relation to business travel are fuel and mileage payments. If an employer does not reimburse these amounts, then the employee will be

14 Jul 2020 11:46 | Produced by Tolley in association with Philip Rutherford Read more Read more

Exemption ― overview ― items exempt from VAT in the UK

Exemption ― overview ― items exempt from VAT in the UKVAT exemption: list of supplies exempt from UK VATThe goods or services that are exempt from VAT are listed under various group headings within VATA 1994, Sch 9, Pt II.It is important to remember that not all supplies that come within a heading

14 Jul 2020 12:45 | Produced by Tolley Read more Read more