Tax analysis: In Zzaman v HMRC, the First-tier Tax Tribunal (FTT) dismissed the taxpayer’s appeal against a discovery assessment in respect of the high income child benefit charge (HICBC), holding that the assessment was valid. The taxpayer was cautioned for the use of AI to prepare a statement of case which listed cases that were largely irrelevant or wrongly cited.

Tax analysis: In Lands Luo Ltd v HMRC, the First-tier Tax Tribunal (FTT) granted permission for a late appeal against refusal of a VAT repayment claim. Late appeals are common, but this one is interesting because of the recent uncertainty arising from the Upper Tribunal’s (UT) decision in Medpro and, perhaps relatedly, because the FTT panel in this case included the Senior President of Tribunals.

Tax analysis: In JD Wetherspoon PLC v HMRC, the FTT decided that for the purposes of the temporary reduced VAT rate for hospitality and tourism, cider should be classified as an ‘alcoholic beverage’ and thus excluded from the reduced rate. The issue arose because a drafting error in the relevant legislation meant that cider was not included in the definition of an alcoholic beverage, however, the FTT applied the Inco principle to correct obvious drafting errors, and the taxpayer claim was therefore dismissed.

Tax analysis: In Mark Stolkin v HMRC, the First-tier Tax Tribunal (FTT) dismissed the taxpayers’ appeals and concluded that their entrepreneurs’ relief claims relating to a disposal of shares in a company failed because the company was not trading.

Tax analysis: In Investment and Securities Trust Limited, the First-tier Tax Tribunal (FTT) considered whether an option in respect of a residential property was acquired and held exclusively for the purpose of development and resale in the course of the appellant’s property development trade for the purposes of relief from the 15% rate of SDLT under Finance Act 2003, Sch 4A, para 5 and ATED under Finance Act 2013, s 138.

Tax analysis: In Sir John Griffin v HMRC, the First-tier Tax Tribunal (FTT) held that the taxpayer’s Irish domicile of origin had been replaced by English domicile. Neither he, nor his father, had a settled intention to return to Ireland sufficient to displace the factual evidence of English domicile of choice.

Tax analysis: In Eastern Power Networks plc and others v HMRC, the First-tier Tax Tribunal (FTT) held that, when determining the ownership proportion for the purposes of consortium relief, the entitlement of multiple link companies must be assessed collectively, not by aggregating individual entitlements. Additionally, it ruled that a corporate structure designed to enhance consortium relief entitlements constituted a scheme with a main purpose of obtaining a tax advantage.

Tax analysis: In Hill, the First-tier Tax Tribunal (FTT) held that reliance on an adviser was not a reasonable excuse for failing to comply with an information notice, and penalties were upheld without mitigation. The tribunal decided that neither of the appellants took objectively appropriate steps to consider whether it was reasonable to rely on the advisers and the advice provided.

Tax analysis: In Queenscourt Ltd v HMRC, the First-tier Tax Tribunal (FTT) held that dip pots supplied in a meal deal were part of a single standard-rated supply of hot takeaway food. It also held that a HMRC recovery assessment was validly made and that HMRC was not prevented from making its assessment either because of legitimate expectation or estoppel.

Tax analysis: In All Answers Ltd v HMRC, the First-tier Tax Tribunal (FTT) held that a company was not acting as agent in relation to essay-writing services and was therefore required to account for VAT on the full payment received from end-customers for those services.

Tax analysis: In Masters v HMRC, the First-tier Tax Tribunal (FTT) found that withdrawals from a Self-Invested Personal Pension (SIPP) made by a former UK resident were not taxable in the UK. The necessary connection with past employment remained, despite a transfer of funds from the original scheme. Obiter, the FTT considered that ‘subject to tax’ in a contracting state, as set out in the relevant double taxation treaty (DTT), required the income to be actually taxed there.

Tax analysis: In The Towards Zero Foundation v HMRC, the First-tier Tax Tribunal (FTT) decided that free safety testing performed by The Towards Zero Foundation (TZF) was not a separate non-business activity, and that input VAT incurred relating to this ‘free testing’ could be recovered.