Pensions analysis: WSW appealed against a fixed penalty imposed by the Pensions Regulator (TPR) for failure to submit its re-declaration of compliance in accordance with auto-enrolment obligations. TPR had issued a Compliance Notice and Penalty Notice to WSW’s registered office, but WSW only received the Penalty Notice. WSW explained that it had not received the Compliance Notice and TPR reviewed the issue of the Penalty Notice. However, TPR decided to uphold the notice. WSW appealed to the First-tier Tribunal (FTT). The FTT upheld the appeal and revoked the notice, commenting that TPR seemed more interested in collecting a penalty than ensuring compliance. This decision is notable because of the criticism directed at TPR for failing to make contact with the employer by email before issuing a penalty. It is also a rare example of the FTT revoking a penalty where an employer has alleged that it has not received correspondence. Written by Doug Mullen, partner at Anthony Collins.

Tax analysis: In Cogefin, the First-tier Tax Tribunal (FTT) held that a Bermudian company was UK resident because its central management and control was exercised by Mr Ciardi (C) from the UK, notwithstanding Bermudian directors, board minutes and formal offshore governance. The FTT found that the directors generally implemented C’s strategic decisions and performed no more than a ‘sense check’, which the FTT regarded as administrative rather than genuine strategic decision-making. The case reinforces that corporate residence turns on the substance and pattern of decision-making, not formalities. Practitioners advising on offshore structures should ensure directors demonstrably engage with the merits of material proposals, ask substantive questions and, where appropriate, reject recommendations, rather than merely recording or implementing decisions taken elsewhere. Produced in partnership with Jivaan Bennett of Temple Tax Chambers.

Tax analysis: In Fitzgerald, the First-tier Tax Tribunal (FTT) dismissed an appeal against a closure notice disallowing SDLT multiple dwellings relief (MDR) in respect of the purchase of a property which included a main house and an annexe.

Tax analysis: In Andrew Quay Hull LLP, in the context of a dispute about VAT and penalty assessments that had culminated in an exit agreement following alternative dispute resolution (ADR), the First-tier Tax Tribunal (FTT) allowed HMRC's application for a direction to enforce the ADR exit agreement between HMRC and the appellant. Although the FTT accepted that the appellant had been under a misapprehension that the penalty would not be due because the ADR exit agreement stated that the VAT would not be payable, this unilateral mistake was not an operative mistake and therefore did not affect the validity and binding nature of the agreement.

Tax analysis: In Woods the First-tier Tax Tribunal (FTT) considered, as a preliminary issue in the appeal, whether HMRC’s discovery assessments in respect of the high income child benefit charge (HICBC) were ‘protected assessments’ under section 97 of the Finance Act 2022 (FA 2022). The FTT concluded that the assessments were protected and so were valid. The FTT did not consider the merits of the appeal, which will be the subject of a further decision.

Tax analysis: In Asset House Piccadilly Ltd, the First-tier Tax Tribunal (FTT) held that two HMRC officers conducting litigation were not barred from proceedings under the Legal Services Act 2007 (LSA 2007) on the basis they were not solicitors.

Tax analysis: In PD and MJ, the First-tier Tax Tribunal (FTT) held that the IR35 rules (Sections 48 to 61 of Chapter 8 of Part 2 to the Income Tax (Earnings and Pensions) Act 2003 (ITEPA 2003)) applied to the services of football pundit, Phil Thompson, as supplied to Sky TV via his personal service company (PSC). Restrictions placed on Mr Thompson’s other work enabled the FTT to distinguish it from the FTT decision relating to Stuart Barnes (S&L Barnes).

Tax analysis: In GCH Corporation Ltd, the FTT allowed the taxpayers’ appeals against capital taxes assessments relating to a transfer of loan notes to a limited liability partnership by its members.

Tax analysis: In Hunt and Davis, the First-tier Tax Tribunal (FTT) dismissed the taxpayers’ appeals against counteraction notices and assessments issued by HMRC under the transactions in securities (TiS) rules.

Tax analysis: In Bilfinger Salamis, the First-tier Tax Tribunal (FTT) dismissed the appellant’s appeal, finding that it was liable to account for employers’ NICs under the so-called ‘host employer’ provisions in paragraph 9 of Schedule 3 to the Social Security (Categorisation of Earners) Regulations 1978, SI 1978/1689.

Tax analysis: In Lynch v HMRC, the First-tier Tax Tribunal (FTT) upheld discovery assessments of just under £10m on individual steps in a failed avoidance scheme where overall there was no economic advantage. Individual steps could not be ignored where these resulted in tax being chargeable.

Tax analysis: In E-Zec Medical Transport Services Ltd v HMRC, the First-tier Tax Tribunal (FTT) decided that non-emergency ambulances could qualify for zero-rating, rather than being treated as exempt from VAT.