Tax analysis: In Centrica Energy Storage Ltd, the First-tier Tax Tribunal (FTT) dismissed the appellant’s appeal against HMRC’s closure notices which assessed its profits as arising from ‘oil extraction activities’ (within the meaning in section 272(3) of the Corporation Tax Act 2010 (CTA 2010))

Tax analysis: In Scott Knight v HMRC, the First-tier Tax Tribunal (FTT) declined HMRC’s application to strike out the taxpayer’s appeal against a closure notice assessing him to additional capital gains tax (CGT) in respect of a liquidation distribution. The FTT rejected HMRC’s claim that it did not have jurisdiction to consider whether Business Asset Disposal Relief (BADR) formed part of the ‘matter in question’ arising from the closure notice.

Tax analysis: In this interlocutory decision, the First-tier Tax Tribunal (FTT) in Hall ruled in favour of Mr Hall (H), a director of insolvent companies issued with a joint and several liability notice (JSLN) in the amount of £1.68m under the phoenixism provision in para 3 of Sch 13 to the Finance Act 2020 (FS 2020). The FTT held that a JSLN constitutes a criminal charge for the purposes of Article 6 of the European Convention on Human Rights (ECHR) so that HMRC bears the burden of proving its prima facie validity and was therefore directed by the FTT to serve its evidence and skeleton arguments first. The FTT also refused HMRC’s application to strike out three grounds of appeal challenging the proportionality of the JSLN regime and the rationality of HMRC’s decision to issue the notice, holding that it has jurisdiction to consider such public law arguments and, in respect of two of the grounds, although they were weak, they were arguable and should be heard.

Tax analysis: In Brindleyplace Holdings S.à r.l (BP Holdings), the FTT allowed BP Holdings’ appeal against an SDLT assessment relating to distributions in specie of a property investment partnership (BP ELP) and its properties.

Tax analysis: In Lycamobile UK Ltd v HMRC, the First-tier Tax Tribunal (FTT) decided that VAT at the standard rate should have been accounted for on the full amount payable for mobile phone plan bundles at the time the supplier received the consideration because it found that the customers were paying for a single supply of telecommunication services.

Tax analysis: In Lycamobile UK Ltd v HMRC, the First-tier Tax Tribunal (FTT) decided that VAT at the standard rate should have been accounted for on the full amount payable for mobile phone plan bundles at the time the supplier received the consideration because it found that the customers were paying for a single supply of telecommunication services.

Tax analysis: In Sofology and DFS Furniture Company, the First-Tier Tax Tribunal (FTT) decided that online advertising costs could be recovered in full for VAT purposes, on the basis that these costs had a direct and immediate link to the sale of sofas and did not relate to exempt insurance commissions.

Tax analysis: In Harjono, the First-tier Tax Tribunal (FTT) dismissed the taxpayers’ appeal against a closure notice issued by HMRC, finding that the property in dispute was entirely residential and that the mixed use rates of SDLT did not apply.

Tax analysis: In Hoyle, the First-tier Tax Tribunal (FTT) held that the anti-avoidance provisions in Chapter 5 of Part 13 of the Income Tax Act 2007 (ITA 2007) did not apply to the disposal of the appellants’ capital accounts in limited liability partnerships (LLPs) engaged in leasing film rights. This was because, following the judgment in Samarkand v HMRC [2017] EWCA Civ 77, as a matter of fact and law, the LLPs film leasing activity was not a trading activity for tax purposes.

Tax analysis: In Collingwood, the First-tier Tax Tribunal (FTT) dismissed the taxpayer's appeal against closure notices amending his tax returns, holding that the taxpayer (a former professional cricketer) was personally liable to income tax on sponsorship payments received under various agreements, notwithstanding the purported assignment of his publicity rights to his company.

Tax analysis: In Holding, the First-tier Tax Tribunal (FTT) dismissed the taxpayers’ appeal, agreeing with HMRC that the property and all 41 acres of land acquired with it (of which 24 acres were fields) constituted residential property, and therefore attracted residential rates of SDLT.

Tax analysis: In Minerva Research Labs Ltd v HMRC, the First-tier Tax Tribunal (FTT) decided that the collagen drink products concerned did not qualify as food of a kind used for human consumption. It carried out a multifactorial assessment and found that, considering how the products were marketed and why they were bought, the indicators pointed more strongly to the products being liquid beauty supplements rather than food.