Tax analysis: In Henry v Revenue and Customs Commissioners, the FTT considered whether the appellant was entitled to claim multiple dwellings relief (‘MDR’), pursuant to paragraph 2, Schedule 6B of the Finance Act 2003 (FA 2003), in relation to the acquisition of a property. The FTT held that there was insufficient evidence to establish that the relief was properly available.

Tax analysis: In Currys Retail Ltd, the First-tier Tax Tribunal (FTT) dismissed the taxpayer’s appeal against a degrouping charge (under section 179 of the Taxation of Chargeable Gains Act 1992 (TCGA 1992)) in respect of the goodwill in four businesses that it had acquired intra–group. The FTT held that, on a realistic view of the facts, the taxpayer retained the businesses and goodwill at the time when it left the chargeable gains group and so was subject to the degrouping charge.

Tax analysis: In D’Angelin, the First-tier Tax Tribunal (FTT) dismissed the taxpayer’s appeal against a closure notice withdrawing his remittance basis business investment relief in respect of an investment in a company controlled by the taxpayer. The taxpayer’s use of a director’s loan account to fund personal expenses amounted to the extraction of value from the company.

Tax analysis: In Jody Scheckter v HMRC, the First-tier Tax Tribunal (FTT) dismissed the taxpayer’s appeal concerning his entitlement to claim sideways loss relief in respect of losses arising in an LLP of which he was a member. This case concerns a substantial farming operation which was carried out partly through a company and partly through an LLP.

Tax analysis: In Eillish Kwai v HMRC, the First-tier Tax Tribunal (FTT) dismissed the taxpayer’s appeal, holding that her employment duties were defined by reference to a geographical area, so that London, as that area, was her permanent workplace. This meant that travel from her Colchester home to London was ordinary commuting and not deductible. The taxpayer’s failure to provide contemporaneous records was also found to be careless, meaning that the extended six-year assessment window applied.

Tax analysis: In The Oaks (Gatley) Limited v HMRC, the First-tier Tax Tribunal (FTT) dismissed the taxpayer’s appeal against determinations (the Determinations) made by HMRC under the Income Tax (Construction Industry Scheme) Regulations 2005 (the CIS Regulations), reg 13, charging it to tax on the amounts it should have deducted from payments made to sub-contractors. It also dismissed the taxpayer’s appeal against late filing penalties (the Penalties) imposed pursuant to Schedule 55 to the Finance Act 2009.

Tax analysis: In Alpha Republic Ltd, the First-tier Tax Tribunal (FTT) refused the company’s application seeking a direction which would require HMRC to provide a new statement of case on the basis that the original was defective.

Tax analysis: In Kearney v HMRC, the First-tier Tax Tribunal (FTT) held that the taxpayer was a UK-resident for tax purposes, applying the common law principles applicable before the introduction of the statutory residence test in 2013. The FTT also upheld HMRC’s discovery assessments and, subject to a reduction in quantum, penalty determinations.

Tax analysis: In Kwok, the First-tier Tax Tribunal (FTT) ordered HMRC to pay the taxpayer’s costs of and incidental to the appeal, following HMRC’s withdrawal five days before the listed hearing. However, the FTT refused to award costs on the indemnity basis because, although HMRC's conduct was unreasonable, including its late withdrawal from the case, this did not amount to being unreasonable to a high degree and the FTT also declined to summarily assess the taxpayer’s claimed costs, directing detailed assessment if the parties could not agree the amount.

Tax analysis: In L.R. R&D LLP, the First-tier Tax Tribunal (FTT) decided that the appellant (the ‘LLP’) was not trading and, on that basis, dismissed its appeals against closure notices which disallowed partnership losses totalling £14,715,954.

Tax analysis: In Conservatory Insulations Northwest Ltd v HMRC, the First-tier Tax Tribunal (FTT) refused HMRC’s application to strike out the taxpayer’s appeal, and allowed that appeal. The appeal concerned a question of fact: whether a VAT assessment had been issued to the appellant within the statutory time limit, and the FTT agreed with the appellant that it had not been made in time.

Tax analysis: In Krason v HMRC, the First-Tier Tax Tribunal (FTT) cancelled penalties for inaccuracies in relation to a remuneration trust scheme. As the appellant had reasonably relied on a trusted accountant, did not understand the scheme or documents and was unaware that his returns had been amended or expenses inflated, HMRC failed to establish he acted deliberately, with concealment, or carelessly.