Weekly case highlights ― 6 December 2021

Produced by Tolley

The following Owner-Managed Businesses guidance note Produced by Tolley provides comprehensive and up to date tax information covering:

  • Weekly case highlights ― 6 December 2021
  • Employment tax
  • Donatas Labeikis and Others v HMRC
  • Tax and Benefits
  • Wendy Carrington v HMRC
  • VAT
  • Laurence Donnelly v HMRC
  • Gray & Farrar International LLP v HMRC
  • S&S Consulting Services (UK) Ltd, R (on the application of) v HMRC
  • Cambria Automobiles (South East) Ltd and Another v HMRC
  • More...

Weekly case highlights ― 6 December 2021

These are our brief notes and thoughts on cases published in the last week or so which caught our eye and are likely to be of particular interest to tax practitioners. Full case reports and commentary on most of these cases will be included within our normal reference sources in the coming weeks.

Employment tax

Donatas Labeikis and Others v HMRC

The loan charge (under which certain employment-related loans are treated as income) continues to be controversial. This case is the latest in a long line of attempts to challenge at least some of its elements.

A group of taxpayers are arguing that the loan charge is incompatible with European Law and seek not only a declaration of invalidity but also compensation from the UK Government for any losses arising from the imposition of the charge. It is notable that the claims were filed on 31 December 2020 in order to avoid any prejudice to the EU law arguments as a result of Brexit.

There is no substantive discussion of the issues here: the case is about the appropriate forum in which the taxpayer should have brought the claims. The arguments are sophisticated and beyond the scope of this brief note, but essentially the High Court refused to accede to HMRC’s request to strike out the application but at the same time decided that the matter should be dealt with under normal judicial review procedures.

Essentially both sides live to fight another day and presumably at some point there

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