TC09518 - [2025] UKFTT 00528 (TC)

This appeal is made by Nicholas Powell (Appellant)pursuant to section 31 Taxes Management Act 1970 (TMA) against the conclusion contained in a closure notice issued by HM Revenue & Customs (HMRC) on 9 March 2023 under section 28A(1B) and (2) TMA. HMRC concluded that the Appellant was liable to a charge to income tax arising under section 415 Income Tax (Trading and Other Income) Act 2005 (ITTOIA) on a deemed payment of dividend in the sum of £512,713.89 received from Thermoline Limited (Thermoline). The amendment to the Appellant’s 2020/21 tax return consequent upon that conclusion was £194,580.60.

There is no dispute between the parties as to the quantum or calculation of the amendment or as to the procedural validity of the closure notice.

The issue we had to decide was a discrete and seemingly simple one that, in the end, was significantly more complex than first appeared. For the reasons set out below we have refused the appeal.