![TC09557 - [2025] UKFTT 00750 (TC)](https://backend.juristeca.com/files/emisores/logo_7HSuEAV.png){kind=logo}
Introduction
Introduction
The Appellant, Ms Annette Tonkin, has appealed against a notice of determination issued on 8 April 2022 imposing a charge to inheritance tax of £83,020, plus interest.
This case concerns a tax avoidance scheme entered into by Ms Tonkin’s company, Resource (Marketing Research) Ltd (“the Company”), in 2012. The scheme was intended to allow Ms Tonkin to receive what was in effect a bonus from the Company in a manner that avoided income tax and national insurance contributions (“NICs”). Ms Tonkin has accepted that the scheme resulted in the payment of employment income and that this was subject to income tax and NICs under PAYE, and so in this sense the scheme did not work.
The dispute in this case is about whether, in addition to the income tax and NICs consequences, Ms Tonkin’s participation in the scheme resulted in a liability to inheritance tax. Having considered the evidence and the submissions of both parties, we have decided to allow Ms Tonkin’s appeal, for the reasons we give below.
- Heading
- Introduction
- Hearing and evidence
- Findings of fact
- The scheme transactions
- History of the tax dispute
- Relevant law
- Discussion
- The parties’ submissions on the meaning of profits or gains
- Our view on the meaning of profits or gains
- The parties’ submissions on who received the transfer of value
- Our view on who received the transfer of value
- Whether the transfer falls to be taken into account for the purposes of income tax
- Conclusions