TC09624 - [2025] UKFTT 01065 (TC)

Fecha: 23-May-2025

Issues

Issues

The issues in the appeal are:

(1)

Whether the Appellant is liable to income tax, either: (i) pursuant to ss 8 and 5 of the Income Tax (Earnings and Other Income) Act 2005 (“ITTOIA”) as the person ‘receiving’ or ‘entitled to’ the profits; or, alternatively (ii) whether liability arises under s 687 ITTOIA (“Issue 1”); and

(2)

Whether the Appellant had a legitimate expectation that the amendments would not be made; which, in turn, requires consideration of the issue of whether the Tribunal has any jurisdiction to consider public law arguments in the circumstances of this appeal (“Issue 2”).

As confirmed by the Upper Tribunal (‘UT’) in Shinelock Ltd v HMRC [2023] UKUT 107 (TCC) (“Shinelock”), the matter in issue in relation to an appeal against a closure notice is the conclusion notified in the closure notice - albeit not limited to a stated reason for that conclusion - and the associated amendment arising from such conclusion. In Daarasp LLP & Anor v HMRC [2021] UKUT 87 (TCC) (“Daarasp”), at [24], the UT made clear that although there is a nexus between the conclusions in a closure notice, and the consequential amendments implementing the conclusions, the two are distinct.