Upper Tribunal Tax and Chancery Chamber

UT (Tax & Chancery) UT/2023/000098 - [2024] UKUT 00404 (TCC)

Fecha: 16-Oct-2024

Ground of appeal

Ground of appeal

30.

In the Appellant’s application for PTA (the “PTA Application”) it described the sole issue in the appeal as having been “whether the payment of £800,000 (the Payment) constituted earnings of MC because it was a “gratuity or other profit or incidental benefit of any kind” obtained by MC within the meaning of s62(2)(b) (which the FTT abbreviated to a “reward or benefit”…)”. The PTA Application then stated that:

“6.
The Appellant’s sole ground for appeal is that the Tribunal erred in law in concluding that the Payment constituted earnings in the amount of £800,000 under s62(2)(b). In particular, the FTT has erred in law in holding that the principal of the loan constituted a reward or benefit within the meaning of s62(2)(b).”

31.

The FTT granted permission to appeal to the Upper Tribunal (the “UT”) on that ground.

32.

In their Respondents’ Notice HMRC’s position was as follows:

(1)

The FTT was right to dismiss the appeal for the reasons given in the Decision.

(2)

The Appellant’s ground of appeal asserts that the FTT concluded that the Payment fell within s62(2)(b). HMRC does not accept that this is an accurate characterisation of the Decision. HMRC contends that the FTT decided that the Payment constituted earnings within s62(2) generally. To the extent that the FTT did decide that the Payment constituted earnings within s62(2)(b) specifically, HMRC will submit the appeal should be dismissed on the basis that the Payment constituted earnings within s62(2) generally.

(3)

If the UT concludes that there is an error of law in the Decision, HMRC will submit that any such error was not material and the UT should not set aside the Decision. If the UT decides to set aside the Decision, HMRC will make further submissions as to what further steps the UT should take (ie whether the UT should remake the Decision or remit the case to the FTT).

33.

At the hearing Mr Elliott drew to our attention the fact that s62(2)(b) is the only category of earnings within s62(2) to which the FTT had referred expressly. Mr Waldegrave re-iterated HMRC’s position that the FTT had decided that the Payment constituted earnings within s62(2) generally, and that, if HMRC were required to rely on a particular category within that sub-section, then their submission would be that the Payment was earnings within s62(2)(c), ie “anything else that constitutes an emolument of the employment”.

34.

To the extent that the Appellant requires further permission to appeal the Decision by reference to s62(2) generally, we consider it is in accordance with the overriding objective to grant such permission.