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

UT (Tax & Chancery) Case Number: UT/2023/000098

INCOME TAX AND NICs – PAYE – payment to an EBT, loan of same amount to a director - FTT found purpose of payment was to enable the loan to be made and the purpose of the loan was to reward the director; it was inevitable at the time of payment to the EBT that the loan would be made; there was a genuine repayment obligation - held - FTT made an error of law in concluding that in vast majority of cases a loan confers a taxable benefit and that the loan made to the director conferred such a benefit - decision of FTT set aside - re-made - neither payment to the EBT nor the principal of the loan to the director was earnings - appeal allowed

Hearing venue: The Rolls Building

London

EC4A 1NL

Judgment date: 06 December 2024

Before

MR JUSTICE RICHARD SMITH
JUDGE JEANETTE ZAMAN

Between

M R CURRELL LIMITED

Appellant

and

THE COMMISSIONERS FOR HIS MAJESTY’S

REVENUE AND CUSTOMS

Respondents

Representation:

For the Appellant: Ben Elliott, counsel, instructed by Haslers Business Services LLP

For the Respondents: Edward Waldegrave, counsel, instructed by the General Counsel and Solicitor for His Majesty’s Revenue and Customs

DECISION