UT (Tax & Chancery) UT/2023/000079 UT/2023/000109 - [2025] UKUT 00059 (TCC)

HMRC’s position was that the FTT’s approach to and application of the decision in StBarbe Green was key to its decision on both the Section 103 Debt Incurred Issue and the Property Issues (as had been recognised by the FTT at FTT[120]) and that were the Upper Tribunal to disagree with the FTT on whether the Note was a debt incurred by Mrs Elborne, then that would undermine the FTT’s decision in relation to the Property Issues (submitting this was acknowledged by the FTT at FTT[228]).

We set out the relevant legislation for all three of the Property Issues, address how the Section 102(3) Issue arises, the decision of the FTT, summarise the parties’ submissions on the Section 102(3) Issue and then set out our discussion and conclusion.

The Section 102(3) Issue, which was decided by the FTT in favour of the Appellants, is not the only area of dispute between the parties on any of the three Property Issues. If we were to decide this issue in HMRC’s favour, we would also need to address those further points of contention, and the varying circumstances in which the three issues could apply.