UT (Tax & Chancery) UT/2023/000103 - [2025] UKUT 00102 (TCC)

For completeness we also considered Mr Simpson’s other submission, that this outcome results in a possible double unauthorised payment amount. However, as Ms Poots pointed out, the legislation allows an authorised loan to be increased, with the amount of the increase being treated as a loan made on the date of the increase, see s 179(5) set out earlier in this decision. Thus, the statute provides a way for parties to a loan agreement to increase a loan without triggering a double charge. As the FTT said, the fact that the parties were “badly advised” does not change the outcome.

For the reasons set out above, we dismiss Ground 2 of MLT’s appeal.