James Bailey (BDO) examines an Upper Tribunal decision that reveal difficulties in interpretation when separate elements of the legislation interact with each other.
In HMRC v Unicorn Tankships (428) Ltd [2021] UKUT 109 (TCC) the UT upheld the First-tier Tribunal’s original decision ([2019] UKFTT 689 (TC)) that a balancing charge should not arise on the disposal of a vessel previously within the UK tonnage tax regime. The UT decision dismissed HMRC’s approach to the case which involved an interpretation of the legislation that would have given an unreasonable result to the taxpayer.
The facts of the case
Unicorn Tankships (428) Ltd (‘Unicorn’) was part of a UK tonnage tax group until June 2010 at which point the vessel owned and operated by Unicorn was under a bareboat charter which exceeded three years and Unicorn ceased to qualify for tonnage tax.
An election into tonnage tax...
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James Bailey (BDO) examines an Upper Tribunal decision that reveal difficulties in interpretation when separate elements of the legislation interact with each other.
In HMRC v Unicorn Tankships (428) Ltd [2021] UKUT 109 (TCC) the UT upheld the First-tier Tribunal’s original decision ([2019] UKFTT 689 (TC)) that a balancing charge should not arise on the disposal of a vessel previously within the UK tonnage tax regime. The UT decision dismissed HMRC’s approach to the case which involved an interpretation of the legislation that would have given an unreasonable result to the taxpayer.
The facts of the case
Unicorn Tankships (428) Ltd (‘Unicorn’) was part of a UK tonnage tax group until June 2010 at which point the vessel owned and operated by Unicorn was under a bareboat charter which exceeded three years and Unicorn ceased to qualify for tonnage tax.
An election into tonnage tax...
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