In A Outram and another v HMRC [2024] UKUT 203 (TCC) (12 July) the UT overturned the FTT decision holding that it had erred in law when deciding that the taxpayers had deliberately filed an inaccurate return as the test must refer to the subjective knowledge of the actual taxpayer. The case is remitted to a differently constituted FTT.
In 2005/06 the appellants took part in a Montpelier tax avoidance scheme to produce trading losses to offset against other income. The scheme created a tax loss without any corresponding economic loss.
As part of a criminal investigation HMRC searched premises belonging to Montpelier in the Isle of Man on 29 September 2010. From papers taken away in the raid HMRC concluded that there was a mass marketed undisclosed tax avoidance scheme and that the appellants had taken part in the scheme.
HMRC raised assessments on...
