Andrew Berry v HMRC [2011] UKUT 81 is one of three recent cases (the others being Mayes v HMRC [2011] EWCA Civ 407 CA and Tower MCashback v HMRC [2011] UKSC 19 SC) in which HMRC sought to invoke the Ramsay principle of construction – in this instance with some success.
The facts
The taxpayer participated in an income tax loss scheme in which put simply the taxpayer entered into a forward purchase contract with the vendor on Day 1 to acquire gilt strips by 5pm on Day 4 for £6.5 million and on the same day granted to the vendor for an Option Price of £390 000 an option to buy the...
