In Bharat Patel v HMRC [2015] UKFTT 445 (7 September 2015) the FTT found that HMRC’s decision not to conditionally suspend penalties was flawed.
Mr Patel was a self-employed locum pharmacist. He intended to continue trading through a company. There were three issues. The first issue was whether Mr Patel was entitled to an interest deduction of a loan taken out to finance the acquisition of guaranteed equity bonds in order to provide him with income in his retirement. The second issue was whether Mr Patel was entitled to a deduction for the cost of acquiring the bonds.
The FTT found against Mr Patel on both these issues. Neither the interest nor the cost of the bonds constituted expenses incurred wholly and exclusively for the purpose of his business (ITTOIA 2005 s 34). The FTT added that the arrangement could not be described as a...
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In Bharat Patel v HMRC [2015] UKFTT 445 (7 September 2015) the FTT found that HMRC’s decision not to conditionally suspend penalties was flawed.
Mr Patel was a self-employed locum pharmacist. He intended to continue trading through a company. There were three issues. The first issue was whether Mr Patel was entitled to an interest deduction of a loan taken out to finance the acquisition of guaranteed equity bonds in order to provide him with income in his retirement. The second issue was whether Mr Patel was entitled to a deduction for the cost of acquiring the bonds.
The FTT found against Mr Patel on both these issues. Neither the interest nor the cost of the bonds constituted expenses incurred wholly and exclusively for the purpose of his business (ITTOIA 2005 s 34). The FTT added that the arrangement could not be described as a...
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