Andy Treavett considers the decision in Blumenthal which demonstrates how commercial concepts can be more susceptible to the Ramsay doctrine than technical legal concepts.
In William Blumenthal v HMRC [2012] UKFTT 497 (TC) the First-tier Tribunal used a wide armoury of weapons to attack a tax avoidance scheme. The scheme was struck down using the Ramsay principle and drafting errors in implementing the scheme meant that it may not have been effective in any event. The scheme was also not properly disclosed in the individual’s tax return enabling HMRC to raise its discovery assessment.
Mr Blumenthal the taxpayer held shares in Aarco 152 Limited (Aarco). He sold them in exchange for issues of shares in Cleversort Ltd (Cleversort) and Ever 1199 Ltd (Ever...
