Philip Fisher examines a recent tribunal victory for HMRC concerning dividend waivers that could have wider implications
In theory the case of Mr P Donovan & Anor v HMRC [2014] UKFTT 48 recently heard in the First-tier Tribunal (FTT) should not be of any great interest or significance. After all the decision following the precedent in Buck v HMRC [2009] STC (SCD) 6 was that: ‘We found the irresistible inference from the facts of these appeals to be that the appellants waived their entitlement to dividends as part of a plan to ensure that the dividend income became payable to their wives.’
However the impact of this case could send shivers down the backs of the small-scale end of the tax planning community and their clients while...
