Market leading insight for tax experts
View online issue

HMRC v PA Holdings Ltd (and cross-appeal)

Payments derived from employee benefit funds

The Court of Appeal has unanimously allowed HMRC’s appeal in HMRC v PA Holdings Ltd (and cross-appeal) (CA – 30 November). For 2000/01 to 2002/03 a company (P) entered into complex arrangements under which it paid certain employees bonuses in the form of dividends which were financed from a capital contribution to P from employee benefit funds which in turn were derived from P. HMRC imposed determinations under Income Tax (PAYE) Regulations SI 2003/2682 reg 80. P and one of its employees appealed contending that the income was chargeable to income tax under Schedule F and could not also be subjected to PAYE or charged to national insurance contributions. The Court of Appeal unanimously rejected this contention and upheld the determinations. Moses LJ held that the Court ‘should focus on the character of the...

If you or your firm subscribes to Taxjournal.com, please click the login box below:

If you do not subscribe but are a registered user, please enter your details in the following boxes:

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this article in full.
Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.
EDITOR'S PICKstar
Top