UT sets aside FTT decision on treatment of EBT arrangements.
In M R Currell Ltd v HMRC [2024] UKUT 404 (TCC) (6 December 2024) the Upper Tribunal (UT) considered an appeal of the taxpayer company against a decision of the First-tier Tribunal (FTT) that a director and shareholder of the taxpayer company received taxable earnings in circumstances where the company had made a contribution to an employee benefit trust (EBT) which then subsequently loaned an equivalent amount to the shareholder director. The UT set aside the decision of the FTT and re-made it allowing the taxpayer company’s appeal.
The loan from the EBT was repayable on its fifth anniversary and was secured against shares in the taxpayer company which were purchased by the shareholder director using the loan funds as part of the arrangements.
There was substantive disagreement between the parties as...
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UT sets aside FTT decision on treatment of EBT arrangements.
In M R Currell Ltd v HMRC [2024] UKUT 404 (TCC) (6 December 2024) the Upper Tribunal (UT) considered an appeal of the taxpayer company against a decision of the First-tier Tribunal (FTT) that a director and shareholder of the taxpayer company received taxable earnings in circumstances where the company had made a contribution to an employee benefit trust (EBT) which then subsequently loaned an equivalent amount to the shareholder director. The UT set aside the decision of the FTT and re-made it allowing the taxpayer company’s appeal.
The loan from the EBT was repayable on its fifth anniversary and was secured against shares in the taxpayer company which were purchased by the shareholder director using the loan funds as part of the arrangements.
There was substantive disagreement between the parties as...
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