In Philpott and Others v HMRC [2014] UKFTT 853 (29 August 2014) the FTT found that contributions to a FURBS were taxable in the hands of the employees.
The issue was the liability of employees and directors in respect of in specie contributions of property to a funded unapproved retirement benefits scheme (FURBS) made by their employer a construction company. It was accepted that the contribution could amount to employment income (ITEPA 2003 s 386). The taxpayers contended however that the company did not contribute the properties in respect of any particular individual so that the contributions were not taxable. HMRC contended that an express or implied allocation had taken place and that in the alternative the value should be apportioned between the taxpayers (ITEPA 2007 s 388).
The FTT first rejected HMRC’s suggestion that the tax treatment of...
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In Philpott and Others v HMRC [2014] UKFTT 853 (29 August 2014) the FTT found that contributions to a FURBS were taxable in the hands of the employees.
The issue was the liability of employees and directors in respect of in specie contributions of property to a funded unapproved retirement benefits scheme (FURBS) made by their employer a construction company. It was accepted that the contribution could amount to employment income (ITEPA 2003 s 386). The taxpayers contended however that the company did not contribute the properties in respect of any particular individual so that the contributions were not taxable. HMRC contended that an express or implied allocation had taken place and that in the alternative the value should be apportioned between the taxpayers (ITEPA 2007 s 388).
The FTT first rejected HMRC’s suggestion that the tax treatment of...
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