In Ryan Gardiner and others v HMRC (TC03550 – 6 May 2014) the FTT held that the taxpayers who had implemented a tax scheme had not completed their tax returns negligently.
In 2005 the taxpayers had entered into a marketed tax avoidance scheme with a view to sheltering chargeable gains they had realised on the disposal of shares in a company. The scheme involved generating capital losses on the acquisition and disposal of capital redemption policies. They had disclosed the scheme in their tax returns for the year ended 5 April 2006 which were delivered in January 2007. HMRC had opened an enquiry into the returns. Following the Court of Appeal’s finding in Jason Drummond [2009] EWCA Civ 608 that the scheme was ineffective the taxpayers had paid the tax due and the enquiry was closed.
HMRC argued however that the returns had been...
