InS Willey and North East Pipelines v HMRC[2016] UKFTT 125 (22 February 2016) the FTT found that a payment made to a bank and described as ‘goodwill’ was taxable as earning.
Mr Willey was a director and 100% shareholder of North East Pipelines (NEP). The appeal related to a payment made by NEP to HSBC of £75 000 described by the company’s accountants as a goodwill payment to the bank to release a trading covenant. A deed of settlement and release between HSBC and Mr Willey also showed that the payment had been made to HSBC to release Mr Willey from a guarantee and legal charges over two properties he owned personally. The two mortgages and guarantee related to debts of SA Utilities Ltd a company of which Mr Willey had been a director and 50% shareholder...
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InS Willey and North East Pipelines v HMRC[2016] UKFTT 125 (22 February 2016) the FTT found that a payment made to a bank and described as ‘goodwill’ was taxable as earning.
Mr Willey was a director and 100% shareholder of North East Pipelines (NEP). The appeal related to a payment made by NEP to HSBC of £75 000 described by the company’s accountants as a goodwill payment to the bank to release a trading covenant. A deed of settlement and release between HSBC and Mr Willey also showed that the payment had been made to HSBC to release Mr Willey from a guarantee and legal charges over two properties he owned personally. The two mortgages and guarantee related to debts of SA Utilities Ltd a company of which Mr Willey had been a director and 50% shareholder...
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