Although the facts of HMRCvHargreaves Lansdown [2019] UKFTT 246 (TCC) are very specific (involving loyalty bonus payments paid to investors by a platform service provider) the discussion about whether a payment is an annual payment is of more general interest. This case is a useful reminder that it is often necessary when considering payments made by financial services entities to think about whether they could be treated as annual payments.
The First-tier Tribunal (FTT) considered whether the loyalty bonus payments have the four characteristics established by the earlier authorities of:
being payable under a legal obligation;
recurring or being capable of recurrence;
constituting income and not capital in the hands of the recipient; and
representing ‘pure income profit’ in the...
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Although the facts of HMRCvHargreaves Lansdown [2019] UKFTT 246 (TCC) are very specific (involving loyalty bonus payments paid to investors by a platform service provider) the discussion about whether a payment is an annual payment is of more general interest. This case is a useful reminder that it is often necessary when considering payments made by financial services entities to think about whether they could be treated as annual payments.
The First-tier Tribunal (FTT) considered whether the loyalty bonus payments have the four characteristics established by the earlier authorities of:
being payable under a legal obligation;
recurring or being capable of recurrence;
constituting income and not capital in the hands of the recipient; and
representing ‘pure income profit’ in 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:
