HMRC wins £156m tax avoidance tribunal
HMRC has successfully challenged a tax avoidance scheme to allow wealthy people to pay little or no tax on their income, in a court ruling that it said will protect £156m in tax.
The case, Andrew Chappell and the commissioners for HMRC, first-tier tribunal, UKFTT 98 focused on a scheme devised by NT Advisors LLP and sold by Dominion Fiduciary Services Group, which had 305 users, HMRC said.
Rex Bretten QC, acting for Andrew Chappell, acknowledged that his client had taken part in the scheme solely for tax avoidance.
HMRC specialist investigators unravelled the series of complicated financial transactions involved in the scheme, involving loan notes worth £6 million, which was intended to exploit the tax rules on stock lending.