HMRC loses sponsorship tax relief tribunal

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A first-tier tribunal ruled that HMRC acted unreasonably by waiting eight months to inform a company it was not going to contest a case about tax relief on sponsorship payment.

The court heard that Southwest Telecommunications Group (STG) claimed a deduction for sponsorship payments to Exeter Chiefs Rugby Club.

The tribunal Southwest Communications Group Ltd  v Revenue & Customs TC02370took place in November.

In May 2008, HMRC started an enquiry into the company's return and in March 2010 they issued a notice of amendment rejecting the claim because the expenditure was not wholly and exclusively for the purpose of its business. 

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About Nick Huber

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I’m a specialist business journalist and have a particular interest in tax and technology. 


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By markfd
14th Dec 2012 07:35


...ignore all evidence that doesn't suit your case, continue to insist you are right, rubber stamp the so called review process then concede at the last possible minute when you eventually bother to think whether the taxpayer is right.

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14th Dec 2012 22:22

You missed out threats...

... and intimidation such as payments "disappearing" from the taxpayer's account so they can send around bailiffs. 


I think you mean “…insist THEY are right…” . Also, “…when THEY bother to think….”

Haven’t you had, after the rubber stamp review process, them writing to the client to undermine your position….simply claiming they are correct and the agent is wrong….stating that the agents behaviour is unreasonable and that it may cost them their home and business etc. So typical to threaten yet refuse to engage in reasoned discussion; because of course there is no point in them engaging in reasoned discussion when they must avoid admitting they are wrong.

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