Craig William Burley v The Commissioners for HMRC

Craig William Burley v The Commissioners for HMRC

Mr Burley remained entitled to the profits of the partnerships for income tax purposes because, despite the purported assignment, the profits continued to be applied for his benefit in discharging his personal loan obligations. The assignment did not alter the economic reality that he benefited from the profits, and thus he was the person chargeable under section 8 ITTOIA 2005.

Parties
Appellant: Craig William Burley; Respondents: The Commissioners for His Majesty’s Revenue and Customs
Jurisdiction
England and Wales
Judgment Date
18 August 2025
Procedural Posture
Income Tax Appeal / First Tier Tribunal Judgment
Outcome
Appeal dismissed
Legal Topics
Assignment of Partnership Profits, Income Tax Liability, Equitable Assignment, Security Interests, Tax Avoidance Schemes
Tax Law Partnership Law Assignment of Partnership Profits Income Tax Liability Equitable Assignment Security Interests Tax Avoidance Schemes

Case Brief

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Parties

Craig William Burley

Appellant

The Commissioners for His Majesty’s Revenue and Customs

Respondents

Procedural Posture

Income Tax Appeal / First Tier Tribunal Judgment

Legal Issues

  1. 1 Whether the purported assignment of partnership profit interests by Mr Burley to an LLP was effective to divest him of entitlement to those profits for income tax purposes
  2. 2 Whether Mr Burley remained entitled to the profits under section 8 Income Tax (Trading and Other Income) Act 2005 despite the assignment

Ratio Decidendi

Mr Burley remained entitled to the profits of the partnerships for income tax purposes because, despite the purported assignment, the profits continued to be applied for his benefit in discharging his personal loan obligations. The assignment did not alter the economic reality that he benefited from the profits, and thus he was the person chargeable under section 8 ITTOIA 2005.

Court Disposition

Appeal dismissed

Orders

  • Closure notices upheld; Mr Burley remains liable for additional income tax assessed.