Fidex Ltd v HM Revenue & Customs
The Court held that the closure notice's essential conclusion was that the debit should not have been brought into account, and HMRC was entitled to advance new arguments (including paragraph 13) to support that conclusion. On the facts, the debit was wholly attributable to an unallowable tax avoidance purpose, and thus not allowable for tax purposes.
- Parties
- Appellant: Fidex Ltd; Respondents: The Commissioners for Her Majesty’s Revenue & Customs
- Jurisdiction
- England and Wales
- Judgment Date
- 21 April 2016
- Procedural Posture
- Civil Appeal (tax) / Appeal From Upper Tribunal to Court of Appeal
- Outcome
- Appeal dismissed
- Legal Topics
- Loan Relationships, Tax Avoidance, Closure Notices, Jurisdiction of Tribunal, Attribution of Debits, Unallowable Purpose
Case Brief
Summary, issues, holding and outcome
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Parties
Fidex Ltd
Appellant
The Commissioners for Her Majesty’s Revenue & Customs
Respondents
Procedural Posture
Civil Appeal (tax) / Appeal From Upper Tribunal to Court of Appeal
Legal Issues
- 1 Whether the terms of the closure notice precluded HMRC from raising the paragraph 13 issue
- 2 Whether the Upper Tribunal erred in finding that the debit in issue was wholly attributable to an unallowable purpose
Ratio Decidendi
The Court held that the closure notice's essential conclusion was that the debit should not have been brought into account, and HMRC was entitled to advance new arguments (including paragraph 13) to support that conclusion. On the facts, the debit was wholly attributable to an unallowable tax avoidance purpose, and thus not allowable for tax purposes.
Court Disposition
Appeal dismissed
Full Case Text
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