Fidex Ltd v HM Revenue & Customs

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

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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

  1. 1 Whether the terms of the closure notice precluded HMRC from raising the paragraph 13 issue
  2. 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