Fidex Ltd v HM Revenue & Customs [2016] EWCA Civ 385 (21 April 2016)

Fidex Ltd v HM Revenue & Customs [2016] EWCA Civ 385 (21 April 2016)

The closure notice's conclusion was that the sum representing the value of the derecognised listed bonds should not have been included in the change in basis adjustments. This conclusion could be sustained by the paragraph 13 issue. The Tribunal had jurisdiction to hear HMRC's argument based on paragraph 13. The debit was wholly attributable to an unallowable tax avoidance purpose, and on a just and reasonable apportionment, none of the debit could be attributed to legitimate commercial purposes.

Citation
[2016] EWCA Civ 385
Parties
Appellant: Fidex Ltd; Respondents: The Commissioners for Her Majesty's Revenue & Customs
Jurisdiction
England and Wales
Judgment Date
21 April 2016
Procedural Posture
Appeal / Court of Appeal (civil Division) Judgment
Outcome
Appeal dismissed
Legal Topics
Tax Avoidance, Loan Relationships, Closure Notice, Group Relief, Unallowable Purpose, Accounting Standards
Tax Law Corporate Law Tax Avoidance Loan Relationships Closure Notice Group Relief Unallowable Purpose Accounting Standards

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Parties

Fidex Ltd

Appellant

The Commissioners for Her Majesty's Revenue & Customs

Respondents

Procedural Posture

Appeal / Court of Appeal (civil Division) Judgment

Legal Issues

  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 closure notice's conclusion was that the sum representing the value of the derecognised listed bonds should not have been included in the change in basis adjustments. This conclusion could be sustained by the paragraph 13 issue. The Tribunal had jurisdiction to hear HMRC's argument based on paragraph 13. The debit was wholly attributable to an unallowable tax avoidance purpose, and on a just and reasonable apportionment, none of the debit could be attributed to legitimate commercial purposes.

Court Disposition

Appeal dismissed

Orders

  • The appeal is dismissed.