Gripple Ltd v Revenue and Customs

Gripple Ltd v Revenue and Customs

The sums recharged by Loadhog to Gripple in respect of Mr Facey's services cannot be treated as staffing costs under Schedule 20, paragraph 5(1)(a), because they were not emoluments paid by Gripple to Mr Facey. The corporate veil cannot be lifted to treat Gripple and Loadhog as a single entity for the purposes of R&D tax relief, as the legislation requires strict adherence to corporate separateness and explicit statutory conditions.

Parties
Appellant: Gripple Limited; Respondents: The Commissioners for HM Revenue and Customs
Jurisdiction
England and Wales
Judgment Date
30 June 2010
Procedural Posture
Tax Appeal / Appeal From General Commissioners to High Court by Way of Case Stated
Outcome
Appeal dismissed
Legal Topics
Research and Development Tax Relief, Corporation Tax, Staffing Costs, Corporate Structure, Group Companies
Tax Law Corporate Law Research and Development Tax Relief Corporation Tax Staffing Costs Corporate Structure Group Companies

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Parties

Gripple Limited

Appellant

The Commissioners for HM Revenue and Customs

Respondents

Procedural Posture

Tax Appeal / Appeal From General Commissioners to High Court by Way of Case Stated

Legal Issues

  1. 1 Whether payments made by Gripple Limited to Loadhog Limited for R&D services provided by Mr Hugh Facey constitute 'staffing costs' under Schedule 20, paragraph 5 of the Finance Act 2000
  2. 2 Whether the corporate veil should be lifted to treat Gripple and Loadhog as a single entity for tax relief purposes

Ratio Decidendi

The sums recharged by Loadhog to Gripple in respect of Mr Facey's services cannot be treated as staffing costs under Schedule 20, paragraph 5(1)(a), because they were not emoluments paid by Gripple to Mr Facey. The corporate veil cannot be lifted to treat Gripple and Loadhog as a single entity for the purposes of R&D tax relief, as the legislation requires strict adherence to corporate separateness and explicit statutory conditions.

Court Disposition

Appeal dismissed