HM Inspector of Taxes v Billings & Ors [2000] EWCA Civ 309 (7 December 2000)

HM Inspector of Taxes v Billings & Ors [2000] EWCA Civ 309 (7 December 2000)

Section 291(8) of the Income and Corporation Taxes Act 1988 attributes to each taxpayer the rights and powers of their associates for the purposes of the section, resulting in each being treated as possessing more than 30% of the company's share capital. Therefore, all taxpayers were 'connected with' the company and disqualified from BES tax relief.

Citation
[2000] EWCA Civ 309
Parties
Appellant: The Crown; Respondents: Andrew Billings and six other taxpayers
Jurisdiction
England and Wales
Judgment Date
07 December 2000
Procedural Posture
Tax Appeal / Court of Appeal Judgment
Outcome
Appeals allowed
Legal Topics
Business Expansion Scheme (bes), Income Tax Relief, Statutory Construction, Connected Persons, Attribution of Rights, Associates Under Tax Law
Tax Law Business Expansion Scheme (bes) Income Tax Relief Statutory Construction Connected Persons Attribution of Rights Associates Under Tax Law

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Parties

The Crown

Appellant

Andrew Billings and six other taxpayers

Respondents

Procedural Posture

Tax Appeal / Court of Appeal Judgment

Legal Issues

  1. 1 Whether the taxpayers were 'connected with' the company under section 291 of the Income and Corporation Taxes Act 1988 and thus disqualified from BES tax relief due to the attribution of associates' rights under section 291(8).

Ratio Decidendi

Section 291(8) of the Income and Corporation Taxes Act 1988 attributes to each taxpayer the rights and powers of their associates for the purposes of the section, resulting in each being treated as possessing more than 30% of the company's share capital. Therefore, all taxpayers were 'connected with' the company and disqualified from BES tax relief.

Court Disposition

Appeals allowed

Orders

  • Order of Laddie J set aside
  • Tax relief under section 289(1) of the 1988 Act refused to the taxpayers