England and Wales Case Law

Commissioners for His Majesty's Revenue and Customs v MR Currell Ltd

Commissioners for His Majesty's Revenue and Customs v MR Currell Ltd [2026] EWCA Civ 445 (17 April 2026)

The Court of Appeal dismissed HMRC’s appeal, holding that a genuine, repayable loan funded through an employee benefit trust was not taxable earnings under section 62 ITEPA.

• Paye liability
• Employee benefit trusts
• Taxation of loans to employees
• Income tax (earnings and pensions) act 2003
• National insurance contributions
• Emoluments and earnings

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The Commissioners for HMRC v MR Currell Limited

The Court of Appeal dismissed HMRC’s appeal over whether an EBT-funded loan to a director counted as earnings. The genuine repayable loan was not taxable remuneration.

• Income tax on employment income
• Paye
• Employee benefit trusts
• Loans to employees
• Remuneration
• Disguised remuneration

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Delphi Derivatives Limited v The Commissioners for HMRC

Upper Tribunal tax penalty appeal about EBT schemes, careless inaccuracy, deliberate inaccuracy, agency, and fairness. Careless and deliberate penalties were set aside; agency and fairness grounds failed.

• Tax penalties
• Employee benefit trusts
• Careless inaccuracy
• Deliberate inaccuracy
• Agency
• Fairness in tribunal proceedings

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Guy's & St Thomas's NHS Foundation Trust & Anor v ESMS Global Ltd & Anor

Guy's & St Thomas's NHS Foundation Trust & Anor v ESMS Global Ltd & Anor [2025] EWHC 3471 (Comm) (05 December 2025)

The court clarified that two former employees were already within the represented class under CPR 19.8, refused joinder and consultation directions, and ordered pleadings corrected.

• Representative proceedings
• Employee benefit trusts
• Joinder of parties
• Class definition under cpr 19.8
• Correction of pleadings and orders
• Representative-proceedings

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Allan Jack v The Commissioners for HMRC

Amounts transferred from AML to the EBT during 2010/11 are taxable on Mr Jack as employment earnings under s62 ITEPA 2003, regardless of the loan charge provisions or subsequent repayment.

Source excerpt

• Income tax
• Employee benefit trusts
• Disguised remuneration
• Loan charge
• Closure notice

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John Crooks v The Commissioners for HMRC

The application was refused because the requested disclosure and particulars were not relevant to the issues in dispute, fell outside the Tribunal’s jurisdiction, and the application was premature given incomplete pleadings. The Tribunal found that the information sought related to broader policy or fairness arguments, not the legal validity of the decisions under appeal, and that disclosure must be closely related to the issues the Tribunal is empowered to determine.

Source excerpt

• Disclosure
• Employee benefit trusts
• Settlement offers
• Jurisdiction of tribunal
• Procedural fairness

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Annette Tonkin v The Commissioners for HMRC

Section 94(2)(a) of the Inheritance Tax Act 1984 applies to prevent an apportionment being made to the Appellant under s 94(1) because the payment to her was subject to income tax and thus falls within the statutory exemption; therefore, no inheritance tax charge arises on the Appellant in respect of the scheme.

Source excerpt

• Inheritance tax
• Employee benefit trusts
• Tax avoidance schemes
• Paye
• National insurance contributions
• Close companies

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Christopher Purkiss (as Liquidator of Ethos Solutions Limited) v Tim Kennedy & Ors

The Court of Appeal dismissed a liquidator’s section 423 challenge to a tax-avoidance scheme, holding that preventing a liability from arising is not the same as prejudicing an existing or future claim.

• Transactions at undervalue
• Tax avoidance
• Section 423 insolvency act 1986
• Employee benefit trusts
• Liquidator claims
• Section-423-insolvency-act

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Purkiss v Kennedy & Ors

Purkiss v Kennedy & Ors [2025] EWCA Civ 268 (14 March 2025)

The Court of Appeal dismissed a liquidator’s appeal under section 423 of the Insolvency Act 1986, holding that preventing a tax liability from arising is not a prohibited purpose.

• Transactions at undervalue
• Tax avoidance schemes
• Section 423 insolvency act 1986
• Employee benefit trusts
• Liquidator claims
• Section-423

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David Benson & Ors v The Commissioners for HMRC

Amounts received by the Appellants under the Rathowen Scheme, including sums described as loans, are taxable as trading income (for Appellants 1-5) or employment income (for Appellants 6, 7, and 10). Appellants 1-5 are estopped from arguing employment status contrary to their self-assessment returns and closure notices. HMRC may rely on alternative legal grounds to support closure notices where the subject matter is unchanged. Scheme fees are not deductible. Rathowen is the relevant agency for PAYE purposes, but did not have a UK tax presence. Appeals are dismissed.

Source excerpt

• Income tax
• Employment status
• Agency worker rules
• Paye
• Tax avoidance schemes
• Self-employment vs employment

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