Revenue and Customs v O'Brien [2026] UKFTT 127 (TC) (16 January 2026)

Revenue and Customs v O'Brien [2026] UKFTT 127 (TC) (16 January 2026)

The loans received by the appellant from the ECL Employee Benefit Trust during the 2009/2010 tax year were taxable as employment income under ITEPA 2003, as established by the Supreme Court in Rangers. The appellant's tax return did not adequately disclose the existence or nature of the loans, nor the DOTAS scheme reference, and thus a hypothetical officer could not have been reasonably expected to be aware of the insufficiency. The discovery assessment under s.29 TMA 1970 was therefore valid, and the amount assessed was correct based on the evidence provided.

Citation
[2026] UKFTT 127
Parties
Appellant: Andrew O'Brien; Respondents: The Commissioners for His Majesty's Revenue and Customs
Jurisdiction
United Kingdom
Judgment Date
16 January 2026
Procedural Posture
Income Tax Appeal / First Tier Tribunal (tax Chamber) Final Judgment
Outcome
Appeal dismissed
Legal Topics
Income Tax, Employment Income, Discovery Assessments, Tax Avoidance Schemes, Employee Benefit Trusts, Self Assessment, DOTAS Disclosure
Tax Law Income Tax Employment Income Discovery Assessments Tax Avoidance Schemes Employee Benefit Trusts Self Assessment DOTAS Disclosure

Case Brief

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Parties

Andrew O'Brien

Appellant

The Commissioners for His Majesty's Revenue and Customs

Respondents

Procedural Posture

Income Tax Appeal / First Tier Tribunal (tax Chamber) Final Judgment

Legal Issues

  1. 1 Whether sums paid to an offshore employee benefit trust and loaned to the appellant are taxable as employment income
  2. 2 Whether the discovery assessment under s.29 TMA 1970 was validly imposed
  3. 3 Whether the amount assessed is correct

Ratio Decidendi

The loans received by the appellant from the ECL Employee Benefit Trust during the 2009/2010 tax year were taxable as employment income under ITEPA 2003, as established by the Supreme Court in Rangers. The appellant's tax return did not adequately disclose the existence or nature of the loans, nor the DOTAS scheme reference, and thus a hypothetical officer could not have been reasonably expected to be aware of the insufficiency. The discovery assessment under s.29 TMA 1970 was therefore valid, and the amount assessed was correct based on the evidence provided.

Court Disposition

Appeal dismissed

Orders

  • The discovery assessment under s.29 TMA 1970 for the 2009/2010 tax year in the amount of £6,560.80 is upheld.