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 were taxable as employment income at the point of redirection, per the Supreme Court in Rangers. The appellant's self-assessment return did not disclose these loans as taxable income, resulting in an insufficiency. The information provided in the return was inadequate to alert a hypothetical officer to the insufficiency, satisfying the condition for a valid discovery assessment under s.29(5) TMA 1970. The amount assessed by HMRC was correct based on the P11D and other evidence. The appeal was dismissed.

Citation
[2026] UKFTT 127 (TC)
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, Discovery Assessments, Employment Income, Contractor Loan Schemes, Employee Benefit Trusts, Self Assessment, DOTAS, PAYE, Disguised Remuneration
Tax Law Income Tax Discovery Assessments Employment Income Contractor Loan Schemes Employee Benefit Trusts Self Assessment DOTAS +2 more

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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 were taxable as employment income at the point of redirection, per the Supreme Court in Rangers. The appellant's self-assessment return did not disclose these loans as taxable income, resulting in an insufficiency. The information provided in the return was inadequate to alert a hypothetical officer to the insufficiency, satisfying the condition for a valid discovery assessment under s.29(5) TMA 1970. The amount assessed by HMRC was correct based on the P11D and other evidence. The appeal was dismissed.

Court Disposition

Appeal dismissed

Orders

  • Discovery assessment under s.29 TMA 1970 for tax year 2009/2010 upheld
  • Appellant liable for assessed tax of £6,560.80 on £33,020 employment income