Gelder Ltd v Revenue & Customs (INCOME TAX - Construction Industry Scheme) [2021] UKFTT 294 (TC) (18 August 2021)
- Citation
- [2021] UKFTT 294
- Status
- Judgment
- Jurisdiction
- United Kingdom
- Posture
- Tax Appeal / First Instance Tribunal Decision
More details
- Posture
- Tax Appeal / First Instance Tribunal Decision
On this page
Professional case brief
Research organized from the available case record
01
Holding and result
The tribunal found that Gelder Ltd took reasonable care, made errors in good faith, and held a genuine belief in its interpretation, thus satisfying the criteria for relief under regulation 9(3).
Court disposition
appeal allowed
Orders
- Relief under regulation 9(3) granted to Gelder Ltd
02
Material facts
Parties
Gelder Ltd
AppellantThe Commissioners for Her Majesty's Revenue & Customs
Respondent03
Procedural history
Posture
Tax Appeal / First Instance Tribunal Decision
04
Questions and positions
Legal issues
- 01
Whether Gelder Ltd was entitled to relief under regulation 9(3) of the Income Tax (Construction Industry Scheme) Regulations 2005
- 02
Whether Gelder Ltd took 'reasonable care' in operating the Construction Industry Scheme
- 03
Whether errors were made in good faith and with genuine belief
Party arguments
- Applicant
- Gelder Ltd argued that it took reasonable care in operating the Construction Industry Scheme, that any errors were made in good faith, and that it had a genuine belief in its interpretation regarding plant hire and materials costs.
- Respondent
- HMRC contended that Gelder Ltd did not meet the criteria for relief under regulation 9(3), failed to take reasonable care, and incorrectly excluded certain materials costs from CIS withholding tax.
05
Court’s reasoning
Legal principles
- 01
Income Tax (Construction Industry Scheme) Regulations 2005, regulation 9(3)
Relief under regulation 9(3) is available where the contractor took reasonable care to comply with the regulations and the error was made in good faith and with genuine belief.
- 02
s 61(1) Finance Act 2004
Distinction between plant hired-in and plant owned by subcontractors is relevant for determining materials cost exclusions under CIS.
06
Ratio, limits and disposition
Ratio decidendi
The tribunal found that Gelder Ltd took reasonable care, made errors in good faith, and held a genuine belief in its interpretation, thus satisfying the criteria for relief under regulation 9(3).
Court disposition
appeal allowed
- Relief under regulation 9(3) granted to Gelder Ltd
Source and reliance status
Official court record
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Judgment reading view
Judgment text
The complete available source text.
Court record
Judgment
 Gelder Ltd v Revenue & Customs (INCOME TAX - Construction Industry Scheme) [2021] UKFTT 294 (TC) (18 August 2021) [ Home ] [ Databases ] [ World Law ] [ Multidatabase Search ] [ Help ] [ Feedback ] [
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BAILII >> Databases >> First-tier Tribunal (Tax) >> Gelder Ltd v Revenue & Customs (INCOME TAX - Construction Industry Scheme) [2021] UKFTT 294 (TC) (18 August 2021) URL: https://www.bailii.org/uk/cases/UKFTT/TC/2021/TC08236.html Cite as: [2021] UKFTT 294 (TC) [ New search ] [ Contents list ] [ Printable PDF version ] [ Help ] Decision Number: TC 08236 Appellant: Gelder Ltd Respondent: The Commissioners for Her Majesty's Revenue & Customs Chairmen / Special Commissioners: Dr Heidi POON Date Of Decision: 18/08/2021 Main Category:
PROCEDURE Main Subcategory: Other Notes: INCOME TAX - Construction Industry Scheme - Income Tax (Construction Industry Scheme) Regulations 2005 - refusal decision to grant relief under regulation 9(3) - s 61(1) FA 2004 - materials cost excluded for CIS withholding tax - distinction between plant hired-in and plant owned by subcontractors - Condition A relief criteria - whether -˜reasonable care-™ taken - whether admission of -˜errors in good faith-™ - whether -˜genuine belief-™ held - appeal allowed PDF Copy: [2021] UKFTT 294 (TC) BAILII: Copyright Policy | Disclaimers | Privacy Policy | Feedback | Donate to BAILII URL: https://www.bailii.org/uk/cases/UKFTT/TC/2021/TC08236.html
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