Rogers v Revenue & Customs [2011] UKFTT 791 (TC) (28 October 2011)

Rogers v Revenue & Customs [2011] UKFTT 791 (TC) (28 October 2011)

On a true construction of the contractual documents, particularly paragraph 3.1(2) of the 2004 Terms, and in the absence of specific instructions from the Appellant, all withdrawals (other than regular withdrawals, which were expressly provided for) must be treated as partial surrenders applied equally across all policies ('horizontal' surrender). If this interpretation were wrong, there was no cogent evidence of a different basis actually being applied, and the equitable maxim 'equality is equity' would default to the same result. Thus, the Appellant's appeal fails in principle.

Citation
[2011] UKFTT 791
Parties
Appellant: Martin Hedley Rogers; Respondents: The Commissioners for Her Majesty’s Revenue and Customs
Jurisdiction
United Kingdom
Judgment Date
28 October 2011
Procedural Posture
Income Tax Appeal (first Tier Tribunal Tax) / Substantive Determination of Correct Tax Treatment of Insurance Bond Withdrawals
Outcome
Appeal dismissed in principle
Legal Topics
Income Tax, Chargeable Events, Life Insurance Bonds, Partial Surrender, Contract Interpretation
Tax Law Income Tax Chargeable Events Life Insurance Bonds Partial Surrender Contract Interpretation

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Parties

Martin Hedley Rogers

Appellant

The Commissioners for Her Majesty’s Revenue and Customs

Respondents

Procedural Posture

Income Tax Appeal (first Tier Tribunal Tax) / Substantive Determination of Correct Tax Treatment of Insurance Bond Withdrawals

Legal Issues

  1. 1 Whether withdrawals from an offshore life assurance bond should be treated as partial surrenders of all segments ('horizontal') or as total surrenders of some segments and partial surrender of one ('vertical') for income tax purposes under the chargeable events regime.

Ratio Decidendi

On a true construction of the contractual documents, particularly paragraph 3.1(2) of the 2004 Terms, and in the absence of specific instructions from the Appellant, all withdrawals (other than regular withdrawals, which were expressly provided for) must be treated as partial surrenders applied equally across all policies ('horizontal' surrender). If this interpretation were wrong, there was no cogent evidence of a different basis actually being applied, and the equitable maxim 'equality is equity' would default to the same result. Thus, the Appellant's appeal fails in principle.

Court Disposition

Appeal dismissed in principle

Orders

  • Withdrawals from the bond are to be treated as partial surrenders applied equally across all policies for the purposes of income tax chargeable events.