UKCO & Anor v Revenue & Customs [2010] UKFTT 419 (TC) (17 September 2010)

UKCO & Anor v Revenue & Customs [2010] UKFTT 419 (TC) (17 September 2010)

Licence fees remained the trading income of Mr XX as inventor and were taxable on him as they arose; there was no alienation or assignment of the income; the various HMRC assessments were validly raised and not void for want of form; s 29 TMA conditions for discovery assessments were satisfied as HMRC did not have sufficient information until May 2004.

Citation
[2010] UKFTT 419 (TC)
Parties
Appellant: Mr XX; Appellant: UKCO; Respondent: HMRC
Jurisdiction
United Kingdom
Judgment Date
17 September 2010
Procedural Posture
Tax Appeal / First Tier Tribunal (tax Chamber) Decision
Outcome
Appeal by Mr XX against Schedule D Assessments dismissed; appeals by UKCO against Para 4, PAYE, and NIC Assessments allowed.
Legal Topics
Income Tax, Corporation Tax, National Insurance Contributions, PAYE, Intellectual Property, Discovery Assessments, Validity of Assessments
Tax Law Income Tax Corporation Tax National Insurance Contributions PAYE Intellectual Property Discovery Assessments Validity of Assessments

Case Brief

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Parties

Mr XX

Appellant

UKCO

Appellant

HMRC

Respondent

Procedural Posture

Tax Appeal / First Tier Tribunal (tax Chamber) Decision

Legal Issues

  1. 1 Whether licence fees were taxable on Mr XX as they arose
  2. 2 Whether licence fees were trading income, employment income, or annual payments
  3. 3 Validity of various HMRC assessments (Para 4, PAYE, NIC, Schedule D)

Ratio Decidendi

Licence fees remained the trading income of Mr XX as inventor and were taxable on him as they arose; there was no alienation or assignment of the income; the various HMRC assessments were validly raised and not void for want of form; s 29 TMA conditions for discovery assessments were satisfied as HMRC did not have sufficient information until May 2004.

Court Disposition

Appeal by Mr XX against Schedule D Assessments dismissed; appeals by UKCO against Para 4, PAYE, and NIC Assessments allowed.

Orders

  • Mr XX is liable for tax on licence fees as trading income under Schedule D Case I.
  • UKCO not liable under Para 4, PAYE, or NIC Assessments.