Pike v Revenue & Customs (Rev 1) [2011] UKFTT 289 (TC) (04 May 2011)

Pike v Revenue & Customs (Rev 1) [2011] UKFTT 289 (TC) (04 May 2011)

The sum payable on redemption of the loan stock (7.25% per annum accruing daily) was 'interest' within the ordinary and legal meaning, even though not paid periodically. Therefore, the security was not a relevant discounted security under Schedule 13 Finance Act 1996, and Mr Pike was not entitled to loss relief for the claimed loss.

Citation
[2011] UKFTT 289 (TC)
Parties
Appellant: Nicholas Pike; Respondents: The Commissioners for Her Majesty’s Revenue and Customs
Jurisdiction
United Kingdom
Judgment Date
04 May 2011
Procedural Posture
Appeal Against Closure Notice and Amendment to Self Assessment Tax Return / First Tier Tribunal (tax) Decision
Outcome
Appeal dismissed
Legal Topics
Income Tax, Corporation Tax, Loss Relief, Relevant Discounted Security, Interest Definition, Tax Avoidance
Tax Law Income Tax Corporation Tax Loss Relief Relevant Discounted Security Interest Definition Tax Avoidance

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 2 Authorities cited 18 Party arguments 2 Amounts and remedies 3
Sign in to unlock

Parties

Nicholas Pike

Appellant

The Commissioners for Her Majesty’s Revenue and Customs

Respondents

Procedural Posture

Appeal Against Closure Notice and Amendment to Self Assessment Tax Return / First Tier Tribunal (tax) Decision

Legal Issues

  1. 1 Whether the loan stock issued to Mr Pike was a 'relevant discounted security' under Schedule 13 Finance Act 1996
  2. 2 Whether the sum payable on redemption (7.25% per annum accruing daily) constituted 'interest' for the purposes of the legislation
  3. 3 Whether loss relief was available for the claimed loss on transfer of the security

Ratio Decidendi

The sum payable on redemption of the loan stock (7.25% per annum accruing daily) was 'interest' within the ordinary and legal meaning, even though not paid periodically. Therefore, the security was not a relevant discounted security under Schedule 13 Finance Act 1996, and Mr Pike was not entitled to loss relief for the claimed loss.

Court Disposition

Appeal dismissed