Grogan v Revenue & Customs [2009] UKFTT 238 (TC) (14 September 2009)

Grogan v Revenue & Customs [2009] UKFTT 238 (TC) (14 September 2009)

The original notice under ICTA 1988 s.703(3) was invalid as no notice was served before 6 April 2007; the notice under ITA 2007 s.698 was effective. The Tribunal found, on the balance of probabilities, that obtaining a tax advantage was a main object of the transactions, and the escape clause did not apply. The appeal was dismissed.

Citation
[2009] UKFTT 238 (TC)
Parties
Appellant: Nigel P Grogan; Respondents: The Commissioners for Her Majesty’s Revenue and Customs
Jurisdiction
United Kingdom
Judgment Date
14 September 2009
Procedural Posture
Income Tax Appeal / Final Judgment
Outcome
Appeal dismissed
Legal Topics
Transaction in Securities, Employee Share Ownership Trusts (quest), Income Tax Advantage, Counteraction Notices, Main Object Test
Tax Law Transaction in Securities Employee Share Ownership Trusts (quest) Income Tax Advantage Counteraction Notices Main Object Test

Case Brief

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Parties

Nigel P Grogan

Appellant

The Commissioners for Her Majesty’s Revenue and Customs

Respondents

Procedural Posture

Income Tax Appeal / Final Judgment

Legal Issues

  1. 1 Validity of counteraction notice under ICTA 1988 s.703(3) versus ITA 2007 s.698
  2. 2 Whether a tax advantage was obtained
  3. 3 Whether obtaining a tax advantage was a main object of the transactions

Ratio Decidendi

The original notice under ICTA 1988 s.703(3) was invalid as no notice was served before 6 April 2007; the notice under ITA 2007 s.698 was effective. The Tribunal found, on the balance of probabilities, that obtaining a tax advantage was a main object of the transactions, and the escape clause did not apply. The appeal was dismissed.

Court Disposition

Appeal dismissed

Orders

  • Notice under ITA 2007 s.698 upheld
  • Assessment to income tax confirmed