Kirby v Revenue & Customs (INCOME TAX/CORPORATION TAX : Assessment/self-assessment) [2019] UKFTT 206 (TC) (25 March 2019)

Kirby v Revenue & Customs (INCOME TAX/CORPORATION TAX : Assessment/self-assessment) [2019] UKFTT 206 (TC) (25 March 2019)

The Tribunal found that the appellant failed to provide sufficient documentary evidence to establish that the relevant bank accounts were held on resulting trust for his father for the tax years in dispute; thus, the interest was taxable on the appellant. Regarding pensions, the Tribunal held that, in the absence of a formal pension sharing order, the full amount of pension income was taxable on the appellant, regardless of any private arrangement with his ex-wife.

Citation
[2019] UKFTT 206 (TC)
Parties
Appellant: Sean Kirby; Respondents: The Commissioners for Her Majesty’s Revenue & Customs
Jurisdiction
United Kingdom
Judgment Date
25 March 2019
Procedural Posture
Income Tax/corporation Tax Assessment/self Assessment Appeal / First Tier Tribunal (tax) Final Decision
Outcome
Appeal allowed in part
Legal Topics
Income Tax, Self Assessment, Beneficial Ownership, Pension Taxation, Resulting Trusts, Presumption of Advancement
Tax Law Income Tax Self Assessment Beneficial Ownership Pension Taxation Resulting Trusts Presumption of Advancement

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 3 Party arguments 2 Amounts and remedies 2
Sign in to unlock

Parties

Sean Kirby

Appellant

The Commissioners for Her Majesty’s Revenue & Customs

Respondents

Procedural Posture

Income Tax/corporation Tax Assessment/self Assessment Appeal / First Tier Tribunal (tax) Final Decision

Legal Issues

  1. 1 Whether interest received on bank and building society accounts was beneficially owned by the appellant or held on resulting trust for his father and thus not taxable on the appellant
  2. 2 Whether liability to tax for pensions receivable by the appellant is affected by a private agreement to share the pensions with his ex-wife

Ratio Decidendi

The Tribunal found that the appellant failed to provide sufficient documentary evidence to establish that the relevant bank accounts were held on resulting trust for his father for the tax years in dispute; thus, the interest was taxable on the appellant. Regarding pensions, the Tribunal held that, in the absence of a formal pension sharing order, the full amount of pension income was taxable on the appellant, regardless of any private arrangement with his ex-wife.

Court Disposition

Appeal allowed in part

Orders

  • HMRC's assessments for 2011-12 and 2013-14 are upheld in respect of interest and pension income as determined by the Tribunal.
  • Appeal for 2010-11 and 2012-13 is allowed as HMRC did not resist those years due to procedural defects.