Kinsey v Revenue and Customs [2010] UKFTT 42 (TC) (22 January 2010)

Kinsey v Revenue and Customs [2010] UKFTT 42 (TC) (22 January 2010)

In the absence of evidence supporting the claimed expenditure, the tribunal accepted HMRC's best judgement and disallowed £75,085 of expenditure, increasing the appellant's self assessment from a loss to a profit.

Citation
[2010] UKFTT 42
Parties
Appellant: Victor Kinsey; Respondents: The Commissioners for Her Majesty’s Revenue and Customs
Jurisdiction
United Kingdom
Judgment Date
22 January 2010
Procedural Posture
Income Tax Appeal / First Tier Tribunal Decision
Outcome
Appeal dismissed in part; HMRC's amendments largely upheld.
Legal Topics
Income Tax, Self Assessment, Closure Notice, Allowable Expenditure, Appeal Procedure
Tax Law Income Tax Self Assessment Closure Notice Allowable Expenditure Appeal Procedure

Case Brief

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Parties

Victor Kinsey

Appellant

The Commissioners for Her Majesty’s Revenue and Customs

Respondents

Procedural Posture

Income Tax Appeal / First Tier Tribunal Decision

Legal Issues

  1. 1 Whether the expenditure claimed by the appellant in his 2004/5 tax return was allowable in the absence of supporting evidence
  2. 2 Whether HMRC's amendments to the self assessment were justified

Ratio Decidendi

In the absence of evidence supporting the claimed expenditure, the tribunal accepted HMRC's best judgement and disallowed £75,085 of expenditure, increasing the appellant's self assessment from a loss to a profit.

Court Disposition

Appeal dismissed in part; HMRC's amendments largely upheld.

Orders

  • £75,085 of expenditure disallowed from appellant's 2004/5 tax return
  • Self assessment for 2004/5 increased from a loss of £56,558 to a profit of £18,527