Groves v HMRC [2014] UKFTT 858 (TC)
June 2016 #160The appellant (A) in his capacity as executor of an estate appealed against the imposition of a late filing penalty of £400 in relation to a trust and estate tax return for the year 2012/2013.
HMRC sent A a notice on 6 April 2013 requiring submission of a trust and estate return for that year by 31 October 2013 for paper returns or 31 January 2015 if electronically. On 18 February 2014 HMRC sent A a notice of penalty assessment of £100 for failure to submit the return on time. A appealed to HMRC on 4 March 2014 stating that he had written to HMRC on 27 March 2013 clarifying that ...
Hood [2016] UKFTT 059 (TC)
June 2016 #160Lady Hood was the lessee of the property in Chelsea (‘the property’) pursuant to a lease (‘the head lease’) dated 21 September 1979 and made between (1) Viscount Chelsea (‘the head lessor’) (2) the Chelsea Land & Investment Company Limited (‘Chelsea land”); (3) Cadogan Holdings Company (‘Cadogan’) and (4) Lady Hood. The head lease contained a covenant by the lessee not to transfer underlet or part with possession of part of the demised premises without consent of Cadogan. The head lease also contained a right for the head lessor or the Company to forfeit the head lease for breaches o...
Usher [2016] UKFTT 050 (TC)
May 2016 #159The appellants were the executors of the will of the deceased who had died on 15 October 2012. The appellants had filed an annual self-assessment return for 2012/13, covering the period from 6 April 2012 to the date of death, which under-declared the income for that period. On 26 September 2013, an executor had written to HMRC, sending a cheque for the outstanding tax then due and stating that he presumed that this was full and final settlement and would proceed to distribute the estate. The executors proceeded to do that but failed to publish notice in the London Gazette of tha...
Scott v HMRC [2015] UKFTT 0266 (TC)
October 2015 # 153This appeal related to an inheritance tax notice of determination dated 22 May 2013 in respect of the estate of Dr Olive Scott (Olive) who died on 4 March 2007. Olive was predeceased by her husband Professor James Scott (James). The appellant, Malcolm Scott (Malcolm), was her surviving son and co-executor. The other executor had been Olive’s son Alistair Scott (Alistair), who died on 7 November 2009. There had been a dispute between Alistair and Malcolm as to the correct inheritance tax position in relation to certain paintings, and this had led to their filing separate IHT400 acco...
Curtis Green v HMRC [2015] UKFTT 0236 (TC)
October 2015 # 153Mrs Green ran a business known as Flagstaff Holidays (the business) which let five units of self-contained holiday accommodation in a property known as Flagstaff House, Burnham Overy Staithe, King’s Lynn, Norfolk (the property). Mrs Green had bought the property for £900,000 in 2003. Between 2009-2012, the property was let for a total of around 650 to 750 nights a year. At all relevant times, Mrs Green lived in Woodbridge, Suffolk. On 2 February 2010, the property was valued by a firm of estate agents at £1.9m on a vacant possession basis.
On 5 April 2010, Mrs Green settled ...
Hutchings v HMRC [2015] UKFTT 0009 (TC) On appeal from: TC/2013/00644
October 2015 # 153Robert James Hutchings (‘deceased’) owned a farm in West Sussex, from which he operated a number of businesses, valued at his death at about £3m. He had an offshore bank account with Julius Bär in Switzerland and, approximately six months before his death, authorised a transfer of the balance to the appellant. The sum transferred was £443,669.00. The appellant was also principal beneficiary under the will of the deceased, who died on 14 October 2009. The executors, who were a solicitor and a land agent, met with members of the family on 29 October 2009 during the course of wh...
Seddon & ors v HMRC [2015] UKFTT 140
July/August 2015 #151The appellants were trustees of a discretionary settlement settled in 1999. The settlement’s original assets were five £1 ordinary shares in a limited company. In 2000 the settlement received a scrip dividend of preference shares in the company. The preference shares were sold by the trustees two days after their receipt. Their value was £1,382,750. Some nine years later and a few days before the settlement’s ten year anniversary the trustees made a distribution worth £1,260,361 to certain beneficiaries.
The principal issues concerning were:
- 1. Whether the...
Chada & ors v HMRC [2014] UKFTT 1061(TC)
June 2015 #150Kingston Smith were engaged to provide inheritance tax planning advice to Mr and Mrs Robin, who had terminal medical conditions, in early 2003. They wished to ensure that as much of their property should be available to support the survivor and, following the death of the survivor, their disabled daughter. Mr Chadda, who was a partner at Kingston Smith, discussed strategy at a meeting with Mr and Mrs Tobin based on utilising their inheritance tax nil rate bands, which would require them to make new wills and (in case of a beneficial joint tenancy) service of a notice of severance in rela...
Drown & anr (as Executors of Leadley Deceased) v HMRC [2014] UKFTT 892 (TC)
June 2015 #150Prior to his death on 11 May 2010, the deceased had bought £25,000 of shares in two companies and made a loan of £334,784.00 to a third company. It was accepted by HMRC that by 5 April 2010 the shareholdings were of negligible value. The loan to the third company had become irrecoverable as of 3 November 2009. The deceased’s 2009/2010 tax return was submitted by the appellants who were the deceased’s executors. Capital losses of £384,784.00 were reported and a claim to offset £40,000 against the deceased’s income was made. It was accepted by HMRC that the deceased would...
Litman & anr v HMRC [2014] UKFTT 089 (TC)
June 2015 #150This was the conjoined appeal of two taxpayers against penalty determinations issued against them by HMRC. The taxpayers, who were both business people who held directorships in a number of UK companies, had realised capital gains on the disposal of an entity known as Efforsenrab Ltd and land and buildings in Essex in the UK. They participated in a capital redemption policy scheme and claimed a capital loss arising from that scheme to be set against the capital gains which they had realised. They both signed a professional services agreement with a tax adviser under which it agreed to pr...