In Aspect Capital Ltd v HMRC (TC02112 – 12 July) a company (AC) operated an ‘employee participation scheme’ designed to give shares to ‘selected key employees’. Such employees entered into a ‘facility agreement’. HMRC considered that the effect of the agreement was that the employees became indebted to the company. They issued assessments charging tax under what is now CTA 2010 s 455. AC appealed contending that the effect of the HL decision in Potts’ Executors v CIR 32 TC 211 was that it should not be treated as having made loans to the employees. The First-tier Tribunal rejected this contention and dismissed the appeals finding that the effect of the agreement was that AC ‘agreed with each employee to purchase shares on the employee’s behalf from the trustee using the appellant’s money which money the employee agreed to repay at a later...
