In Oco and another v HMRC [2017] UKFTT 603 (4 August 2017) the FTT found that the framework created by the Tribunal Courts and Enforcement Act (TCEA) 2007 means that it cannot reconsider its own decisions in principle.
The FTT had reached a decision in principle in relation to arrangements involving an employee benefit trust designed to avoid NICs and income tax. HMRC had invited the tribunal to uphold its determinations on three alternative grounds: contributions to the EBT were a redirection of earnings; the trusts purporting to confer discretionary powers were in reality bare trusts; and applying the Ramsay approach the appellants received ‘earnings’ when amounts were paid into the sub-trusts.
The FTT had upheld HMRC’s determinations in principle on the basis that if the parties could not settle the amounts they could revert to the tribunal. It had rejected the redirection and bare trust arguments...
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