In B Khan v HMRC [2021] EWCA Civ 624 (30 April 2021) the Court of Appeal dismissed the taxpayer’s appeal and held that the UT’s decision was correct. The taxpayer had received a distribution consisting of the proceeds of a share buyback and was subject to income tax on that amount even though it was part of a larger transaction and the money just flowed through him. The UT did not err when it rejected the taxpayer’s argument that the facts should be recharacterised as a composite transaction (on a Ramsay analysis). We’ll review this case in further detail shortly.
In MAS Fabrics Hong Kong Ltd v HMRC (TC06641) (30 April 2021) the FTT upheld the penalty. The taxpayer had been careless as it was not sufficient for the...
