Market leading insight for tax experts
View online issue

R Baker v HMRC

In R Baker v HMRC (TC02790 – 26 July) a company (T) was incorporated in 2002. In 2005 there was a disagreement between its shareholders following which it was agreed that T would purchase the shareholding of its company secretary (B). T made various payments to B without complying with the requirements of the Companies Acts. Following an enquiry HMRC issued a formal decision that B had received a distribution of £120 000 from T in 2005/06. B appealed contending that the agreement between T and B had contravened Companies Act 1985 s 164 and should be treated as void. The First-tier Tribunal (FTT) accepted the latter contention and allowed B’s appeal. Judge Poole held that T’s acquisition of its shares from B should be treated as void and that T (which had subsequently gone into administration) was entitled to recover the money...

If you or your firm subscribes to, please click the login box below:

If you do not subscribe but are a registered user, please enter your details in the following boxes:

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this article in full.
Please reach out to customer services at +44 (0) 330 161 1234 or '' for further assistance.