HMRC triumphs in £260m tax avoidance court battles

HM Revenue & Customs (HMRC) has secured over £260 million after triumphing against three tax avoidance schemes in tribunal battles.

The Upper Tribunal dismissed an appeal brought by the investors of a scheme promoted by NT Advisors. This was HMRC’s ninth win against schemes promoted by NT Advisors.

According to HMRC. the scheme, which had 420 investors, sought to create artificial losses by using a combination of employment income and capital gains tax rules on share options.

The Upper Tribunal also dismissed two other cases against two bespoke tax avoidance schemes designed by banks to provide investors with a much higher tax-free return on their cash deposits than they could have obtained by placing funds in a normal deposit account. Both of these schemes were marketed and sold by banks some years ago for substantial fees.

HMRC has been ramping up its tax avoidance crackdown over the past year. In 2014 it gained the power to send accelerated payment notices to tax avoidance scheme users, which demanded they pay disputed tax 90 days before the taxman challenged their scheme in court.

David Gauke (pictured), financial secretary to the Treasury, said: ‘The overwhelming majority of people pay the taxes they owe. These latest cases show that HMRC will effectively tackle those who try to get around their legal responsibilities.’

‘Users of avoidance schemes should think twice before trying to abuse tax reliefs to avoid paying their fair share of tax.’