Court of Appeal confirms that loans made under remuneration trust arrangements were taxable as disguised remuneration
In Marlborough DP Ltdv HMRC[2025] EWCA Civ 796 (26 June) the Court of Appeal (CA) dismissed the taxpayer’s appeal and upheld the decision of the Upper Tribunal (UT) confirming that loans made to a director under a remuneration trust scheme were taxable under the disguised remuneration legislation in the ITEPA 2003 Part 7A as being ‘in connection with’ employment. The CA also agreed that the related payments were not deductible for corporation tax (CT) purposes as they were not incurred wholly and exclusively for the purposes of the company’s trade.
The case concerned Marlborough DP Ltd (MDPL) a dental practice wholly-owned and directed by Dr Thomas which implemented a marketed tax avoidance scheme involving contributions to a remuneration trust (RT). These contributions which broadly equated to MDPL’s annual...
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Court of Appeal confirms that loans made under remuneration trust arrangements were taxable as disguised remuneration
In Marlborough DP Ltdv HMRC[2025] EWCA Civ 796 (26 June) the Court of Appeal (CA) dismissed the taxpayer’s appeal and upheld the decision of the Upper Tribunal (UT) confirming that loans made to a director under a remuneration trust scheme were taxable under the disguised remuneration legislation in the ITEPA 2003 Part 7A as being ‘in connection with’ employment. The CA also agreed that the related payments were not deductible for corporation tax (CT) purposes as they were not incurred wholly and exclusively for the purposes of the company’s trade.
The case concerned Marlborough DP Ltd (MDPL) a dental practice wholly-owned and directed by Dr Thomas which implemented a marketed tax avoidance scheme involving contributions to a remuneration trust (RT). These contributions which broadly equated to MDPL’s annual...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
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