The First Tier Tribunal (FTT) ruled in favour of the appeal by dental practice Marlborough DP Ltd that the loans sent to Dr Mathew Thomas through the practice’s remuneration trust arrangement were classed as dividends and were not subject to tax or NICs.

Thomas was the sole director and was a 100% shareholder of Marlborough and the practice used a remuneration trust arrangement through which contributions it made to the trust were used to provide personal loans to Thomas.