In our monthly review of tax cases, Sharon Khin reviews Ladbroke case over loan relationship rules, IHT dispute over sole and joint ownership in Lidher and deductible foreign exchange losses in Smith and Nephew, plus the introduction of the inheritance tax nil-rate band and penalties for Making Tax Digital
Case report: Ladbroke loses tax appeal over loan relationship rules
In Travel Document Service & Anor v Revenue & Customs [2017] UKUT 45, the Upper Tribunal considered an appeal against the First Tier Tribunal (FTT) decision of Travel Document Service Ltd [2015] UKFTT 582.
The FTT had dismissed appeals by Travel Document Service (TDS) and Ladbroke Group International (LGI), which are both members of the Ladbroke Group of companies, against decisions by HMRC to disallow non-trading loan relationship debits of £253,939,631 claimed by TDS pursuant to Finance Act 1996 (FA 1996), section 91B and non‑trading loan relationship debits of £9,953,748 and £2,181,479 claimed by LGI.
These debits were incurred in connection with a notifiable tax avoidance scheme devised by Deloitte LLP and advised upon by law firm Slaughter and May.
