This month's review of tax cases and tax news including taxpayer loses £1m Excalibur scheme appeal, HMRC targets multinationals with profit shifting disclosure, tribunal confusion over BlackRock VAT for financial services case
Taxpayer loses £1m ‘Excalibur’ scheme appeal
A taxpayer claiming £1m in tax relief in respect of a £1m capital loss arising from investment in the ‘Excalibur’ tax scheme has lost his appeal at an Upper Tribunal, opening the way for HMRC to reclaim an estimated £155m in tax from other scheme members.
Adrian Kerrison was one of a number of participants in the Excalibur scheme, which was designed and promoted by Premier Strategies Limited (PSL). In his tax return for 2006-2007 he claimed relief of £1,083,984 in respect of a capital loss of £1,102,655.
In 2011 HMRC issued a closure notice in which it concluded that the claims should be denied and that that one of the transactions, a loan waiver, gave rise to a charge to income tax on the amount waived.
