The First Tier Tribunal (FTT) has dismissed Anthony Marsden’s appeal against the £434,318.73 penalty notice which made him personally liable for the inaccurate tax returns provided to HMRC by his company Grangewood Enterprises Ltd & Anor but the court has reduced the penalty to £361,932.28 due to the quality of the disclosure.

In the accounting period ending 30 September 2016, Marsden had withdrawn money from the company account which increased his own overdrawn director’s loan account. This gave rise to a tax charge under section 455 of the Corporation Tax Act (CTA) 2010.

Grangewood’s accounts for the accounting period ending 30 September 2016 showed that Marsden had transferred an intangible asset valued at £4m to the company, bringing the director’s loan account into credit.

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