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The cases of Tower Radio and Aberdeen Asset Management are further evidence of a shift in the courts against avoidance
KEY POINTS
- There have been several cases on the payment of bonuses through securities and HMRC is winning more of them.
- Key issues are the “money entitlement” argument and the “broad Ramsay” argument.
- Tower Radio decided on the latter and Aberdeen Asset Management on both in favour of HMRC.
- Will the Supreme Court be asked to decide?
Almost exactly a year ago I analysed the judgment of the Upper Tribunal in the linked cases of UBS AG v HMRC and Deutsche Bank v HMRC.
Both cases concerned the same perceived loophole in the restricted securities legislation which exempted shares in employee-controlled companies from being charged to tax when a chargeable event arose.
As a result schemes were devised which allowed (or purported to allow) bonuses to be...
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