No gift to charity

The taxpayer took part in the Bluebox scheme to reduce the income tax due on his earnings. The arrangement promoted by NT Advisers was designed to use ITA 2007 s 431 which allows relief for gifts of shares to charity.

The taxpayer completed transactions aimed at giving rise to tax relief under s 431 although 99% of the value of the securities allegedly given to charity passed to a non-charitable trust for the benefit of the taxpayer and his family.

HMRC refused the taxpayer’s claim for relief saying the facts ought to be looked at as a whole in light of the Ramsay principles of statutory construction.

The taxpayer appealed.

The First-tier Tribunal said it was clear by the time the taxpayer had disposed of the securities there was an “expectation” that the charitable trust would hold only 1% of the value of the...