Yachting benefit

The taxpayers were a married couple and the directors of two companies ML and WHL both of which they ran from their home offering residential courses and conference facilities.

ML purchased a pair of yachts from the husband and used them for business as well as making them available for charter. WHL bought jewellery which the wife wore at business events and two clocks that were kept at the firm’s premises.

HMRC began an enquiry into the companies and taxpayers in July 2007. It culminated in assessments for 2000/01 to 2008/09 in respect of the yachts jewellery and clocks which were held by the tax department to be benefits in kind for the directors and taxable under ITEPA 2003 s 201.

The taxpayers appealed.

The First-tier Tribunal said “given the very wide definition of ‘benefit’ in the legislation” it...