Yelkar Ltd (TC5389)
Relevance of an application to rectify a deed of trust
The taxpayer made contributions to an employee benefit trust it had set up in 1997 in three accounting periods to 31 March 1998 2001 and 2003. In September 2005 it executed a deed of variation to rectify the trust deed preventing the trustees having power to pay emoluments.
After enquiries into the taxpayer’s corporation tax returns for the same periods HMRC said the contributions were not allowable tax deductions. The taxpayer appealed but the case was stayed behind three others. In the meantime the taxpayer had accepted that rectification of the trust deed could be awarded only by a court of equity and therefore an application to the High Court was necessary.
In February 2016 HMRC wrote to the taxpayer asking to be informed about the rectification application. The taxpayer objected saying HMRC had...
Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.