Upper Tribunal decision on HMRC’s appeal in CRC v Marlborough DP Ltd

The Upper Tribunal (UT) decision in HMRC’s appeal in CRC v Marlborough DP Ltd [2024] UKUT 98 (TCC) represents a key victory for HMRC. The outcome of this case also demonstrates the continually evolving landscape regarding settlement of historic disguised remuneration structures and the need for careful navigation of the settlement process for cases involving such structures.

Background

To briefly recap the facts of this case Dr Matthew Thomas is a dentist who operated through his wholly owned company Marlborough DP Ltd.

Marlborough DP Ltd had entered into tax planning arrangements which involved the payment of funds into a remuneration trust which were subsequently loaned to Dr Thomas. HMRC refused to accept the planning worked as intended and HMRC raised assessments to collect the income tax and National Insurance contributions they felt were due.

The First-tier Tribunal (FTT) decided in favour of the company by allowing the appeals on...