HMRC has successfully challenged a stamp duty land tax (SDLT) avoidance scheme, protecting some £68m of taxpayers' money.
The Court of Appeal ruled a company that purchased a property on London's Regent Street, then sold the leasehold interest to a partnership in which it had a 98% interest, would not be exempt from paying the tax, Accountancy Age's sister title IFAonline reports.
All the scheme had achieved was to shift the obligation to pay SDLT from the company to its partnership, the court decided.
David Gauke, Exchequer Secretary to the Treasury, said: "This case shows that HMRC will challenge the designers of tax avoidance schemes, and those who use them, taking them to the highest court in the land if necessary.
"This is another excellent win that will protect the money of hard-working taxpayers."
HMRC said successful court challenges against SDLT avoidance schemes have protected almost £400m of taxpayers' money in the last year.
The judgment affects 87 follower cases, the taxman said.
You may also like
If budgeting is to have any value at all, it needs a radical overhaul. In today's dynamic marketplace, budgeting can no longer serve as a company's only management system; it must integrate with and support dedicated strategy management systems, process improvement systems, and the like. In this paper, Professor Peter Horvath and Dr Ralf Sauter present what's wrong with the current approach to budgeting and how to fix it.
In this white paper CCH provide checklists to help accountants and finance professionals both in practice and in business examine these issues and make plans. Also includes a case study of a large commercial organisation working through the first year of mandatory iXBRL filing.