HMRC has won its tenth successive case against tax avoidance schemes promoted by NT Advisors.
The Court of Appeal has ruled that NT Advisors’ latest scheme consists of a series of circular payments designed purely to generate tax deductions with no genuine commercial purpose. No tax relief is therefore due.
The latest ruling covers 304 users and will protect £143m for the UK.
This means that HMRC’s court successes against the promoter have now protected £916m in tax, the taxman said.
Previous victories include the defeat of the controversial Working Wheels scheme, where participants claimed to be second-hand car dealers.
Jennie Granger, HMRC’s director general of enforcement and compliance, said: “HMRC has a 100% success record against NT Advisors in the courts. If you are currently using one of their schemes, or any other avoidance scheme, we will help you get out if you get in touch with us.”
In addition to the ten litigation wins, HMRC also successfully defended a Judicial Review brought by NT Advisors which challenged the issue of Schedule 36 notices to obtain information on avoidance schemes.
HMRC has collected £3bn from users of tax avoidance schemes in the last two years under its “accelerated payments” programme, which collects disputed tax up front. It is also consulting on tough new penalties for accountants, tax planners and advisers who provide advice on how to avoid tax.