HMRC defeats NT Advisors again at a tax tribunal
14 May 2014 03:25 PM
Another avoidance scheme
designed by NT Advisors has been defeated at a tax
tribunal.
HM Revenue and Customs (HMRC)
scored its fifth victory against schemes promoted by Matthew Jenner and his
firm, bringing the total tax protected to more than £750 million. Recent
defeats for the promoters include ‘Working Wheels’, where
participants claimed to be second-hand car dealers.
The ‘Bluebox’ scheme
involved a purported £500,000 gift to a charity. The charity was used as
a way of channelling the money tax free to the participant’s Jersey
trust, with virtually no benefit to charity.
A First-tier Tribunal has
rejected the claim for £200,000 of tax relief, protecting £21
million.
Sixty participants are now
expected to pay the taxes due. Three individuals already paid £24 million
in tax prior to the hearing.
Financial Secretary to the
Treasury Nicky Morgan said:
The government has provided
charitable tax reliefs to encourage people to give to charities. We will not
tolerate abuse of these incentives for the purposes of tax
avoidance.
While the vast majority of
people pay the taxes they owe, this victory shows HMRC’s
determination and effectiveness in clamping down on those who seek to avoid
their responsibilities. This was another scheme that wasn’t worth
investing in and, as well as the fees investors will have paid to the
promoters, they will now have to pay the tax owed as well as
interest.
HMRC has a dedicated
helpline - 03000 530435 - for those who have engaged in tax avoidance schemes
but now want to settle their affairs. Further information can also be found
on the HMRC website.