HM Revenue and Customs (HMRC) have defeated a client of firm NT Advisors at First Tier Tax Tribunal over another tax avoidance scheme. This is the fifth victory against schemes promoted by Matthew Jenner and his firm. Prior to this the most recent defeat was the ‘Working Wheels’ scheme that involved participants claiming to be second-hand car dealers.
This tax tribunal hearing was over the ‘Bluebox’ scheme which took advantage of the tax rules on charitable giving. The scheme involved high-earning individuals giving a £500,000 gift to charity. The tribunal, in the case of William Ferguson and The Commissioners for Her Majesty’s Revenue and Custom (TC/2012/05582), heard that the charity was actually a way of channelling the money tax free to the participant’s Jersey trust and there was virtually no benefit to charity.
The First-tier Tribunal rejected the claim for £200,000 of tax relief, protecting £21 million. This is an example of people trying to avoid tax by taking advantage of the Government’s charitable tax relief which was introduced in order to encourage people to give to charity. However, individuals that took part in this scheme will now have to pay the taxes due. Three individuals already paid £24 million in tax prior to the hearing.
Read the full case of Ferguson v HMRC
here.
See our article about a prior NT Advisors' scheme
here.