Marlborough DP Ltd (appellant) v HM Revenue and Customs (respondent)
Wednesday 30 April – Thursday 1 May 2025
By Appellant’s Notice filed on 2 July 2024, the Appellant (respondent below) Marlborough DP Ltd, appeals in part the decision of Mr Justice Edward Johnson and Judge Guy Brannan, sitting in the Upper Tribunal (Tax and Chancery Chamber), with judgment delivered on 16 April 2024.
Dr Thomas is a dentist and, at all times material to this appeal, carried on a dental practice through his wholly-owned company, Marlborough DP Limited (“MDPL”), the Appellant (Respondent below) MDPL entered into a tax avoidance scheme under which it made payments through certain trust arrangements, which were then paid to Dr Thomas by way of loans. Essentially, the objective of the scheme was that MDPL would obtain a corporation tax deduction for the payments it made, and that Dr Thomas would not pay income tax on the amounts that he received by way of loans. It is common ground that the tax avoidance scheme was not effective.
The question to be considered broadly is to the correct tax treatment, for both income and corporation tax purposes, of the various payments that were made.
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