Taxation logo taxation mission text

Since 1927 the leading authority on tax law, practice and administration

Wrong but not negligent

08 April 2013
Categories: Tax cases , Income Tax

A Bingham (TC2528)

The taxpayer deposited money in joint bank and building society accounts in the names of himself his wife and three children. He apportioned the interest between the accountholders and included in his tax returns the proportion relating to himself.

HMRC said that the interest accruing on the accounts was taxable on him because he was solely responsible for funding the accounts and was the beneficial owner. The department raised assessments for the years 1996/97 to 2009/10 and imposed interest and penalties. The taxpayer appealed.

The First-tier Tribunal accepted that the taxpayer had set up the accounts to provide a family fund that any member of the family apart from himself could draw on. The judge believed the taxpayer when he said he had understood from the Revenue that the interest could be split between each family member and reported on their respective tax returns.

But although...

If you or your firm subscribes to, please click the login box below:

If you are not a subscriber but are a registered user or have a free trial, please enter your details in the following boxes:

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.

Please reach out to customer services at +44 (0) 330 161 1234 or '' for further assistance.

back to top icon