Court of Appeal decision in Hoey

Key points

• This is a case which raises questions of taxpayer protection.
• HMRC exercised a discretion under ITEPA 2003 s 684(7A) and argued for the application of the transfer of assets abroad provisions in ITA 2007 Pt 13 Ch 2. Mr Hoey challenged the application of both.
• The Court of Appeal held that the power under s 684(7A) was lawfully exercised and the claim for judicial review failed.
• The court held the charge under ITEPA 2003 took priority and there was no separate liability to income tax under the transfer of assets abroad charge.

The day of horrors unlucky for some proved so for many former users of contractor loan schemes. On Friday 13 May 2022 the Court of Appeal handed down its decision in Hoey and others v CRC [2022] EWCA Civ 656.

At a glance readers might be forgiven for thinking it is simply just another tax avoidance...