Tax cases

Electronic risk

The claimant supplied, installed and maintained computer hardware and software for the insurance industry. The software enabled insurance brokers to carry out certain transactions with insurers, over the claimant's communication systems.
Customs ruled that the claimant's software was able to assess and accept risk on behalf of the insurers. Later in April 2004, Customs said that the claimant's services were not VAT exempt, and issued an assessment in January 2005.
The claimant applied for judicial review in April 2005.

Exempt credit

Under an agency agreement acting in the name of DVAG, a German company (the claimant) acted as a financial adviser for potential clients with a view to them obtaining credit. If a contract was concluded, the lender paid a commission to DVAG, which then paid a commission to the claimant. The claimant said that the commission was VAT exempt.

Unreal world

Mistaken variation

Powerful wife

A Scottish case concerned whether or not the widow had an interest in possession in settled property. The husband had transferred certain securities and investments to the trustees of an inter vivos trust created for his wife in 1962. He died in 1981, and up to that time the income from the trust had been regarded by the Revenue as that of the husband. The wife died in 2002. The Revenue determined that, under IHTA 1984, s 221, she had had an interest in possession in the settled property.
The trustees appealed. 

Last resort

The taxpayers exported mobile telephones. HMRC decided that the taxpayers were not entitled to claim input tax repayments in respect of various transactions, on the basis that they were part of a carousel fraud of which the taxpayers were aware.