26 March 2021

IM Group Limited V HMRC; (FTT)

The taxpayer company made donations to two Brexit campaigns and claimed deductions for the payments as expenses of management under 1219 Corporation Tax Act 2009. In their statement of case, HMRC sought to raise a number of arguments in relation to the deductibility of the donations which the Appellant contended were outside the subject matter of the closure notice. The Appellant applied to the Tribunal for a direction that HMRC be precluded from pursuing those arguments. Following a hearing, the First-tier Tribunal held that the subject matter of the appeal notice was whether deduction of the donations as expenses of management was permissible and therefore HMRC were not precluded from advancing the arguments in their statement of case. The Tribunal refused the Appellant’s application.

Ben Elliott was instructed by HMRC (the Respondents).

To see the approved decision, click here.