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In Mark Dunsby v HMRC [2020] TC7755, a tax scheme designed to transfer tax-free cash out of an owner-managed company fell foul of both the settlements and transfer of assets abroad rules.

HMRC raised an assessment and challenged the planning on the basis that:

The FTT found that:

The judge also amended the assessment increasing it to the sum of £200,000, that being the sum total extracted from the company.

Comment

This is a short summary of this case. This is the lead case in a number of similar appeals. It is listed for appeal. It will be interesting to see if the Upper Tribunal disagrees with the analysis.

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External link

Mark Dunsby v HMRC [2020] TC7755