The ruling will potentially protect well over one billion pounds for the UK.
HMRC defeated the avoidance scheme, in which De Silva and Dokelman participated, in court in but they argued on a technicality that HMRC could not overturn their loss relief claims. The Supreme Court has disagreed - ruling in favour of HMRC and ensuring that these taxpayers, and others waiting for this ruling, will now have to pay their tax.
HMRC Director General for Customer Strategy & Tax Design, Jim Harra said:
“This is another great success in HMRC’s drive against tax avoidance. HMRC defeated De Silva and Dokelman’s tax avoidance scheme but they still argued on a technicality that the department could not collect the tax. The Supreme Court’s decision in favour of HMRC on this point will ensure that these taxpayers and others waiting behind their case will have to pay what they owe.”