EWCA 608 (2009) Drummond v HMRC

June 29th 2009

CGT planning - HMRC won.

Case Summary:

Mr Drummond sought to cover a gain with a capital loss through a tax planning scheme involving the purchase and surrender by him of second-hand, non-qualifying life assurance policies. HMRC argued he had suffered no economic loss. HMRC won at the Special Commissioners and at the High Court. The Court of Appeal gave him permission to appeal to them but refused his appeal.

It was also decided that his fee of £210K was not wholly and exclusively for the purchase of the policies and not an allowable expense.