EWCA Civ 32 (2010) HMRC v Tower MCashback LLP 1 & Anor

Tax avoidance - taxpayer won

Case Summary:

There were two points at issue. On the first, procedural, point, it was held, by a majority, that more issues could be raised in the appeal then had been addressed by HMRC in the correspondence issued with the closure notice. HMRC will be relieved.

On the main issue though it was held that Tower MCashback LLP 2 was entitled to First year Allowances on the 100% of the expenditure on software even although its members had borrowed 75% of the funds against security provided by the vendor, MCashback, on uncommercial terms.