Benoît D'Angelin v The Commissioners for HMRC
Decision date: 30 May 2024
Neutral citation: [2024] UKFTT 462 (TC)
Overall AI summary confidence: high
Short overview
This short overview is intended to summarise the case, issues and outcome so far as they are supported by the judgment.
AI confidence in this short overview: high
This appeal concerned whether sums drawn by Mr Benoît D'Angelin from a director's loan account (DLA) after remitting £1.5m into a company qualified for Business Investment Relief (BIR). The First-tier Tribunal held the DLA payments were an "extraction of value" under s.809VH(2) ITA 2007, not caught by the s.809VH(3) exception because they were not on arm's-length terms, and dismissed the appeal. As a result the full £1.5m was treated as remitted and taxable, increasing tax by about £675,307.
Ratio decidendi
This summary is intended to identify the ratio decidendi, meaning the legal reasons for deciding and the binding part of the decision.
AI confidence in this ratio decidendi summary: high
The Tribunal treated "value" in s.809VH(2) as encompassing any receipt of money or money's worth from an involved company, not limited to situations where the recipient is objectively net better off; and the s.809VH(3) exemption requires both that the benefit be in the ordinary course of business and provided on arm's-length terms — informal, interest-free, unsecured, repayable-on-demand director loan arrangements do not satisfy that arm's-length requirement.
Obiter dicta
This summary is intended to identify obiter dicta, meaning observations made by the way that were not necessary to deciding the case and are not binding.
AI confidence in this obiter dicta summary: medium
The Tribunal observed that HMRC guidance, consultation materials and Explanatory Notes may inform purposive interpretation but are not determinative. It also noted the statutory scheme contains no de minimis or pro rata carve-out, so trivial extractions can defeat BIR absent other relief or mitigation.