Olu Olufote v The Commissioners for HMRC
Decision date: 14 March 2023
Neutral citation: [2023] UKFTT 130 (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
The First-tier Tribunal dismissed Mr Olufote's appeal against HMRC, concluding that the Finance Act 2003 provisions (ss44, 45 and 75A), read with the connected-persons rule in s1122 CTA 2010, governed the SDLT characterisation of the transactions. The tribunal treated contracts substantially performed as single land transactions under s44, treated transfers of rights as secondary contracts under s45 (with connected-persons consideration rules applying), and applied s75A to disregard a series of scheme transactions and substitute a notional land transaction. The decision records the right to apply for permission to appeal within 56 days.
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 decision’s operative reasoning is that FA 2003 ss44, 45 and 75A (with s1122 CTA 2010) determine SDLT treatment: s44 links contract and conveyance as parts of one land transaction where a contract is substantially performed; s45 treats transfers of rights as secondary contracts such that the transferee is treated as purchaser and consideration can be attributed under connected-persons rules; and s75A permits disregard of steps in a scheme and replacement by a notional land transaction with chargeable consideration based on the largest relevant amount.
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 included procedural guidance and noted accompanying Guidance to the Tribunal decision form, and reproduced definitions and examples in s75A illustrating arrangements that may constitute a scheme for anti-avoidance purposes; these explanatory passages function as commentary rather than binding ratio.
Warning
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