The Commissioners for HMRC v AML Tax (UK) Limited & Anor
Decision date: 29 April 2022
Neutral citation: [2022] UKFTT 174 (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 "split contract" arrangements promoted by AML entities were notifiable under DOTAS and whether AML (UK) and Denmedical were promoters. The Tribunal found the arrangements afforded a tax advantage (the predominant reason users entered) and met the premium-fee and standardised-product hallmarks, with regulation 11 grandfathering not applying to Denmedical. The Tribunal declared the arrangements notifiable and that AML (UK) and Denmedical were promoters because they went beyond mere introduction and took on organising/management tasks.
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
A promoter may be found where an intermediary, even if not a party to the core contracts, assumes ongoing responsibility for onboarding, supplying and chasing paperwork, and handling invoicing — such operational involvement can satisfy the statutory formulation of being "to any extent" responsible for organising or managing the arrangements. Tax advantage under the regime is assessed by economic comparison with a realistically comparable non‑scheme position, and the premium‑fee hallmark is engaged where a fee or deduction is to a significant extent attributable to the expected tax advantage.
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 judgment suggests (non-bindingly) that the factual line between introducer and promoter may catch intermediaries who perform substantial ongoing operational tasks; that the hallmark regime should be read together with the disclosure regime to avoid a promoter tactical defence based on disclosure obligations; and that once a promoter notifies arrangements further notification for each new user may be unnecessary, with SRNs to be provided to users.