Robert Frederick Binfield & Anor v The Commissioners for HMRC

Decision date: 6 October 2022

Neutral citation: [2022] UKFTT 364 (TC)

Overall AI summary confidence: high

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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 arose from a dispute over VAT treatment of the 2014 sale of the Arklow estate by LP Investment Properties LLP to Anthology, with the appellants (members of the dissolved LLP) arguing the sale was a transfer of a going concern (TOGC). The First-tier Tribunal accepted jurisdiction but struck out the appeal as an abuse of process because it amounted to a collateral attack on prior criminal findings against Mr Binfield and also held the TOGC case had no reasonable prospect of success. HMRC’s strike-out applications were granted and the Tribunal recorded rights to seek permission to appeal.

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

Where a later civil or tax appeal seeks effectively to relitigate the factual findings that underpinned a final criminal conviction, proceeding with that appeal may amount to an abuse of process and be strikeable; additionally, an asserted TOGC requires consideration of all relevant circumstances (including parties’ intentions) and a mere transfer of land with vacant possession may be insufficient to establish a TOGC.

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 placed weight on contemporaneous documents and conduct (invoices, re-registration, payments) as indicators of tax treatment and found them inconsistent with the appellants’ later recast factual assertions; it also noted that intention and contextual/purposive considerations can be relevant to VAT classification.