Strictly Money Ltd v The Commissioner For HMRC
Decision date: 20 September 2024
Neutral citation: [2024] UKFTT 866 (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
Strictly Money Ltd appealed HMRC’s amendments disallowing R&D-related deductions and an R&D credit for 2016–17. The First-tier Tribunal found the company’s main technology project was not a trade in the period, admitted only a small £30,000 consulting activity was trading, rejected approximately £1.4m paid to Mr Falk and c.£39,000 to Burderop Bridge Ltd as deductible, refused late evidence, and dismissed the appeal, leaving HMRC’s amended assessment intact.
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
Expenses are deductible only if incurred wholly and exclusively for the purposes of a trade; where the asserted activity is not a trade in the relevant period, related expenditure cannot be claimed as trading deductions. Compliance with pre-hearing disclosure directions and timely production of contemporaneous evidence is critical, and extreme lateness in adducing documents can justify refusal to admit them.
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 commented on the weakened evidential value of second‑hand testimony and emphasised the importance of contemporaneous documentation and witness attendance to substantiate claims, affecting the weight of the appellant’s evidence.