The Commissioners for HMRC v Dark Blue Umbrella Limited
Decision date: 5 December 2022
Neutral citation: [2022] UKFTT 453 (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
HMRC applied under s.314A FA 2004 for an order treating an "annuity arrangement scheme" operated by Dark Blue Umbrella Ltd as a notifiable arrangement. The Tribunal found the arrangements were standardised, designed to secure a tax advantage, and that the company acted as a promoter, and therefore made an order declaring the arrangements notifiable. The respondent had been barred from the proceedings and the application succeeded.
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 held that standardised documentation and uniform transactions made available to multiple persons satisfy Regulation 10(2) and thus s.306(1)(a) (making an arrangement notifiable); where marketing and communications show obtaining a tax advantage is a main benefit or expected main benefit, that satisfies s.306(1)(c); and a person who provides tax‑related services and organises or makes such arrangements available can meet the statutory definition of a "promoter."
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 dismissed ancillary arguments (including a claimed discretionary power not to make an order and DOTAS/EU free movement points) as unnecessary and noted HMRC v Opus Bestpay Ltd without further comment, suggesting those topics were not determinative in this decision.
Warning
The chunk contains substantial duplication and repeated passages; care required to avoid double-counting facts. notes contain duplication and repeated passages; some procedural detail (e.g. precise participant numbers) is approximate.