The Commissioners for HM Revenue and Customs v Murray Group Holdings Limited and Others
| Jurisdiction | UK Non-devolved |
| Judge | Lord Doherty |
| Neutral Citation | [2014] UKUT 0292 (TCC) |
| Court | Upper Tribunal (Tax and Chancery Chamber) |
| Subject Matter | Tax,8 July 2014 |
| Date | 08 July 2014 |
| Published date | 01 December 2016 |
© CROWN COPYRIGHT 2014
[2014] UKUT 0292(TCC)
Upper Tribunal
(Tax and Chancery Chamber) Appeal Number: FTC/15/2013
Heard at George House, 126 George Street, Edinburgh Determination Promulgated
On 24 – 28 February and 3 – 7 March 2014 08 July 2014
Before
LORD DOHERTY
(Sitting as a Judge of the Upper Tribunal)
Between
THE COMMISSIONERS FOR HER MAJESTY’S REVENUE AND CUSTOMS
Appellants
and
(1) MURRAY GROUP HOLDINGS LTD
(2) MURRAY GROUP MANAGEMENT LTD
(3) THE PREMIER PROPERTY GROUP LTD
(4) G M MINING LTD
(5) RFC 2012 PLC (in liquidation)
(formerly The Rangers Football Club plc)
Respondents
Representation:
For the Appellant: Mr Roderick Thomson QC instructed by the Office of the Advocate General
for Scotland
For the Respondent: Mr Andrew Thornhill QC, Mr Jonathan Bremner and Mr Thomas Chacko
instructed by HBJ Gateley
Appeal Number: FTC/15/2013
2
DETERMINATION AND REASONS
Income Tax and NIC – emoluments/earnings – tax avoidance scheme - remuneration trust – employees’
individual sub-trusts – “protectors” - (1) whether payments into sub-trusts were emoluments/earnings
subject to PAYE and NIC; -No (2) whether loans from sub-trusts were emoluments/earnings subject to
PAYE and NIC; -No (3) “Ramsay” principle - whether FTT erred in law; - No - Case remitted to FTT to
determine certain matters, but otherwise appeal dismissed.
DECISION
Case remitted to the FTT (i) with a direction to allow the taxpayers’ appeals against the
assessments relating to the payments to the sub-trusts of Sir David Murray, his sons, Mr
McClelland, and Mr MacMillan; (ii) to proceed as accords in relation to the termination payments,
the payments in respect of guaranteed bonuses, and any related questions of grossing up. Quoad
ultra the appeal is dismissed.
REASONS
Introduction
1. The appellants are HMRC. The respondents are companies in the Murray Group. The
ultimate holding company is Murray International Holdings Ltd. The first respondent is a
subsidiary holding company. The second respondent, third respondent and fourth
respondent are companies in the Group. The fifth respondent (“Rangers”) was part of the
group during the years of assessment under appeal, but in the course of 2011 was sold
outside the group.
2. I have used the undernoted abbreviations in this decision:
“ICTA” – Income and Corporation Taxes Act 1988
“ITEPA” – Income Tax (Earnings and Pensions) Act 2003
“NIC” – National insurance contributions
“PAYE” – Pay As You Earn
“TCEA” – Tribunals, Courts and Enforcement Act 2007
“UT” – Upper Tribunal
3. The appeals relate to the tax years 2001/02 to 2008/09, and concern a number of
assessments for PAYE and NIC issued between February and April 2008 covering the
period up to 5 April 2007, and additional assessments issued in March 2010 for 2007/08
and 2008/09. The PAYE Determinations were raised under Regulation 80 of the Income
Tax (Pay as You Earn) Regulations 2003, and Section 8 Notices of Decision for NIC were
made under Section 8 of the Social Security Contributions (Transfer of Functions) Act 1999.
The initial assessments were variously amended and subsequently consolidated. The
Determinations and Notices were served on the respondents and arose out of an
Employees’ Remuneration Trust established for the benefit of employees of the Murray
Group and their families.
4. The respondents’ appeals against the Determinations and Notices (all heard together as one
appeal) came before the First-tier Tribunal (“FTT”) comprising Mr Kenneth Mure QC,
Dr Heidi Poon CA, CTA, PhD, and Mr Scott Rae LLB, WS. The hearing took place on
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