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United Kingdom

SRN appeals limited to notified parties under FA 2004 ss 310D–311B; EU free movement argument fails post‑Brexit—Oculus Ltd v HMRC (FTT, Tax)

Published on: 24 July 2024

Published by a LexisNexis Private Client expert
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Article summary

Oculus Ltd v Revenue and Customs Commissioners [2024] UKFTT 271 (TC)

What are the practical implications of this case?

If an EU-based party does not itself receive notice of an SRN, even though its UK agent has been notified, that party cannot contest the notification, even where it alleges a material negative impact on the EU entity’s operations. EU law—most notably provisions concerning the FOMC—no longer has effect in domestic law and so cannot supersede FA 2004, ss 310D–311B, which were inserted by section 122 and Schedule 3 to the Finance Act 2021 (FA 2021). Those domestic provisions apply without displacement by EU rules.

What was the background?

Oculus advanced loans or comparable benefits in kind to its workforce. GAL acted for Oculus as its agent in connection with this arrangement. Under UK domestic rules, granting loans, or the direct extension of other credit to employees, does not create a liability to income tax...

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