This complex case touched on a range of tax issues, including also the application of the GAAR (Wired Orthodontics and Others v HMRC  UKFTT 17 (TC)). The case involved the purchase of gold for employees and the use of an employee benefits trust.
The FTT declined to amend the grounds of appeal as had been requested and also refused to admit new evidence. The tribunal commented that:
“We were left with the very clear impression that both of the Directors had entered into the Scheme with little understanding or knowledge of it beyond the idea that they would receive money tax-free and the Company would claim a corporation tax deduction for the amounts paid to them. Evidence provided by them beyond that is therefore given reduced weight by us.”
In summary, the FTT was satisfied that the directors received money or money’s worth of £300,000 when awarded the gold which was received from their employer, the Company, as a reward for their services. That money or money’s worth was therefore “earnings” under ITEPA 2003, s. 62.