Andrew Thornhill KC

Tax

• Employee benefit trusts
• Employee remuneration
• Share schemes
• Inheritance tax/capital gains tax planning
• Litigation

Andrew Thornhill is currently heavily engaged in two areas, exits from film schemes and contractor’s appeals regarding the loan charge.

Over the last 15 years or so HMRC has succeeded in winning cases that establish film leasing not to be a trade but an investment. In many instances, taxpayers who successfully claimed deductions for film expenditure on the basis that they carried on a film leasing trade are free to assert that they are not trading. In which case the exit charges for those leaving film leasing would not apply. A long awaited decision in the Hoyle case (heard as long ago as May 2022) will clarify the position.

As regards the loan charge (and also open years where HMRC claim tax on earnings in relation to contractor schemes) there are several possible challenges to liability. One line of defence rests on European law – the point was approached in the Finucane case in Scotland but Lord Tyre held the matter had to be heard in the Tax Tribunal.

A second line of defence rests on tax credits. The argument is that the original receipt of the loan gave rise to earnings in respect of which the contractor obtains a tax credit. The tax credit enables him to argue that he has paid the tax and that this payment reduces the loan charge to nil.

The Loan Charge Action Group proposes to bring a test case from which any taxpayer with a loan charge can benefit on joining the group.

Andrew Thornhill is also engaged in exploring new ways of using life policies to plan for inheritance tax and ways in which pension schemes can invest in residential property. He is happy to consider new ideas and develop them with clients.

Featured cases

• John Mander Pension Trustees Limited v HMRC (Supreme Court)
• RFC 2012 Plc (formerly The Rangers Football Club Plc) v Advocate General for Scotland
  (Scotland) [2017] 1 WLR 2767 (Supreme Court – whether an employee’s remuneration taxable
  as his or her emoluments or earnings when paid to a third party)
• Clavis Liberty Fund 1 LP v HMRC (First-tier Tribunal)
• Scotts Atlantic v HMRC (Upper Tribunal)
• Laird v CIR (House of Lords)
• Eversden v CIR (Court of Appeal)
• Dextra Accessories v MacDonald (Court of Appeal)
• Optos (Special Commissioners)

This is the Privacy Policy for:

Barrister: Andrew Thornhill KC

Address: 1EC, 3 King’s Bench Walk North, Inner Temple, London, EC4Y 7HR

The Purposes for which Personal Data is Processed:

Personal data will be processed in order to enable the provision of legal services, ie:

1. advice;
2. representation in court;
3. the drafting of legal documents.

It may also be necessary to retain personal data for conflict-checking purposes or for use in the defense of potential complaints, legal proceedings or fee disputes.

The Lawful Basis for Processing Personal Data

In some cases the subject of the personal data will have given consent to the processing of his or her personal data. Where explicit consent has not been given, personal data will be processed only when:

1. it is necessary for the performance of a contract with the person whose personal data is processed (or prior to entering such contract, in order to take steps at the request of the person whose personal data is processed); or when
2. it is necessary for the purposes of providing legal services.

Special Categories of Personal Data

It may be necessary to process personal data which constitute particularly sensitive special categories, ie personal data revealing racial or ethnic origin, political opinions, religious or philosophical beliefs, or trade union membership, and the processing of genetic data, biometric data for the purpose of uniquely identifying a natural person, data concerning health or data concerning a natural person’s sex life or sexual orientation.

Such data will only be processed where processing is necessary for the establishment, exercise or defense of legal claims.

Who will receive Personal Data

The recipients of the personal data processed will be:

1. instructing solicitors and clients;
2. courts and other tribunals to which documents are presented;
3. witnesses and potential witnesses, including expert witnesses;
4. other barristers, pupil barristers and other legal representatives;
5. regulatory authorities.

Retention Periods for Personal Data

Personal data in case files will generally be kept at least the end of one year after the maximum relevant limitation period has expired. The limitation period will be measured from the latest date it is possible to bring any appeal.

The retention period will be reviewed when the work has been completed. The retention period may be adjusted at that time.

International Data Transfers

In cases involving international disputes, it may be necessary to transfer personal data to countries outside the European Economic Area which have different data protection standards to those which apply in the European Economic Area. This will only be done for the purposes set out in this Privacy Policy. In the event this is necessary, appropriate safeguards will be in place to protect personal data, such as European Commission approved standard contractual clauses or the EU-US Privacy Shield. You have a right to ask for a copy of the relevant safeguard.

Individual’s Rights

If your personal data has been processed or held, you have a right to request access to (and rectification or erasure of) personal data; or to request restriction of processing concerning the data subject; or to object to processing; as well as the right to data portability. These rights may be limited where there is a legal requirement, or other legitimate grounds, to process your data.

If you wish to exercise these rights, please use the contact details above.

If you have unresolved concerns you also have the right to complain to data protection authorities.