Cyclops Electronics Ltd and another v Revenue and Customs Commissioners

Income tax – Earnings from employment. The First-tier Tribunal (Tax Chamber)(the FTT) had correctly decided that the loan notes at issue were not 'restricted securities' for the purposes of Pt 7 of the Income Tax (Earnings and Pensions) Act 2003 and were therefore subject to income tax and national insurance contributions. The Upper Tribunal (Tax and Chancery Chamber) so held in dismissing the taxpayers' appeals against the FTT's decision. The FTT had correctly identified the relevant principles to be applied in considering the terms of the restrictions, as derived from UBS AG v HMRC and Deutsche Bank Group Services (UK) Ltd v HMRC [2016] STC 934and had correctly applied those principles to the relevant facts in the appeals.

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