A daughter was not liable to a benefit-in-kind charge on care home fees in respect of her mother, which were paid by her father’s company.
The appellant (SB) was employed by a company (VWM) of which her father (Mr B) was majority shareholder and managing director. Mr B’s spouse (Mrs B) began to suffer ill health, and was admitted to a nursing care home. VWM paid Mrs B’s care home fees.
HM Revenue and Customs (HMRC) considered that SB had personally contracted with the care home, and that VWM had met her personal liability. HMRC assessed SB to tax on the basis that there was a benefit-in-kind, which had been omitted from SB’s tax returns for 2009/10 and 2010/11. The appellant appealed, arguing that she was not taxable on her mother’s care home fees, which should have been included on Mr B’s returns of benefits and expenses (forms P11D).
The First-tier Tribunal )
