Spread betting arrangements (known as the ‘Alchemy scheme’) were notifiable under the disclosure of tax avoidance scheme provisions, or alternatively, were to be treated as notifiable.
HM Revenue and Customs (HMRC) made two applications to the First-tier Tribunal (FTT). The first application was for an order that certain arrangements were notifiable (for the purposes of FA 2004, Pt 7) under the disclosure of tax avoidance schemes (DOTAS) provisions. The second (alternative) application was for an order that the arrangements were to be treated as notifiable.
The arrangements (referred to as the ‘Alchemy scheme’) broadly involved an individual user (typically a company director or key employee) entering into a spread bet contract with a spread betting business. The bet related to the performance of a basket of hedge funds over a given period. The user would also enter into a hedging contract (commonly
