M R Currell Limited: A Cautionary Tale For HMRC

Tackling disguised remuneration (DR) has long been a focus for HMRC, and they have had significant success in the area, protecting billions of pounds of tax revenue. In order to prevent these DR arrangements from fulfilling their purpose of avoiding income tax on earnings (often through an employee benefit trust (EBT)), a tough approach has been required.

However, some measures introduced by the Government, and HMRC’s approach to enforcing them, have been subject to criticism. The recent case of HMRC v M R Currell Limited [2026] EWCA Civ 445 exemplifies this, with the Court of Appeal warning HMRC against over-reaching, and noting that the involvement of a third party did not turn a loan into earnings where it would not have been earnings if loaned directly. While the loan in the case was advanced before the rules in Part 7A of the Income Tax (Earnings and Pensions) Act 2003 (ITEPA) came into force, which can in fact transform loans paid through third parties in this manner, it is