First-tier Tribunal distinguishes MM to hold Ponzi-scheme interest taxable | Practical Law
The First-tier Tribunal, distinguishing MM v HMRC [2011] UKFTT 807 (TC), held that interest on loans advanced to a fraudulent borrower was taxable, where both the principal and interest were re-advanced to the borrower in a cycle that ultimately ended with the appellant making a partial loss (Rusling v HMRC [2014] UKFTT 692 (TC)).