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UK Court Decides That Jersey Companies Were UK Tax Resident


Wednesday, December 23, 2020
HMRC v Development Securities, the Court of Appeal (the “
CA”) has overruled the Upper Tribunal and agreed with the First-tier Tribunal that the relevant Jersey incorporated subsidiaries of a UK parent were resident in the UK for tax purposes by reason of being centrally managed and controlled in the UK.
While of considerable interest, it should be remembered that the question of where a company is centrally managed and controlled is principally one of fact and so different facts might yield a different conclusion.
What the CA’s decision shows is that the line between non-UK and UK residence can be a fine one when it depends on whether the overseas company’s directors gave due consideration to the transaction as a whole or just to a small element of it, and that, accordingly, non-UK company boards should always make sure that they give proper consideration to the transaction as a whole, albeit informed by advice or rec ....

United Kingdom , Woodv Holden , Beers Consolidated Mines Ltdv Howe , Supreme Court , Development Securities , Upper Tribunal , First Tier Tribunal , Relevant Subsidiaries , United Kingdom Resident , Chargeable Gains Act , Kingdom Tax Round Upin August , ஒன்றுபட்டது கிஂக்டம் , உச்ச நீதிமன்றம் , வளர்ச்சி பத்திரங்கள் , மேல் தீர்ப்பாயம் , முதல் அடுக்கு தீர்ப்பாயம் , தொடர்புடையது துணை நிறுவனங்கள் , ஒன்றுபட்டது கிஂக்டம் குடியிருப்பாளர் ,