A Beard v HMRC

In A Beard v HMRC [2022] UKFTT 129 (TC) (12 April 2020) the FTT when considering the correct UK tax treatment of distributions paid by a Jersey limited company derived from its share premium account held that the dividends were of an income and not capital nature despite the fact they were paid out of a ‘capital' account’.

This appeal concerned the correct UK tax treatment of distributions paid by a Jersey company derived from its share premium account. The company is a publicly listed limited company incorporated in Jersey and domiciled in Switzerland with its head office in Switzerland. It is not resident in the UK for tax purposes. HMRC issued a closure notice charging the appellant to income tax on several such distributions over a number of years. Mr Beard appealed on the grounds that the distributions were of a capital nature which were...