Sara Luder reports on HMRC's defeat in First Nationwide concerning, inter alia, the meaning of ‘overseas dividends’
The HMRC appeal in HMRC vFirst Nationwide (where I was acting for the taxpayer) was heard by the Upper-tier Tax Tribunal (UTT) in February and the decision has been keenly awaited by tax advisers. The two judges Mr Justice Warren and Judge Edward Sadler found in favour of the taxpayer rejecting all of HMRC’s arguments.
The facts
First Nationwide entered into a stock loan with a bank under which it acquired certain preference shares in a Cayman company. The rights attaching to the preference shares were such that they carried an entitlement to two large quarterly dividends and thereafter the dividend rights reduced significantly (although the shares were still worth at least £1 million).
It is interesting to...
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Sara Luder reports on HMRC's defeat in First Nationwide concerning, inter alia, the meaning of ‘overseas dividends’
The HMRC appeal in HMRC vFirst Nationwide (where I was acting for the taxpayer) was heard by the Upper-tier Tax Tribunal (UTT) in February and the decision has been keenly awaited by tax advisers. The two judges Mr Justice Warren and Judge Edward Sadler found in favour of the taxpayer rejecting all of HMRC’s arguments.
The facts
First Nationwide entered into a stock loan with a bank under which it acquired certain preference shares in a Cayman company. The rights attaching to the preference shares were such that they carried an entitlement to two large quarterly dividends and thereafter the dividend rights reduced significantly (although the shares were still worth at least £1 million).
It is interesting to...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
