The decision of the Court of Appeal in First Nationwide [2012] EWCA Civ 278 represents a welcome return to certainty of the treatment of dividends paid out of share premium and is generally a helpful restatement of the settled line of case law on the treatment of distributions as capital or income.
Whether a receipt is capital or income is in the abstract inherently neither ‘good’ nor ‘bad’ for tax purposes; but if the position taken by HMRC in a particular case varies depending on the nature of the relief sought or amount of tax assessed this can create unnecessary uncertainty for taxpayers.
The nature of a distribution as income or capital in the hands of the recipient was well-established prior to...
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The decision of the Court of Appeal in First Nationwide [2012] EWCA Civ 278 represents a welcome return to certainty of the treatment of dividends paid out of share premium and is generally a helpful restatement of the settled line of case law on the treatment of distributions as capital or income.
Whether a receipt is capital or income is in the abstract inherently neither ‘good’ nor ‘bad’ for tax purposes; but if the position taken by HMRC in a particular case varies depending on the nature of the relief sought or amount of tax assessed this can create unnecessary uncertainty for taxpayers.
The nature of a distribution as income or capital in the hands of the recipient was well-established prior 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: