Upper Tribunal finds FTT correctly tested place of effective management of trusts.
InG Haworth and others v HMRC[2024] UKUT 58 (TCC)(4 March 2024) the Upper Tribunal (UT) concluded that the First-tier Tribunal (FTT) had made no error of law in the test it had applied to identify the place of effective management of certain family trusts for the purposes of the UK/Mauritius treaty.
The taxpayers were settlors of family trusts that had engaged in a ‘round the world’ tax planning scheme which aimed to avoid UK CGT on disposals of shares on a company flotation. To be effective the scheme relied on the place of effective management (POEM) of the trusts being in Mauritius at the time of disposal under the UK/Mauritius double tax treaty residency tie-breaker.
The scheme was very similar to that considered in HMRC vSmallwood [2010] EWCA Civ 778 in which the...
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Upper Tribunal finds FTT correctly tested place of effective management of trusts.
InG Haworth and others v HMRC[2024] UKUT 58 (TCC)(4 March 2024) the Upper Tribunal (UT) concluded that the First-tier Tribunal (FTT) had made no error of law in the test it had applied to identify the place of effective management of certain family trusts for the purposes of the UK/Mauritius treaty.
The taxpayers were settlors of family trusts that had engaged in a ‘round the world’ tax planning scheme which aimed to avoid UK CGT on disposals of shares on a company flotation. To be effective the scheme relied on the place of effective management (POEM) of the trusts being in Mauritius at the time of disposal under the UK/Mauritius double tax treaty residency tie-breaker.
The scheme was very similar to that considered in HMRC vSmallwood [2010] EWCA Civ 778 in which the...
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If you do not subscribe but are a registered user, please enter your details in the following boxes:
