Market leading insight for tax experts
View online issue

HMRC v First Nationwide

Manufactured dividends paid under stock loan agreement

The CA has unanimously dismissed HMRC’s appeal in HMRC v First Nationwide (CA – 13 March). A UK investment company (F) entered into an ‘overseas securities lender’s agreement’ with a Netherlands bank (AB) which carried on business through a UK branch and was an ‘approved UK intermediary’ within Income Tax (Manufactured Overseas Dividends) Regulations SI 1993/2004 reg 2(1). Under the agreement F became the legal and beneficial owner of certain preference shares in a Cayman Islands company (B) until 29 March 2004 and was required to pay a ‘manufactured dividend’ to AB in respect of any dividend paid on the shares during the currency of the loan. The agreement was a contract for the transfer of overseas securities within ICTA 1988 Sch 23A. F subsequently entered into an agreement with B under which it agreed 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:

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this article in full.
Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.
EDITOR'S PICKstar
Top