Two recent decisions have demonstrated conflicting approaches to the interpretation of multi-step transactions, write Angela Savin and Harry Smith (KPMG).
Recent weeks have seen the publication of two decisions of senior courts illustrating a differing approach to the tax treatment of multi-step transactions. In Trustees of the Morrison 2002 Maintenance Trust & others v HMRC [2019] EWCA Civ 93 (Morrison) the Court of Appeal dismissing the taxpayer’s appeal held that a series of transactions by which the taxpayers (trustees of a UK-resident trust) had hoped to dispose of shares free of liability to CGT by migrating the trusts outside the UK prior to a disposal before bringing the proceeds back onshore fell to be viewed as a single arrangement to be viewed – and taxed – in its entirety.
In contrast in Balhousie Holdings Ltd v HMRC [2019] CSIH 7 (Balhousie) the Inner House of the Court of...
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Two recent decisions have demonstrated conflicting approaches to the interpretation of multi-step transactions, write Angela Savin and Harry Smith (KPMG).
Recent weeks have seen the publication of two decisions of senior courts illustrating a differing approach to the tax treatment of multi-step transactions. In Trustees of the Morrison 2002 Maintenance Trust & others v HMRC [2019] EWCA Civ 93 (Morrison) the Court of Appeal dismissing the taxpayer’s appeal held that a series of transactions by which the taxpayers (trustees of a UK-resident trust) had hoped to dispose of shares free of liability to CGT by migrating the trusts outside the UK prior to a disposal before bringing the proceeds back onshore fell to be viewed as a single arrangement to be viewed – and taxed – in its entirety.
In contrast in Balhousie Holdings Ltd v HMRC [2019] CSIH 7 (Balhousie) the Inner House of the Court of...
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