The recent decision in Warshaw and HMRC’s guidance on whether cumulative preference shares qualify as ‘ordinary share capital’ are at odds. Zoe Arnautov and Gary Barnett (Simmons & Simmons) explain the conflicting positions.
When is a right to a fixed rate dividend not a right to ‘a dividend at a fixed rate’? When it is a right to a fixed rate dividend which accumulates when unpaid giving rise to a right to additional dividends on the accumulated amounts according to the FTT in Warshaw v HMRC [2019] UKFTT 268. No says HMRC in its recently issued guidance published by the CIOT: when it is a fixed rate dividend without any right to accumulation (as no dividend may be paid if there are insufficient profits). These two diametrically opposite views if both correct ...
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The recent decision in Warshaw and HMRC’s guidance on whether cumulative preference shares qualify as ‘ordinary share capital’ are at odds. Zoe Arnautov and Gary Barnett (Simmons & Simmons) explain the conflicting positions.
When is a right to a fixed rate dividend not a right to ‘a dividend at a fixed rate’? When it is a right to a fixed rate dividend which accumulates when unpaid giving rise to a right to additional dividends on the accumulated amounts according to the FTT in Warshaw v HMRC [2019] UKFTT 268. No says HMRC in its recently issued guidance published by the CIOT: when it is a fixed rate dividend without any right to accumulation (as no dividend may be paid if there are insufficient profits). These two diametrically opposite views if both correct ...
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If you do not subscribe but are a registered user, please enter your details in the following boxes:
