Mike Lane and Zoe Andrews (Slaughter and May) provide your monthly update on tax developments affecting the City.
Ardmore: when does interest have a UK source?
This was the question the Court of Appeal recently considered in Ardmore Construction Ltd v HMRC [2018] EWCA Civ 1438 before unanimously dismissing Ardmore’s appeal. Since National Bank of Greece v Westminster Bank Executor and Trustee Co (1970) 46 TC 472 the question of source has been answered by the application of what has become known as the ‘multifactorial test’. The Court of Appeal confirmed that this involves an overall assessment of the situation weighing and comparing the relevant factors.
The Court of Appeal noted that the application of the test is highly fact sensitive and accordingly the tribunals are best placed to examine the facts and apply a practical approach. A higher court should only interfere if it appears...
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Mike Lane and Zoe Andrews (Slaughter and May) provide your monthly update on tax developments affecting the City.
Ardmore: when does interest have a UK source?
This was the question the Court of Appeal recently considered in Ardmore Construction Ltd v HMRC [2018] EWCA Civ 1438 before unanimously dismissing Ardmore’s appeal. Since National Bank of Greece v Westminster Bank Executor and Trustee Co (1970) 46 TC 472 the question of source has been answered by the application of what has become known as the ‘multifactorial test’. The Court of Appeal confirmed that this involves an overall assessment of the situation weighing and comparing the relevant factors.
The Court of Appeal noted that the application of the test is highly fact sensitive and accordingly the tribunals are best placed to examine the facts and apply a practical approach. A higher court should only interfere if it appears...
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:
