Mike Lane and Zoe Andrews (Slaughter and May) provide your monthly update on tax developments affecting the City.
Warshaw: ordinary share capital
In S Warshaw v HMRC [2019] UKFTT 268 the FTT had to grapple with the old chestnut of when is a fixed rate preference share ‘ordinary share capital’. Since the late 1990s the Inland Revenue (as it then was) was understood to take the view that to fall outside the definition any dividend right had to be both cumulative and non-compounding. This annoyed the company law purists because HMRC took the view that a non-cumulative dividend meant the holder had a right to a variable dividend whereas a cumulative dividend meant the right was simply deferred to later periods. Whereas the company law purist would point out that...
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:
Mike Lane and Zoe Andrews (Slaughter and May) provide your monthly update on tax developments affecting the City.
Warshaw: ordinary share capital
In S Warshaw v HMRC [2019] UKFTT 268 the FTT had to grapple with the old chestnut of when is a fixed rate preference share ‘ordinary share capital’. Since the late 1990s the Inland Revenue (as it then was) was understood to take the view that to fall outside the definition any dividend right had to be both cumulative and non-compounding. This annoyed the company law purists because HMRC took the view that a non-cumulative dividend meant the holder had a right to a variable dividend whereas a cumulative dividend meant the right was simply deferred to later periods. Whereas the company law purist would point out that...
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:
