Speed Read: In Swift v HMRC [2010] UKFTT (TC), the First-Tier Tribunal had to identify the beneficial recipient of the profits of a business carried on by a Delaware limited liability company (LLC). Surprisingly, the Tribunal decided that the profits belonged to the members of the LLC, not to the LLC itself, whether or not they were distributed. The taxpayer (a UK individual) was therefore entitled to relief for US tax paid on his share of those profits. The main conclusion is at odds with HMRC's long-standing practice and will be a cause of concern for many groups that have included LLCs in their structures.
