In the recent Hargreaves judgment, the Upper Tribunal held that a UK company was not beneficially entitled to interest when it was obliged to pay similar sums to a non-UK entity. The decision effectively seeks to import the international fiscal meaning of ‘beneficial ownership’ into UK domestic law, in a way which is contrary to earlier Court of Appeal authority. Furthermore, once Hargreaves is applied to a few sample scenarios, the uncertainties it creates quickly become apparent.
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In the recent Hargreaves judgment, the Upper Tribunal held that a UK company was not beneficially entitled to interest when it was obliged to pay similar sums to a non-UK entity. The decision effectively seeks to import the international fiscal meaning of ‘beneficial ownership’ into UK domestic law, in a way which is contrary to earlier Court of Appeal authority. Furthermore, once Hargreaves is applied to a few sample scenarios, the uncertainties it creates quickly become apparent.
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:
