The Court of Appeal has found for HMRC on a Ramsay basis in its judgment in Clipperton v HMRC. In doing so, it distinguished the decision in Khan on the taxation of dividends from UK-resident companies and held that the ITTOIA settlements legislation purposively construed can apply widely. It leaves open questions around the need for the settlor to have provided an element of bounty and the risk of double taxation. After the announcements in the recent Budget, the decision repays close reading.
If you are not a subscriber, subscribe now to read this content.
The Court of Appeal has found for HMRC on a Ramsay basis in its judgment in Clipperton v HMRC. In doing so, it distinguished the decision in Khan on the taxation of dividends from UK-resident companies and held that the ITTOIA settlements legislation purposively construed can apply widely. It leaves open questions around the need for the settlor to have provided an element of bounty and the risk of double taxation. After the announcements in the recent Budget, the decision repays close reading.
If you are not a subscriber, subscribe now to read this content.
.tmb-editorspic.jpg?sfvrsn=df04ab27_1)
