Market leading insight for tax experts
View online issue

Irish Bank Resolution Corporation and Irish Nationwide v HMRC

In Irish Bank Resolution Corporation and Irish Nationwide v HMRC [2019] UKUT 277 (9 October 2019) the UT found that HMRC had been correct to deny deductions for interest paid by permanent establishments to the companies they were part of.

Both Irish Bank and Irish Nationwide (which were tax resident in Ireland) traded in the UK through permanent establishments so that the profits attributable to these establishments were chargeable to UK corporation tax. Both appellants’ claims for deductions in relation to interest paid by the permanent establishments to the appellants had been denied. HMRC considered that ICTA 1988 s 11AA(3)(b) precluded such deductions as the returns submitted by the appellants understated the amount of equity capital each permanent establishment was deemed to hold and so overstated the amount of loan capital and the associated interest charges. The issue was therefore the computation of the profits attributable to these...

If you are not a subscriber, subscribe now to read this content.
If you are already a subscriber, sign in
Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this article in full.