Market leading insight for tax experts
View online issue

M Dunsby v HMRC

In M Dunsby v HMRC [2021] UKUT 289 (TCC) (23 November 2021) the UT overturned the FTT’s decision on distributions finding that the payments made to Mr Dunsby were distributions and that he was subject to income tax on them. The UT also considered that the FTT’s conclusions on the scope and identity of the settlor and the application of the transfer of assets abroad legislation had been correct.

This case concerned a marketed tax avoidance scheme designed to take advantage of the settlements legislation in ITTOIA 2005 Part 5 Chapter 5 by effectively turning it against HMRC. A company issued a single share of a new class (the ‘S’ share) to an unconnected non-UK resident individual (G). The S share carried a right to dividends. G then created a Jersey trust to which she transferred the S share. Under the terms of the trust  the appellant individual (D) had an immediate right to approximately 98% of the trust income for an initial period. During that period the company declared a dividend of...

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.