In this month’s review, Sophie Dworetzsky (Charles Russell Speechlys) examines a case on distributions from an offshore company, a potentially farreaching proposed change to the definition of permanent establishment and the latest HMRC guidance.
Beard: whether distributions are income or capital
In Beard v HMRC [2025] EWCA Civ 385 (reported in Tax Journal 9 May 2025) the Court of Appeal (CA) upheld the decisions of the FTT and the UT that distributions of a Jersey company funded from share premium account were income in nature.
Between 2011 and 2016 the taxpayer received distributions of c.£150m from Glencore PLC a Swiss resident and Jersey incorporated company. The distributions were made from share premium account as was allowed as a matter of Jersey law. The taxpayer had contended that the distributions were capital in nature.
However the FTT found that the distributions were income. Three...
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In this month’s review, Sophie Dworetzsky (Charles Russell Speechlys) examines a case on distributions from an offshore company, a potentially farreaching proposed change to the definition of permanent establishment and the latest HMRC guidance.
Beard: whether distributions are income or capital
In Beard v HMRC [2025] EWCA Civ 385 (reported in Tax Journal 9 May 2025) the Court of Appeal (CA) upheld the decisions of the FTT and the UT that distributions of a Jersey company funded from share premium account were income in nature.
Between 2011 and 2016 the taxpayer received distributions of c.£150m from Glencore PLC a Swiss resident and Jersey incorporated company. The distributions were made from share premium account as was allowed as a matter of Jersey law. The taxpayer had contended that the distributions were capital in nature.
However the FTT found that the distributions were income. Three...
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:
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