The Upper Tribunal (UT) has dismissed Hargreaves’ appeal and determined that tax should have been withheld from interest paid on loans advanced to the group. The UT’s decision to dismiss the appeal should itself come as no surprise to tax practitioners. In reaching its conclusion, the UT explored key UK withholding tax issues and concepts in respect of interest payments centred around UK source, yearly interest, double tax treaty relief and beneficial entitlement. The UT was able to helpfully reaffirm certain best practice points and considerations, whilst also requiring tax practitioners to potentially reconsider whether certain types of finance arrangements now fall outside of UK withholding tax exemptions in circumstances where previously this may not have been in question.
If you are not a subscriber, subscribe now to read this content.
The Upper Tribunal (UT) has dismissed Hargreaves’ appeal and determined that tax should have been withheld from interest paid on loans advanced to the group. The UT’s decision to dismiss the appeal should itself come as no surprise to tax practitioners. In reaching its conclusion, the UT explored key UK withholding tax issues and concepts in respect of interest payments centred around UK source, yearly interest, double tax treaty relief and beneficial entitlement. The UT was able to helpfully reaffirm certain best practice points and considerations, whilst also requiring tax practitioners to potentially reconsider whether certain types of finance arrangements now fall outside of UK withholding tax exemptions in circumstances where previously this may not have been in question.
If you are not a subscriber, subscribe now to read this content.
.tmb-editorspic.jpg?sfvrsn=df04ab27_1)
